Project Title: Cutting Customer Compliance Fines for a Medium-Sized CPG Organization by Turning Data into Wisdom
Challenge:
A well-known beauty and personal care company was facing escalating compliance fines from various retailers, negatively impacting operational efficiency and supplier performance scores. The solution required a deep understanding of compliance guidelines for both online and brick-and-mortar retailers, along with robust data analysis.
Approach:
We conducted a thorough review of retailer compliance guidelines and the client’s supply chain. By analyzing data from retailer portals and the client’s ERP system, we aimed to uncover actionable insights to reduce compliance fines and improve overall performance.
Key Discoveries:
Our analysis revealed several areas for improvement:
- Product Packaging & Labeling: Non-standardized labeling and poor packaging caused many SKUs to be non-compliant, leading to recurring fines that scaled with sales.
- Inventory Availability by Location: Misaligned inventory across multiple warehouses resulted in low fill rates, contributing to additional fines.
- Lack of Awareness: The client was receiving performance scorecards but had not fully invested in understanding retailer compliance guides or leveraging available data.
Solution:
We provided strategic recommendations, including:
- Standardizing case labels.
- Rightsizing and optimizing inventory across warehouses.
- Improving product packaging.
- Enhancing awareness of retailer compliance requirements.
Impact:
Our solutions helped reduce year-over-year compliance fines by 50%, significantly improving operational efficiency and supplier performance.