CASE STUDY SS-FB-SC-01 | Supply Chain Transformation

Leading Snack Food Manufacturer

Transforming the Supply Chain for Cost, Quality, and Service Excellence

Food & Beverage | Supply Chain Transformation
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.