James Ross Consulting - Cadbury Schweppes

Cadbury Schweppes

Cost Optimization

Cadbury Schweppes, an international major beverage and confectionary company, engaged James Ross Consulting to assist in reducing the cost of their primary and secondary packaging. JRC's innovative approach was to design and implement specification changes to the packaging so as to improve costs through the optimization of materials, packaging processes and distribution.

cadburyschweppes.com

Truly Global

In 2003 following shareholder and regulatory approval, Cadbury Schweppes completed an acquisition of Adams from Pfizer for $4.2 billion (£2.7 billion), forming the world's largest confectionery business. They now enjoy leadership positions in sugar and functional confectionery and the number two position in gum while gaining access to major new markets, particularly Latin America. To retain shareholder value after this aquisition Cadbury Schweppes proposed a significant profit improvement target across the business globally.

Business Challenge

Survey Of Global Manufacturing Plants

The business was under pressure to save money because of the aquisition of Adams and procurement teams were keen to engage JRC to help reduce packaging costs in the US, Canada, Russia, Poland, UK, Ireland and Mexico. The challenge was assess manufacturing plants across these countries to identify packaging value optimization opportunities, and then implement them. Areas of difficulty lay with data collection, analysis and validation across the Cadbury Schweppes business whilst internal re-organization and re-structiring was taking place.

How JRC Helped

Identification Through To Implementation

Within each market (i.e. Americas, EMEA and Australasia) JRC conducted a packaging survey to scope out the areas where major packaging cost savings could be achieved. Each survey was conducted over a six week period and proposals were put forward for 'implementation' phases. James Ross Consulting managed these implementation phases and worked alongside procurement, technical and marketing and manufacturing departments to ensure that each packaging specification change would both work in the field, and would realise the savings put forward in the proposals.

Value Delivered

Delivering Savings Targets

JRC's innovative approach was to design and implement specification changes to the packaging so as to improve costs through the optimization of materials, supply, packaging processes and distribution.