EducateEarth is the world’s LEARNING company, with expertise in educational courseware (Text Books) and assessment, and a range of teaching and learning services powered by technology. They operate in 70 countries, have nearly 25,000 employees and are headquartered in Zurich, Switzerland.
After years of expansion and M&A, EducateEarth needs to operate more efficiently and reduce costs in order to meet rising market challenges. The digital publishing market is growing at 10% CAGR whilst the print publishing market shrinks in comparison. Consumers are increasingly turning to rental offerings. EducateEarth which had grown rapidly and operated with legacy systems and processes, realised that its dispersed operations offered great opportunities for improvement.
They recently conducted two global benchmarking studies with independent consulting firms. Both studies revealed the following:
- High supply chain costs compared to peer group (30% higher)
- Fragmented organisation structure
- Excess of one year’s worth of physical inventory (books)
- Poor product demand & supply planning tools in pace
- 80% of sales revenue generated from 10% of SKUs and an extensive tail delivering little sales value to the business
EducateEarth now needs help to create a strategy and excution approach for a future state operating model that will deliver siginificant financial and operational benefits in 2 years - savings of $100m. They are looking at good practice processes, right technology solution and new organisation structure for the new operating model. What would such a programme look like for EducateEarth? Please outline the approach & solution.