Case study · Food & Beverage
Feed producer cuts operating costs $11.7M in its sixth initiative with USC
A European-owned feed producer brought USC back for a sixth consecutive initiative. USC set up a project management office, clear roles and an operating system for inbound, outbound and transport.
Results
$11.7M
reduction in operating expense
This was repeat work at the producer's largest site.
The situation
With 3,000 staff, eight plants and 19 warehouses, the producer needed to cut operating costs and fix project discipline.
What the assessment found
- Weak project management
- No standard work
- Inventory shrinkage
- Poor maintenance
How the work was done
Projects: run them to plan
Set up a project management office (PMO).
Roles: clear at every level
Defined roles and accountability at every level.
Logistics: one operating system
Built an operating system for inbound, outbound and transport, with standard operating procedures and daily key performance indicators.
$11.7M
reduction in operating expense
Lasting impact
Operating expense fell $11.7 million by the time of publication, and the producer continued its run of initiatives with USC.
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