Case study:

Supply Chain Transformation

Leading FMCG Distributor in Qatar

Background & Brief

This leading Qatari Distributor has a market share of 40% in Food, Drinks and FMCG products and manages the importation and sales for the majority of the global multi-nationals brands.  Selling into the full range of retail outlets, they experience ongoing growth in excess of 25% per annum. SCALA was appointed to undertake a review of the supply chain and business systems to ensure that the logistics infrastructure was able to efficiently and successfully support customer service issues.

Project Approach

Initially, a senior SCALA team undertook a business and IT systems process review encompassing:

  • Demand Forecasting, Stock Planning and Procurement
  • Merchandising, Sales Order Capture and Order Entry
  • Inbound Stock Management and Customs Clearance
  • Warehousing Operations
  • Warehousing Stock Management and Control
  • Transport and Customer Deliveries

Our review included both internal evaluations and, through meetings with key retail customers, further external assessments. The findings and conclusions showed that both operational and cost efficiencies and customer service were being adversely affected by the pressure of continued growth. A SCALA Change Management team then took direct management responsibility during the process, concluding with handover to the new management structure over a 6-month period.

Benefits & Results

The project resulted in substantial improvements covering managerial, operational, systems and processes all focused on positioning the company as the leader in supply chain, logistics and customer service for the country. Specific benefits were:

  • Logistics cost improvement of 18%
  • Logistics headcount reduction of 125 (460 down to 335)
  • Customer delivery service improved from 85% to 98%
  • Stock losses reduced by QR2m
  • A re-implementation of a WMS system
  • Significantly improved communications with retail customers & divisional businesses

Final Outcome

The changes enabled the company to successfully grow and develop the business. Their supply chain function now pro-actively leads the market in customer service developments.