Case study

Lean manufacturing strategy for a food manufacturer

Situation

A food manufacturer managed a network which performed sub-optimally (insufficient volumes to achieve full trucks from plants to warehouses, minimal modeling of inventory, warehouses delivered across borders). The company hired a consultant to optimize the network. Delivery Partners helped with network analysis.

Our work

  • Mapped network and key opportunities and constraints
  • Analyzed delivery options including outsourcing of warehousing
  • Developed hypotheses for renegotiating major purchase items (and transportation)

Results

  • The practical solution was manageable, had fewer stocking points, cross docks, reduced transition costs, and achieved 90% of network effectiveness benefits
  • 80% of the benefits were achieved from the short term moves