This leading PE-owned packaging products and services provider was built through acquisition of a number of family-owned businesses over a period of more than twenty years. The company has remained decentralized in nature with each add-on maintaining its unique identity to allow Sales to be responsive to specific customer requirements.
The decentralized, customer-centric organization had resulted in a fragmented, uncoordinated supply chain which was preventing the organization from leveraging the size of its spend as well as increasing complexity. The owner recognized that the business needed a more strategic, coordinated, enterprise-wide model to capture the value hidden in this rapidly-growing company without damaging the organization’s ability to provide customized solutions to its customers.
Maine Pointe’s challenge was to deliver cash and cost benefits and build a platform for growth while causing minimal disruption within the individual organizations.
To help achieve leadership’s goals Maine Pointe deployed its procurement, logistics, data analytics and leader and organization improvement (LOI) specialists. Taking a Total Value Optimization(TVO)™ approach, we designed a customized strategic supply chain organization to unlock unaddressed value across the decentralized, siloed business groups and align leadership behind it. We applied data analytics, industry intelligence and strategic sourcing processes to inform business negotiations, leading to improved costs and stronger relationships with key suppliers.
Maine Pointe's TVO digital supply chain solution included:
The company has developed and implemented a set of common, core processes and capabilities which can be applied to future acquisitions as they continue to grow. The CEO and leadership team have overcome their misgivings about consulting firms and are now on board with the transformation process and considering taking the next steps on their TVO journey.
Working closely with the client’s teams and divisional presidents across eleven business entities, Maine Pointe helped design and implement a customized strategic supply chain organization which delivered the following results: