FOOD & BEVERAGE INDUSTRYIMPROVING YOUR RESULTS TODAY, SECURING YOUR RESULTS TOMORROWCredentials and track record“Vision without action is merely a dream. Action without vision just passes the time. Vision with action can change the world.” Joel A. Barker2Changing face of the consumerConsumers want more personalised products. They are demanding more sustainable products and visibility of the sources and impact of what they eat and drink. They are quality conscious and want to be able to make ethical choices through transparency across the whole value chain.Across the globe, the food and beverage industry is facing fierce pressure on margins and value. Growth is spread across even more products in many fragmented markets with rising raw materials, energy and labour costs. Increasing complexity requires an agile response to the market, a supply chain adapted to global and local demands and a higher speed of product development to market.Constant change is impacting how food and beverage companies operate. People also want transparency, ethical employers and brands to which they can relate and promote. Continuous improvement, agile response and digital optimisation are increasingly people driven. We see here a great opportunity to embrace the next generation of consumers in this development.About EFESO Consulting“Improving results today, securing results for tomorrow” means achieving tangible business results and simultaneously developing the capabilities, leadership and culture to continue improving faster than competition. The EFESO Progression approach combines continuous improvement, transformation and disruption to yield effective and durable results across the business. Strategic, systemic and specific interventions let us address at the same time value, flow, assets and human dynamics holisticallyOur people bring together hands-on experience and expertise spanning sectors and functional capabilities.EFESO Consulting currently support more than 900 Progression programmes helping its Clients to progress faster and better to gain distinctive competitive advantage with over 400 consultants, operating from 26 offices, working in 75 countries and representing 45 different nationalities. The Client retention rate is more than 90%.A volatile, uncertain, complex and ambiguous harsh environment …The food and beverage industry is facing fierce pressure on margins and value. Growth is lower than the overall GCEI index of 18.5%. The Food & Beverage Select Industry Index grew just 11.7% in the past decade.Conventionally classed as a mass market, the food and beverage industry is being forced to evolve to embrace a mass customisation ethos on both a global and local level. There is strong elasticity of demand with a constant risk of consumers switching between categories, or between brands and own-labels within the same category, even though the rise of own-labels has slowed in recent years Business performance varies. In a same niche of activity, competitors’ ROCE may differ up to 5 points depending on performance in COGS, working capital or even SG&A. Innovation process performance may vary by as much as 100% from one company to another. In short, food and beverage manufacturers are subject to multiple and extremely severe constraints on their ability to creation of value.Our perspective on the Food industryAnswering your key questions dHow do I shape my business organisation and value chain to maximise margins whilst sustaining increasing agility? dHow do I successfully secure the execution of strategies and programmes?3Food & Beverage SolutionsWorld Class Operations ManagementWe help organisations maximise value by focusing on physical assets and industrial footprint in local and global operations. We optimize the full lifecycle setting the framework for higher productivity and safety and optimizing costs (both conception and conversion), whilst taking the most important asset - the people – along the change journey. dOperational Excellence dLab Excellence dIntegrated Asset Management dProgram Management Office & Digital Knowledge ManagementWorld Class Value ChainOrganization Strategy We work on all the value creation levers to deliver revenue increase, cost reduction and assets and cash efficiency. We do this by identifying and eliminating “losses” and non-Value Added activities and by optimizing and synchronizing critical dynamics in the value chain. dValue Chain Improvement dIntegrated Business Planning dWorking Capital OptimisationWe help leaders in all aspects of organizational strategy – including designing the organizational structure, developing high performance teams and structurally developing the people. We then work with the business to implement the recommendations and secure successful execution. d‘Fit-to-Win’ Organization dResources Optimization dBusiness Processes performance dHuman Dynamics ProgramHuman DynamicsWorld Class Innovation ManagementGrowth StrategyApplying Human Dynamics to everyday organisations change is all about finding the more efficient and effective way to change people’s current mind-set and behaviour towards a desired mind-set and behaviour.Working from topfloor to shopfloor, we help to engage the organisation on the change journey. dCultural Change dMobilising for Progression dLeading Progression dPerformance Behavior dEngagement Monitoring and MeasuringWe help organisations assess and develop end-to-end innovation capabilities, as well as improving operational performance in R&D and new product introduction (NPI) processes. dLean/agile development dFeasibility and portfolio management dEarly equipment managementWinning companies continuously innovate and re-configure their business model and their organization to sustain competitive advantage and organizational energy. We generate growth results in a record time, working on building capabilities and true repositioning for growth on long term. The six elements of the Hybrid Growth Strategy offering are: dIdentification of true competitive advantage dForward Progression & trend analysis dStrategy deployment and execution dOperational excellence in growth dStrategic options dCompetitive advantage4ss Operations agementPerfect Executionmaximise value by focusing on ustrial footprint in local and ptimize the full lifecycle setting er productivity and safety and nception and conversion), whilst t asset - the people – along the gement Office & Digital Knowledge 50% of well formulated strategies fail to deliver expected results because of poor execution. We help companies to build a process to achieve competitive advantage by effectively deploying and executing their strategic objectives. dAligning strategic plans dFostering human dynamics dPreparing deployment of execution plans dMonitoring and steering dynamicallyOperations StrategyComplexity Optimisationss Value Chaination Strategy We help management teams to translate business strategy into concrete plans that impact operational performance and result in clear cost savings and lines of growth. This involves defining, assessing and planning the required operational changes at a Group, a BU or a subsidiary level. dOperational Strategy Alignment dOperational Strategy Deployment dOperation Footprint Design / RedesignWe help companies by increasing their efficiency and responsiveness through an optimal balance between product variety and process complexity. The goal is not to remove complexity, but rather to eradicate the part which does not create value. dAssessment of real complexity cost and profitability of products and clients: money wasters dReducing cost of complexity dOptimizing complexity dRoll-out of a complexity management processlue creation levers to deliver eduction and assets and cash by identifying and eliminating ded activities and by optimizing dynamics in the value chain.entnningsationpects of organizational strategy the organizational structure, mance teams and structurally e then work with the business to ndations and secure successful nnformance ram5CLIENT SITUATION & APPROACH:A world leading malt producer set the objective to double growth, mainly in Asia, Pacific and Africa, and EBITDA within 10 years. To achieve this, the company needed to define an operations strategy to support business objectives with limited CAPEX.Starting with a pilot region covering continental Europe and export activities to Africa, Asia and Southern America, EFESO supported in: d Identification and assessment of robust operations strategic options: both incremental potential e.g. sourcing, logistics, transport, manufacturing and breakthrough initiatives such as make or buy strategies, acquisition of competitors facilities and / or divestment of some existing manufacturing facilities and greenfield project d Definition of a business plan d Definition of a transformation planRESULTS:An accelerated process managed in 100 days delivered: d Understanding of strategic priorities in operations and their impact on progressing strategic goals d Clarity on improvement and breakthrough levers to create an edge on the market and their contribution towards growth and profitability d New industrial footprint design d Robust methodology to be deployed on other geographical clustersDelivering Tangible Business ValueGrowth Strategy in Frozen Food IndustryCascading Corporate Strategy into Operational Strategy in Malt IndustryImplementing a Fit to Win Organization in a Global F&B CorporationAgile Product Development in Ingredients SectorAn Operational Excellence Program in the Beer SectorCLIENT SITUATION & APPROACH:A French company specialized in the breeding, processing and marketing of poultry as well as in the preparation of meals. EFESO was engaged to support the Executive Committee progress towards sustainable and profitable growth through their 5-year strategic plan for national branded products.The deliverables of the project included: d Identification of major growth opportunities in 10 years from mega trends and major food trends d A deep end to end analysis from the vision down d Development of potential strategic scenarios from detailed strategic initiatives d Involvement of key functions across the business to engage all stakeholdersRESULTS: dDivestiture from non-profitable categories dRoll-out of the strategic roadmap across all families and functions d 7% increase in turnover 4.7% increase in net operating incomeCLIENT SITUATION & APPROACH:A global player in the food industry faced challenges: profitable growth acceleration and fixed costs continuously increasing in value and in percentage versus gross margin but with an EBITDA lower than that of the main competitors.EFESO worked in tandem with the executive team to redesign the organization in 100 days through 4 complementary approaches: d Translation of strategy into strategic capabilities d Gap diagnosis d «Top-down» analysis of macro organization scenarios d «Bottom-up» workshops with operational staffRESULTS: d Savings valued and agreed around 15% of total SG&A costs segmented on 3 levels, linked to the complexity of change: «restore basic conditions», «optimize the organization» and «transform the organization “with a concrete progression plan for deployment d The progression plan included structural, competence and motivational drivers with options including outsourcing, shared services and new process design with change management elements to facilitate the transformation executionCLIENT SITUATION & APPROACHAn ingredients supplier facing a highly aggressive and competitive manufacturing market. The company had to develop new grades, reduce harmful byproducts and optimize cost effectiveness.EFESO supported the senior management with: dDiagnosis of R&D department and portfolio dLean development implementation, lead time reduction and productivity improvement dBreakthrough in Capex and industrialization projectsRESULTS: dInstalled a proactive innovation process to accelerate development and minimization of Capex d Revamped the development phase gate system and implemented multi-project management systems d Reviewed and optimized project management control, implementing an Obeya room process d Optimized resource use in R&D using ScrumCLIENT SITUATION & APPROACHAn international leader in the Beer sector present in 70 countries with more than 150 breweries spread across the globe. The company decided to launch a global Continuous Improvement initiative to generate cost efficiency improvements to support new acquisitions while at the same time creating a common ‘way of working’ throughout its Supply Chain Operations.EFESO supported in: d Co-designing its customized Operational Excellence Program framework d Deploying it progressively in the operating units d Designing and delivering on-the-job training to thousands of employees on OpEx methodologies to build internal capabilities for an autonomous roll-out in the new units d Co-creating the client’s methodological ‘OpEx Toolbox’ with all main pillars in manufacturing and logistics d Providing plant leadership teams with a step change in their change management skills through training programs followed by the practical application d Facilitating the process for High Performance Organizational design of their future operating unitsRESULTS: d An extended Continuous Improvement culture throughout the entire Supply Chain organization with all 150 breweries consistently running the OpEx Program d Major results in terms of OEE improvement (+20%), material waste reduction (-22%), transportation cost reduction (-12%) and other losses reduction through more than 20.000 improvement projects d In the first 8 years of the OpEx Program implementation, productivity doubled and fixed & variable cost were reduced by 35% contributing to delivering 400M€ savings within Supply Chain d A full-fledged HPO Organizational Design blueprint for future operating units d 700 certified PKE™ employees able to successfully drive Continuous Improvement both in manufacturing and logistics d A fully embedded change management capability in most operating units6Complexity Optimization in the Dairy IndustryLeading Progression in the Dairy IndustryValue Chain Progression in Confectionary SectorCultural Change in a Global F&B CorporationCLIENT SITUATION & APPROACH:A leading manufacturer of fresh dairy products faced a low operational profit levels (2% versus N° 1:14%) despite turnover growth and a loss of market share of the third player in the market. This was mainly due to the impact of a growing complexity: internationalization, market volatility, fragmenting consumer demand, multi-sourcing.A global performance program was needed to eradicate value-destroying complexity that does not add any competitive advantage and differentiation and to manage value-creating / adding complexity reducing negative impact on direct and indirect costs.EFESO supported this program: dAssessment of current complexity cost and real profitability by product and client (simplified ABC costing) dIdentification, evaluation and prioritization of causes of complexity dDefinition of solutions for complexity optimization (eradication of value losses and monetization of value enhancers: e.g. portfolio rationalization, late differentiation manufacturing process deployment, redesign to cost activities, pricing optimization, SG&A costs reduction dImplementation of a pilot on complexity optimization dExpansion to the entire organization dRoll-out of a complexity management process and development of complexity management capabilitiesRESULTS: d Within 3 years, the business achieved a 5 point increase in operating profit and significant improvement of ROCE dNew stockholder entry in the company after overall improved attractiveness of the companyCLIENT SITUATION & APPROACH:One of the world’s largest dairy companies came to a point where they needed alignment in the mix of improvement activities that were running simultaneously. The goal was to achieve a change in mindset, behaviour and leadership to sustainably support the progression initiatives from a leadership perspective.A programme was designed to: d Integrate leadership development in daily business d Allow leaders to grow with peers d Give leaders more influence on performance and important issuesRESULTS: d Understanding of the High Impact Moments where leaders can make the change happen d Support structure in place to sustain development d Anchoring of change at all levels of the company with monitoring, measurement and adaptation d All sites involved have positive response towards different way of managing and leading improvementCLIENT SITUATION & APPROACHA leading confectionary manufacturer reviewed their Operating Supply Network (OSN), a global network of 22 factories, 68 in-house warehouses and 240 third party DC’s serving over 100 markets in 3 regions. There were no consistent standards across Customer Services, Planning, Warehouse and Transportation. People worked in different ways, SAP was applied variably with no consistent operating model. Skills and capabilities needed progression. EFESO provided project management and designed a new industrial roadmap including: d Transfer of products and production d Tender for outsourcing logistics d Implementation of a crisis taskforce d Product portfolio rationalisationRESULTS:After the first stage of the project, d Differences and complexity were reduced d A common reference model, standards and PPI were designed d Increased governance and best practice sharing were embedded in the identity of SC people and learning organizationThis is now being rolled out across the business as part of the Progression PlanCLIENT SITUATION & APPROACHClient is an international food, snack & beverage company with a large global footprint of manufacturing and distribution sites. The client needed help with setting up a sustainable lean culture and deploying this in multiple European sites to start. In tandem with EFESO, the client introduced Human Dynamics elements into the existing programme from topfloor to shop floor in the following manner: d Creating a strong compelling storyline d Defining concrete behaviors for every target population d Make leaders examples and cultural ambassadors d Install a Performance Management System to manage progression of the site cultureRESULTS: d10% reduction in safety incidents d Waste decreased from average 6% to average 4% d Translation of the concept of “culture” into concrete and observable behavior d Improved leadership capabilities to manage and influence behavioral change, and to engage and mobilize teams towards the desired Lean culture7Copyright © 2019 EFESO ConsultingCALL US AT +33 1 53 53 57 00 OR LET US KNOW ABOUTYOUR CHALLENGE VIA INFO.MARKETING@EFESO.COMTokyoStockholmSingaporeSeoulShanghaiSão PauloSaint PetersburgRiyadhParisNew YorkNew DelhiMilanMexico CityLisbonIstanbulGothenburgGalwayCairoBirminghamBuenos AiresBudapestBrusselsBerlinBarcelonaAmsterdamAbu DhabiEFESO Consulting brings more than 35 years’ experience and thought leadership, supporting many of the leading global brands in both mature and emerging markets.EFESO Consulting is a group of over 400 experienced consultants representing 45 nationalities. It operates from 26 offices around the world with a strong presence in Europe, USA, South America, Middle East, Africa and Asia.An international scope and local delivery capability ensures that clients have access to the specialist skills they require whether at national, regional or global levels.Next >