Top Line Increase
Strategic account development to achieve a higher level of partnership maturity with key customers
A European packaging company was looking to strengthen its strategic partnership with a world leading FMCG company. The aspiration was to retain current business in Europe and expand globally. A major focus was to agree on partnership priorities, provide world class basics and deliver on breakthrough value enhancing propositions. SVS’s role was to support the Global CBU Director in strategy development, identifying key projects and organisation to deliver, and facilitating internal and external alignment. Subsequently, the strategic partnership was enhanced, the European supply relationship strengthened and extended, and global opportunities jointly pursued
Customer & product portfolio management to determine what to protect, where to build, optimise and reduce
A manufacturing plant turn-around required a review of a product and customer portfolio. Transparency into profitability at a product and customer level was low / non-existent. Margin management and pricing policy was based on experience of individual managers. SVS’s role was to establish profitability KPIs and develop a cost margin model. Subsequent analysis was the platform for account management decisions and product portfolio development. An improvement in profit by 6% of revenue was achieved within 18 months.
Price setting and costing to retain a higher share of value and create transparency around resource allocation
Collaborative innovation platforms to align with customers on market developments and opportunity priorities
A global manufacturing company was invited to set up an innovation and networking platform with a leading FMCG customer. The aim of the platform was to bring together functional subject matter expertise from each segment of the value chain to fast track revenue, cost and risk reduction opportunities. SVS’s role was to support in structuring, content development, facilitating and documenting these events. The 2-day events enjoy as many as +40 participants and receive outstanding satisfaction ratings. To date, 5 of theses annual events have been held.
Demand and supply planning to create a proactive organisation and reduce unnecessary costs and buffers
Operational performance improvement to improve efficiencies and strengthen continuous improvements capabilities
A loss making manufacturing plant was in a negative spiral of low on time delivery, high inventory and short run lengths. The challenge was compounded by continuous changes to production plans resulting from “express & make-up” orders and anticipating orders to mitigate dangers of delay. Production planning was making regular planned paper substitutions due to unpredictable paper availability. SVS’s role was to analyse the situation, identify root causes and identify improvement opportunities. Within 12 months service levels improved by 4% on an upwards trend.
Procurement optimisation to lower total cost of ownership and establish effective procurement processes & organisation
Working capital reduction to reduce capital tied up in inventory, payables and receivables
An integrated paper and packaging producer in North America was looking to improve paper availability and improve customer service levels, while reducing total inventory levels by 20%. SVS’s role was to provide a detailed inventory analysis at each manufacturing site, identify key drivers of inventory and developed potential improvement opportunities. The process lead to the development of demand and supply planning, supply management by KPIs, and data driven trade-off decision making.
Market and competitive landscape research to provide platform for strategic decision making
A leading Indian fibre producer was interested in expanding its production capacity by acquiring existing assets. The company required visibility of pulp plants world-wide that matched defined criteria. SVS’s role was to review the South East Asian region and identify potential acquisition targets.
Dynamic scenario modelling to understand sensitivities and make optimised decisions on large-scale investments
A European manufacturing company saw an opportunity to support a global customer’s growth and supply chain continuity by investing in additional greenfield capacity. A business case and capital expenditure request was completed to determine the return on investment and receive Board approval. Multiple scenarios were considered each with their respective sensitivity analysis. SVS’s role was to develop a dynamic modelling tool to establish P&L statements, ROI, FCF and NPV for each of the scenarios. The modelling took into account changes in multiple variables, e.g. ranging from product price & volume; costs for land, building & equipment; to fixed and variable operating costs, SGA and depreciation and amortisation costs. The model has since been re-used for multiple investment projects
A leading packaging company had the opportunity to renew a 5 year sole supply agreement with a leading FMCG producer. The company required visibility of project future profitability on a regional basis based on multiple scenarios. SVS‘s role was to develop a dynamic scenario modelling tool. The purpose of the model was to project profitability over a 5 year time horizon, across multiple regions, and incorporating multiple price and cost improvement scenarios. The model supported the definition of a compelling and successful value proposition.
Post merger synergy development to identify, design and implement best practice and scale opportunities
A leading European paper and packaging company had acquired a North American wood, pulp, paper and packaging company for $920 million. Shareholders expected the acquisition to deliver an annual impact on profit of $25 million and a once off impact of $95 million in working capital. SVS’s role was to provide overall leadership and structure to identify, design and implement best practice and scale opportunities. As a result of the work the Board was able to announce an increase in profit impact to $35 million.
Structural redesign and development to release leadership potential and empower the organisation
A manufacturing company was looking to restructure its national organisation to enhance customer orientation, ownership and leadership. SVS’s role was to facilitate and document organisational design based on delighting the customer, delivering on the value proposition and optimising returns to stakeholders. Organisational design was implemented within 3 months and subsequently rolled out across other national organisation as best practice.
Project and Programme delivery set-up to ensure that defined and approved projects are implemented on time and in full
North America Pulp, Paper and Packaging company was faced with implementing a large number of strategically important projects. Project prioritisation, resource allocation and rapid implementation required a structured programme management approach. SVS’s role was to establish implementation plans and key milestones for all projects, set up programme management capabilities and produce visibility through progress reporting. The programme management office was set-up, provisionally run by SVS, and transferred to permanent customer resources within a 3 month period.
Interim Project and Programme management to provide experienced and skilled change implementation resources
Leading packaging company had secured a 5 year sole supply agreement for a major global Fast Moving Consumer Goods company. The requirement was to design, trial and produce $100 million p.a. of additional business across >20 sites in Europe. Homologation period was defined as 18 months. SVS’s role was to provide the interim Programme Director. Homologation was achieved within 15 months to the full satisfaction of all stakeholders and leading to a maturing of the strategic partnership.
Project and Programme implementation tracking to support activity, interdependency and milestone achievements and progress reporting
An equipment manufacturer was developing an innovative packaging machine. Visibility of development progress against plan and costs against budget was required by senior management. SVS’s role was to set-up a project management office for implementation and budget tracking. Key project activities & milestones were defined, and a development budget was set up. Subsequently, implementation progress and expenditure was tracked against target, a structured reporting cycle implemented, and issues identified, mitigated or escalated.
Project and Programme financial impact tracking to reconcile performance improvement with P&L impact
A leading manufacturing company was in the process of identifying and implementing performance improvement projects totalling Euros 17million. A key requirement was to be able to reconcile project success with financial P&L impact. SVS’s role was to support the development of benefit calculations in terms of operational performance indicators and financial targets. The targets included a ramp-up to full run rate. Concurrently, a tracking mechanism was set-up to reconcile actual performance improvement with the targets and importantly the profit and loss statements. Site controllers were coached in using the tracking mechanism resulting in monthly financial impact reports.