Case Study
Driving Supply Chain Optimization in FCMG: Best Practice Planning for a Home Improvement and Personal Care Leader
Interim project manager drives supply chain optimization and SAP IBP implementation for a medium-sized FMCG company
The Client
A Leader in the Home and Personal Care Industry
The client is a traditional German company operating in the home and personal care sector. With five production sites, it develops and manufactures both branded and private label products for retail customers. The company generates a turnover of over EUR 500 million and employs more than 1,300 people. An extensive restructuring phase across several business areas is now coming to a promising conclusion for this German family business.
The Challenge
Supply Chain Optimization in FMCG
The company needed to enhance its supply chain organization and implement best practices to boost efficiency. An experienced interim project manager was assigned to develop and implement strategies for key supply chain areas, ensuring operational excellence.
Key challenges included:
- Sales & Operation Planning (S&OP): Aligning supply with demand
- Capacity Management: Optimizing production capabilities
- Order Management: Streamlining processes to improve delivery performance supporting the introduction of the SAP IBP for demand & supply planning
- Supply Chain Organizational Design: Developing concepts and offering consulting services
The Solution
SAP IBP, S&OP, and ERP Integration
The interim project manager collaborated with the Chief Operations Officer to create a 2024 roadmap, focusing on supply chain optimization initiatives and ERP data cleaning to enhance transparency.
As the lead project manager, he took responsibility for the following initiatives:
- Introduction of safety stocks for the top 100 products to mitigate supply disruptions
- Implementation of the S&OP Meeting Cycle to align sales and operations
- Establishing Demand Plan Accuracy (DPA) KPIs to monitor forecasting effectiveness
- Promotion Planning Optimization to improve sales and marketing coordination
- ERP Data Cleaning to ensure accurate master and transactional data
Key SAP IBP Projects:
- Hypercare & Optimization of SAP IBP Demand Planning
- Preparation of Go-Live of SAP IBP Supply Planning
- Reduction of Obsolete Stocks through efficient inventory management
Additionally, the interim manager provided decision support documents for management meetings, developed concepts for organizational redesign, and enhanced supply chain transparency across departments.
The Results
Improved KPIs and Long-Term Success
During the project, the interim manager successfully coached his permanent successor and filled three vacant key supply chain positions. The five key initiatives were completed successfully, ensuring continuity through process documentation.
KPI Improvements:
- OTIF (On-Time In-Full) delivery performance: Improved from 55% (Jun23) to 88% (May 24)DPA (Demand Plan Accuracy): Increased from 44% (Jan24) to 64% (Apr24)
Key Takeaways for Supply Chain Transformation
The project’s success was driven by several critical factors:
- High-Quality Data Management: Clean and accurate ERP and SAP data (master and transactional) is essential for effective supply chain optimization
- End-to-End (E2E) Process Alignment: Ensuring collaboration across all stakeholders
- Change Management Focus: Engaging key personnel to drive sustainable success
- Clear Identification of Key Players: Empowering change agents within the organization
Conclusion & Next Steps
The supply chain optimization project significantly improved the company's operational capabilities, ensuring long-term success. The integration of SAP IBP, S&OP processes, and inventory management strategies has positioned the company for sustainable growth in the FMCG sector.
Discover how interim management solutions and SAP IBP implementation can transform your supply chain operations. Contact us to learn more about how we can help optimize your business.
