Client case studies | Supply chain innovation

How one of the largest consumer products companies in the world was able to identify more than $1B in savings and improve performance by looking to cross-industry models to help innovate its supply chain approach.

When one of the world’s leading consumer products companies was in the midst of a major cost improvement program for their supply chain and manufacturing operations, senior leadership, to prepare for growth and “stretch their thinking”, looked at a longer horizon and the uncertainties in the overall financial plan. They identified more than $1B of additional cost improvements on top of a larger annual goal they were already driving toward. They knew that getting there would require innovative thinking. The SVP of Global Operations approached PwC to help challenge the status quo and open company leadership’s eyes to new practices.

PwC’s team embarked upon a brisk, collaboration-based process to help transform the client’s supply chain approach that not only captured knowledge from the company’s own vast global network across all facets of the supply chain, but also included ideas, failures, and challenges from their current and former executives. PwC helped the client convene a series of multi-day workshops that brought together more than 30 global supply chain executives from a variety of industries to generate fresh perspectives on operational transformation. Using PwC’s Catalyst techniques for breakthrough thinking, the workshops were staged to generate divergent, provocative thinking.

The project has affected a major shift in the thinking of the company’s executive leadership regarding their vision for the future of their global supply chain. The shift in mindset enabled PwC to work with the client team to arrive at five large transformation platforms that will drive over $1B in cost savings over the next three to five years—including clear objectives, priorities, high-level business cases, and a roadmap from which to launch each platform. The company now has a plan to achieve a more competitive, differentiated, end-to-end supply chain that can remain flexible to future demand and growth.

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