Food Manufacturer and Distributor
The following success stories provide insights into how we have developed real solutions to the challenges of our clients.
THE CLIENT
National $150 million food manufacturer and wholesale distributor of all natural foods under multiple brands.
THE SITUATION
The Company was underperforming with various operational challenges including:
Production yields well-below industry standards
Need to consolidate multiple plants and products into a single food processing facility
National expansion and related high freight cost management
Insufficient freight volume to qualify for lower freight rates
THE SOLUTION
Avant Advisory Group worked with the client in strengthening its production planning, in developing procedures and protocols, and in the implementation of LEAN manufacturing techniques, including Five-S. Avant helped optimize the Company’s logistics network which quadrupled annual savings as a result of the three-month project.
THE RESULTS
Avant identified and helped the Company implement:
17% reduction in national distribution costs by converting to intermodal rail/truck and by identifying back-haul trucking opportunities
23% improvement in national trucking and warehousing costs and a major reduction in delivery lead times by eliminating a hub-and-spoke cross-dockconfiguration
19% decrease in trucking costs for the client’s largest customer’s distribution center by realigning to match the customer’s supply chain network
$330,000 increase in EBITDA by pruning customers that could not be served profitably given short lead time requirements and lengthy production anddelivery schedules
$450,000 savings from increased use of intermodal transport, leveraging lower cost consolidators, and partnering with peer food manufacturers
