Case Studies: Performance Improvement in the Food and Beverage Industry

 Challenges we solve:

•   Thin profit margins
•   Changing business models due to shifting consumer behaviours
•   Declining labour productivity
•   Material waste caused by low yields and give away
•   Absence of preventative maintenance
•   Poor capital or asset utilization
•   Informal management processes and systems
•   Lack of traceability
•   Failure to track and control inventory in warehouses
•   Rising supply chain costs
•   High selling, general and administration and overhead costs

 Client case studies:

Building capacity to support growth

Multi-national shellfish harvester and processor

The Challenge

A long-standing food service client was experiencing accelerated growth in sales. However, their production capabilities were limited in comparison to the volume of purchase orders.

The Solution

MNP worked closely with staff to implement robust forecasting and reporting systems to reduce labour absorption while improving food costs. By providing real-time visibility and execution control, front line managers learned to manage proactively and optimize line layouts to remove constraints.

The Outcome

Through better asset utilization, material yields and labour productivity the organization was able to realize a 30-percent improvement in processing capacity, thereby effectively fulfilling demand.

Value maximization for an acquired business

Large confectionary producer

The Challenge

Due to sub-optimal operations, the organization became stagnant in the marketplace. The company was acquired and with new ownership in place, the team was looking for help in maximizing profit without sacrificing quality or customer service.

The Solution

The Result

Our team introduced a comprehensive management operation system and uncovered several million in savings and achieved an EBITDA improvement of 5x over a 52-week period.

Enhancing profitability and scaling for the future

Medium-sized airline food supplier

The Challenge

An erratic and reactive industry, rising food costs and increased labour burdens forced management to find innovative ways to manage their business and overall profitability without sacrificing quality and customer service as they grow.

The Solution

Working at the point of execution, MNP conducted observations across all departments to identify cause-and-effect relationships linked to costs and waste in excess. Leveraging Lean Six Sigma methodology and best practices in manufacturing, the team transformed the organization’s production by focusing on improvements in the management systems, operational capabilities, labour productivity and material yields.

The Outcome

By the end of the six-month engagement, MNP saved the organization $450,000 in labour costs and $90,567 in material costs. The organization enhanced throughput while providing better management control through improved scheduling, reporting, forecasting and performance.

 Current industry trends we’re advising on:

Consumers are increasingly seeking value in the food and beverage market. At the same time, they’re looking for quality and convenience, making it difficult for producers and processors to maintain growth and profitability. Our team of advisors can help you sustainably drive both hard dollar improvements and soft culture improvements with limited capital expenditures.