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23 April 2012

Nampak Flexible Bounces Back with Oliver Wight’s Integrated Business Planning

Nampak Flexible has implemented Oliver Wight’s Integrated Business Planning to Class A standard and transformed itself from a loss-making business, to a highly profitable one; reducing lead times by two thirds and doubling its productivity.

Part of the R15.8 billion Nampak Group, Nampak flexible is South Africa’s largest flexible packaging company. Five years ago the company was losing customers and fighting for survival. Now it has witnessed a spectacular turnaround. Just 18 months after implementing Oliver Wight’s Integrated Business Planning process, Nampak Flexible was awarded Class A accreditation for capable Integrated Business Planning (IBP).

It has doubled productivity and increased efficiency; with lead times just a third of their previous level. The organisation has experienced real volume growth without making large capital investments. It has slashed operating costs, reducing its number of sites from 20 to four, without a significant drop in sales.

As well as helping Nampak become a highly profitable business, with a healthy return on net assets, IBP has had a huge impact on customer service. Operations and Supply Chain Director, Grant Page, explains, “With our renewed focus on the ABC model, we have rebuilt our reputation and once again become the supplier of choice for our key customers.”

The organisation set itself a goal of getting 25% of its revenues through product innovation; thanks to IBP’s product portfolio management it has already achieved 18% in just 12 months. Robin Moore, Managing Director of Nampak Flexible says that as products move out of cans and bottles, flexible packaging is becoming a key innovation around the world; “Our multinational customers not only expect us to have the capability to deliver new products for them, they expect us to be able to do so at a short notice for emergency launch. It’s a service we can provide that other companies can’t.”

Nampak, however, is not stopping there. It continues its work with Oliver Wight to improve planning and control and has made the decision to go for full Class A accreditation as part of its growth support strategy to help its next generation of leaders. “You can’t just sit back and say ‘okay, we’re fine now’, because you never are,” says Moore. “If you stand still you go backwards and this is something we are not prepared to do,” he concludes.

Notes to editors