A provider of dairy productsDeveloping a methodology to reduce complexity

The project: Reducing complexity for a leading producer in the dairy industry

Despite the overall success of this global provider of dairy products, the company wanted to develop an approach for unlocking and quantifying the value of simplifying their highly complex product portfolio and processes.

Implement was asked to support the company in conducting a pilot project in the Finnish market with the purpose of developing a methodology for reducing complexity in order to support growth, reduce costs and realise benefits through assortment optimisation.

The project applied a hypothesis-driven approach, entailing a high level of organisational involvement. Several joint workshops with project members from Sales, Marketing, Innovation and Production ensured a common understanding of complexity, cost as well as commercial feasibility.

The impact

• Significant reduction of complexity drivers across the product value chain, from product base and components to primary and secondary packaging, ranging from 8-26%.
• Estimated yearly EBIT impact of EUR 1-2 million.
• 50+ complexity reduction initiatives developed and quantified.
• Solutions and implementation plans for each main complexity reduction initiative anchored in relevant departments after project closure, including actions to realise the savings.