All Expertise

Operations

We help increase margins through
operational excellence without compromising customer or consumer satisfaction.

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What we do

We cover all critical aspects of operations in the consumer goods industry, including operations strategy, supply chain management, manufacturing strategy, lean operations, procurement, and design to value. Services include cross-functional margin management as well as functional deep dives. We serve both regional and global clients, and we integrate our efforts with their overall corporate strategies.

In response to consumer demand and competitive pressure, packaged goods companies call on their operations functions to “do more with less.” At the same time, operations need to stay agile to be able to support innovation and manage complexity. We help our clients achieve these goals in six core areas:

Operations strategy
In our strategic work, we encourage clients to take an end-to-end view and make operations more than just a cost center. We work with leading consumer goods players to define long-term operations transformation journeys, and we help them build strategic capabilities that lead to commercial growth.

End-to-end supply chain
We help clients optimize the flow of goods from manufacturing to retailers through segmentation, better planning, the application of lean principles, and increased collaboration with retailers. These efforts typically result in higher service levels, leaner inventories, and lower costs.

Manufacturing and sourcing strategy
Our manufacturing experts work with consumer goods companies to build manufacturing networks that are flexible, responsive, innovative, and resilient. We empower clients to hedge and arbitrage the volatility of costs, material, demand, and exchange rates.

End-to-end operational excellence
We apply lean principles within and beyond manufacturing, supporting our clients’ efforts to transform their operating system, management infrastructure, and capabilities. Lean transformations typically result in lower costs, higher flexibility, and more efficient back-office functions.

Next-generation procurement
To offset the effects of commoditization, we support our clients with broad category strategies that take a total cost of ownership perspective to sourcing. Our services include risk management, lean sourcing, and value chain optimization in collaboration with suppliers.

Design-to-value
Our design-to-value approach integrates consumer needs, competitive intelligence, and supplier insights. Working across functions, we prepare our clients for the ever-increasing cost pressure they encounter, especially in emerging markets.

Tools and solutions

Diagnostics and benchmarking
Our diagnostic toolkit includes Supply Chain 360, Manufacturing 360, and Consumer Operations Benchmarking (COBI). Similar tools are available for other functions, including finance and HR. We maintain proprietary supplier and pricing databases for various countries, as well as a library of global best practices and benchmarks in areas such as purchasing and supply chain management.

Solution tools
We have a wide range of tools to help design operations solutions, many of which can be customized to fit the individual client situation. Examples include:

  • Logos, a tool to optimize transportation and logistics cost
  • AIM/SIM, an Excel-based inventory simulator
  • ProNet, a suite of proprietary tools for optimizing a global value chain

Meet our people

Parag Desai

Parag Desai

Principal

Latest thinking

reportDesign to value

Design to value: A smart asset for smart products

When well done, Design to Value (DTV) can increase product margins by 350 to 900 basis points.

article | McKinsey QuarterlyIs your top team undermining your supply chain

Is your top team undermining your supply chain?

January 2011—Building bridges between senior managers is a critical step in constructing tomorrow’s global supply chain.more

article | Supply Chain QuarterlySix steps to successful supply chain collaboration

Six steps to successful supply chain collaboration

Although collaboration offers many benefits for consumer goods manufacturers and retailers, too often their joint initiatives don't work out.

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