Product Design De-Complexity in a Pet Nutrition Company to drive Breakthrough Savings and Simplification

Client Context

• Pet Nutrition company with +130,000 employees and +€35bn turnover

Key Challenges

• Improve breakthrough savings and simplification
• Business, innovation and supply chain processes transformation:
• Increase savings of 4-6% on Raw and Packaging costs
• Enable Simplification in their Product Design and Portfolio activity systems to support E2E operational excellence while enabling significant scale driven savings
• Identify de-complexity opportunities across formulas, raw and packaging type

Approach & Key Success Factors

Tailored approach using Design and Portfolio methodology within “Concurrent Digitalized Value Chain” model

• 3 dynamics of Work Process, Human Dynamics and Digital
• Loss Analysis, Technical Packaging, and Formulation and Product Platform Management

Digital was important as helped the client understanding the level of complexity it was dealing with, due to multiple previous acquisitions, across critical Design components such as technologies, formulations, packaging and ingredients

• Our Digital partner AlignAnalytics created a bespoke Complexity Management Tool (CMT) on transactional batch production level, spanning E2E SC and millions of lines of data analysis
• CMT was used to periodically perform simulations and what-if analyses
• The results of the analyses were converted to bottom-up actions on the product management and configuration

Results

$45m Reduced COGS (12% of addressable costs)

Complexity Management Tool (CMT) designed and rolled out

Continued CMT Data Analysis capabilities, with ongoing SKU optimization

Platform Management Approach for R&D