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

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