Supply Chain Optimization Helped a F&B Brand to Reduce Overhead Costs by 14%

Jun 21, 2021

Engagement Summary

To succeed in today’s hyper-competitive food and beverage market, businesses must build a strong foundation of an agile, robust, and transparent supply chain network. For food and beverage companies, the turbulent pace of technology growth is the main contributor to supply chain complexity and anomalies.

Due to dramatic shifts in consumer tastes and the 21st century’s fast-paced lifestyle, an American multinational food and beverage company was facing a rapid surge in demand, resulting in disrupted supply chains. With the help of Quantzig, the client addressed challenges in their supply chain network using advanced analytics-driven optimization solutions, and substantially improved their logistics and supply chain operations.

Supply chain optimization makes the best use of technologies like IoT, AI, ML,  to improve efficiency and performance in a supply chain network. Request a free pilot to optimize your supply chain organization today.

The client

The client is a food and beverage brand formed in the 1990s in Germany. They mainly manufacture dehydrated soups, instant noodles, soft drinks, pre-cooked meals, and condiments. Their products are available across the globe.

Business Challenge

The food and beverage client was facing challenges in their existing supply chain organization and needed supply chain optimization and inventory management solutions to keep inventory controlled and shipments moving promptly.

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The main challenges of the client were –

  • Cost Pressures – The client was experiencing a need to reduce cost and maximize productivity to keep up with the surge in demand. The needed to optimize their production process and reduce logistics and inventory management costs.
  • Inventory management – Another primary concern of this food and beverage client was the safety and quality control of their products. Unlike other products, food and beverages require special storage, refrigeration, or condensed and finite shipping timelines. Thus, inventory management in the food and beverage industry is critical for product safety. The client’s existing inventory management system was insufficient for real-time updates of products’ conditions; thus, they approached Quantzig to derive an inventory management system from stopping products from contamination/spoliage and track their end-to-end movement.

Quantzig can help your organization to adopt a unique data-driven approach to supply chain optimization. Request a free proposal and leverage our advanced analytics solutions.

Solution Provided

Quantzig’s supply chain optimization experts began by identifying bottlenecks leading to costly inefficiencies. In the first phase of this collaboration, our experts focused on reducing production costs by designing a lean manufacturing process driven by IoT thus reducing labor costs. This lean design of the production process also helped the client enhance their supply chain network, ensuring optimized delivery routes and lesser logistics costs.

In the second phase, our experts derived an inventory management process to help the client gain insights and updates on their product quality and safety. This inventory management plan gave real-time updates on special storage, refrigeration, and shipping timelines of the products.

In the final stage, the supply chain optimization experts of Quantzig developed a data-infused dashboard that could provide real-time updates on sales, deliveries, and product movements. This dashboard also helped the client in creating a transparent, agile, and robust supply chain organizaton, pre-empt bottlenecks, and implement strategies to avoid/overcome them, and enhance the overall efficiency of the supply chain organization.

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Business Outcomes

The key business outcomes were-

  • Improved cashflow
  • Reduced overhead costs by 14%
  • Derived analytics-driven inventory management plan

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