Food

We Streamline your Food Business

Top 5 Project Topics :

Project History:

Selected Reference Projects:

Project​ Duration Bottom Line Impact
Headcount reduction for German food company
12 weeks
20 - 25%
Planning and inventory optimization
12 weeks
15 - 20%
Design supply chain Georgia - France - USA
4 weeks
15 - 25%

Application: Planning and Inventory Optimization

 
Industry:
US Baby Food Distributor
Company Size:
100+
Project Location:
United States
Problem Statement:
Our customer is a leading distributor for organic baby food. Due to substantial growth over the past 2 years, inventory levels have been significantly increased. At the same time, our customer has been experiencing an increase in customer orders backlog and expired product in stock - both of which turned into a financial fiasco. If our customer wouldn't be able to improve their demand planning, drastically reduce inventory levels and thus, avoid product expiration, their business model would collapse within 6 months.
STREAMLINERS’ Approach and Solution
Meeting:
Understanding of current forecasting and demand planning methodology, key supplier locations and average shelf lives of products
Deep Dive:
Comprehensive analysis of forecasting methodology, qualitative and quantitative sales input, A-B-C analysis, customer order system and routines; conceptual design of future supply chain including optimized routings, means of transportation, expedite/emergency service and minimum order quantities
Hypothesis:
If we optimize inventory levels to fulfill 80% of the customer orders from the warehouse stock and completely avoid product expiration (write offs), an incremental amount of the savings can be spent on expedited rush orders to fulfill hot orders from the remaining 20% (if needed).
Project:
1 consultant
8 weeks
Deliverables:
Forecasting accuracy improved on high runners
Inventory min./max. levels optimized for top 80% of SKUs
Inventory levels drastically reduced to avoid product expiration
New transportation means and routings implemented to reduce transit times
Bottom Line Impact:
Avoidance of write offs due to product expiration >$300K
Reduction of inventory levels and working capital >$800K

Days On Hand (DOH) Strategy

 

Fees vs. Bottom Line Impact