Real businesses. Real challenges. Real impact.
At Inflection Point Solutions, our success is proven through tangible results
Optimized Manufacturing Footprint:
How a Strategic Approach Transformed a CPG Manufacturer’s Supply Chain
When a leading CPG manufacturer faced declining volumes and rising fixed cost burdens in a critical product category, the need for change was undeniable. They needed to boost margins and simplify operations without sacrificing customer service. Inflection Point Solutions founder, Dave, stepped in with deep supply chain expertise to unlock significant savings and set the stage for future innovation.
The Challenge:
Rising Costs Amidst Declining Volumes.
The manufacturer’s key product category was experiencing a steady volume decline over several years. This decline increased the fixed cost burden as a percentage of revenue, making it difficult to fund necessary product innovation. The challenge was clear: identify cost-saving opportunities through supply chain optimization—without compromising quality or customer service.
The Approach:
Data-Driven Innovation with a Cost-to-Serve Model
To tackle these challenges, Dave’s team developed a detailed Cost-to-Serve (CTS) model that:
- Evaluated multiple future-state scenarios: This comprehensive analysis aimed to improve asset utilization and reduce overall costs.
- Uncovered inefficiencies: The model provided new visibility into cost structures, revealing opportunities for consolidation.
- Created a hybrid solution: Beyond simple cost cuts, the innovative approach generated additional capacity for other product categories, further enhancing operational flexibility.
The Impact:
Transformational Results Over 18 Months
With precise execution and a focus on safety and service, the initiative delivered remarkable outcomes:
- $40 million in annualized cost savings
- $11 million in inventory reductions, which improved working capital
- Maintained 99.3% customer service levels, ensuring seamless operations
- All achieved over an 18-month period with zero safety incidents.
Why This Matters.
This case study highlights how a customer-centric, data-driven strategy, paired with robust change management, can reveal hidden value within your supply chain. We not only optimized costs but also empowered the business to reinvest in product innovation.
Bridging Two Supply Chains: How a Bold Strategy Streamlined Operations for a Fortune 500 Retailer
When an $11 billion retailer faced the daunting task of merging two disparate supply chains following a major acquisition, the stakes were high. Antiquated technology, non-standard processes, and competing business models made it nearly impossible for other teams to complete this critical integration. Dave stepped in with a fresh perspective centered on people, process, and technology, and the results were nothing short of transformative.
The Challenge:
Rising Costs Amidst Declining Volumes.
The retailer was managing two overlapping U.S. supply chains, servicing over 40 distribution centers and more than 5,000 stores. This fragmentation led to:
- Higher Fixed Costs: Operating duplicate systems increased overhead.
- Excess Inventory: Redundant processes drove up inventory levels.
- Inefficient Transportation: Extra miles were driven to service stores, adding unnecessary expense.
The Approach:
A Customer-Centric,
Data-Driven Integration
A team lead by Dave, kicked off the project by redefining the future state of the business:
- Start with the Customer: The team focused on customer needs, ensuring that the unified supply chain would support the desired service levels.
- Future State Modeling: They designed a comprehensive business model and network, capturing the full benefits of integration.
- Building the Business Case: With robust data in hand, Dave crafted a compelling business case that secured investment for the program.
- Collaboration Across Departments: Close coordination with Operations and IT was critical to create a solution that worked seamlessly for customers, stores, and distribution centers.
- Pilot and Scale:
The solution was first tested at pilot scale before being rolled out across the entire business, ensuring minimal risk and maximum impact.
The Impact:
Significant Cost Savings and Operational Clarity
The successful integration of the two supply chains delivered quantifiable, lasting benefits:
- $15 Million Annual Transportation Savings: Streamlined routes and reduced redundancy lowered transportation expenses.
- Closure of 8 Distribution Centers Consolidation led to a leaner, more efficient network.
- $10 Million in Fixed Cost Reductions: A unified approach cut unnecessary fixed costs.
- Enhanced Organizational Focus:
By aligning around one supply chain with standardized processes and technology, the retailer improved overall operational focus and efficiency.
Why This Matters.
This case study is a powerful example of how a strategic, customer-first approach combined with data-driven insights can unlock significant value. By integrating two disjointed supply chains, Dave not only reduced costs and improved operational efficiency but also set the stage for future growth and innovation.
