Case Study: Developing a Supplier Network for a New Food Plant
The Client
A food company with new vertical farming plants in both Canada and the United States.
The Challenge
As the company grew, its costing methods became outdated. Management lacked the necessary visibility to know the real cost of each product, making it difficult to make pricing decisions and identify areas for cost reduction. The company needed an expert solution to gain a clear view of its operational costs.
The UpKaizen Solution
UpKaizen provided a comprehensive solution by taking a deep dive into the client’s procurement needs. We developed a detailed methodology that included:
- Product Specifications: We created a complete list of product specifications, including quality standards, regulatory compliance codes, and desired lead times.
- Extensive Supplier Research: We conducted in-depth research into the industry to identify a wide range of potential suppliers, from global corporations to small, local businesses.
- Supplier Vetting: We filtered the research to create a list of fully compliant suppliers, verified for legal and safety standards.
- Custom Supplier Matrix: The final deliverable was a comprehensive matrix of regional suppliers per item, provided in a convenient Google Spreadsheet format. This tool allowed the client to make informed purchasing decisions quickly and efficiently.
The Outcomes
The project yielded significant outcomes for the client’s new plants:
- Reliable Sourcing: The client received a comprehensive list of compliant suppliers, ensuring a reliable and robust supply chain.
- Cost-Effective Operations: The detailed breakdown of item prices and delivery methods allowed the client to make cost-effective purchasing decisions from day one.
- Informed Decision-Making: The custom spreadsheet provided management with a clear, organized view of all supplier information, enabling easy comparison and analysis.
- Smooth Operations: The established supplier network provided the foundation for a more predictable and efficient start to their new operations.
Do you identify with this case? If your company suffers from a lack of data visibility or inefficient inventory management, our Production Efficiency Micro-Diagnostic can help you find the solutions.
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