Private Label Food
Major manufacturer of private label food products needed to increase profitability by optimizing operational performance while improving customer satisfaction.
- Achieve and sustain an operating profit growth rate of 5% per year.
- Improve order fill rate to 98.7%.
- Improve on-time delivery to 92%.
- Reduce customer complaints by 50%.
- Reduced SG&A expenses by 20%.
- Increased throughput by 22%.
- Improved management of finished goods inventory and an overall reduction in salvage materials.
Optimize Performance & Improve Profitability
A major manufacturer of private label food products needed to increase profitability by optimizing operational performance while improving customer satisfaction.
The focus of The Highland Group’s analytical team was to create a shift within the client organization towards becoming a customer-centric operation. This involved eliminating under-performing SKUs, identifying and removing process constraints and wastes, tightening up functional roles and responsibilities, and training internal teams to drive and sustain continuous improvement.
- Increased output to free up capacity on constrained production lines.
- Developed self-directed work teams to continue throughput improvements on the balance of the production lines post-project.
- Improved customer service and fill rates to at or above target levels.
- Reduced quality issues.
- Increased raw material yield.
- Reduced conversion cost per case.
- Implemented a methodology for managing SKU and customer profitability that resulted in a significant net margin increase.
- Designed and implemented a company-wide reorganization, including a new Marketing function.
- Reduced the plant’s fixed cost and SG&A expense by an average of 20% through the elimination of non-value-added activities.
- Trained all managers and supervisors on the use of a management operating system.
reduced sg&a expenses by