Paper shows Maine Pointe Total Value Optimization methodology for driving cost out, releasing cash and creating a platform for improved results and sustainable growth
Global supply chain and operations consulting firm Maine Pointe was featured prominently in a newly-released white paper from the Global Supply Chain Institute (GSCI) at the University of Tennessee, Knoxville's Haslam College of Business. The white paper, "Supply Chain Integration Strategy: Best Practices," is the second in GSCI's Supply Chain Strategy Series and redefines end-to-end supply chain integration, applying a more robust and data-driven approach for creating value and sustainable growth centered around Maine Pointe's trademarked Total Value Optimization (TVO) methodology.
The white paper features a case study from Maine Pointe, which sponsored the paper, outlining how TVO was used in one of several engagements to reduce inventory on a sustainable basis, derive greater insights from big data, and deliver a 50 percent EBITDA improvement. In the case study, growth was fueled through several factors including a customized approach to procurement which optimized savings and generated cash to fuel growth, a re-evaluation of shipping and logistics, and a new look at S&OP which allowed for better targeting in marketing efforts and more growth opportunities. Further, growth was also driven by data analytics which allowed the firm to identify actionable, data-driven insights to support decision-making and growth going forward.
The paper illustrates the pressing need to go beyond older definitions and models, noting that lean Six Sigma tools, which have long been integrated into the supply chain system, are not creating enough value to meet business requirements. "Total Value Optimization is quickly becoming key in delivering value and sustainable growth throughout the end-to-end supply chain," said Steven Bowen, Chairman & CEO of Maine Pointe. "Using TVO we are able to take a more holistic approach to the buy-make-move-fulfill supply chain, to deliver the greatest value at the lowest cost to business."
Bowen will be presenting the white paper, along with Mike Burnette, Associate Director of the Global Supply Chain Institute, at the Supply Chain Forum Fall 2018, which will be held November 13 through 15 at the Holiday Inn World's Fair Park in Knoxville, Tennessee.
"Integrated structures are an important step in the right direction, but driving a sustained competitive advantage requires a data-based approach towards end-to-end integration of the supply chain, and that's what this paper seeks to redefine," said Mike Burnette, Associate Director of the Global Supply Chain Institute and author of "Supply Chain Integration: Best Practices."
The case study shown in the paper specifically shows how a major agricultural enterprise was able to leverage TVO, a proven supply chain integration approach, to overcome a situation with multiple inefficiencies and fragmented supply chain and create an environment for sustained, accelerated results, release of cash, reduction of inventory and marked improvement in EBITDA, as well as the creation of a new organizational structure that facilitates future growth.
Maine Pointe also collaborated with GSCI in 2017 on the "End-to-end Supply Chain Collaboration Best Practices" white paper, a study that proved that internal collaboration leads to financial worth, and that companies leveraging collaboration outside of their organizations are able to create a competitive advantage.
"Our collaboration with University of Tennessee and GSCI has been an important component of developing and creating awareness of TVO as the next lean Six Sigma," said Simon Knowles, Chief Marketing Officer of Maine Pointe. "As illustrated in this latest white paper, use of TVO has led to unprecedented improvement in results and the definition of a set of best practices that are critical to the modern global supply chain."
About Maine Pointe
Maine Pointe is a global supply chain and operations consulting firm trusted by many chief executives and private equity firms to drive compelling economic returns for their companies. We achieve this by delivering accelerated, sustainable improvements in EBITDA, cash and growth across their procurement, logistics and operations. Our hands-on implementation experts work with executives and their teams to rapidly break through functional silos and transform the buy-make-move-fulfill supply chain to deliver the greatest value to customers and investors at the lowest cost to business. We call this Total Value Optimization (TVO)™.
Maine Pointe’s engagements are results-driven and deliver between 4:1-8:1 ROI. We are so confident in our work and our processes that we provide a unique 100% guarantee of engagement fees based on annualized savings. www.mainepointe.com
About the Global Supply Chain Institute
The Global Supply Chain Institute fosters the most visible, reliable and efficient supply chains from end-to-end, across the globe. The GSCI connects companies to the Haslam College of Business' globally ranked educational programs so that its knowledge can improve their strategies, and their best practices can inform the GSCI's work, its students and the industry. The GSCI's mission is to develop the next leaders in supply chain management, whether they are in the classroom or already heading their company's supply chain.