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Building supply chain capability to support growth in developing markets – sub-Sahara Africa

Client situation & approach

The client is a diverse conglomerate in an emerging economy with interests in manufacturing, processing and distribution including food, beverages, dairy and agriculture in Sub-Saharan Africa with a turnover of $1bn. The group operations cover 90% of the region, including 28 major cities served by various multi-temperature transport modes (including road, rail and barge).

With a growth trajectory of c.300% over three years, the business needed to implement a fit for purpose Supply Chain across the group. The objective of the program was to develop group supply chain capabilities (infrastructure, organization, people, process, systems) through a blend of step-change and continuous improvement. This progression was supported by a learning and organization development approach to deliver sustainable competencies, capabilities and skills.

EFESO supported by:

  • Creating an integrated end to end improvement program with main workstreams covering Procurement, Logistics Assets, Warehousing, Inventory and Planning, Inbound /Primary Logistics, Distribution/ Route to Market.
  • Developing a Learning and Education curriculum to provide key skills and capabilities across the workstreams. EFESO delivered specific continuous improvement methods training with learning that was applied directly to business priority projects (PKE)
  • Governance and program management support for the end to end program

A progressive three-phase roadmap was supported around 3 themes:

  1. Establish Basic Foundations
  2. Sweat the Assets and raise Efficiency
  3. Innovate for Future growth and capability

Further support was provided by EFESO in the client’s journey from a highly decentralised and function based organisation to a cross functional driven structure, able to leverage strengths from both an end to end supply chain and business unit synergies perspective.

Results

  • Inventory reduction 15 to 25%
  • Procurement savings 3 to 5%
  • Logistics Operations cost reduction 10%
  • Knowledge transfer of continuous improvement tools and methods
  • Culture change across the end to end supply chain
  • Created a knowledge base to allow the client to become self-sustaining in skills and capability development