Mid-market consumer-goods manufacturer cuts 40% of material costs through world-class supply chain management program.
The client was a juvenile-consumer products company that served all major US retailers with approximately 300,000 distribution points.
The client's global supply chain faced several inefficiencies, with cost overruns, sub-optimal logistics, and an expensive supplier base.
The pressure to reduce supply chain costs and optimize processes to enhance bottom-line results was mounting.
The Arthur D. Little team approached the challenge in three steps.
- Developed global trend and opportunity analyses
- Assessed selected product segments to identify savings opportunities
- Assessed alternative supply chain concepts for additional savings
- Conducted a regional supply-source analysis through a formal RFP to validate savings opportunities
- Developed feasibility studies, including make-vs.-buy scenarios
- Qualified potential suppliers and confirmed savings opportunities
- Developed a future-supplier strategy
- Coordinated and facilitated new-supplier roll-out
By partnering with Arthur D. Little, the client achieved, on average, a 40% savings in materials, increased its knowledge of the global supplier market, tested alternative logistics concepts, and enhanced the quality of the supplier base.