The Situation

A consumer goods multinational wanted to organically expand into the energy drinks sector, creating a new product category that was previously unchartered territory.

The Task

Develop a suitable supply chain for the new business venture, including an effective global operating model.

The Action / Approach

In collaboration with the company’s Procurement and Operations managers designated to support the new business, we researched the industry best practices and obtained product design requirements from Marketing/R&D. With this information we found suitable contract manufacturers in strategic locations based on a sourcing cost-benefit model, to build the end-to-end supply network.

 

The Result

We delivered an asset-light, flexible, low risk supply chain that enabled expansion and exploration of new markets without heavy upfront investments. The delivered product included novel sustainability features uncommon in the industry and a modularised bill of materials to provide responsiveness with lean inventory. Above and beyond the task, we also created a strategic supply chain roadmap to optimise product and supply chain costs as the category grows.

We also developed a tax efficient and simplified operating model to avoid potential bureaucracy / speed bumps of the larger business, with omni-channel centrally let distribution.