$6.6M Annualized Value Identified in Supply Chain Operations for Food Safety Manufacturer

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

$6.6M
annual improvement opportunity
20%
reduction in manufacturing cycle time opportunity

Challenge

Our client had experienced significant growth while also managing through a merger and implementing a new ERP system. This, coupled with staffing challenges and underdeveloped supply chain processes, left the company struggling to meet product demands. The existence of manual processes further complicated the efficiency of operations.

Discovery

Our team worked closely with the client to understand their current day-to-day challenges and how this impacted their growth potential. Utilizing information gained from our on-site experience and data collected from the client, we uncovered several performance improvement opportunities to level-load the business in the short term and create sustainable scalability for 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 gained 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 
  • Cost savings of $2.2M based on reduced scrap and ability to clear order backlogs
  • Reduced manufacturing cycle time by 20% – an average of 2.5 days across all production lines

Full Solution Service: The Poirier Group offers end-to-end consulting support, solutions, and implementation to help organizations transform and improve.

Join our list of satisfied clients

Related Industries

Related Capabilities