All Cases

Supply chain optimization

  • Stakeholder: Leading German manufacturer of household and personal care products
  • Industry: Consumer Goods
  • Duration: 11 months
  • XQI Manager role: Project management
Background Overview

Operational performance hindered by an inefficient supply chain.

A traditional FMCG company with branded and private-label products faced operational challenges. To increase efficiency, the company sought to reorganize its supply chain with the help of an interim project manager with supply chain expertise.

Challenge

Five Critical Bottlenecks

The supply chain suffered from five critical bottlenecks. S&OP processes were not synchronized, production capacities were used inefficiently, and manual order processing led to delays. In addition, the SAP IBP implementation proved complex, while inaccurate ERP data hindered transparent decision-making.

Strategy

Strategic Initiatives to Optimize Supply Chain Management

Safety stocks for the 100 most important products were ensured to prevent supply bottlenecks, while a regular S&OP meeting cycle implemented to optimize coordination. The initiatives also included increasing the DPA KPI, customer-centric optimization of advertising planning, cleansing ERP data, and prioritizing the implementation of SAP IBP.

Implementation

Transforming Strategic Analysis into Operational Excellence

Monthly S&OP meetings standardized processes, SAP IBP automated planning, and clean ERP data provided the necessary transparency. Outdated inventory was reduced, and critical products were always available.

Results

33% Improvement in Delivery Reliability

Through S&OP standardization, SAP IBP integration, and data cleansing, OTIF delivery reliability increased from 55% to 88%, and DPA accuracy from 44% to 64%

  • OTIF improved
  • DPA improved
  • SAP IBP implemented

Case study lead
York von Massenbach

Managing Partner, München View partner profile
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