Case study · Food & Beverage
Food manufacturer reaches $16M in annualized benefits in half the planned time
A food manufacturer that had just won a major brand account was missing on-time, in-full targets, overfilling bags by 12% and running low throughput. USC installed sales, inventory and operations planning (SIOP) and a management operating system, cutting waste and giveaway.
Results
$16M
in annualized benefits, against a $3.5M target
Benefits are annualized, reached in 12 weeks against a 24-week plan.
The situation
After winning a major account for a well-loved brand, the manufacturer struggled to deliver on time and in full. Product piled up on the floor, bags averaged 12% overfill, throughput was low and rework was heavy.
What the assessment found
- Fill targets set above the upper control limits to meet a parent-company weight rule stricter than the FDA's
- Run rates set low, with little confidence throughput could rise safely
- No maintenance schedule; machines ran until they failed
- Floor waste accepted as normal; packaging efficiency not a focus for shift leaders
How the work was done
Planning: install SIOP
Set up Sales, Inventory & Operations Planning to connect demand, supply and finance, and dropped unprofitable customers to cut packaging complexity and lengthen runs.
Giveaway: control fill weights
Applied statistical process control to move fill targets off the upper control limits while still meeting the weight requirement.
Waste: close the leaks
Traced waste from receiving to shipping, including conveyances and packaging lines, and used process changes and training to clear the floor.
Floor: run by the numbers
Installed management operating system tools, scheduled maintenance and corrective-action follow-up in milling and packaging.
Lasting impact
Throughput nearly doubled, waste and giveaway fell, and on-time delivery and customer satisfaction improved. The manufacturer reached $16 million in annualized benefits in half the time planned, with planning and operations working from the same numbers.
Related case studies
Food & Beverage
Midwest food distributor saves $2.3M a year in yield by controlling beef giveaway
$2.3Min yearly yield savings
Read the case study →Food & Beverage
Aquafeed producer saves $19.2M a year by taking warehouse operations in-house
$19.2Min annualized savings from warehousing and inventory control
Read the case study →Food & Beverage
Dessert manufacturer adds capacity and cuts $3M in annual cost without new capital
$3Min annualized savings from throughput, yield, labor and sourcing
Read the case study →