This case study is based on insights shared by David Cutter, Chief Supply Chain and R&D Officer at FrieslandCampina, during a live CCi OpEx Leader Insights webinar.
The Challenge
Operating nearly 50 factories across 30 countries, FrieslandCampina had built one of the largest dairy supply chains in the world. But that scale had come with growing complexity, and cost of goods had been rising steadily, by between 9% and 15% in some years. Internal benchmarking confirmed a clear opportunity to step up performance and profitability.
Every site operated differently, with no standardized ways of measuring, accounting, or working. The prevailing culture expected people to resolve problems on their own rather than escalate or ask for help. FrieslandCampina recognized the need for a fundamental shift in how its entire supply chain operated, and for a culture that would sustain results over the long term.
Industry
Food and Beverage
FrieslandCampina is one of the largest dairy cooperatives in the world and ranks among the top ten global dairy companies. Headquartered in the Netherlands, the company has operated for over 150 years, providing dairy products to millions of consumers across over 100 countries.
The solution
FrieslandCampina began by restructuring its supply chain into a single global organization. Manufacturing operations that had previously reported to local general managers were brought under one unified structure. From there, two parallel programs were launched: Performance Plus to drive cost and waste out of the business, and Our Way of Working, built in partnership with CCi on the CCi TRACC platform, to build the capability and culture needed to keep it out.
Our Way of Working was rolled out in five waves, each covering between five and ten factories, following CCi’s proven methodology: loss and waste analysis, focused improvement planning, and rapid deployment to deliver early wins and build momentum.
The program was shaped by a clear set of design principles:
- Inverted Pyramid Mindset
The leadership approach was fundamentally reframed: don’t tell people what to do, ask them what help they need. An inverted pyramid model positioned operators and frontline teams as the most important people in the organization, with senior leadership focused on supporting, enabling, and removing obstacles. Leaders became coaches, providing tools and working alongside people to build capability rather than taking problems away and handing back solutions. - Stretched Objectives
FrieslandCampina had a history of safe, incremental improvement. The new mindset made it clear that it is okay to think big and it is okay to fail. Stretch targets became a cultural signal, shifting the conversation, the energy, and ultimately the results. - One Standard, Everywhere
A single standard was implemented across all sites globally. The same meeting structures, performance boards, short interval control routines, and escalation processes apply everywhere, so that a tier 2 meeting in any factory worldwide looks and feels identical. Leadership commitment was non-negotiable, with the program presented to the board quarterly and to the executive leadership team monthly. - Red Is Good
Yellow was eliminated entirely from performance tracking. Red was reframed as a positive signal: surfacing a problem, making it visible, and asking for help is not just acceptable, it is expected. Clear escalation pathways replaced a culture where issues stayed hidden and support was rarely sought. - Recognition at Every Level
Recognition was made mandatory at every meeting, at every tier, without exception. The focus is not on financial rewards but on consistent, genuine acknowledgment of the people doing the work, from operators on the shop floor to planners and warehouse teams.
With manufacturing performance stabilized, the program has since expanded into planning, logistics, procurement, and commercial functions. Loss and waste analysis was adapted for supply chain contexts, focusing on on-time delivery, changeover frequency driven by planning decisions, and material shortage impacts.
Results
With approximately 60% of the business covered so far, the Our Way of Working program has delivered significant and accelerating results across FrieslandCampina’s global operations.
Over €400 million in cumulative savings delivered across the global supply chain
OEE heading toward 80% with global OEE now in the mid-70s and climbing
13% reduction in material losses globally
10% increase in employee engagement
48 manufacturing sites deployed
Improved operational ownership with operators actively pulling for greater involvement and responsibility
Next Steps
FrieslandCampina is continuing to extend Our Way of Working beyond manufacturing into planning, logistics, procurement, and commercial functions. The team is exploring clustered factory leadership models and integrating machine learning into maintenance to build predictive capability. With approximately 40% of the business still to be brought into the program and the end-to-end supply chain expansion underway, the ambition is to become the best-performing supply chain in the industry.
“If you give people the right skills, if you give them the right tools, and you support them, you can be successful.”
“We’re unearthing this amazing amount of talent we have in our factories and our warehouses and giving them some tools to do their job, but also allowing them to really grow into what their capability is and what their potential is.”
“It’s got to be a standard, and if it’s not a standard, we don’t want to do it.”
Hear the full story directly from David Cutter
Watch this executive discussion with David Cutter, Chief Supply Chain and R&D Officer at FrieslandCampina, and Jim McCowan, Manufacturing and OpEx Leadership Coach, at CCi, to explore how the “Our Way of Working” (OWOW) program has transformed operations across 48 global locations.
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