Supply Chain Redesign Case Study: Nestle | ON THE MARK

Widening The Gap To The Competition

The re-design of a high performing Function

The Issue:

Nestlé’s UK&I Supply Chain Function was known throughout the industry for delivering leading levels of customer service at costs that had been benchmarked as being best in class amongst competitors. However the function had become a victim of its success as a 99.5% service level was expected as the norm. Nestlé UK&I was forecasting that the Supply Chain would have to flex more to meet the variable commercial demands of the businesses. Despite the high performance of the Supply Chain team, the Supply Chain Director recognized that standing still was not an option, and change was needed.

What we did:

OTM initially took the leadership team through a holistic critical review of the current state of the Supply Chain. Following this workshop, it was decided to proceed with the development and implementation of a new organisation design for the Nestlé’s UK&I Supply Chain Function. OTM led the team through the project that rebuilt the structure based on the team’s own definitions of what was required. Going through a comprehensive process left no details, unnoticed or unresolved.

The Result:

The Nestlé UK&I Supply Chain won Nestlé’s award for the best performing supply chain in Europe in the summer of the implementation. The new organisation was more efficient, faster and more flexible than its predecessor, and was able to adapt quickly to changes in the broader Nestlé UK&I business. The Function suffered no disruption to service during the transition period, and the new design quickly stabilised with employees actively pulling for the new ways of working.

We also have a video version of this case study presented by Mark Jones, the Supply Chain Director, and Mark LaScola, the Managing Principal of ON THE MARK. Check out the trailer!

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Doing nothing was not an option for us, but I wasn’t entirely sure what to do. I didn’t want a big team of consultants coming in and telling us the answer because I was absolutely convinced that the answer was within my leadership team.
Mark Jones, Supply Chain Director

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