scprime® is Argon & Co’s powerful improvement approach, combining process and people capabilities to ensure that the right people are in the right jobs, consistently doing the right things.
Based on benchmarking, an objective assessment of capability and a toolkit of implementation techniques, it defines supply chain excellence in terms that are meaningful to each specific organisation and ensures that improvements are sustainable. It is how it is applied that sets scprime® apart, enabling companies to dramatically improve supply chain capabilities and significantly reduce cost.
scprime® drives a focused and effective transformation programme, hard-wired to strategy and objectives.
It is the result of decades of practical experience, achieving long term improvements in companies in over 30 countries on five continents by identifying supply chain excellence in terms that are meaningful to each specific organisation. It has been proven to achieve a step-change in performance, by aligning supply chain strategy with business strategy.
The benefits are significant: operating costs are often reduced by 15-20% and working capital by 10-15%; responsiveness and service levels are improved and are more consistent, allowing more significant innovation and driving increased sales; staff are developed according to the specific needs of the role, focusing on capabilities rather than job descriptions, so they are equipped to carry out what is expected of them.
The focus of scprime® is to drive transformational improvement rather than simply provide scores on a scale of excellence. scprime® impacts a business in two stages:
The potential supply chain benefits are considerable, especially in multinational businesses.
saving due to load fill optimisation
saving due to 3PL contracts/productivity management
less waste due to lean manufacturing
increase in productivity due to reduced downtime
reduction in packaging price due to implementation of best practice procurement procedures
reduction in finished goods stock
saving due to less crisis management and process chasing
reduction in waste due to less disruption and better run strategies
reduction in packaging price due to VMI and flow optimisation
lower working capital (raw materials)
higher return on capital employed (ROCE)
lower working capital (finished goods)
lower raw materials cost
lower indirect materials cost
lower manufacturing costs
lower supply chain costs
lower distribution costs
increase in sales
The scprime® process capability framework is based on a set of process definitions which give a comprehensive view of best practice across the supply chain, enabling benchmarking to take place and improvements to be generated.
The structure is modular so that it can be easily applied to different entities. There are a number of profiles within each functional area and a particular organisation or business unit can assemble the appropriate profiles to reflect its own functions.
The scprime® people capability framework is based around a set of profiles which describe the specific capabilities required to deliver best practice within each functional area of the supply chain.
Whether an organisation’s plans are focused on growth, rationalisation, acquisition, integration or just simply improving business as usual, the framework identifies whether the existing team has the capability to deliver those plans, and if not, where the gaps are. The structure is modular allowing businesses to select appropriate profiles for their specific needs.
“The scprime® approach was highly effective in providing us with a deep and wide assessment of our supply chain process, identifying substantial benefits, and underpinning our supply chain transformation strategy development and implementation.”
“The principles behind scprime® are simple - getting step-change improvement in your supply chain to support your business strategy. This book is a starting point on this journey.”
“Argon & Co’s framework was invaluable in helping to identify the strengths and weaknesses of supply chain processes across the group for our global and regional brands. scprime® enabled a rapid assessment of process maturity, action planning prioritisation and redefinition of the commerical and supply functions around our new business operating model.”
The client sells sports nutrition, nutritional supplements and dietary products, mainly through their website. The company develops and sells their own range of products as well as other branded products. Growing from their home-market in the Netherlands the client also distributes in France, Germany and Belgium. It was acquired in 2017.
The client’s recent growth and the planned ERP implementation required an assessment of supply chain operations and capabilities to identify opportunities to maintain and improve supply chain performance.
Assess the supply chain using the Argon & Co scprime® benchmarking approach
Carry out multiple interviews with key stakeholders, warehouse and operations assessment and detailed data analysis
Evaluate supply chain maturity across 17 scprime® supply profiles and determine target maturities for the next two years
Identified 82 individual actions enabling the client to improve planning, reduce inventory and enable business growth
Prioritised opportunities and developed a wave plan for site implementation
Developed a catalogue of 450 specific requirements to include in the ERP solution blue printing process
The client is a global tobacco company selling more than 200 brands globally. It is the market leader in more than 60 countries.
The business was struggling to cope with the volume of product and packaging changes demanded by local markets, and was unable to get new products to market quickly enough. Argon & Co was asked to assess the current end to end NPI processes across all regions and identify actions to standardise the processes whilst making them leaner and more efficient.
Understand current categories, processes and scale of NPI activity in each region
Assess the current and desired end to end NPI processes maturity levels using the scprime® benchmarking approach for five pilot markets
Create action plans for each market to close the gaps between the “As-Is” and “To-Be” maturity levels
Develop a process maturity assessment tool to enable global roll out to all end markets
Common NPI categorisation framework for all regions
Maturity assessment tool developed, which includes seven NPI excellence profiles with thirty three elements and which can be used to support a quick rollout of the processes globally
Five end market assessments completed identifying the gaps between the “As-Is” and desired “To-Be”
Detailed action plans and fully trained teams able to roll out the process across all regions
The client manufactures and distributes packaging, plastics and hardware for a range of industries including beauty, consumer goods, healthcare and transport. Revenue in 2016 exceeded £990m.
There was a significant decline in revenue and operating profit for the health & personal care packaging business in 2016 which led to a strategic review. Based on this, the company decided to focus on the core business of healthcare packaging. One site primarily produced consumer packaging and was underperforming. The client wanted to review options for this site.
Identify options for the site including closure, sale, re-focus on healthcare or maintain and improve performance
Model the options and apply a risk/benefit analysis to recommend the most appropriate course of action
Support the financial analysis by performing scprime® operational benchmark assessments across the UK sites to understand the specific site’s performance
Write a board paper incorporating financial analysis, an implementation plan, key risks and a mitigation plan
A clear understanding of the impact of each of the options on the division’s financial performance
The decision to close the site and focus on healthcare and beauty products whilst exiting consumer packaging
Identified operational issues on which to base a broader improvement plan
A detailed implementation plan for closure
The client is a major global pharmaceutical and healthcare provider, with particular strength in the biotech industry. It operates in over 100 countries worldwide and is a significant investor in drug innovation and development.
In an increasingly competitive market, the client was seeking to drive operational efficiencies in production and distribution across its complex supply chain. As part of this, it had a number of initiatives to improve inventory management, including improving inventory management capability.
Define capabilities for all roles involved in inventory management using our scprime® people capabilities benchmark framework
Prioritise key capability areas to support step change improvement in inventory management performance
Recommend capability improvement actions to drive step change improvements
Define an implementation roadmap to improved capabilities
Identified competency gaps across all inventory management processes
Buy-in across the business of the competency development priorities
Learning formats defined for each capability development intervention
Implementation plan for the next 18 months
In April 2019, a large private equity company completed the acquisition of a division of a large global operating film and printing company. With sales of circa $150 million, the division is one of the world’s leading providers of imaging technologies for the graphics customisation of printed packaging materials.
The client needed our help to carry out an assessment of their global and regional supply chain functional capabilities, current systems and people capabilities in preparation for the future operating model as a stand-alone company and an upcoming ERP implementation.
Identify the relevant stakeholders, arrange site visits and conduct +30 interviews in order to complete the assessments of the as-is systems and people capabilities using our scprime® capability framework
Validate assessment outcomes and define targets to develop initiative plan to achieve sustainable improvements within the organisation and step-change in performance
Determine key functional requirements towards an upcoming ERP implementation
Delivered a prioritised initiative plan covering +25 initiatives to improve planning and logistics (deliver)
Identified opportunities to adapt the operating model including organisational structure and processes to move to above market planning
Determined set of business and functional requirements for an ERP system to enable operating model changes and performance improvements
The client is the fourth largest brewer in the world. It has a large portfolio of beer and other drinks brands. The group employs more than 45,000 people and its products are sold in over 150 countries.
Its Western European regional wanted to assess its supply planning processes, systems and people capabilities with a view to taking a more centralised approach to supply planning.
Argon & Co were asked to conduct a diagnostic within nine of its core Western European markets to identify gaps, opportunities and internal best practice.
Assess supply planning processes, systems and people capabilities using the scprime® framework and compare against industry ‘best practice’
Conducted interviews and workshops with market and regional planning teams to understand ways of working
Attended key supply chain forums to see how different functions interfaced in the planning process
Documented processes for each market to ascertain potential for process synchronisation across markets
Identified over 70 specific initiatives for improvement at both a tactical and strategic level
Improvement initiatives were targeted at a local market level and a regional level
Devised centralised planning structural options that balanced the need for regional materials and manufacturing optimisation with local market responsiveness
Developed a roadmap and business case to implement the initiatives over a two year transformation programme