US$ 1B 2W firm cut costs >10% via supply chain & 15+ productivity solutions in 18 months
08 Apr 2020
1 min read
For a global PV company, we identified levers to increase same story footfall and increase sales by 15% and improve NPS
Context
- Client Description: A 2W manufacturer with over US$ 1B in revenue
- Opportunity: The client wanted to identify and improve its supply chain management and reduce the associated material procurement costs to increase profitability across its manufacturing plants
- The firm wanted to reduce cost across warehousing, inventory, production and dispatch
Our Approach
- Evaluated the key strategic materials suppliers (~60% cost contribution) both Indian and Foreign (Korean / Japanese) through the QCDD (quality, cost, delivery & development time) approach and shortlisted the vendors accordingly
- Identified bottlenecks and applied theory of constraints in warehousing, production and dispatch
- Identified areas of improvement and developed delivery strategies to drive out costs from the system through increased localization or indigenization of products, effective vendor management (panel optimization), tiering of vendors and leveraging the volumes to get quantity discounts from the chosen vendors