CGN Edge Blog

A Bold Supply Chain Redesign to Increase Agricultural Growth

May 29, 2019 Posted by: Aashish Patel
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M&A objectives…A success story built around the customer!  Essential steps for organizations executing M&A to succeed in the Digital Era.  Are you ready?

A fast-growing agro-chemical division of a Fortune 500 company, leaders in agricultural and specialty products, projected to grow at a CAGR of 27% over a 3-year period starting 2018.  They were challenged with merging two supply chains from legacy companies, support the projected business growth targets, not to lose customer share and gain synergies from the merger.

With the need for agility, the organization decided to hire a partner to collaboratively work on a large section of the project; integrate warehouse capacity by moving closer to larger markets with the goal of exceeding customer expectations.  The design was built with extensive modelling and accelerated by years of practical experience. You can’t take the mountain to Mohammed, but in today’s era, you can swiftly take Mohammed to the Mountain! 

Small focused teams began simulated warehouse footprints, markets, demand forecasts and order management options for both supply chains.  Taking a third-party neutral position and working with members of both supply chains, was key to designing an optimal solution quickly, that made practical and fiscal sense.

The results were staggering. Service levels were seen to rise to 99%.  Distribution costs were reduced by over 20%, justifying merger synergy expectations.

Results such as these are possible with the right consulting partners.  Digital technologies aid in analyzing large volumes of data from different systems. Capabilities can be enhanced and sustained by redesigning processes.

People skill levels need to be enhanced to best utilize the tools of today and tomorrow… another story for another day.

CGN Global, a trusted proven partner, was called upon to discuss the goals and work upon a strategy collaboratively.

Reach out to us today if you would like to learn how best we can make such successes a reality for you.

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