Case study

Twinings

Realising value through restructuring the global supply chain

Twinings has been at the forefront of the tea trade since 1706, and is now firmly established as a global leader in the supply of fine quality teas. Now a part of Associated British Foods (ABF), Twinings doubled its sales turnover in eight years and the acquisition of Ovaltine significantly increased the size of the business, prompting a restructure of the company to reflect a more international focus.

In late 2003 Twinings’ senior management team decided to review its manufacturing footprint to release savings without endangering the high levels of quality and customer service for which it was renowned.

They also wanted to improve the packaging format and provide flexibility for future growth opportunities. The tea business had seven factories worldwide and the acquisition of Ovaltine had added a fully operational production site in China that could provide Twinings with an entry point to tea production in the region and lower cost production. Set against a backdrop of increasing competition, the opportunities for leveraging China needed to be assessed.

The Twinings senior management team had decided that they needed to review their global supply chain operations and develop a new manufacturing strategy before proceeding with a rapid implementation. However they were unclear how to approach the assessment of the large number of possible scenarios and complex risk matrix in the identification of the optimal strategy and the implementation approach.

Recognising the complications, PA Consulting Group  was asked to support and guide Twinings through a structured strategy development and implementation process that would deliver long term benefit for the business.