Background

Our client contacted us to design and implement a category strategy for their primary packaging demand across Europe: The UK, France and Germany businesses spent €55M on carton packaging, with no pan-European strategy or multi-year agreements, and 69 suppliers across 12 countries.

Action

We organized a virtual team with members from the 3 countries that realised a Total Cost of Ownership benchmark between these countries, including the impact of specification variation, and established a map of operational risks. We designed a multi-year strategy together with the team and suppliers. During this project, the team validated every single step and communicated continuously towards sponsors and stakeholders in the businesses to ensure buy-in.   Our data mining skills ensured a high level of data integrity, while our transformation experts worked with the company and the suppliers to create alternatives to the status quo. We guided the team step by step and led the way on a journey that was a first for the company – one they didn’t believe could have a successful outcome.

Outcome

In-year savings of €7M Supply base reduced to 9 suppliers with 3 year contracts First successful cross-company supply chain project, resulting in a stronger supply chain

Metrics

12 countries, 4-month project, €55M spend, €7M savings