Business growth goal was to double trading profit every 3 years, the supply chain was identified as a key enablers. A supply chain strategy was developed with a strategic outcome of being a "cost efficient" organisation. The strategic imperatives pulled together in the 5 year strategic plan included, cost of goods being held at less than half inflation over the life of the plan, reduction of 20% in working capital investments and the development of a highly responsive product development and launch capability.
Distribution execution was not a core competency, outsourcing would introduce best practice, access the benefits associated with scale from combining volumes with the other principles and realising incremental growth as a result of extending the route to market. The project included network optimisation, request for proposal process, selection, contract finalisation and implementation. Benefit achieved was a 20% cost reduction, 5% volume growth, improvement in service levels, working capital and fixed assets reduction.
An international FMCG local subsidiary had highly fragmented systems, undefined business processes, aging mainframe and generally the companies information requirements were not being met. The project was to centralised IT systems and roll out best-in-class business processes to all its subsidiaries. The project had 3 parts to it, Business Process Re-engineering, Change Management and IT implementation. All were project managed using sound project management principles and was delivered on-time and within budget.
A strategically important product was supplied by 2 suppliers in the market. The impact of spiraling cost was having an effect on the businesses profitability. Going through the category management process one supplier was selected as the preferred partner. A joint supplier collaboration, development, accreditation and performance management program was put in place . The benefit was a reduction in cost, access to the supplier initiated innovation and the supplier in turn got access to the businesses global markets.
The business wanted to fundamentally transform the way in which it uses information to plan and position inventory across its end-to-end supply chain. To make it simpler whilst providing superior service levels at a lower cost than its peers. Demand planning process was re-engineered, capability of the planners upgraded and a planning system implemented. Benefits achieved was a 8% reduction in inventory invested, 10% improvement in the order-fill rate and over 4 years R20m was delivered to the bottom line.
Business was committed in building the leadership capability in its leadership community. Having a break through performance culture and developing them as coaches would shift the overall performance of the organisation. A beneficiary of the program was the National Sales Manager in an West African subsidiary. Through the program and with his external coach he got to explore and put in practice his leadership possibility. He subsequently went to take the role of Sales Director in one of the companies East African subsidiaries.