Soft Drink Manufacturer Achieves Supply Chain Benefits
Client: Soft Drink Manufacturer
Challenge: To perform a high impact supply chain assessment (HISCA).
Solution: CSC identified a number of benefit-delivering initiatives including SAP upgrade strategy.
Results: The workstreams resulted in large savings (including $2.3 million annually recurring) and business benefits like improved inventory availability.
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A leading producer of soft drink beverages engaged CSC to perform a high impact supply chain assessment (HISCA) to analyze three key business dimensions: supply chain management, SAP capability and enablement, and change management. Each dimension was subjected to a rigorous study to determine improvement opportunities that would deliver the greatest business benefits.
Approach
The initial assessment identified a number of benefit-delivering initiatives. With joint client and CSC resources applied to the effort, teams delivered quick hit and tactical improvements:
- Enhanced raw material inventory synchronization of over 500 items
- Improved sales and operations planning and design, and the introduction of finished goods run strategies for 140 SKUs
- Design of a new performance management system
- Development of an SAP upgrade strategy
- Selection and implementation of a new third-party logistics provider (3PL) system
- Creation of a new organizational design and communication plan.
In each case, CSC consultants worked closely with client personnel using a structured methodology and tools to deliver the benefits in the shortest possible timeframe.
Results
These work streams resulted in the following savings and business benefits:
- U.S. $2 million (annually) in warehouse and transportation savings
- U.S. $1.2 million reduction in raw material inventory - with fill rates of 98+%
- U.S. $1.2 million reduction in finished goods inventory
- U.S. $300K (annual) savings in inventory carrying cost - while availability was improved from 91% to 99.5%.
Since the initial work was completed, other business units within the company have leveraged these solutions to achieve additional savings and business benefits.
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Contact Us for more information about CSC's Supply Chain Solutions.