14%
Improvement in service rate
Boosting Service Levels and Reducing Inventory for a European Spice Manufacturer
Industry: Food & Beverage
Service: Manufacturing
Service: Operations Strategy and Transformation
Service: Supply Chain
Our Client
A top European spice and condiment producer generating €25M in annual sales, managing a portfolio of 1,500 finished products, and facing high operational complexity and seasonal demand fluctuations.
The Challenge
The company faced operational inefficiencies that impacted service and cost:
- Inaccurate sales forecasts affected production planning and scheduling.
- Uncertainties in raw material supply hindered on-time production.
- Limited delayed differentiation reduced flexibility in responding to customer demand.
- Operational complexity and seasonal demand amplified inventory and cost pressures.
Real Results Achieved Together
Through enhanced demand planning, production optimization, and inventory standardization, EFESO helped the client increase service levels, reduce costs, and optimize working capital.
21%
Reduction in inventory over one year
16%
Reduction in scheduled downtime
Transformation Impact
- Implemented demand planning with improved forecast accuracy and KPIs.
- Streamlined production scheduling, batch sizes, and line setups to reduce downtime.
- Optimized inventory levels across finished, semi-finished, and raw materials.
- Introduced standardized tools and routines to maintain alignment with logistics policies.
- Increased operational agility, enabling the company to better respond to market demand.
Our Approach
EFESO applied a structured methodology combining forecasting, production optimization, and inventory management:
Demand Planning & Forecasting
- Improved accuracy of sales forecasts.
- Assigned process targets, roles, and responsibilities.
- Established KPIs and trained teams to ensure operational discipline.
Production & Material Flow Optimization
- Streamlined downtime and setup schedules across lines.
- Adjusted batch sizes, production frequencies, and safety stock levels.
- Ensured efficient material distribution on packaging lines.
Inventory Management & Standardization
- Implemented standards and tools to update parameters according to logistics policies.
- Reduced inventory for finished, semi-finished, and raw materials.
- Improved visibility and control over working capital.
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Facing Similar Challenges?
- Improve service levels while optimizing inventory and working capital.
- Forecast inaccuracies and production inefficiencies.
- Structured tools and routines to enhance operational agility and cost control.
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