Cases

Identifying Opportunity Areas to Maximise Throughput for a Perfumes and Cosmetics Company

Background and Challenge

The client, a leading company in the perfumes and cosmetics industry was unable to procure its raw materials, which led to poor service levels with its customers. The top management wanted a complete review of operations to identify constraints and recommend improvement opportunities to maximise its throughput. Thus, they turned to UC to restructure their organisation to sustain growth within their company.

Approach and Recommendations

To restructure the organisation for the client, UC adopted the following approach:

    • Redesigned the current order fulfillment process
    • Designed management information system (MIS) reports to communicate progress
    • Developed a framework for managing supplier relationships
    • Developed a framework to manage inventory
    • Defined changes in the structure to support the processes
    • Implementation of the above operations expected the following results

1) Reduced order loss in new products Rs. 6 crore

2) Reduced order loss in regular products Rs. 4.8 crore

3) Ability to tap new orders Rs. 2.4 crore

4) Reduction in new product development cycle time by 60 percent

5) Reduction in order to dispatch cycle time by 45 percent

Results

The client received a complete review of all its operations and recommended changes, such that it would maximise its throughput.