A leader in the beauty care product industry wanted to ensure it had competitive transportation pricing and optimal trade costs. The company completed a detailed analysis that not only identified and mapped costs, but also reviewed key business processes for global operations.
Company

The company is an emerging leader in beauty care products, offering a range of products at a variety of price points to match the lifestyle of its consumers. Its unique portfolio of well-known brands includes fragrance, color cosmetics, as well as skin and body care.

Challenge

The company needed to ensure competitive transportation pricing and optimal trade costs. This was not readily available due to the broad range of materials and products sourced from a wide array of suppliers from plants and distribution operations located throughout the world. To understand the path forward and ensure optimal performance of the transportation and trade costs, a detailed analysis of the current situation was needed.

Tompkins International's Role

Tompkins’ role was to identify and map the transportation and trade costs, as well as key business processes for global operations. Business processes included the process of order to delivery of purchase, stock transfer, and sales orders for each of the global business units.

The Results

Action Recommendations

To initiate immediately

  • Implement common cost classification, collection, and reporting across all business units to capture on-going cost
  • Initiate analysis of transportation spend to support vision of next two fiscal years

To initiate over intermediate schedule

  • Integrate global transportation subject matter experts (procurement and operations) into purchasing, stock transfer, and sales order shipping decision-making to proactively manage the total global spend
  • Plan for availability of control tower and transportation management system to users and management

To initiate over long-term horizon

  • Define and implement transportation standards for PO, STO, and SO processes across the organization
  • Design and implement desired transportation organization model
  • Leverage common (SAP-centric) technologies for transportation

 

About the Author
Tompkins International Staff
Tompkins International Staff