EVALUATING AND IMPROVING SUPPLY CHAIN ROBUSTNESS
Variability has increasingly impacted customer service performance and cost, but the cumulative nature of these impacts is only partially understood by supply chain stakeholders. In order to better serve its customers, General Mills seeks to understand where its supply chain lacks resiliency against variability, and how supply chain robustness can be quantified, monitored, and improved in order to support General Mills’ shift toward agility.
The Tauber team identified four primary sources of variability, then quantified the current impacts of these sources on the supply chain, identified key variability tolerances across supply chain functions, and recommended a decision-making methodology to improve customer service and reduce costs. After adoption of the new decision-making methodology by the General Mills snacks team, the Tauber team anticipates potential savings between $20–25M per fiscal year related to reduced inventory and more accurate forecasting. As the methodology is adopted across different divisions at General Mills, business-wide potential savings may exceed $210M. In addition, the Supply Chain Analytics team at General Mills will use the Tauber team’s deliverables in determining actionable areas of supply chain strengthening over the next two to three years.
Rajat Bhatia-Master of Supply Chain Management
Teresa Viola-Master of Supply Chain Management
Beth Blaylock-Initiative Leader, HMM & SC Strategy
Stephanie Buscher-Supply Chain Analytics Consultant
Christine England-Senior Manager, Supply Chain Technology, Analytics & Process
Carol Heppes German-Program Manager, HMM & SC Strategy
Hyun-Soo Ahn-Ross School of Business
Matthew Plumlee-College of Engineering
About Tauber Team Projects:
The 2017 Tauber Team Projects resulted in $575 million in savings according to sponsoring company calculations, an average of $18.5 million per project over 3 years.