Case Study 4

Cost savings opportunity to offset COG and retrieve competitive advantage
Building the fundamentals was mission-critical to deliver multimillions € of savings

E2E Productivity

The brief

Following the strategic planning exercise with our European client, NAD Innovation was appointed to lead technology and product productivity projects to offset COG prices. 

The key challenges were the lack of local resources to fully commit to productivity programmes and the unexpected impact of COVID. 

How we helped 

We considered the ‘End to End’ approach and our expertise to ensure we don’t miss any productivity and cost savings. We evaluated various initiatives: complexity reduction in raw materials, harmonization of product designs, manufacturing processes and optimizations, specification improvements, new technologies, purchasing, contractual aspects, best practices, measuring methods, and more detailed financial analysis. 

Although faced with challenges, including clarity on KPIs and the decision-making process, through our rigour and determination, we managed to set up teams, align on KPIs and have regular management reviews.

We created and implemented specific measures and best practices to ensure process stability and more consistent quality control. 

The outcome 

Through the ‘End to End’ approach and expertise, we identified multiple productivity opportunities, from reformulations, and optimisation of the existing technology to new capital investment with healthy ROI, and proving and delivering multimillion € of annual productivity. Many programs were commissioned in the first two years. 

A greater awareness of cost avoidance and reduction was created, as well as, a determination to optimize ‘cost-quality-complexity-time’ at the early stages of NPD. 

We established a yield improvement plans delivering manufacturing cost savings whilst shielding product quality. 

NAD Innovation’s expertise and selfless approach were leveraged in other business and organizational matters and strengthened the client’s skills and resources.