EY worked on a 15-month transformation journey, using a three-step approach, i.e., optimizing and addressing procurement gaps, sustaining the change and building a credible differentiator that is future-ready. The business transformation was devised with the aim to unlock greater potential across the value chain, significantly improve EBITDA and most importantly, create barriers of entry in the market.
The key initiatives of the transformation journey included:
Procurement transformation
EY helped the organization transition from a traditional sourcing and price discovery model to a scientific sourcing and procurement model by building capability across key functions such as strategic sourcing, category management, supplier relationship management and total delivered cost optimization. The initiative also helped drive defined cost savings measures such as identifying cost effective suppliers, better supplier negotiations, among others.
Supply chain optimization
EY designed and implemented robust tools for production planning (to optimize finished goods inventory and working capital) and dispatch planning (for optimizing distributor inventory and reducing loss of sales).
Downstream transformation (route-to-market)
This initiative focused on driving topline growth and creating bottom-line savings through:
- Creating profitable channel partners with improved ROI
- Enabled sales force with decision making support through advanced analytics
- Customized route-to-market capability creation, focusing on specialized channels to maximize extraction
- Optimizing cost of complexity by rationalizing portfolio
