Food Manufacturer and Co-Packer

Client Goal: Improve uneven earnings and on-time delivery.

The Current Situation:

  • Multiple stakeholders, including family and investors with differing viewpoints.
  • Uneven earnings with some years of losses.
  • At risk of losing major customers due to failure to meet delivery service level requirements.
  • Material operational improvement opportunities, with challenges in all areas of the plant including staffing, maintenance, throughput, and scheduling.

The Process

The company’s path forward began with a Business Diagnostic and Action Plan. During the next four weeks, leaders and managers were part of the process to determine what the new focus of the company needed to be and how it should change to turn around the declining trends.

The diagnostic process uncovered that the company needed to go on two parallel paths. The first path was to quickly and immediately address areas of poor performance, which were caused in part by manufacturing and new product development challenges. The second path set the company on a mission to identify and implement improvements specifically that future buyers would find attractive, in preparation for an eventual sale.

Following the Action Plan, the company hired our consultants to help them:

  • Quickly implement manufacturing process improvements to elevate customer service levels.
  • Develop and enforce sales stage gate processes for new products, including controls to keep sales for eroding margins.
  • Rationalize customers and products to increase profitability.
  • Create and implement long-term, account-by-account plans to increase margin.

How We Established Credibility:

On-time delivery, was low and continuing to decline. Immediate service improvements needed to be made in order to save current customer relationships. With renewed focus and improved process, the company worked hard to save the customers most at risk. Through the process, leadership was able to build stronger client relationships and set the stage for expanded offerings over time.

The Results:

  • Turned operating profit from $6MM loss to $3MM profit within 12 months.
  • Leadership now has the tools and expertise to sustain improvements and take the company to the next level.

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