Operations Management Accounting and Supply Chain Optimisation?

Fast growth brings a set of challenges that few organisations will have the management capacity to cope with. There are simply too many priorities for the leadership team to contend with. That is often when the use of Strategic Sourcing can have huge value – so long as transfer of knowledge is effective, and far-reaching. It’s simply not enough to deliver a new methodology, or technology. As a client, you want to work with advisers who have the ability to support your organisation to use and maximise the new approach.

Working with Strategic Sourcing, we have definitely had that depth of service. Compared with other consultancies, they are “roll up their sleeves” people, who, having agreed with us on the outcomes, work alongside our staff to get the job done.

Argenta was established four years ago. We research and develop animal health remedies, and provide contract manufacturing for animal health products, for clients all over the world. We inherited processes and a culture from our previous owner, a large multinational, which have become increasingly less relevant in our evolution as a smaller, entrepreneurial enterprise. We have welcomed the knowledge, and the tools, that Strategic Sourcing has introduced to enable change in the business.

In setting a budget for a year we knew was going to be hard for the global economy, a critical step was to improve our sales and operational forecasting. We needed a system that enabled departmental managers to set and manage budgets based on forecasts they generated. In the past, the financial team would have done that for them, and it’s not a good thing, because it doesn’t encourage them to own the numbers.

As a result of this initiative, we now have a group of leaders who can manage their departments like they are their own businesses. In particular, the knowledge transfer around the use of Excel has been outstanding. We have set 12-month rolling forecasts and agreed KPIs, and we report against those monthly. It has added enormous value in the way we do forecasts for sales and production, which is a critical aspect of the business.

In the supply chain area, Strategic Sourcing did a review and helped us realise we didn’t have the right resources to manage a strategic solution. We have since recruited a highly skilled procurement manager, and are systematically establishing new supplier contracts. Using the structure that Strategic Sourcing recommended, we have generated savings of at least 10% in every supply category.

Key benefits
The supply chain review: clarified the resources we needed.

Supply chain structure: achieved at least 10% savings with every supply contract that has been established.

Sales and Operational Forecasts: we now have a planning process that has added depth and rigour to the management of our business.

New skills: managers are more accountable for their numbers.

Master data: we better understand what to measure, and we have the tools to measure it.

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