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  • Unlocking multimillion-dollar cost reductions and working capital savings for a leading mid-sized CPG brand through End-to-End Supply Chain Value Stream Mapping

    It all started with the senior leaders getting varied perspectives and messages from different teams involved in the end-to-end supply chain. It seemed teams were operating in silos, defining success based on their own objectives. Additionally, concerns arose regarding inventory levels, safety stocks, and the overall cycle and lead times.    To map out the current state and create a true picture it was decided to leverage Value Stream Mapping (VSM) for an end-to-end supply chain.  Value Stream Mapping provides a holistic view of material and information flows across the entire supply network, from raw materials to final customer delivery. This method would help identify inefficiencies, bottlenecks, and opportunities for improvement in lead time, inventory, and process standardization.    Our Approach    Besides a typical Value Stream Map, there were additional deep dives done to create a more realistic picture, backed with actual data to remove any doubts across teams Captured Leadership Concerns and Feedback  through one-on-one interviews. For example – we have higher touch levels, can we keep it simple, things move quite a bit etc.  Mapped the end-to-end process steps  starting from New Product Development team to customer fulfillment. This meant extending to additional functions which are not directly under the Supply Chain function.  Captured Lead Times, Wait times and Cycle times  for every step  Resourcing at every function level  along with high level volumes and productivity levels. This was done to share the resource distribution.  Tools and Technology  being leveraged by each team. Key Performance Indicators (KPIs)  for each team and whether they were aligned with Business outcomes. Certain hypotheses were formulated  based on feedback from team members. Testing these was crucial in debunking functional misconceptions.  Validate findings with detailed data analysis . even creating a power BI dashboard giving the ability to functional teams to play around with the data.   Data was also used to expose the risk appetite of different teams  which is an important in today’s agile world.    Steps for Conducting End-to-End Supply Chain Value Stream Mapping 1. Define the Scope and Objectives  Identify the start and end points (e.g. New Product Development to Customer fulfillment).  Define key objectives (reduce lead time, improve inventory, eliminate waste, identify cost savings and productivity opportunities, build a transformation roadmap).  Gather stakeholders, existing process documentation and data from all teams involved in the end-to-end Supply Chain  2. Map the Current State  New Product Development   NPD stage gate process and the involvement of Supply Chain team at different toll gates  Cycle time for Renovations and Innovations, workflow, work distribution and KPI’s  Commercialization   Project volumes, success, cancelled projects and their root causes  Stage gate process and deliverables at each stage gate  Suppliers & Procurement Raw material sourcing process.  Lead times and delivery frequencies by brokers and suppliers (Raw material & Packaging)  Identify single source items and associated risks  Opportunities for supplier collaboration, vendor and item consolidation  Planning   Document the end-to-end planning process i.e. Demand, Supply, Material & Deployment  Lead time considerations and the safety stock calculation  Gaps in visibility  Accuracy challenges and reasons  Manufacturing & Production Processing steps, cycle times, minimum order quantities  Adherence and Attainment trends and the schedule nonadherence reasons  Portfolio distribution across Comans and inhouse production  Coman concerns  Quality   Items and reasons for quality issues  Release timeline trends  Warehousing & Distribution Storage locations, picking/packing times  Utilization of warehouses  Repack Operations at Warehouses  Distribution network  TL, LTL, Parcels, IM and opportunities for consolidations  Transport lead times and costs.  Opportunities to Implement Just-in-Time (JIT) principles  to reduce inventory.  Customer Fulfillment Order processing, lead times, and customer delivery expectations.  Order processing issues and their broad buckets  3. Data Analysis  Some of the data we analyzed closely included   Shipments Orders (Transportation)  Days of Supply at an item level  Material Turnaround times by Suppliers/Brokers & Pricing  Customer Operations issues  Shelf Life at the time of delivery  Micro hold and quality hold data  Active, Completed and Cancelled Projects  Reasons for non-Adherence (Manufacturing/Coman) etc  4. Identify Waste, Bottlenecks and Improvement Opportunities  Excess inventory (Days of supply at an item level) and wait times.  Long setup times or defects leading to quality issues.  Inefficient transport or unnecessary movements.  Information flow delays and communication gaps.  5. Develop an Implementation Roadmap  Identify and prioritize key improvement opportunities. Create an effort vs impact grid to help with that.  Assign responsibilities and set deadlines.  Identify Key Performance Indicators (KPIs) to track improvements.  Automate and leverage digital solutions where possible.    While improving operational efficiency was a key focus, the broader objective was to enhance the organization's responsiveness. As the supply chain network expands and evolves, the challenge is to maintain agility and adaptability to market demands while striking a balance between desired outcomes and risk tolerance.

  • Pre-Implementation Assessment for a Smoother Rollout of Supply Planning Solution

    As the supply chain planning and execution is becoming more complex and rapidly evolving, there is a growing need to implement end-to-end planning solutions. A unified planning solution helps with improved forecasting accuracy, increased planning efficiency and less inventory expenses. Organizations can leverage the power of ML and AI intelligence to proactively identify risk and plan corrective actions. While organizations see the value and are ready to approve budgets for planning solution implementation, there are always questions around the organization’s readiness, future adoption, realistic time to implement and value realization. Since end-to-end planning solution encompasses the entire value chain from demand, supply, material to deployment planning it requires integrating with multiple source systems like Enterprise Resource Planning (ERP), Master Data (MDM), Sales Planning Solution, Coman / Warehouse systems to name a few. The quality of current data will directly impact the quality of generated plans. Even the softer aspects of having the right project champion, right implementation resources play a significant role in smooth implementation. There are other complexities which organizations need to give due considerations upfront: Is this going to be a uniform platform across multiple BU’s (with potentially different ERP’s, data source systems, different processes) Should there be a multi-phase strategy for implementation or go all out, in first go. What should be the scope for each functional area? Can those be backed by use cases. What will be the high-level Success Factors/Criteria's Do we have a good understanding/alignment on the current state and prevailing gaps. We suggest creating a blueprint, defining the scope of where the solution will start, where it ends, and what it includes backed by a clear business case. Realistic timelines based on internal organization priorities, resource availability, data readiness & availability and dependencies should be aligned on. And to get the answers and consolidate findings we recommend that we do a quick pre-implementation assessment. This includes a current state health check (screening process) that takes organizations through a series of analysis to determine their readiness. Components of the Pre-Implementation Assessment Framework: To assess Change Readiness , we evaluate/build the team charter all the way from sponsors to key resources. Determine if there is a clearly defined decision-making framework. Having active sponsors participating within the project team and specified members in place to train, ensures proper guidance throughout the end-to-end process. Next, we look for what change resistance can potentially come. Lastly, defined objectives and communication are evaluated to ensure the organization’s goals are aligned well with the solution. Training gaps and maturity/experience of key project resources is key for Change Management.   To assess Data Readiness , checks must be done for completeness, accuracy, ease of availability, and residency. These are scored on a scale based on the quality of the data. For completeness, first the required data fields/files are determined, then they are checked for any missing or null values. For accuracy, various data validation tools and reliability checks are done as well as a data comparison across different sets. Ease of availability is assessed on how the data is pulled and presented. Then, residency on where the data is stored is evaluated for any restrictions or laws. Additionally, there must be a check to ensure there is a proper data model, governance, and interface rights.   For As Is Documentation , a series of checks are done for process documentation, process flows, policies, and procedures. Also, Network and data diagrams are needed to see a mapped-out information flow of the organization’s systems.   The check for Integration Readiness  is essential to avoid potential delays. Any integration resource constraints are determined to ensure limitations are known ahead of time. Maintenance schedule and support factors are also checked to ensure smooth system integration.  It is also determined whether it is one or two-way integrations, how frequently the data transfers will occur, and how many integration systems are present. Also, it is good to know what type of integration there will be and if it supports the format of the data files we are looking for. Data mapping can be done as a part of the pre-work, that way required files in the desired template can be generated ahead of time to check the transfer.   Resourcing is another key component that determines the success and timelines of the implementation. Resources functional and technical expertise, risk appetite, motivation level and ability to think longer term will play through the implementation. Any gaps in the resource charter should also be mitigated. Additionally, defined key users/owners of the different source systems need to be disclosed to know who the primary users of the system are and what their roles are   Depending on how many of these must-have components are missing after undergoing the health check, pre-work time can be allotted to ensure that the implementation timeline is not negatively affected later. Having a health-check phase like this in place allows for a smoother timeline, optimized budget, and overall better determination of the scope.

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