OFFSET IMPACT OF LOW DEMAND
W H Y
Covid-19 puts people, economies and businesses in an unprecedented situation. The global and local demand is dropping for an uncertain period, giving decision-makers a hard time: “should we wait and hope that business will be back to normal soon or should we already get started with rationalizing our supply chain to minimize the impact on FY2020 profit and cash?”. As the crisis spreads, the answer becomes obvious: we need to act now.
W H A T
In this context, CEL has put together a data driven Fast-Track program to help companies to quickly and figure out what to rationalize, optimize, prioritize in your supply chain – to avoid severe financial consequences in coming months. This as an alternative to putting people on unpaid leave or cutting cost to the bone, adversely affecting the ability to compete when demand recovers.
H O W
The program uses data and your team’s insights to quickly identify opportunities, to spot and address operational inefficiencies, to explore resource reallocation alternatives, to find and prioritize short and mid-term initiatives. While also anticipating for when demand gets back to normal.
CEL delivers this service remotely, through conference calls and web reports, reducing the risk for people, avoiding traveling expenses and allowing faster outcome.
W H O
Fast-Track leverages CEL’s 15 years Supply Chain and Data Science experience, helping clients in 4 continents. We combine business expertise and advanced data analytics to provide facts, figures, references, patterns, scenarios, actionable initiatives their impact on P&L. No bullshit, no cloudy recommendations, no fancy best practices taken from textbooks.
You take decisions on solid ground.
The program consists of the following:
O B J E C T I V E
Reduce cost, reduce cash flow requirements, minimize low or negative margin transactions:
Identify operational efficiency opportunities (asset utilization, transport flow consolidation, rate renegotiation, production batch optimization…)
Determine minimum capacity to maintain for upcoming months and what to let go (manufacturing, storage, transport)
Identify which products and customers to prioritize, which one can be candidate for deletion (i.e. generating low or negative margin)
Determine minimum inventory required to operate cost efficiently, release cash while ensuring fulfillment of the remaining demand.
T I M I N G
3 to 6 weeks
A P P R O A C H
Data collection and processing
Business modeling – physical flows and financials
Advanced Analytics – Big data analytics, simulation modeling to identify and quantify opportunities
Opportunity review with client
I N D U S T R I E S
Food & Beverage
Footwear & garment
“The Fast track team listened and understood our business specificities. Then they leveraged data and people to uncover opportunities and come out with real solutions.”
VP Supply Chain – DPA Nestle Brazil
CEO – Lafarge Vietnam, Indonesia
Contact us to know more