Case Study: Value Chain Analysis Produces Huge Gains

Value Chain Analysis Produces Huge Gains


Client Description

Global Health & Beauty Manufacturer


The client desired to reduce out of stocks and logistics costs for a selected Beauty Care product line which was a representative pilot for other categories. Also, the client wanted to improve relationships with two targeted retailers with results that were below expectation.


  • Analyze the proposed value chain from inbound plant raw material receiving to customer/retailer store delivery.
  • Determine recoverable losses in the value chain and develop projects (solution roadmap) for implementation.

TPG Approach

  • TPG led a team of client supply chain functional leaders and their retailer counterparts to quantify the performance of processes and activities vs. “ideal loss” targets.
  • Gaps were quantified and validated by the client manufacturer and retailer representatives.


  • TPG and the client project team quantified losses totaling 12-18% of COGs for the selected product line of which 6-9% were recoverable.
  • Four (4) projects were identified to realize these recoverable savings.


Leave a Reply