$6.6M in Annual Value Created at Food Safety Manufacturer through Supply Chain Evaluation

As a manufacturer of food safety solutions, this company sells its products to businesses in the food production and agricultural industries, along with distributing them internationally.

$6.6M

annual revenue created

20%

potential reduction in manufacturing cycle time

Challenge

The client was experiencing intense growth while managing through a merger and the implementation of a new ERP system. Due to staffing challenges and underdeveloped supply chain processes, the company was struggling to meet product demands. The existence of manual processes only further complicated the efficiency of operations.

Discovery

Our team worked closely with the client to understand their growth potential as well as their current day-to-day challenges. Utilizing the information gained from our on-site experience and data collected from the client, our evaluation phase uncovered several performance improvement opportunities to level-load the business in the short term and create sustainable scalability in the long term by:

Optimizing testing and QC strategies to reduce lead time while maintaining high quality standards
Increasing manufacturing capacity by removing bottlenecks
Increasing overall productivity with more effective planning and aligned organizational metrics
Designing future state processes for assortment optimization and Sales & Operations planning

Value Created

As a result of this initiative, our client enjoyed both immediate and long-term financial and strategic benefits:

Ability to increase annual revenue by $3.3M as a result of increased manufacturing capacity
Reduction of $1.1M in working capital spend based on reduction in excess inventory holdings
Cost savings of $2.2M based on reduced scrap and ability to clear order backlogs
Reduced manufacturing cycle time by an average of 2.5 days across all production lines