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Redesign of industrial organisation and developing an ambitious cost reduction plan

Client situation & approach

The client is a family business and a leader in the French and European cosmetics industry. The group is present in more than 100 countries and has a turnover of more than 2 billion €.

The Leaders of Group Operations wish to:

  • Reduce the cost of 7 manufacturing functions: Purchasing, Supply Chain, Logistics, HR, Maintenance, Quality and Development (with costs higher than that of its main competitors with brand-name products)
  • Develop operational agility by having the ability to support a strategy of mass customization.

EFESO supported by:

  • Analysing the organisation and its interfaces by using our “Fit-to-Win organisation” approach
  • Carrying out flash diagnoses of the 7 functions
  • For each function, we devised and implemented an improvement methodology based on mixing bottom-up and top-down approaches. From this we created, in tandem with the Client, an improvement roadmap

Results

  • Redesign of the industrial organisation by improving the fields of expertise, refocusing of plants on the core business and sharing relevant capabilities
  • Identification of savings greater than the set target of 10% ( 4,5 M€)
  • Design, in tandem with the client, selected recommendations per function
  • Modelling and building a roadmap for the deployment of those recommendations over the next 3 years