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Operating model transformation and digital enablement

CPG Supply Chain SME (United States)

image of a cargo ship at sea carrying loads of containers
Pain points

Poor service reliability, with OTIF (On-Time In-Full) delivery at 60%

Long and inefficient cash-to-cash cycle (~45 days)

Fragmented workflows across procurement, warehousing, and distribution

Low utilization of existing digital systemsLimited cross-functional visibility for decision-making

Root causes

Lack of a clearly defined target operating model (TOM)

Misalignment between business processes and the custom digital platform

Absence of structured change management and adoption strategy

Siloed functional execution with weak governance mechanisms

Data inconsistencies limiting performance insights

How the root causes were addressed

Our team deployed an integrated transformation anchored on Operating Model Redesign and Adoption Engine™:

1. Operating Model Redesign

Designed a future-state operating model aligned to growth and service objectives

Standardized workflows across order management, inventory, and distribution

Defined clear accountability structures and decision rights

2. Digital Enablement (Leveraging Existing Custom System)

Reconfigured the client’s custom platform to align with optimized workflows

Improved data capture and reporting structures to enable real-time decision-making

Eliminated redundant manual processes

3. Adoption Engine™ Deployment

Delivered role-based training and workflow integration

Established performance dashboards tied to operational KPIs

Built internal capability through change champions and leadership alignment

4. Performance Governance

Introduced operational cadence (daily–weekly performance reviews)

Embedded KPIs for service level, working capital, and throughput

Linked operational performance to financial outcomes

Outcomes

Cash-to-cash cycle reduced from 45 days to 20 days (~55% improvement)

OTIF delivery improved from 60% to 85%

Significant improvement in cross-functional visibility and execution speed

Reduction in manual interventions across core workflows

Sustained improvements through embedded governance and adoption structures

Lessons learned

Technology investments only deliver value when aligned with a clear operating model

Adoption—not implementation—is the critical success factor in digital transformation

Working capital improvements (cash-to-cash) can be unlocked through operational alignment

Service level improvements (OTIF) are a direct outcome of process integration and visibility

Embedding governance ensures transformation gains are sustained over time