Redesign of the supply chain for promotions and new product launches
What they asked
Our client is a global CPG company. The company was facing difficulties in determining the right inventory levels for their products. Mainly due to the impact of promotions and new product launches. It appeared difficult to make an accurate forecast of the volume impact of these events on the entire supply chain. This was mainly caused by the lead time for which the forecast had to be made in advance. Marketing, sales and supply chain had to find new ways of working together to flexibly deal with this inaccuracy. The company, therefore, asked us to analyse their current supply chain for promotions and new product launches and to develop new solutions.
What we did
We analysed the current drivers of the complexity in the supply chain. We also made a fact-based gap analysis of all possible root-causes. Based on the information we gathered, we made a new design of the core supply chain processes, significantly reducing lead times. Subsequently, we designed new planning processes and re-aligned the organisation and governance structures between all departments to the new way of working.
What we accomplished
The abovementioned measures resulted in significant cost savings in inventories, obsoletes and labour. The measures taken also led to a differentiation of the supply chain for forecastable and non-forecastable volumes. The supply and demand management processes were improved, which resulted in a better supply chain performance.