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“We build a truly consumer-led, high performing and globally integrated supply chain - putting consumers at the forefront in design and delivery of products, services, supply chain processes.”

Dave Anderson, Group Head of Move and Service, British american tobacco

Developing a “shelf” driven supply chain - British American Tobacco

In recent years customer service has moved up the client corporate agenda. British American Tobacco (BAT) faced challenges of poor on-shelf availability of key global brands in certain key markets and excessive stocks of non-strategic brands. Delivery of basic order fulfilment was inconsistent across regions and they also needed to drive customer service initiatives.

PA Consulting Group helped them to develop a customer service strategy that supported the overall execution of BAT's new global operating model which is designed to deliver £1billion savings.

We applied a Customer Driven Supply (CDS) approach to the development of the operations customer strategy based on practice in leading edge consumer goods companies. These companies design and operate their whole supply network in order to win with the customer at the point of sale. This is a mindset change for those companies which have typically regarded their supply chain as not much more than an operational necessity rather than a significant strategic weapon in improving sales.

A highly structured strategy development process rapidly achieved very high engagement and buy in across BAT's global and regional supply and demand organisations. We could then provide them with a clear customer service strategy for 2012. By designing the supply chain from the 'shelf back' BAT became a much more commercially focused organisation through a better understanding of consumer needs.

The strategy helps BAT to save at least £20million in reduced service failure cost as well as helping the company to improve product availability, reliability, value and service differentiation. Thi helps BAT establish a culture where people understand customer needs and where people are committed to providing an outstanding level of service.

“We build a truly consumer-led, high performing and globally integrated supply chain - putting consumers at the forefront in design and delivery of products, services, supply chain processes.” - Dave Anderson, Group Head of move and service, BAT

To find out how PA can deliver projects that use true customer driven supply to meet consumer demands effectively, please contact us now.

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