Regional leader in dairy products

Task
Development of a production and inventory management model.

Solution
Our experts were tasked with developing a production and inventory management model that would improve the level of availability of goods and reduce inventory surplus.

According to the preliminary analysis of activities, our experts identified two key factors affecting on the financial performance of the enterprise.

The first one is a limited period of products’ sale along with differences in production time and time order. The average production cycle of a product takes 48 hours, the time of shipment of finished products – 48 hours. It caused two interrelated problems associated with unclaimed products production and “lost sales”.

The second factor is certain terms of cooperation with suppliers of raw materials, which determined the process of replenishment of inventories without considering actual demand for finished products, which in turn, contributed to the accumulation of excess stock of products and led to significant financial costs in the future.

Taking into account these factors, our experts concluded that it was necessary to conduct an integrated evaluation of the enterprise, starting with the model of interaction with suppliers and completing the analysis activities of various functional units.

Result
Currently, all major work is completed. New processes for planning supply of raw materials and production, focused on the actual level of demand, have been developed and implemented.

Supply chains optimization, based on a new logistic model and information solution, which made it possible to digitize the movement of the main material flows and conduct advanced analytics of the production process, in order to calculate and forecast the most profitable production nomenclature.

Modern cost accounting methods were used for calculations, in particular, throughput accounting. Nowadays, this methodology is implemented at the enterprise and used in operational activities.

Thus, modern production management tools have been adapted, taking into account technological constraints and the dynamic, unpredictable demand of our Customer.

Services

Combining deep functional knowledge and multi-sectoral experience, our specialists, together with Clients, develop target operating models that meet the requirements of all interested groups of the organization. At the same time, implementing programs for the transformation of operating activities, our approach is focused on developing the skills and competencies of the Client’s employees as carriers of transformations. At the same time, implementing transformation programmes of operating activities, our approach is focused on developing Client’s employees skills and competencies of the as carriers of transformations.
Our specialists analyze the activities of the Client’s company and develop the most efficient logistic models by simulating the economic benefits of the transformation and integration of disconnected parts of the supply chains into a single system. Experience in various areas of industry allows us to combine various methods of organizing the process of supply chain management to achieve significant performance indicators.
We use an approach with a detailed analysis of the organization current capabilities and factors that will have a significant impact on the company's activities in the next 5-7 years. We pay special attention to evaluate current operational, marketing and technology strategies, which allows us to implement integrated strategies developed for a particular company and achieve our long-term goals.
Based on world-class practice, we offer our clients all the necessary tools for analyzing and managing performance in order to make informed and informed decisions.
Our team of experts has the knowledge and experience to help our Customers to organize the processes of procurement and assortment management at the level of world-class companies. To achieve the level of world leaders, we analyze modern approaches and develop our own methods and tools to effectively implement the processes of management of retail and commercial enterprises. In particular, such methods include management of relations with suppliers, optimization of procurement processes, formation of the most profitable assortment portfolio, development of marketing strategy of the enterprise.
Clear architecture information is becoming one of the key conditions for sustainable growth. However, difficulties associated with assessing the benefits of modern information technology, remain uncertain for the companies management in the justification of IT rising costs. Realizing the inefficiency of ready-made IT solutions, our approach is based on studying the needs of our Clients and the subsequent development of information strategies aimed at creating greater opportunities for increasing the value of a business.

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