Challenge: As consumer preferences shifted to healthier foods, this specialty food group’s leaders recognized that change was needed. Without changing how the business operated, the company could not continue its stellar history as a top quartile financial performer in its industry.
Solution: The company implemented an Oliver Wight Class A Integrated Business Planning process, which included an innovation process revamp; developing a data-driven capacity planning process to determine investments in production lines and other capabilities; and implementing a demand planning process to create consistently credible plans.
Results: Through the second quarter of this fiscal year, a $24-million sales revenue increase was credited to IBP. Raw material and packaging inventory as a percentage of cost of goods sold was cut by more than $900,000. With better aligned plans, expedited shipping was reduced by more than $900,000. In all, total cost savings exceeded $6.8 million — all attributed to a successful IBP process.
About the Solution Provider: Oliver Wight assumes you want results — things like increased revenues and margins and greater market share. We believe this can only be delivered by your own people. We transfer our knowledge to you; knowledge that comes from over 50 years of working with some of the world’s best-known companies.
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