A Leading European Spice Firm Boosts Service by 14%, Cuts Inventory by 21%, Lowering Cash Flow Needs
Client Context
- A top player in Europe’s market for spices, herbs, and condiments with €25 million in sales and a range of 1,500 finished products
Key Challenges
- The client was facing growing product complexity together with highly seasonal demand
- The 3 main pain points were:
- Inaccuracy of sales forecasts
- Uncertainties related to the supply of raw materials
- No delayed differentiation
Approach & Key Success Factors
ARGO-EFESO supported the client in:
- Managed forecasting and demand with improved accuracy.
- Defined and assigned process targets, roles, and responsibilities.
- Implemented training for operational proficiency, provided the necessary tools, and established Key Performance Indicators (KPIs).
- Streamlined the timing for scheduled downtimes and setups.
- Ensured efficient distribution of materials across packaging lines.
- Achieved stock reductions for finished products (FP), semi-finished products (SFP), and raw materials (RM).
- Refined batch sizes, production frequencies, and safety stock levels.
- Established standards and tools for updating parameters in accordance with specified logistics policies.
Results
14%
Improvement in service rate
21%
Reduction in inventory in 1 year
16%
Reduction in scheduled downtime
35%
Reduction in fixed & variable costs
Implemented tools and routines set-up for:
- Demand planning: more reliable sales forecasts
- Increase productivity: load vs. capacity analysis
- Inventory management
- OTIF calculation