CONSULTING SERVICES

SUPPLY CHAIN

Creating harmony between supply chain operations and business strategy

Our purpose

Our goal is to connect our client’s supply chain to their business strategy, culture and environment. We do this by providing customized and cutting-edge solutions that deliver concrete and sustainable results.

The new mandate for Supply Chain

Today, Supply Chain organizations are increasingly being asked to occupy a strategic space which goes beyond just delivering a balance of cost and service level.

This shift has been motivated by both the competitive environment and the increasing demands of customers, and further accelerated by the digital revolution.

The competitive environment: We see Supply Chains leaders under pressure to deliver both resilience and sustainability, as well as perform with ever-increasing efficiency. Globalization, lower entry barriers and easy access of information to compare products and services, for example, are all contributing to a highly competitive environment. At the same time supply chains are becoming more complex and interconnected, increasing the risk of disruption, whilst sustainability concerns are changing the way actors across the network must function together.

Customer expectations: Simultaneously, the demands and expectations of customers are rising. They desire more fluid, personalized experiences delivered in a shorter amount of time; whilst society as a whole expects Supply Chains to be more sustainable and eco-friendly. This forces the Supply Chain to play a much more visible and leading role in delivering the customer value proposition.

The digital revolution: The rise of digital technologies is augmenting these pressures, whilst also acting as an enabler to address them. AI, Advanced Analytics, Blockchain and Machine Learning are unlocking new opportunities, increasing visibility, control, automation, service level and speed of decision-making, changing the way services and operating models function.

All this is happening in an ever more complex and dynamic world where scenarios and contexts change constantly and dramatically within a short period. Given these complex and interconnected challenges, the Supply Chain area must be prepared to play an active and important role in the deployment of the business strategy.

How do we help?

Over the last 25 years, we have been helping our clients determine how to achieve their goals, answering difficult questions related to:

THE ROLE OF
SUPPY CHAIN

  • What role should the supply chain play in my customer value proposition strategy?
  • How do I make my Supply Chain a driver for competitiveness and a source of commercial advantage?

OPERATIONS AND PROCESS MANAGEMENT:

  • How do I prepare my supply chain to be more resilient and respond more quickly to an increasingly dynamic operating environment and times of crisis?
  • In the pursuit of efficiency, how do I manage trade-offs and not compromise standards such as service level, quality, compliance and sustainability?
  • How do I create an end-to-end Supply Chain strategy that connects all areas inside the company seamlessly?

SUPPLY CHAIN TRANSFORMATIONS:

  • What are the transformational changes required to adapt my supply chain model to meet the business strategy?
  • How can I take advantage of cutting-edge tools and technological advancements to improve my operations and capabilities?
  • How do I prepare my organization and people for a supply chain transformation? What aspects of cultural change, engagement and operating model need to be considered?

What makes us different?

Our successful track record is driven by combining both the technical and human elements of a solution.

Each organizations’ strategies, goals, people and contexts are different, and so we strive to develop and implement, together with our clients, fully customized solutions which are grounded in reality and technical excellence. This mantra has led us to work with multibillion dollar companies across 3 continents and resulted in us being recognized as for 3 years in a row by Inbrasc (the Brazilian Supply Chain Institute).

We believe our strength lies in bringing together two important elements of any solution:

TECHNICAL

  • Cross-industry insight: We take advantage of our significant knowledge base of cross-industry benchmarks and good practices to inform and inspire resolutions for your specific issues;
  • Cutting edge thinking: We embed in our solutions the latest supply chain management trends and practices on subjects such as digital, sustainability, resilience and customer-centricity.

HUMAN

  • Living the day to day: We like to work side by side with our clients because nobody knows the culture, reality and subtleties of the operation better than the people who manage it daily;
  • Company-wide connection: We make sure we combine a deep dive into the data with extensive interviews and workshops with stakeholders across the entire organization (not just supply) to build well-rounded understanding and consensus.

OUR SERVICES

Whether you are just starting, or you are already measuring your sustainability impacts and acting upon these, Integration can help you from strategy definition to implementation.

1 SUPPLY CHAIN STRATEGY SET A CLEAR VISIONDefinition of the supply chain components which enable the overall business strategy, setting the foundations to build and continuously improve Supply Chain capability TOPICS COVEREDEnd-to-end strategy, organization model, network design and risk/resilience management TOP SERVICES END TO END STRATEGY NETWORK REDESIGN LAST MILE DELIVERIES
2 Put customers at the centerPromotion of the Supply Chain to become a source of competitive advantage and a driver of the customer value proposition strategy through consistent delivery of high-quality services. TOP SERVICES Order to Cash Process Design TOPICS COVEREDCustomer service, order to cash/delivery process design, service level improvement and ‘last-mile’ deliveries CUSTOMER SATISFACTION & COMPETITIVENESS
3 PLANNING & SUPPLY CHAIN INTEGRATION TOP SERVICES S&OP Process Design Integrate the chain. Plan forward. React fastIdentification and adoption of the required manage-ment systems, processes and governance which improve collaboration, decision-making, responsive-ness and risk management across the Supply Chain. TOPICS COVEREDOperations planning, control tower, S&OP process improvement, inventory optimization, product development & life cycle management
4 PROCUREMENT TRANSFORMATION TOP SERVICES Procurement Strategy Sourcing that goes beyond just cost reductionElevation of the procurement area to become a strategic partner to the business, able to deliver continuous cost reduction, business continuity, compliance, innovation and sustainability. TOPICS COVEREDProcurement strategy, strategic sourcing, P2P efficiency, supplier management
5 OPERATIONAL EFFICIENCY in manufacturing, transportation & warehousing TOP SERVICES Warehousing Efficiency Transportation Efficiency Streamline the operationEstablishment of a culture of operational excel-lence within the Supply Chain organization, which consistently saves time, space, and resources while reducing errors and improving flexibility in operations TOPICS COVEREDEfficiency initiatives, outsourcing strategy, 3rd party integration and management, reverse logistics
6 RETAIL SUPPLY CHAIN TOP SERVICES Retail Supply Chain Management TOPICS COVERED Out-of-stock & inventory management, warehouse and transportation responsiveness, store operation and on-shelf availability Maximize Retail efficiency – leveraging technical solutions through people End-to-end optimization of the Retail replenish - ment backbone, from Merchandising to Store Operations through a pragmatic, collaborative and results-driven approach which provides short-term results and clear long-term guidelines for continu - ous improvement.

SUCCESS STORIES

CHALLENGE

One of the largest grocery chains in Brazil, with over 50,000 SKUs and 300+ stores had suffered from out-of-stock problems for nearly a decade. The company had been dealing with a stark contrast between either severe OOS inventory or excess inventory.

APPROACH

Through completion of a comprehensive diagnosis of the causes of out-of-stock and overstock, it was clear the client required a complete turnaround of their Supply Chain, with a focus on inventory and breakdown for both FMCG and non-food goods.

With this in mind, we implemented a new organizational structure, a set of new inventory policies per channel (Direct store x Cross Docking and Stock) and re-designed supply routines/processes. With a strong focus on change management, we ensured the new methodology was tested in some pilot categories for 4 months, allowing for time to embed the new ways of working and to address any unforeseen problems.

We also introduced a new vendor relationship reward program which fostered better relationships between this retailer and industry suppliers, which today is highly known and recognized in the Brazilian market.

RESULT

The work resulted in a -70% out-of-stock rate reduction, achieving the lowest historical rate ever, and reducing inventory levels at the same time (-5%), resulting in a significant increase in margin, and ultimately delivering the company’s annual target results.

CHALLENGE

A cement manufacturer with revenues surpassing $3 billion wanted to review its entire logistic model, redefining the logistic service which it offered to its clients and reviewing the network design and transportation strategy. Moreover, they wanted to implement these changes fast and to capture results in the short-term.

APPROACH

We worked across two angles of analysis (i) focusing on internal improvements and (ii) meeting the market needs.

As the competition in the Cement Industry is typically regional, we organized the market analysis in each region the company competed. We did extensive service level research with their clients to understand what they wanted and what the company’s differentials should be in terms of logistics service level.

Simultaneously, we modelled and optimized the company’s network looking for efficiency while reflecting these changes in the logistic service level. We analyzed how the changes in the transportation strategy could affect their network.

Finally, we supported the company in the implementation of the recommendations, focusing on how to capture the benefits in a short period.

RESULT

The project delivered important service level improvements to clients as well as efficiency gains for the organization. Our client saw record On Time and In Full (OTIF) delivery levels, a reduction in order lead time and positive uptake of their new logistics service, which was seen as differentiated from the competition.

Furthermore, logistics costs reduced ~6% (in an already optimized network) and time to load vehicles dropped 50% in their largest factory. Through the training of the organization’s teams in tools and methods, they were also able to pursue further improvement post project closure.

CHALLENGE

A Global Food Company with revenues exceeding $10B needed to evaluate the manufacturing footprint of one of its categories in North America.

This category, in particular, had experienced no growth in recent years and shifting consumer demands had built up pressures on capacity, creating constraints for some product lines and idleness for others. Simultaneously, commodities prices and forex changes had harmed profitability whilst competitors had realized important network improvements driving a competitive advantage over our client.

Several attempts to solve this problem had been made in the past, but without driving significant improvements. Integration was hired to help find a financially viable optimization solution.

APPROACH

We first aimed to establish the status quo of (1) the clients’ operation, (2) the competition and (3) the market:

  1. We visited the clients manufacturing sites to understand the current capacity capabilities and issues, as well as the possibility of technology conversion for both food production and packaging;
  2. This was coupled with a benchmark analysis of competitors’ network to understand what was driving the competitive advantage over the company – food processing technology, footprint, portfolio, distribution, etc. – and estimated the level of cost advantage competition had;
  3. Finally, we analyzed the category’s demand for the next 5 years and where the main capacity gaps would appear, to set the potential footprint solutions to explore in the optimization.

Considering the budget constraints, we worked closely with the leadership to develop a phased and scenario-dependent roadmap. This meant the ‘no-regret’ initiatives would be the first to implement whilst volume-constrained adjustments could be left as later steps.

RESULT

Through the analysis, we gave our client visibility of where its competitors had cost advantages over it and which network capabilities had driven these allowing the leadership to have an informed view of where they might also target their efforts.

The project identified a potential 10% reduction in total network costs across material sourcing, production and transportation which could be realized in 3 evolution steps that distributed the savings and investment needs over a 5-year timeframe.

The initiatives and technology requirements were shown also from a plant perspective to clearly outline how these changes affected the different product lines.

CHALLENGE

Our client, a multinational food manufacturing company with >USD 20Bi of revenue and operations in over 150 countries was struggling to balance supply from farms and slaughterhouses with the final demand from the customers, sales channels and different countries.

APPROACH

The supply chain was long and highly complex with pressures across the network. We were dealing with a supply of perishable goods, with strict quality standards and complex chain of production, which had to be matched with a highly volatile demand in local and global markets.

To address this challenge, we worked alongside more than 120 stakeholders to understand the processes and complexities of this industry to develop a solution which reflected and mitigated them in their S&OP process.

The design was developed through multi-part and cross-functional workshops which involved a truly global network of stakeholders. It was presented and ratified at the highest level of the business leadership, and we took a leading role in designing its implementation across operations.

RESULT

The process became the most important driver of day to day tactical decisions in the company, creating room for the agility and flexibility which was highly sought after. It was considered an industry-leading benchmark during the company’s M&A with its biggest competitor and it was taken as the best-practice way of working going forward after the merger.

CHALLENGE

A global business specialized in health insurance and hospital management with >USD 200Bi in revenue contracted Integration to help them in redesigning their purchasing area and associated processes.

The main challenges to overcome included:

  • Supply team under prepared to carry out the transformation intended and having low credibility with user groups and top management;
  • Lack of a structured supply chain area with key functions fragmented throughout the company (e.g. planning and logistic executed by user areas);
  • Strategic sourcing applied to a few categories and knowledge centralized in a few people;
  • Scarce application of advanced sourcing techniques and methodologies.

APPROACH

We worked closely with the client team and C-suite sponsors to address their needs through both capability development and technical solutions. From a human side, this involved empowering the procurement team, training more than 20 people throughout the project with on-the-job coaching and also helping with the selection and hiring of key people for the new Supply Chain area (going beyond our scope).

Technically, we achieved a complete restructuring of the supply chain areas (supplies, planning and logistics) coupled with the development of a new organization model to increase centralization and thereby improve visibility, governance, standardization and planning. With this new architecture in place, we were then able to implement several strategic sourcing projects (for more than 20 categories), shifting the role of the purchasing area from being transactional to strategic.

RESULT

The procurement area was able to significantly expand its role with +95% of purchases being centralized. Furthermore, we saw important efficiency savings, with a 15% reduction in costs for categories targeted by the project and reduction of inventory levels by more than 5 days for pilot hospitals (17%), whilst maintaining the same service level.

WATCH TESTIMONIAL

In this video, Mr Oyama talks about the success story he has had with Integration, which began in a project for the definition of a new supply policy in 2004. He emphasises the culture of the company, the focus it gives to teamwork, and this is one of the factors that make him recommend our work.


Carlos Oyama, Supply Chain Director | Hospital Albert Einstein
WATCH TESTIMONIAL

In this video, Mr Righetti tells us about Integration’s experience in Supply Chain, in Process Redesign and Change Management in the implementation of the processes, which were decisive for the hiring of the company.


Cesar Righetti, Director of Operations | Cielo
WATCH TESTIMONIAL

In this video, Mr Parrotta shares some experiences from a five year relationship with Integration within commercial and operational areas. He mentions that one of the projects concerning operations network redesign became a worldwide standard for Mondelez. He believes that Integration’s work is distinguished due to the different consulting approach; the high-calibre people, high technical content and a commercial transparency.


Claudio Parrotta, Senior Operations Director | Mondelez
WATCH TESTIMONIAL

In this video, Mr Martins describes the three projects he worked on with Integration and points out Integration’s ability to build teams that perfectly integrate into the client’s reality.


Flavio Martins, Sales Director | Martins
WATCH TESTIMONIAL

Gonzalo comments that he has already worked with Integration on several projects throughout his career. He remembers fondly the Go-to-Market project to expand coverage of Kimberly Clark in Latin America. In his testimonial, he highlights the quality of the professionals, [their] flexibility, deep technical knowledge on the methodologies and principles of the multinational organizations and depth they presented during the execution process.


Gonzalo Uribe, Vice-President – Latin America | Kimberly-Clark
WATCH TESTIMONIAL

João Caetano Mello, President of Ebba, talks about Integration’s contribution to a Due Diligence, Supply Chain and Go-to-Market project, and how Integration approached cultural issues within the company.


João Caetano Mello Neto, President | Britvic Ebba
WATCH TESTIMONIAL

In this video, Mr Morhy remembers that all the projects carried out in partnership with Integration were projects that involved in-depth transformations in the organisation, such as the P2P project. Facing this, the team of consultants not only showed themselves to be highly qualified in technical terms, but also had the commitment to not only deliver a recommendation but follow through to the implementation with a solid methodology in change management, adding a great deal of value to the client.


Mario Morhy, Director – Supply Chain | Monsanto
WATCH TESTIMONIAL

In this video, Mr Aste explains Monsanto’s current growth in Europe and how Integration helped in various projects over two years to optimise processes. He mentions Integration’s pragmatic approach that comes with lots of agility, and that understanding Monsanto’s needs and bringing knowledge but respecting their own way of doing things have been paramount. He states that the collaboration has been very positive and left a mark in the company.


Mattia Aste, Supply Chain Lead | Monsanto
WATCH TESTIMONIAL

Mr. Nélisson do Espírito Santo explains how he relied on Integration’s help in the development of a revision of processes to reach operational excellence as a strategic factor.


Nélisson do Espírito Santo, Executive Director | Casa de Saúde São José
WATCH TESTIMONIAL

In this video, Mr Grasso talks about the growth moment the company was going through and the need to organise itself and analyse the path to obtain better results. It is in this context that Integration helped to structure the synergies between the commercial and supply chain areas, overcoming the challenges and guaranteeing the best level of operation and service.


Tobias Grasso, President | Mosaic

OUR INDUSTRY EXPERIENCE

Our experience has been built through the completion of more than 600 supply chain projects. We have worked with numerous multi-billion dollar companies across industry sectors; highlights have included developing global planning processes for one of the largest food companies in the world; redesigning the entire supply model for a leading supermarket retailer and transforming the procurement operations of a multinational agribusiness, but there have been many more.

We have had the pleasure of operating across continents to support our clients with varied contexts and challenges (from M&A to down-sizing and cost-efficiency). These opportunities, carried out since our founding in 1995, have allowed us to learn the value of both the human and technical elements of solution design and implementation and build up a broad range of benchmarks and best-practices.

Our latest thinking:

A practical guide to preventing stockouts in retail

Our latest thinking:

Mastering the new planning cycle

TALK TO US

Alejandro Martinez

Alejandro is a Managing Partner in our Mexico operation. Alejandro has spent over 20 years within consulting, as well as within Industry, having been factory manager and chief of production for Kimberly-Clark. He has worked extensively across Mexico, Latin America and the United States developing deep experience in Consumer goods, Retail, Manufacturing, M&A and particularly [...]

Alessandra Reganati

Since 2014 Alessandra has been working in our Supply Chain practice helping our clients to overcome challenges related to logistics, planning and efficiency. She has worked with clients in industries as diverse as Consumer Goods, Petrochemicals, Healthcare, Retail, and others with projects such as S&OP redesign, Order-to-Cash process improvement, Inventory Management and Cost Efficiency, to [...]

Alex Osoegawa

Alex is a Specialist in Integration’s Supply Chain Practice. He has extensive experience in Supply Chain strategy design and implementation having joined in 2007, already with significant industry experience. Alex has supported Integration’s clients with a broad range of strategic challenges and opportunities and is especially experienced in the areas of Procurement, Logistic Network Design [...]

Ezequiel Paez

Ezequiel is a Manager within Integration’s Chilean office, with more than 10 years of consulting experience. He has worked on projects in Latin America, North America, Europe and Australia supporting our clients across the value chain with everything from cost reduction to strategy implementation. His experience includes sectors such as Consumer Goods, Retail Transport, Manufacturing [...]

Gerard Schoor

Gerard is a Managing Partner and has overseen the Mexico City office since 2008. Prior to Integration, Gerard accumulated 25 years of experience in executive positions at L’Oréal, The Colomer Group and Unilever in Europe, USA and Latin America. He has led global projects related to Organizational Development, Market Entry Strategies, Industrial Management and Strategic [...]

Gilberto Sarian

Gilberto is a founding Partner at Integration. Over the course of more than 25 years he has led the development of Integration`s award-winning Supply Chain practice, advising international clients across Latin America, Europe and USA. With a background in Engineering, he frequently participates in events and lectures across the world, to discuss latest trends and [...]

Guilherme Manzini

Since 2012 Guilherme has been helping our clients with their strategic and operational challenges in Supply Chain. He has led numerous projects related to Supply Chain Diagnosis, Integrated Planning (S&OP), Warehousing Efficiency. Sourcing and Logistic Operations for multimillion-dollar businesses of international scale.

Henrique Medeiros

Henrique is a Manager within Integration’s Supply Chain practice with experience across varied sectors including Consumer Goods, Metals & Mining and Retail. He has worked in projects ranging from planning and S&OP to Supply Chain Strategy Implementation.

João Barros

João is a partner at Integration and has been working since 2006 in our Supply Chain practice. During this period, he been instrumental to the practice's development in Integration's 7 offices around the world, contributing directly to its numerous awards in Brazil. He has led, and continues to lead on numerous projects in Planning, Distribution, [...]

João Vilela

Since 2009 João Paulo has been working in our Supply Chain practice. During this extensive period, João Paulo has led projects across numerous continents and in several sectors and areas of Supply Chain. He has worked on challenges such as Logistics Network Design, Transport Efficiency, S&OP, Order-to-cash, Stock Management and Supply Modelling.

Julian Lempp

Julian is a Manager within Integration's Munich office. He has experience both within consulting and Industry, having previously worked for a leading German consultancy and as a business development manager within an industrial goods manufacturer. Whilst he has experience across many project types, his specialism lies in supply chain, having undertaken numerous consulting projects for [...]

Luis C Vidal

Luis is a Managing Partner at Integration where, since 1999, he has been working in the Supply Chain practice. During this period, he has led projects in the most diverse sectors and in themes such as Logistic Optimizations, Process Efficiency, Planning (S&OP), Industrial Strategy, Go-to-Market Strategy and Distribution Structure. His international experience encompasses the opening [...]

Rafael Pinto

Rafael is a Specialist in Integration and brings a wealth of knowledge in the areas of Retail and Supply Chain. Over many years working in the field, he has led and advised on projects across all our Supply Chain areas, with emphasis on Operational Efficiency, Demand Planning, S&OP, 3PL and Transport Strategy and Distribution Center [...]

Ricardo de la Cueva

Ricardo is a senior specialist within Integration’s Supply Chain practice and has an MBA in Operations and Supply Chain from Rijksuniversiteit Groningen in the Netherlands. Having worked for over 20 years in consulting, he has developed extensive experience leading and advising on projects on an international scale across diverse industries including Consumer Goods, Healthcare, Education [...]

Stephen Fournier

Stephen Fournier is a Manager within Integration’s U.S. operation. Stephen is an experienced Strategy and Supply Chain consultant. He supports our clients in the development of Supply Chain Strategies, improving Operational Eficiencies and completing Strategic and Operational Transformations in sectors such as Food and Beverage, Consumer Goods and Retail. Stephen holds a degree in Management [...]

Thomaz Fittipaldi

Since 2009 Thomaz has worked in our Supply Chain practice, leading on many projects with international scope in several countries around Latin America and Europe. He has built solid experience in multiple methodologies including Integrated Planning (S&OP), Logistic Network Redesign and Operational Efficiency, working with clients across sectors, but in particular Agribusiness.

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