Case study

A multi-national food manufacturer

Developing a flexible global supply chain strategy to deliver rapid business benefits of 40 million Swiss Francs

Following a period of sustained expansion, from both organic growth and acquisition, the operations of this Belgian-French multinational food company had become very complex, its costs were too high, and the existing approach to global supply chain management was failing to deliver the required level of customer service. PA was hired to develop an appropriate ’flexible‘ global supply chain strategy, which would both position the business for the future and deliver rapid business benefit. The project covered four continents, Europe, North America, Africa, and Asia, and the whole company – marketing, sales, product development, finance, engineering, purchasing, production, supply chain, and human resources – was involved.

Using PA’s One Page Strategy Framework as a basis and working with a highly participative client, a strategy was delivered which blended theory and best practice with pragmatic realism. This strategy resulted in the adoption of different supply chain approaches for the various business streams (liquid, solid, powder), for the different market segments (retail, industrial, and bakery) and in the company’s different geographic markets. It is enabling the company to reduce costs and complexity, increase service levels, and respond rapidly and cost effectively to the constantly evolving demands of its market place. In parallel with this a performance improvement project was launched. A minimum 15% reduction in supply chain costs is targeted, some 40 million Swiss Francs.