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Case Studies
Logistics & Supply Chain Makeover for Swedish Cosmetics Firm in China
A Swedish cosmetics company was experiencing issues with its supply chain with shortages in stock in one location and oversupply in others.
ARC Consulting assisted the client to evaluate the supply chain and identify the root causes of the experienced issues.
ARC Consulting further provided implementation support of the recommended actions, assisting the client to immediately reduce costs and increase efficiency of operations for sustainable growth.
Opportunity
The client was experiencing issues with its supply chain management consisting of primarily purchasing, allocation and distribution. While these areas at the time had a limited impact on the company’s bottom line figures, these issues had the risk of growing in proportion to volume and provide obstacles for future lean growth.
ARC Consulting was contacted by the client to assist in evaluating the supply chain, from procurement of products for the central warehouse to allocating stock between regional PPCs to identify the root causes of these issues.
Furthermore, ARC Consulting was also asked to recommend actions that could be instantly implemented to reduce cost and increase the efficiency of operations.
Approach
As a first step to analyze the current situation, ARC Consulting initiated a detailed situation analysis of the client’s supply chain based on the SPRO model.
By dividing the problems according to the parameters of strategy, processes, resources and organization, key issues were identified along with the impact it had on the efficiency of operations in the company.
The root causes of the supply chain inefficiency were primarily a lack of a holistic strategy, a lack of process instructions and guidelines for employees, a lack of standardization of documents and templates used and a lack of integration between different functions and unclear role responsibilities.
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