SUPPLY CHAIN PRODUCTIVITY FOR BEVERAGE INDUSTRY
SUPPLY CHAIN PRODUCTIVITY FOR BEVERAGE INDUSTRY
EXECUTIVE SUMMARY
Practical case of structured, consistent and validated process to identify and implement cost reduction opportunities in the supply chain, done in a large consumer goods company, through initiatives such as: packaging optimization, strategic sourcing, formulas rationalization and operational excellence.
This productivity project was a key strategy component to protect the business profitability during the period of severe crisis and shrinkage of the Brazilian market, creating favorable conditions for investments in sustainable growth initiatives.
Major Results
> Regular savings around US$ 50 million/year during the project implementation period, reaching a total productivity record of US$ 125 million in the year of 2018, being 72% of this value direct cost reduction, positively impacting the P&L results.
> Opportunities to reduce investments in new production and distribution assets were also identified, while generating an improvement in service level (OTIF indicator) with higher product availability.