This co-operative is an iconic NZ owned operator in the primary/rural sector. They have a highly decentralised supply chain and buying structure which dilutes the efficiencies across the value chain. Project Paragon is a transformational initiative to centralise key value chain activities such as product ranging, demand and supply planning, sourcing, and distribution. This transformation would ultimately result in improved efficiencies and increase in EBIT0044A.

KPMG worked with this co-operative, using data & analytics, to enable transformation of the ranging, demand and supply planning, and distribution functions. 

KPMG built an interim forecasting tool to help demand planners use statistical forecasts and plan the demand better and an interim supply planning tool to help the supply planners achieve optimum order quantities and improve on-shelf availability. 

KPMG used data science algorithms to help this co-operative determine the right product, for the right store, at the right time to ensure customer needs are met

KPMG analysed large quantities of internal and external data and used optimization techniques to identify the optimal distribution network by determining the location and size of the distribution centres and the products to be stored in them.

This co-operative will ultimately see an increase in their EBITDA due to increase in revenue and margin driven by better product placement and availability, reduction in working capital due to lower inventory levels, reduction in operating costs due to better supply chain efficiencies and reduction in labour cost driven by streamlined processes.