Performance Improvement in the Private Sector
Faced with significant challenges such as inflationary headwinds and supply chain volatility, EY helped leading global alcobev drinks company to make efficiency savings, reduce its carbon footprint and improve logistics resilience through sustainable performance improvements. What makes the work stand out is that this programme went well beyond delivering a considerable uptick in overall logistics performance against the traditional efficiency and cost measures, by also improving both their customer service and reducing overall environmental impact.
The project delivered:
- 12% cost of logistics goods sold (COGS) savings by optimising transport and warehousing.
- 10% reduction in carbon footprint in our client’s Global Brand Supply operations through optimised shipping and alternative transport.
- 8-10% increase in direct dispatch through flow improvements and on-site/warehousing capability enhancement.
- 15-20% faster and efficient decision-making will be made by deploying intelligent automation solutions.
To deliver this success, EY’s team were integrated into – and acted as an extension of – our client. EY worked collaboratively bringing constructive and objective insights and provocation, truly forming a joint team with our client’s operations to ensure effective execution. The success is testament to EY’s deep supply chain and global market-level knowledge and innovative solutions, as they were able to draw on expertise from across the consumer products sector to deliver sustainable business outcomes at pace.
Our joint success was predicated on a number of factors. First, we have nurtured a long-standing working relationship with our client over two decades, which has given us a deep understanding of their business, culture and ways of working, putting us in a unique position. Next, our team brought skill and deep subject matter knowledge across all areas, underpinned by decades of experience delivering large sustainable outcomes in the alcobev sector.
In addition, EY also demonstrated significant investment in the partnership and a commitment to delivering sustainable change – by putting ‘skin in the game’, so to speak. This went beyond the investment of senior expertise and consulting resource allocation and included the way that professional fees were structured – a considerable portion of EY’s fee was dependent on successful benefits delivery.
To deliver, EY focused on:
- Setting up a ‘Centre of Excellence’, which acted as the nerve centre of the project. It brought the strongest combined client/EY expertise together and made it possible to jointly identify opportunities, driving activation across all 25 geographies and operational staff towards shared goals.
- Instilling ‘zero-loss’ critical thinking. Our programmatic delivery approach provided our client with savings within three months, thanks to a diagnostic, ‘zero-loss’ exercise to identify improvement opportunities. This mindset defined the perfect operating performance for the supply chain and identified hypotheses for eliminating existing supply-chain losses.
- A ‘one team’ culture of collaboration, acting as an extension of the client team and bringing deep expertise and ‘outside-in’ objective provocation to drive effective execution.
- Focusing on long-term, sustainable outcomes enabled by technology; using a strategic, data-driven approach to define and rapidly implement a set of interventions across our client’s distribution network, multi-modal transport and the way its products flow to the consumer.
View the EY profile in the MCA Members Directory.