Client situation & approach
Our client is a leading provider of speciality chemicals and services to the food, healthcare, industrial and energy sectors. The business had grown rapidly as a result of acquisitions and was already quite advanced with functional initiatives to reduce cost. The targeted next step in maturing Supply Chain practices was to seek a holistic optimisation of the inbound materials supply taking into account the total cost of ownership, We supported this process by:
- Development of a customized and holistic Total Cost of Ownership (TCO) approach across the value chain
- Identification of main loss/benefit areas from a TCO perspective and set up of targeted projects to address those
- The inclusion of both suppliers and internal functions throughout the process and building their capability for improvement.
Results
- €7M Loss elimination delivered through 19 focused projects
- Development and implementation of TCO loss eradication methodology.
