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Designing a Target Operating Model for a Growing Nutraceutical CDMO Group

A European nutraceutical CDMO group, partnering with EFESO, defined a Target Operating Model (TOM) that improved governance, clarified processes, and created the foundation for future ERP implementation and operational synergies.

Industry: Consumer Goods and Luxury

Service: Industrial Strategy, Operating Model & Transformation

Service: Operations Strategy and Transformation

Parallaxe

Our Client

A leading European consumer health and wellness group specializing in nutraceutical products. Operating through multiple legal entities across the EU, the organization manages a diverse portfolio of products supported by several management platforms with limited system integration.

3K

Employees worldwide

EFESO has been instrumental to build a detailed picture of the AS IS operating model creating the conditions for the development and definition of Target Operating Model by giving us access to their market knowledge and deep industry expertise

C-Level Steering committee
Parallaxe

The Challenge

Following a buy-and-build expansion strategy, the organization needed to harmonize operations across multiple legal entities while maintaining performance and service levels.

  • Limited data transparency: Fragmented systems and management platforms reduced visibility across the group.
  • Underexploited group synergies: Commercial and production synergies between legal entities were not fully leveraged due to limited structural alignment and information flow.
  • Operational performance pressure: Local entities needed to maintain high service levels while responding flexibly to changing market demand, without compromising product quality or cost efficiency.
  • Need for a scalable operating model: The organization required clear priorities and structure for its Target Operating Model and supporting IT systems to maximize value creation.

Real Results Achieved Together

The project delivered a structured Target Operating Model providing clear guidance for governance, processes, and future system integration across the group.

4

Legal-entity handbooks detailing processes, systems, and organizational structures at Level-3 detail

1

Group-wide handbook defining the Target Operating Model and guiding ERP blueprint development

Transformation Impact

  • Established a structured Target Operating Model to support group integration.
  • Improved clarity on processes, organizational responsibilities, and system architecture.
  • Created a practical foundation for ERP blueprint design and future digital integration.
  • Enabled stronger alignment between local operations and overall group strategy.
Parallaxe

Our Approach

EFESO supported the organization in designing a scalable Target Operating Model through a structured three-step methodology combining operational diagnostics, collaborative design, and strategic alignment.

  1. Discover and Prepare
    • Conducted as-is mapping across each company to document current processes and systems.
    • Identified major operational pain points and benchmarked IT implementation strategies.
  2. Explore and Realize
    • Facilitated middle-management workshops to generate ideas and identify solutions addressing operational challenges.
    • Collected cross-functional insights to evaluate improvement opportunities across entities.
  3. Design and Validate
    • Developed a bottom-up Group Target Operating Model integrating operational insights.
    • Validated the model with C-level leadership to ensure alignment with the group’s overall strategic direction.

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Facing Similar Organizational Integration Challenges?

  • Managing multiple legal entities with fragmented systems and limited operational integration.
  • Struggling to unlock synergies following mergers, acquisitions, or buy-and-build growth strategies.
  • Seeking to design a scalable Target Operating Model to support future digital and operational transformation.
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