Date Added: May 2010
A major global packaging systems and paper manufacturing company had merged to form a single large company, but were unable to fully utilize the benefits of the merger. The merged company wanted to solidify its competitive position and reduce costs, but were hampered by decades-old procurement and supply chain practices that were working as an effective barrier to new and better ways of working. To realize an overall improvement in its operations, the company sought help from Deloitte, a leading business consulting and management solutions provider. To better assist the company in its efforts to improve its manufacturing and supply chain operations, Deloitte set up a team that included specialists in direct and indirect procurement, supply chain management and process manufacturing, along with professionals with deep experience in key cost categories such as wood, chemicals and maintenance and repair operations (MRO). This team helped the company conduct a rapid diagnostic analysis to identify and prioritize opportunities based on business impact, complexity and potential for success. After helping the company develop a business case, the team worked closely with the company's leaders and staff to help them capitalize on improvement opportunities in two broad areas. The impact of the improvement initiatives was significant with the organization witnessing increased efficiency and better alignment between business activities across all lines of business. Different parts of the enterprise were able to coordinate their procurement efforts and material flows to increase operating efficiency, and is able to take advantage of the combined buying power to negotiate better prices and contract terms.