We partnered with an executive team to reinvent a large organization’s worldwide supply chain operations. Previously, we had helped the organization improve performance through initiatives such as process improvement, Six Sigma, and Baldrige-based assessments. Those efforts built confidence, strengthened capabilities, and created momentum for a broader reinvention of the organization’s end-to-end operations.

We assembled a dedicated full-time team with representation from planning, sourcing, procurement, logistics, materials management, and finance. Early in the effort, we conducted team-building sessions and provided training on reinvention principles, methods, and tools. Over time, the team became highly cohesive, developed deep trust and respect for one another, and learned how to build upon each person’s strengths and expertise.

We guided leadership and operational teams through the five-phase process outlined below.

During the Assess phase, we mapped end-to-end supply chain processes by product type and evaluated performance across cost, timeliness, quality, and service dimensions. This included analyzing planning, sourcing, procurement, logistics, materials management, and accounts payable activities.

We also assessed cycle times, lead times, processing times, inspection delays, transportation movement, queue times, inventory levels, and other critical performance measures to better understand the root causes of inefficiency and delay.

We compared performance levels against leading benchmarks and researched several of the world’s highest-performing supply chain organizations. The team visited selected organizations to observe leading practices firsthand. These experiences significantly expanded the team’s thinking, challenged long-held assumptions, and generated excitement about what was possible.

We asked a fundamental question:

• How can we dramatically improve performance while reducing cost, improving timeliness, and increasing customer responsiveness?

The team explored multiple breakthrough alternatives and evaluated innovative approaches across process design, organizational structure, supplier relationships, technology enablement, inventory strategy, and customer service delivery.

We carefully designed new end-to-end processes, performance measurement systems, technology requirements, organizational structures, roles and responsibilities, training approaches, and transition plans.

This included:

• creating cross-functional customer service teams,
• significantly reducing the supplier base,
• streamlining workflows and approvals,
• improving information visibility across the supply chain, and
• transitioning toward Just-In-Time inventory systems.

The designs emphasized simplicity, responsiveness, accountability, and customer focus.

We involved leaders and employees throughout the entire process and continually sought feedback and input. Because the workforce had participated in shaping the future-state designs, there was strong alignment, ownership, and commitment to implementation.

Clear transition plans, training, communication, and phased deployment strategies helped the organization implement changes smoothly and effectively.

The reinvention effort produced breakthrough improvements across cost, cycle time, customer responsiveness, and operational effectiveness.

Internal processing costs alone were reduced by approximately $175 million. Average “order-to-receipt” cycle times were reduced from approximately 85 days to hours for many products and transactions.

Customer satisfaction increased dramatically. Customers gained the ability to order most products online, while cross-functional customer service teams handled more complex and specialized requirements with significantly greater speed and effectiveness.