Winner: Danone Waters UK & Ireland
The Consumer Products category had four good entries, but two really stood out – MerckSerono, and Danone Waters UK & Ireland. The Merck Serono global supply chain was created in 2007 after the acquisition of Serono Laboratories by the German pharmaceutical company, Merck. Over a 29-month period the two companies’ supply chains were globally integrated, involving 50 sales affiliates, five business units, six global production sites and over 7,500 SKUs. The judges were impressed by the way the merged entity approached this complex business environment and created an integrated supply chain across such a large geography. The results were impressive too. Overall sales forecast accuracy has been improved significantly, safety stocks and coverage of finished products have been optimised, write-offs have been greatly reduced while stock availability on main markets is now 99.8 per cent.
For the judges, the winner of the Consumer Products category had to be Danone Waters UK & Ireland. Over the past three years the company has been engaged in a series of initiatives to deliver improved customer service levels, a reduction in logistics CO2 footprint, a very significant reduction in supply chain cost per pallet and a 60 per cent reduction in overdue cash payments.
“Danone was able to realise outstanding results under pressing and difficult market and operating conditions,” said the judges.
“This was a supply chain transformation driven by people, business strategy and customers. There was evidence of clear simplification, communication and approach to execution, together with strong strategic alignment – all resulting in significant benefits to the business.”
They went on to add: “This company made a step change, not an incremental change… they centred on collaboration and it paid off – the cost savings were significant.” All in all, this was an impressive performance and one which deserved the category trophy.
» Danone Waters UK & Ireland
» Findus Group
Supply Chain Standard, December 2011