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Restructuring global supply chain for cost savings – Twinings

A global supply chain restructure is estimated to deliver a 26% internal rate of return - PA Consulting Group guided Twinings to hit their £3 million per year supply chain cost saving target.

Following a global acquisition, Twinings decided to review its manufacturing footprint to release savings and provide flexibility for future growth opportunities. They were unclear how to identify the best strategy and the right implementation, considering the large number of possible scenarios and complex risk matrix.

PA’s ability to ‘make it work’ was called upon: creating a dynamic business modelling tool to compare the impact of factors such as changes in volume, mix, process technology, productivity, labour and operating costs across different manufacturing locations. Combining these outputs with the results of a careful assessment of risks, sensitivities and non-financial criteria, Twinings’ senior management team made a quick decision on their preferred strategic option.

From there, a robust and well co-ordinated set of practical plans was created and integrated into an overall change management framework, to ensure the global restructure delivered a timely and successful business outcome including taking advantage of additional opportunities that appeared during the project.

“We were very impressed with the project control systems. Implementation and reporting mechanisms are being adopted for other projects within the group.” - Peter Willets, Supply Chain Development Manager, Twinings

To find out how PA can restructure your global supply chain, please contact us now.

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