JP Farrell And Associates

Confidential Material

Introducing JP Farrell & Associates, Inc.

Promoting Innovation Throughout the Extended Enterprise

jamespfarrell@sbcglobal.net

http://jpfarrell.blogspot.com

© JP Farrell & Associates, Inc. 2008. All rights reserved.

Introducing JP Farrell & Associates, Inc.

Who We Are and How We Work
Capabilities
Our Role Is Determined by the Clients Needs
Our Clients
Representative Engagements
For More Information
Our Website http://jpfarrell.blogspot.com
Contact Information

10/5/2008 © JP Farrell & Associates, Inc. 2008. All rights reserved. 2

Who We Are and How We Work

Clients work directly with the principal ― a hands-on, executive consultant
20 years of professional consulting experience
Officer-level positions with AT Kearney, Cleveland Consulting Associates and other consulting firms
Designed and led engagements in operations and strategy with more than 40 clients in a variety of
industries
Doctoral training in economics and econometrics at the University of Michigan
Prior experience in strategy and development in both industry and government
Schneider National, Inc. – Business development and corporate strategy
IU International, Inc. – Transportation industry strategy
U.S. Dept. of Transportation – Economist, author of several studies that enabled truck deregulation
(cited in Preamble to Motor Carrier Act of 1980)

How we Charge
Initial discussions are free and without obligation
We generally charge on a time elapsed or by project phase basis to ensure clients have a
clear understanding of a project's progress. Fixed fees can be agreed for tightly defined
projects.

The firm has the flexibility to bring in additional consulting resources as required
The firm has the flexibility to bring in additional consulting resources as required
through relationships with other firms, developers and independent consultants
through relationships with other firms, developers and independent consultants


The Consultant’s Role is Defined by the Project Needs

Typical Roles
Typical Roles

Engagement Manager Analyst and Subject Matter Expert
Project design and management Strategy
Detailed planning and reporting Innovation
Program integration Extended Enterprise Management
Supply chain structure
Operations
Process Facilitator
Best practices in logistics and
Workgroup facilitation transportation
Issues documentation Capability assessment
Process design Process design
Process mapping Functional requirements
Performance evaluation Organization of resources and
Gap analysis infrastructure
Pilot demonstration Information Technology
Information mapping and gap analysis
Coaching
Business intelligence
Capabilities of vendors and
applications


Insight drawn from experience in many industries
Food & Beverage Companies Other Manufacturing, Retail Health Care
American Home Products and Printing Bristol-Myers Squibb
Anheuser-Busch Allison Engine BlueCross/BlueShield unit
Applebee’s Caterpillar Eli Lilly
Basic American Foods Ciba-Geigy Rapidly growing HMO
Barilla Colgate-Palmolive Wyeth
Coca-Cola Elmer’s Products
E&J Gallo ExxonMobil Transportation, Fulfillment
Harris-Moran Seed Co and Utilities
Kellogg
La-Z-Boy Banta
McDonald’s
Pactiv Bell Canada
Naya
Party City Federal Express
Parmalat
Sears IU International, Inc.
Pepsi General Bottlers
Softsoap Schneider National, Inc.
Pillsbury
Quaker Oats SuperValu
Target Consulting and Other Services
Southern Wine & Spirits
WMS Gaming AT Kearney/EDS
Starbucks
Zenith Bank of America
YUM Brands!
Capgemini/Kanbay/
Government and Education Adjoined Consulting
US Dept. of Transportation Cleveland Consulting/CSC
Eastern Michigan University TSC
Concordia College

Representative Engagements Developed and Managed by
JP Farrell
Client Issue Consultant’s Role Results

Rapidly growing Health Unacceptable rate of claims Designed and facilitated COO made adoption of the
Insurer processing errors operations assessment and implementation plan the top priority
improvement plan
Multi-national Food The client needed to boost plant Facilitated design and rapid Company showed immediate profit
Manufacturer asset utilization implementation of integrated improvement as management practiced
tactical planning collaboration
Global Air Freight Excess inventory of aircraft parts; Facilitated development of Reduced total inventory and improved
Carrier high cost of maintenance strategy for improving aircraft service by changing inventory,
availability maintenance, flight routes and
purchasing policies
Top Beverage Brand Cost of shipping to distributors Evaluated transport operations Confirmed opportunities to reduce spend
by $70 mm annually

Literature Management Wanted to offer turnkey print and Assessed supply chain Positioned client as the preferred
Division of Print fulfillment services operations of client’s target provider for important customers.
Company customers Increased revenue by $15 mm annually
Rapidly Growing Coffee High cost of shipping materials to Designed inbound shipping Reduced inbound transport costs by
Retailer stores; poor inbound controls operation $72 mm annually
Defined materials management Built business case for order
requirements management system
National Liquor Operational data was not reported Used rapid visualization to Management approved a common set of
Distributor consistently or quickly create operations dashboards metrics and dashboards

Major Grocery Declining market share due to Facilitated adoption of new Introduced customer-specific service
Manufacturer inflexible customer service customer service strategy approaches and regained category
leadership
Consumer Products Opportunity to rationalize Evaluated cost and service Developed plan to reduce distribution
Manufacturer distribution networks following implications of alternative cost by 15% while improving service to
10/5/2008 merger of © JP companies
CPG Farrell & Associates, Inc. 2008. All rights reserved.
distribution network plans W. Coast 6

Client Success Story
Achieving Processing Accuracy for Medical Claims

A fast-growing, multi-state healthcare management organization wanted a new approach

Situation Approach Key Accomplishments
•A third party audit had • Established teams of experts to assess • Identified inconsistencies in data
shown that errors in claims operations at each stage of the claims structures and systemic
processing were lifecycle duplication of records in master
unacceptably high • Conducted workshops to document tables that caused and
•Concern about regulatory process flow at high level and identify compounded errors
compliance issues, bottlenecks and inconsistencies • Developed processes for
•Evidence of overpayment • Categorized and prioritized issues using automating rate table updates
of claims cross-functional teams • Streamlined processes for
•Delays in processing were • Moved from assessment to diagnostic and reviewing claims, emphasizing
damaging relations with planning, again using cross-functional checks on high-value claims and in
participating providers teams areas prone to error
and regulatory agencies • Organization and Training • Recommended redirection of
•The client attributed high • Metrics and Compliance resources, naming “data masters”
errors to administrative • Root Cause with responsibility for reviewing,
incompetence, focusing • Developed a detailed plan for improving cleaning and updating master data
attention on insufficient performance files
training and documentation • Recommended phased update of
•The client set an aggressive claims processing systems, purging
goal for achieving financial obsolete rate tables in the process
COO made
accuracy on claims adoption of the • Re-engaged operations
implementation management in setting systems
plan the highest priorities
priority


Instilling Management Discipline at Food Manufacturer Client Success Story

through Integrated Business Planning
“IBP is the way we do business” – Public statement of Chairman

• Facing pricing pressure, the • An integrated business planning (IBP) process • Using the new process, tactical
company was in the midst of a was designed using a facilitated approach plans developed at the functional
major cost reduction initiative • Functional leaders from marketing, sales, level were reviewed cross-
involving both sourcing and production, distribution, customer service functionally and updated as
manufacturing. and information technology met in required
• Plans were being developed to workshops to define the new process • By updating capacity plans more
remove substantial excess • Team motto – “Learning by Doing” frequently and using constrained
capacity from manufacturing • The process was implemented the second production planning, operations was
• Promotion activity caused month, then continuously refined able to remove excess production
substantial variability and • Process owners were designated and their capacity
uncertainty in demand roles were formally defined • Profit improvement opportunities
• Business functions could not • A consulting team worked with marketing, valued at $12 million were
reconcile volume forecasts finance and sales to develop a single, unified identified over the first 6 months
• Communication among sales, monthly volume and profit plan •The design of a marketing
promotion management and • 12-month rolling forecast promotion was changed to
operations were conducted at • Updated monthly improve sales performance
low levels of the organization, • Predicted volume and profit by brand and •Excess inventory of fast-moving
and were limited to remedies product, based on field promotion activity goods was identified and
for near term issues, such as • The S&OP planning horizon was changed from removed
expedited shipping from a two-month to a nine-month outlook • Business Unit management became
• Product shortages occurred • Monthly functional and cross-functional actively involved in tactical
too frequently, despite meetings were designed planning every month
relatively high inventory • Standard preparation and inputs • The IBP process was adopted by all
levels • Monthly cross-functional recommendations business units and implemented
world-wide


Reducing Excess Inventory of Aircraft Parts Client Success Story

Global Air Freight Carrier
By repositioning responsibility for inventory, client improved focus on fleet uptime


•Client had nearly $1 billion • Convened steering committee to • Rewrote stocking policies,
in spare parts inventory reconsider role of spare parts inventory establishing that some classes of
stored in more than 100 • Interviewed management to better inventory should be managed by
warehouses and depots understand requirements and processes suppliers and that others should
worldwide for maintaining aircraft and deploying be pooled with non-competing
•High emphasis on parts spare parts carriers
availability • Segmented inventory by purpose, value • Recommended that some aircraft
•Wide range of aircraft types and urgency and benchmarked types be rerouted
and ages supported performance • Developed plan for strategically
•Parts ranged in value from a • Identified excess inventory for sourcing parts from low cost
few cents to $1 million disposition suppliers
•Users of inventory, the • Proposed alternative operating models, • Eliminated some classes of
maintenance organization, including outsourcing some types of inventory from many stocking
did not have responsibility inventory and amending service locations
for managing it requirements for parts suppliers
•Immature processes for • Modeled impact of aircraft route
establishing alternative assignments on inventory requirements.
sources of supply

Reduced total
inventory and
cost of
managing it


Shaving $70 Million from Distribution Costs Client Success Story

Client: Leading Global Coffee Brand
Identified changes in policies that streamlined operations and reduced spending on carriers


•The client, one of the • Interviewed each department to • Identified actionable, verifiable
world’s largest beverage understand policies for production tactics for reducing distribution
brands, faced significant scheduling, plant warehousing and costs and transport-related
cost reduction targets distribution, wholesaler order materials costs by >$70 million
•The Transportation management and transportation annually. For example:
Department managed a • Analyzed wholesaler orders at the brand • Direct ship full truckloads of
spend of some $500 million and wholesaler level to identify fast-selling product to high
to deliver finished goods opportunities for cross-docking and volume distributors
among company-owned direct shipping • Arrange for low-weight
subsidiaries and from • Identified major logical flaw in the trailers and fill them to
bottling plants to model used to estimate truckload costs capacity
wholesalers • Identified opportunities to substitute • Locate bottle supply closer
•The Procurement • Determined that certain high volume to bottling plants
Department negotiated inbound lanes for materials could be • Institute dedicated contract
contracts for materials combined with outbound lanes to form carriage program and multi-
(including bottles and cans), continuous moves, including round trips stop truckload deliveries
F.O.B. Destination, freight • Found other lanes where lower-cost
prepaid modes could be substituted
•Procurement, Plant • Determined that outbound equipment
Operations and was not optimally loaded and that Most savings
Transportation operated opportunities to fill excess trailer came from
independently capacity were not being recognized operational
changes


Helping a Literature Management Company Become Client Success Story

the Preferred Solution for Key Accounts
Restructured a supplier’s relationships and spans of responsibility with major customers


•The client, a printer, wished • Worked with the client’s business • In one case, recommended that
to inaugurate turnkey development teams and senior client’s customer outsource all
literature management management to structure deals and printed material management to
solutions for key customers project plans client in sole-source arrangement
•Originally a multi-media • Through two different, concurrent • Estimated annual cost advantage
printer projects, audited the supply chain and detailed how service
•Redefining service structures, policies and performance of advantages would improve
offering to include two of the client’s key customers, one a customers’ value proposition
•Printed materials retailer, the other a managed health while avoiding investment in
design and production care provider systems
•Inventory stocking and • Managed project teams composed of • In second case, recommended
management consultants and key representatives of restructuring of supplier
•Print on demand the client and its customers responsibilities, increasing total
•Distribution • Analyzed impacts of alternative supply efficiency
management chain approaches to devise new
•The consultant was engaged strategies
to help the client increase • Considered industry dynamics, client
its share of the print and and customer capabilities and costs
fulfillment volume at two of
its key customers Increased
revenue at key
accounts by
$15 million
annually


Creating the Inbound Distribution Network for a Client Success Story

Rapidly Growing Coffee Retailer
Developed store distribution plan for rapidly growing coffee retailer


• Company was expanding • Segmented restaurant supply chains by • Management agreed to
rapidly, both adding new type of product, recognizing differing undertake multi-year effort to
stores and developing new service requirements and logistics create distribution infrastructure
channels of trade characteristics • Store deliveries were reduced to
• Having little distribution • Developed common fact base for volume, no more than one per day
infrastructure, the company activities, costs and locations • New flow paths for products
was receiving some thirty • Interviewed senior management as well were defined, based on product
deliveries per week at each as store operators, logistics service and customer segments
of its operations, with high providers, suppliers and staff departments • A network of third party
embedded transportation to understand growth plans, service providers was selected to
costs requirements, operating constraints and operate distribution
• Multiple order processing cost drivers • Ordering processes were
systems confused • Modeled costs of alternative distribution simplified and consolidated
procurement processes and scenarios • Metrics for controlling customer
prevented store operators • Working closely with both functional and service were put in place
from having supply chain executive management teams developed
visibility distribution strategy
• Network expansion was • Identified operating changes required by
generating decreasing new strategy
returns to scale, despite • Developed systems plan to support new
increasing network density strategy, estimating costs of $72 million
implementation operating cost
• Created time-phased implementation plan savings
identified

Designing Business Intelligence Dashboards Using Client Success Story

Rapid Visualization
A Major U.S. Liquor Distributor Had the Data—But it Was Not Actionable

•One of the largest U.S. • The consulting team suggested that the • Demonstrated that the data were
liquor distributors, with simplest way to get consensus on data available to create a 360° view of
warehouse and delivery requirements and reporting tools would be operations across geographies
operations in some 30 to mock up an interactive set of reports and over time
states, had difficulty • The consulting team developed an • Presented full-color, realistic,
comparing and managing the operating model to describe the interactive demo within 2 weeks
effectiveness of its components of operating costs and • Identified sources of data,
operations inventory carrying costs obstacles, and workarounds to
•The company was operating • Then working with the client to identify make model operational
with 8 different versions of available data and its sources, consultant • Worked with client to fine-tune
three legacy order and constructed a series of metrics to track the ways data would be displayed
inventory management operations performance in the context of • Within 4 weeks produced a
systems this model working demo of a reporting
•Data was reported to • Using a PC-based version of a popular model that was easily visualized
various managers in many Business Intelligence tool, the consulting and endorsed by skeptical
different ways, but no one team worked with the client’s operations operations managers from
had a simple, consistent experts to mock up a set of on-line, diverse locales
view of all operations interactive reports with which the client
•Although a data warehouse could interact
had been designed to Client previewed
capture some critical data, the tool at its
annual operations
management could not meeting and won
agree on what to report approval to
proceed

Helping a Top Consumer Products Company Regain Client Success Story

Category Leadership by Reorienting its Service Approach
Redefined policies, permitting account-specific integrated service and promotion policies

•The client was concerned • Developed customer experience • Convinced management that
that its ability to maintain framework, describing interactions with several areas needed attention:
its margins with retail customers at each stage of the service • Rigid logistics practices
customers was eroding as it lifecycle, from product development to • Overly complex, insufficiently
lost market share service after the sale documented promotions
•Why were customers • Conducted (1) in-person top-to-top • Inflexible invoicing procedures
unhappy in spite of the interviews and (2) telephone surveys with • Packaging, bundling and
client’s acknowledged middle managers at major retail accounts logistics offerings not well
strengths? to determine: matched to channels
•Strong consumer • What do customers consider important • Developed process for tailoring
preference for the aspects of service? service offerings to channels and
client’s product line • How did the client measure up relative accounts
•Competitive spending on to competitors at each stage in the • Introduced display-ready pallets
trade promotions lifecycle? for promotion, customer-specific
•High order fill rates • How did customers’ requirements vary unit loads, customized invoices
•Efficient logistics by channel of trade and business • Improved metrics
operations strategy? • Added service metrics to
•Ethical business practices • Assessed current performance relative to customer scorecards
•Experienced customer customers’ stated expectations to find
service representatives areas requiring improvement
•Attentive sales force • Met bi-weekly with cross-functional team Regained
of client vice presidents to review Category
approach, hypotheses and findings Leadership


Streamlining Distribution for a Client Success Story

Consumer Products Manufacturer
Developed post-merger distribution plan for CPG Manufacturer


• Conglomerate purchased CPG • Interviewed senior management to understand • Significant disparities were
manufacturer and wanted to goals for growth, cost and performance; customer discovered between operating
merge its operations with those of service policies; and perceptions of current practices and performance of
a previous acquisition to form a performance the two companies
category leader • Assessed operating performance at current • A common set of customer
• Companies had substantial, but facilities service policies were
not complete overlap in customers • Developed extensive fact base to model costs and developed, recognizing that
• Each company had different service implications of alternative network orders would be consolidated
service policies, even for common structures at the customer level
customers • Volumes, orders and shipments by customer • Emerging customer
• Neither company had sufficient and/or SKU requirements for service and
distribution capacity to serve the • Detailed costs of transportation and information were identified
needs of the other distribution • Recommendations were made
• Both companies were in the • Alternative costs associated with new to add a west coast DC,
process of outsourcing much network elements remove a suboptimal
production to Asia • Inventory levels and policies by location and distribution facility and improve
• Companies were in the early SKU systems and operating
stages of integrating supply chain • Current and expected sourcing plans practices
and financial systems • Modeled cost and service implications of
alternative paths for each SKU
Costs reduced
by 15% and
service
improved

For More Information
Commentary and Resources

http://jpfarrell.blogspot.com


Contact
JP Farrell & Associates, Inc.

JP Farrell & Associates, Inc.

436 N Grove Ave James P Farrell
Oak Park, IL 60302
Management Consultant

Phone: (312) 545-3452
Fax: (708) 386-5844
E-mail: jamespfarrell@sbcglobal.net
website: http://jpfarrell.blogspot.com


JP Farrell And Associates

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (17)

En vedette

En vedette (9)

Similaire à JP Farrell And Associates

Similaire à JP Farrell And Associates (20)

Dernier

Dernier (20)

JP Farrell And Associates