CASE STUDY SS-FB-SC-01 | Supply Chain Transformation
Leading Snack Food Manufacturer
Transforming the Supply Chain for Cost, Quality, and Service Excellence
52% ↓
Packaging Film Cost Reduction
98%
On-Time In-Full (OTIF) Delivery
<2%
Scrap Rate (Down from 12%)
Challenge
Disjointed Supply Chain and Rising Costs Threatening Profitability
- Operational Instability: Fragmented supply chain workflows created inefficiencies across production, sourcing, and logistics.
- High Raw Material Costs: Ineffective sourcing and contract management inflated key material expenses.
- Quality Inconsistency: Frequent issues with film and packaging quality led to excessive scrap and rework.
- Poor Visibility: Lack of data-driven tools hindered planning and coordination between departments.
- Low Service Levels: OTIF delivery at only 78% underscored systemic breakdowns in supply and fulfillment.
Solution
Integrated Cost Reduction, Process Codification, and Digital Transformation
- Strategic Sourcing Wins: Conducted deep-dive sourcing and vendor re-negotiations for packaging film, transportation, and corrugate, achieving major cost savings.
- Procurement Codification: Implemented a formal vendor management process and codified supplier contracts with defined quality and performance standards.
- Digital Dashboards: Installed a data suite including Spend Cube, Inventory Productivity, and Demand Planning modules to eliminate blind spots and enable real-time decision-making.
- Cross-Functional Training: Collaborated with teams to embed process ownership and ensure consistent quality and cost control.
- Leadership Transition: Partnered with the incoming Supply Chain Director to train and transfer all new tools, systems, and strategies for long-term continuity.
Results
Cost Savings, Quality Improvement, and Sustainable Performance Achieved
- 52% Reduction in Packaging Film Costs: Strategic sourcing and quality improvements reduced spend dramatically.
- Scrap Rate Improvement: Quality issues fell from 12% to under 2%, minimizing waste.
- 38% Transportation Cost Reduction: Logistics contract restructuring improved efficiency and savings.
- 31% Corrugate Savings: Re-negotiated supplier agreements reduced material spend.
- OTIF Performance Boost: Delivery rate soared from 78% to 98%, restoring customer satisfaction and trust.
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