Case Study: Developing a Supplier Network for a New Food Plant

Learn how a food company built a robust supplier network for its new plant in the US and Canada, ensuring reliable sourcing and smooth operations.
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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As the company grew, its costing methods became outdated.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.

If you want to learn more about these types of problems, read our article on 5 Common Bottlenecks in Manufacturing and How to Spot Them.

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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Ieva Kalve

Ieva Kalve

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I believe that it is healthy laziness that moves the world and business forward, and I am always ready to help find the most effective and appropriate solutions concerning strategic and change management, as well as various efficiency solutions in office work.

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