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CLIENT CASE STUDY


Leading food manufacturer: Improving operational excellence

A leading food manufacturer engaged Accenture to identify cost savings and drive a lasting culture focused on operational excellence.

Overview

The team helped:

  • Redesign the company’s organization model, reduce management layers and instill a culture of spend and control

  • Lower procurement costs based on volume synergies, industry benchmarks and detailed contract reviews

  • Reduce SG&A costs with zero-based budgeting (ZBB) visibility and internal/external benchmarks

  • Optimize the North American distribution network and renegotiate transport contracts

  • Identify IT cost reduction opportunities

Opportunity

The leading food manufacturer wanted to improve operational efficiency to focus on long-term value and maximize the potential of brands and businesses.

The company has strong brands, but its underlying costs and structure hampered competitiveness. It brought Accenture on board to help identify cost savings and drive a culture focused on operational excellence.

Solution

Accenture collaborated with the client in its global restructuring and business transformation, working closely with the global CEO, CFO and regional vice presidents to identify and sustain cost-reduction opportunities in five key management and back-office areas: organization, procurement, selling, general & administrative expenses, logistics and information technology.

Accenture and the client believed that the most important element of the project was helping make the cost-reduction opportunities sustainable year after year. Additionally, creating a cost-conscious culture within the company was paramount.

Results

As a result of Accenture’s work, the client has met its target to increase earnings before interest, taxes, depreciation and amortization (EBITDA) by 50 percent and executed the changes quickly using the implementation plan.

The new, simplified organizational structure can help the global company increase accountability, accelerate growth and respond more nimbly to market changes with faster decision making.