Cost of Quality as a % of Sales Warranty Costs, Root Cause Analysis, Competitive Analysis (Options & Costing)
Excess & Obsolete Inventory Analysis, Working Capital Analysis/Benchmarking, Multi-echelon Inventory Optimization
Collaborative Demand Forecasting, Promotions Planning, Supply Chain Planning, Services ABC Analysis and replenishment
Supplier Capacity / Supplier Risk Analysis, Commodity Spend analysis (Supplier Selection), Identify Global Source/ Supplier Quality Inspection
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.
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.
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
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.
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.
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
Customer Segmentation by Needs (Value), Customer Profitability Analysis and Prioritization, Key Account Analysis and Management
Sales-Force Productivity analysis, Incentive Rationalization and Realignment, Sales Organization Improvement
Product and Service Portfolio/Mix Rationalization, Product and Service Lifecycle Management, Product Innovation Assessment and Improvement, Strategic Positioning of Products and Services
Sizing of Opportunity and Market Segments, Market Entry/Exit Strategy Formulation ,Align Go-To-Market Strategy to Market Segments
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
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.
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.
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
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.
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