Project Brief - Global Supply Chain Assessment (Procurement, Manufacturing and Distribution)

1. Project Brief - Global Supply Chain Assessment (Procurement, Manufacturing and Distribution) • Client: $3.5 billion global nutritional products company with all of their supply outsourced from U.S. and Europe • Problem: Recent increase in commodity prices, and an underutilized and un-optimized supply network were driving up costs. Client wanted and efficient and low cost product supply design to better compete in the nutritional market. • Approach: • Evaluated 14 contract supply sites in Europe and U.S. for cost, capability and service. • Evaluated procurement of key commodities and raw materials. • Conducted a Distribution Network Analysis from manufacturing point to distributor. • Proposed several strategic options to simplify and streamlined supply network. • Modeled options using NPV of free cash flow over a 10 year period. • Converted Assessment into a detailed implementation plan. • Results: • Proposed that client transition to lower cost, self-manufacturing option, where costs were controlled and quality under client control. • Number of contracted supply sites reduced from 14 to 4 resulting in lower costs by shifting volume to lower cost higher quality suppliers. • Evaluated several commodity suppliers and recommended a lower cost supplier for several key ingredients. • Simplified distribution network by reducing supply sites. • Designed new client organization allowing them to migrate from managing contract suppliers to being able to self-manufacture. PharmOpsGroup