Operations Consultancy

Network Design Optimization

Cost of Quality as a % of Sales Warranty Costs, Root Cause Analysis, Competitive Analysis (Options & Costing)

Working-Capital Optimization

Excess & Obsolete Inventory Analysis, Working Capital Analysis/Benchmarking, Multi-echelon Inventory Optimization

Sales & Operations Planning

Collaborative Demand Forecasting, Promotions Planning, Supply Chain Planning, Services ABC Analysis and replenishment

Aftermarket Parts & Service

Facilities Design and Detailed Layout, Theory of Constraints / Bottleneck Detection, Transportation Contract Compliance

Purchase Price Optimization

Supplier Capacity / Supplier Risk Analysis, Commodity Spend analysis (Supplier Selection), Identify Global Source/ Supplier Quality Inspection

Operations Assessment

Cost-To-Serve Modeling, Customer Service Analysis, Network Modeling and Facilities Selection, Voice of Customer Analysis (Segmentation))

We improved supply chain of a consumer products company

CHALLENGE

A large Asian consumer products company made its North American market entry by acquiring 3 mid-sized companies with well-established beauty care product lines of lotions, hair colors, and cleansers. They also wanted to introduce a set of high-end products sourced from their Japan market to the American markets, and fine-tune their supply chain to efficiently distribute all these products to improve their overall cost structure.

Our Role

We conducted a thorough assessment of their supply chain and identified significant opportunities to improve performance in the areas of fill rates, cycle times, and overall supply chain costs including inventory, supply chain deductions and claims, and warehouse efficiency.

  • Resolved product availability issues and service issues
  • Paid more attention to strategic customers like big box retailers
  • Increased supplier risks due to high demand and over-reliance on several dispersed suppliers

RESULT

We analyzed and recommended specific projects for improving supply chain operations over 12-24 months. Implemented the following initiatives to generate more than $9 MM benefits in 18 months

  • Better Customer Management: improved bracket pricing, terms of sale, customer invoicing
  • Optimize Distribution Network optimization: Added two new distribution center in the network
  • Supply chain planning: implemented a new demand forecasting and supply chain planning system

WE IMPROVED JAPANESE OPERATIONS OF GLOBAL PACKAGING SUPPLIER

CHALLENGE

A global packaging products client serves the carbonated and non-carbonated beverage industry with plants in all parts of the world incl. Japan which was one of its most profitable segments. Unfortunately, the profit margins were declining very quickly in post Tsunami Japan and the inventory and logistics costs were going through the roof. Our client wanted to understand the root causes of the issue and find alternatives to fix the problem.

Our Role

We conducted a thorough assessment of their supply chain within Japan, China and the US. Current distribution network is out of alignment, with high inventory fluctuations, overlapping territories between warehouses, and non-optimal truck and ocean routes. Total cost to serve, incl. warehouse and transportation costs are out of line with industry standards and identified significant opportunities to improve performance in the areas of fill rates, cycle times, and overall supply chain costs including inventory, supply chain deductions and claims, and warehouse efficiency.

Results

Our recommendations to reduce inventory, warehousing, and truck/ocean transportation changes were presented to the company leadership resulting in $2 to $3 MM of annual savings. Reduced finished goods inventory by 30-40% to support the same level of business by holding more inventory in China instead of Japan. We lowered FGI across the board with special attention to key customers, using the proposed ABC classification, planning changes in production, especially in Japan

Marketing And Sales Consultancy

Product /Service Pricing

Pricing/Discounting Logic, Method and Process Strategic Pricing, Value Pricing, Transactional Pricing, Margin Improvement across Products / Customers​

Customer & market Strategy

Customer Segmentation by Needs (Value), Customer Profitability Analysis and Prioritization, Key Account Analysis and Management

Revenue/Margin Management

Cost-To-Serve Analysis, Channel Strategy and Realignment, Use of Distributors and 3PL Providers Alignment of Channel Incentives with Objectives

Sales Force Effectiveness

Sales-Force Productivity analysis, Incentive Rationalization and Realignment, Sales Organization Improvement

Product Lifecycle Management

Product and Service Portfolio/Mix Rationalization, Product and Service Lifecycle Management, Product Innovation Assessment and Improvement, Strategic Positioning of Products and Services

Marketing Effectiveness

Sizing of Opportunity and Market Segments, Market Entry/Exit Strategy Formulation ,Align Go-To-Market Strategy to Market Segments

We reduced Cost of Complexity for a large OEM

CHALLENGE

A large industrial equipment manufacturer was facing significant profit pressures due to higher cost burdens from increased business complexity. They had already decided to refine their product strategy to determine the most effective product platforms for serving diverse global markets. In addition, they wanted to

  • Protect key markets and grow in evolving ones; lead with technology innovation
  • Fix or exit unprofitable products; align product and components by rationalizing product offerings
  • Be a low cost producer by using global sourcing for lower cost base
  • Improve product quality, improve fault detection, reduce warranty expense
  • Optimize customer pricing using right product offerings and option groups

Our Role

Develop a strategic approach to complexity reduction by measuring their cost of complexity. We also developed a complexity structure of current product portfolio and identify the complexity drivers. Our analysis indicated that 6-11% of total cost structure could be attributed to business complexity.

Results

While some of this cost could be impacted by process simplification, most of it required product changes. We estimated about 30-40% of the cost of complexity could be recovered by product simplification over 2-4 years. Product strategy team used our cost of complexity model to help streamline current product portfolio, reducing number of platforms by > 50% in 5 years.

We implemented product lifecycle pricing for aftermarket service parts

CHALLENGE

Selling more than 100,000 part numbers, all around the world to global customers requires a complex price setting process in order to optimize regional and global profits over the full lifecycle of products. We developed a new approach to pricing

Our Role

We developed a new parts segmentation scheme based on product lifecycle, component criticality, part technology etc. to group "like-parts" together for pricing purposes. We then used it to define our pricing logic for each group of parts – Actively managed & Analytical managed. We also created a new structure for their pricing and product management organization.

Results

We increased revenues and margins by 4 - 6% for a global aftermarket parts business. Conducted annual pricing action (Standardize, Rationalize, and Optimize) set regional prices based on global prices and regional adjustments. We developed a pricing process working w/ regional product managers; connect with central pricing teams providing analytical support for quarterly performance reviews

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