Sutherland Helps Global FMCG Giant Reduce Expiry Losses by 3% Through Supply Chain Innovation

Learn how a global, market-leading FMCG company transformed its supply chain operations, reducing expiry losses and boosting revenues.

Supply Chain Innovation

The Challenge

Lack of Reliable Supply Chain Solution Causes Inefficiencies, Bottlenecks, and Losses

One of the world’s largest FMCG players, this iconic brand has a turnover of €60 billion. 

The company faced significant challenges with its supply chain management, negatively impacting overall efficiency and profitability. 

The crux of the issue was our client’s legacy system. It was unable to adhere to established business processes, such as FIFO/LIFO during dispatches, creating inefficiencies and errors. In addition, a lack of visibility across the supply chain led to significant stock obsolescence and expiry losses.

Without a robust supply chain management solution, it was impossible to track live production processes, resulting in incorrect or mismatched dispatches. And the absence of an integrated Warehouse Management System created further bottlenecks and inefficiencies.

For our client, transformation wasn’t just about reducing losses – they had to maintain their reputation as a leading brand in the industry. So, they sought help from a digital transformation expert with a history of working with iconic brands worldwide to address their problem.

The Outcome

Iconic Brand Retains Leading Position With Supply Chain Transformation

Sutherland’s proven expertise in transforming and digitizing supply chain management was instrumental in addressing this client’s challenge. 

To fix the lack of transparency across the organization, we introduced eSeal™, our market-leading technology that provides a clear view of inventory and production in real time. Hosted in AWS cloud to ensure reliability, agility, and security, the end-to-end solution enabled the accurate tracking of products throughout the production and dispatch process, eliminating inaccuracies.

Aligning with the new digital supply chain strategy, we also helped redesign the client’s warehouse layout. This made it easier to follow each product’s journey and to guarantee the right items were stored, ensuring products would be sent out efficiently.

In turn, our digital supply chain solution helped the company boost inventory accuracy and significantly reduce stock waste. They successfully enforced FIFO/LIFO and enhanced dispatch reliability. Improved tracking and scanning processes also helped decrease the rate of dispatch errors, leading to a 2.8% revenue increase for the organization – a significant figure for a multi-billion-dollar corporation.

Overall, Sutherland’s expertise drove a major increase in operational efficiency, helping our client preserve their reputation as a world-leading FMCG player. That’s digital performance unlocked and measurable results delivered!.

2.8%

Revenue Increase

3%

Reduction in Expiry Losses

3.4%

Improvement in Working Capital

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Services
Automation, eSeal

Industry
Retail and Consumer Packaged Goods

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