Arla is a vertically integrated dairy company with a farmer co-operative ownership structure. The company operates dairy activities in Denmark, Sweden, Germany, the UK, Belgium and Luxembourg, and had a global presence through its numerous subsidiaries. Products are sold under such brands as Arla, Lurpark and Castello and include milk, cream, yoghurt, cheese, butter, spreads and milk powder, among others.
Poor product portfolio management had led to a proliferation of SKUs and degradation of margin. Changes in staff and communication issues also resulted in a poor understanding of manufacturing complexity.
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