This is an abridged version of IMD-6-0266. Numico, Europe’s second largest infant food manufacturer, refocuses its strategy on its core markets. The key is strategic change – including new product introduction and production rationalization. To improve customer satisfaction levels and reduce costs, the company initiates two large projects, the first is aimed at visibility to demand and inventory levels – and new supply chain practices to coordinate them, with improved reaction time. The second is complete overhaul of the production and distribution process that includes plant reduction, product rationalization and shifting of production to Eastern Europe. The case looks at the challenges for their implementation, the role of a key change manager, and the future of the company.
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