Global supply chain redesign for a portfolio company
Private equity

Mid-market consumer-goods manufacturer cuts 40% of material costs through world-class supply chain management program.


Challenge

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.

Approach

The Arthur D. Little team approached the challenge in three steps. 

 

Transparency phase:

  • Developed global trend and opportunity analyses 
  • Assessed selected product segments to identify savings opportunities
  • Assessed alternative supply chain concepts for additional savings

 

Blueprinting phase:

  • Conducted a regional supply-source analysis through a formal RFP to validate savings opportunities
  • Developed feasibility studies, including make-vs.-buy scenarios

 

Implementation phase:

  • Qualified potential suppliers and confirmed savings opportunities 
  • Developed a future-supplier strategy
  • Coordinated and facilitated new-supplier roll-out 
     

Value

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.