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Food & Beverage

NEEDS-BASED RESULTS

 

Food & Beverage

SITUATION

Premier North American ice cream manufacturer faced increased competition and needed help to create a more efficient, demand-driven operation.

DRIVER GOAL

  • Achieve peak period customer service levels (April-August) of 98%.
  • Reduce inventory levels by 10% by year end.
  • Reduce landed costs by 2.5%.

RESULT

  • Achieved customer fill rate of 96% and on track to achieve 98%.
  • Reduced inventories by 10% with an additional 10-15% projected by year end.
  • Reduced landed costs by 3%.
case study image, CS-172 large

Case Study

Create a Demand-Driven & Efficient Operation

Issue

One of the premier North American ice cream manufacturers facing increased competition enlisted The Highland Group to develop a reliable demand forecasting model, analyze its product portfolio and pricing, and implement production, resource and inventory planning systems to create a more efficient, demand-driven operation.

Highland Approach

The Highland Group’s analytical professionals conducted a Discovery and Design process that identified and detailed the key issues, the specific approach required to achieve the desired results and the projected benefits. Teams assigned to prioritized projects redesigned critical processes.

Actions Taken

  • Developed and implemented an enhanced production planning and inventory control process that supported more accurate forecasting and inventory planning.
  • Developed and implemented a project rationalization and prioritization process that focused resources on critical projects, including those related to the enterprise resource planning system, production planning, capacity optimization and scheduling.
  • Reengineered the equipment utilization, maintenance, changeover/set-up, sanitation and scheduling processes.
  • Developed labor efficiency models for direct and indirect labor.
  • Re-architected the distribution model to optimize inventory positioning, movement efficiency and transportation channels.
  • Conducted a SKU rationalization determining profit contribution, consumer demand, pricing, channel and portfolio breadth and content.

Reduced inventories by

10%

with an additional 10-15% projected by year end

Related Information

subject matter-based

Client Partner

Financial Services, Marketing & Consumer Products

Petrina is a creative, hands-on executive with over 25 years of international business experience with a proven track record of working collaboratively across traditional boundaries and solving complex operational issues. She previously served at the senior executive level of one of North America’s leading financial institutions and several global consulting organizations. There, she led engagements serving industry-leading clients in United States, Canada, England, Germany, Austria, Switzerland, Norway and the Netherlands.

Senior Consultant

Supply Chain

Laurence has more than twenty years of industry and consulting experience in all areas of supply chain management – including inventory management and procurement – and in Total Working Capital management.

Project Leader

Sales, Marketing & Consumer Products

North America

Bill is a senior project leader with more than 20 years of hands-on experience in assisting multinational companies by deploying his expertise in Lean Six Sigma and Business Process Management tools, tactics and strategies. He has deep expertise in sales and marketing improvement, supply chain optimization, fixed-cost reduction, channel management, total production management, balanced scorecards and post-merger integration.