A FMCG producer A culture of continuous improvement

Helping an FMCG producer scale up productivity and save millions

The project

With several years of stagnating revenue and increasing costs, the company wanted to launch a cost-out initiative to reduce Cost of Goods Sold (COGS) through improvement in production and procurement. Therefore, a continuous improvement culture based on Lean principles was implemented to systematically decrease COGS.
By leveraging best practices with the ideas and engagement of the company, new standards for processes, performance management, organisational setup, improvement methodologies and management behaviours were established and implemented.
Finally, a new governance setup was put in place to continuously drive improvements locally.

The impact

• DKK +8m realised in annual savings.
• Increased productivity and reduced scrap rate.
• Standardised operations management setup established across departments.
• Standardised performance measures, organisational setup and governance structure in place.
• Feedback loop and escalation process implemented, reducing the response time and supporting continuous improvement.