 |
Case Studies
Global Food Manufacturer Engages TJG to Project Manage Global Risk Initiative for Commodity Cost Visibility
Challenge:
The Senior Risk Officer for a global food manufacturer did not have timely visibility to critical information for billions of dollars in commodity costs. Information, such as hedging positions, supply commitments, and demand forecasts, was being gathered from multiple departments, systems, manual spreadsheets and offline calculations. These inefficiencies resulted in erroneous pricing decisions and therefore, earnings volatility and unpredictability.
The Bottom Line:
A project manager from The Johnsson Group led a team of thirteen global representatives from Procurement, Finance, and Technology to identify the optimal solution for global risk management. The team collaboratively developed the business requirements and the technology requirements for integration into the current ERP system. The team identified several qualified vendors and conducted an RFP process. As a result, the team presented a recommendation to Senior Management for a software solution that would enable critical decision making on a timely and fully informed basis. A business case was prepared with full costs and benefits identified, allowing the organization to make a well thought-out decision on how best to move forward.
