European Uncoated Paper Merchant: Conversion/Supply Chain Optimization

It wanted to improve throughput in conversion operations and link those operations to primary paper production processes while building and improving supply chain processes, tools and skills. 

The Accenture team was challenged with adding 30 percent conversion throughput without adding additional head count. This was further complicated by the client's lack of planning and material inventory transparency, and a declining customer service effort that led to increased lead times with unplanned interruptions and stock-outs in A items.

Accenture began with an initial, one-week review focused on diagnostics in conversion operations only. After this initial review, four cross-functional Accenture resources facilitated efforts in manufacturing, maintenance, IT and supply chain by providing appropriate subject matter expertise, including:

• A 14-week improvement identification and implementation initiative.
• Eight-week pilot implementation projects in materials management and block scheduling.

The client teams conducted initial diagnostic and identification workshops with manufacturing and supply chain leadership. It then collected and analyzed inventory, logistics and operations data to facilitate organizational improvement.

In implementing this plan, the Accenture team delivered €2.5 million in annualized converting operations cost savings and developed sustainable improvement identification, implementation and tracking processes for converting operations. This included tactical planning processes and initial pilots for block scheduling in conversion operations.

The new programs eliminated stock-out and materials management failures through packaging materials management programs and resulted in €2.5 million in sustainable operational savings. Line stops and stock-outs decreased by 70 percent.