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Modelling a € 10 m cost reduction plan and 2030 Roadmap

Client situation & approach

Our client is one of the biggest French Groups in the cosmetics industry, with around ten production units in France. In a challenging economic context (strong competition, productivity concerns and consumer fear towards industrial products…), the Operations Top Management aims to design a new Industrial Master Plan (IMP) to cover the period up to 2030:

In the short term it wishes to optimize the current IMP i.e. reduction of complexity, optimization of flows and processes.

In the long run it needs to build a more efficient model to sustain growth at a competitive cost.

EFESO supported by:

  • Defining the long-term vision and goals with Operations Top Management
  • Mapping and analysing the current situation
  • Defining the core competencies required to support the 2030 plan: new technology and capabilities
  • Defining performance levers for the current organization: cost reduction, complexity management, new target operating model for several functions (e.g. quality control, maintenance)
  • Defining and evaluating 4 distinct scenarios, considering several variables

Results

  • Created an alignment between Production, Supply Chain, Marketing and Sales
  • Optimized Production’s footprint: location, capacities, production plant technology (Factory 4.0), resources and defining the capabilities required...
  • Modelled the Industrial Master Plan
  • Defined a 10 M€ cost reduction plan
  • Defined the «How to make it happen»: masterplan including a view of its impact on the organization