Success story: Improving the supply chain: from stock to service

Sector:

Service: ,

The company

Spanish business group in the food industry, world leader in its sector and present in over 120 countries. It has over 2,000 customers and an average workforce of 3,900 employees in 13 countries.

The challenge

  • The aim was to improve operational efficiency throughout the edible collagen casing supply chain in order to adapt to the rapidly growing market.
  • The key areas to be optimized were service levels, lead times, logistics costs and current stock levels throughout the supply chain.

The solution

  • We reviewed the product catalogue to adapt it to the market. We also developed a forecasting model with the products in the catalogue to foresee the quantities that would be demanded and identify which group factory had the capacity to absorb the expected production.
  • We defined and implemented a scorecard with indicators regarding workload, available capacity, occupied capacity, manufacturing lead times and service levels, which, together with the forecasting and planning tools, made it possible to take specific actions to improve service levels and reduce delivery times.
  • We achieved significant quantitative results, such as improved compliance with planning from 13% to 70%, 36% reduction in potentially obsolete stocks for domestic markets, 49% reduction in lead time and a 22% improvement in the service level.