Suboptimal co-manufacture performance leading to higher than expected production costs impacting profit for a blue chip FMCG company
Challenge
An $80bn USA based blue chip FMCG company had outsourced the production of components for a female personal care product
The USA based co-manufacturer were struggling to meet the quality requirements & production volumes.
This resulted in waste and high cost per unit produced which was impacting the volumes that could be shipped and profit margins.
Approach
Identified challenges across the value chain
Quantified quality issues and how to solve
Quantified productivity challenges from Goods In through to Goods Out
Identified and prioritised quick wins and initiatives that would bring significant benefit
Worked with the client’s supplier to build a roadmap and plan of action
Handover and exit
Results
Identified quick wins to improve quality for reduced scrappage
Built a production improvement roadmap with the client and supplier that the supplier could work through and demonstrate improvements
Increased on spec product right first time from 75% to 90%
Identified manufacture and assembly cost savings between 20%-35%
Upskilled co-manufacturer