Reduction in Cost to Serve
Increase in EBITDA
A beverage industry leader in Latin America partnered with Sintec Consulting to define a top-class “to be” model for suppliers and third parties, strengthening its Route-to-Market strategy. The solution optimized service levels, reduced Cost to Serve, and increased EBITDA while unlocking growth opportunities in underdeveloped market categories, driving profitability and efficiency.
“Facing complex service, cost, and market challenges, the company sought a strategic transformation to enhance growth and operational flexibility.”
The company faced significant challenges in enhancing service levels while optimizing cost to serve. They needed to free up resources without compromising service quality or commercial opportunities. Additionally, capturing market potential in underdeveloped categories and atypical channels required a flexible business model capable of adapting to economic cycles. These challenges demanded a strategic overhaul of their supplier and third-party models to ensure long-term growth and operational efficiency.
The company partnered with Sintec Consulting to address challenges in optimizing its supplier and third-party models. The approach focused on implementing best practices and a flexible methodology to align the models with evolving business needs and market opportunities.
The initiative delivered highly impactful results, driving significant improvements across key operational areas. The redesign of supplier and third-party models reduced the cost to serve by 50% and increased EBITDA by 8.9%, with average savings per supplier of MXN $135,000. These outcomes not only optimized operational efficiency but also strengthened the company’s market position, enhancing flexibility and profitability across business cycles.
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