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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

British American Tobacco – developing a “shelf” driven supply chain

In recent years customer service had moved up the client corporate agenda. Challenges were 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 combined with the need to drive customer service initiatives. PA Consulting Group has helped British American Tobacco (BAT) to develop a customer service strategy supporting the overall execution of BAT's new global operating model which is designed to deliver £1billion savings.

PA applied a Customer Driven Supply (CDS) approach to the development of the operations customer strategy based on leading edge consumer goods companies. These companies are designing and operating 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.

A highly structured strategy development process rapidly achieved very high engagement and buy in across global and regional supply and demand organisations. This was a unique opportunity for PA to leverage the experience for customer-driven supply and provide BAT with a clear customer service strategy for 2012. Based on designing the supply chain from the 'shelf back' BAT becomes a much more commercially focused organisation through a better understanding of the consumer needs.

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

To find out how PA can deliver projects with true customer driven supply for consumer demands, please contact us now.