How we transformed a supply and demand department from a reactive to a proactive organization
Process Industries
Case
We were asked to strengthen the planning function, harmonize the supply and demand department, and embrace digital processes within the organization.
Project Scope
Industry: Packaging industry
Company size: >2,500 employees
Project duration: >4 months
Approach
Strengthening the planning function: We carried out an in-depth analysis and found that the planning function needs to be strengthened to ensure that the client is able to create robust and optimized plans that consider other critical elements such as logistics and material planning.
Harmonizing the processes for logistics and fulfillment: In order to develop a harmonized supply and demand approach, it was first important to conduct a comprehensive region-specific analysis of the existing processes of the logistics and fulfillment functions in order to identify possible best practice, but also areas for improvement. Then, together with the functional leads and the regional teams, we created a global standardized operating model. This focused on service quality, but also on cost management.
Embracing digital processes: In the overall approach, it was always important for us and the client to be able to digitalize the processes that improve customer interaction/service and to leverage efficiency gains. For this to work, however, it was important to first understand the processes in detail and to structure them before we digitalized them.
Result
- Improved global long-term and short-term planning
- Defined clear guideline and governance systems
- €9 million total cost savings through increase in efficiency and reduction of inventory
- Increased additional sales volume and service performance
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