Following the merger of two food companies in the same sector, the State based sales and supply chains to the all channels except for grocery, required consolidation. Despite the considerable overlap in the customer base, the majority of customers continued dealing with the merged entity as if they were two independent businesses. There had been several attempts to consolidate the two sales and supply systems. However, these attempts were unsuccessful due to the complexity of the current franchise / supply agreements, different pricing and trading term structures, and poor SAP disciplines.
Integrate / consolidate the two sales and supply systems, accommodating the different arrangements in different States. This required a renegotiation of the terms and conditions of franchise arrangements as well as redefining territories and managing staff redundancies.
MAT&D were retained to project manager the integration and had a team of about 10 company sales and supply chain staff. Due to the significant changes required to customer and product Master Data in SAP, five SAP specialists from Accenture were also retained and worked under the direction of a MAT&D master data specialist.
MAT&D worked closely with the Group Legal Counsel and the franchisees to negotiate a variation to the existing franchise agreement. This required a number of franchisees to retire (with an agreed payout), and their customers plus many of the customers supplied previously on company owned trucks to be consolidated with the remaining franchisees.
Through careful negotiation and a well-structured implementation plan, the project achieved the desired outcomes of consolidating the two businesses improving the quality of customer service and significantly reducing the cost to serve. It also facilitated a much needed rationalisation of the product range, and a cleansing of customer and product master data in SAP.