PROBLEM
The company was faced with a drop in the fulfillment of their service to their branches and their direct customers, resulting in a lack of product on the market. Some of the causes for this deficient service were:
- Lack of adequate planning and inventory replacement.
- Deficient physical management of inventory, which is more critical for fresh products.
- Inadequate warehouse operation causing product shrinkage and operative over cost.
- The objective of the project was to design an inventory strategy and an operative process that would achieve an increase in the levels of service.
SOLUTION
- We designed the planning schemes and determined the optimal levels of inventory based on the daily behavior of the demand.
- We designed and implemented operations for reception, storage and filling orders, to ensure freshness and efficiency.
- We implemented processes that periodically update the inventory parameters and an administrative process based on daily and weekly indicators.
BUSINESS BENEFITS
Quantitative
- Savings of 500 thousand USD in working capital and an increase of 2 additional days of freshness on the market, resulting in a reduction of product returns.
- Service Level increase of 2% and 4%, respectively (Figure 1), with an additional annual contribution of 170 thousand USD, without taking
into account the reduction in penalties from supermarkets. - 30% Increase in delivery productivity, reducing the physical handling and possible shrinkage on the floor.
Qualitative
- Greater customer trust, resulting from high compliance of the promised service and an increase in shelf availability with fresher products.
- Greater control, cleanliness and order, with less operative product shrinkage in the warehouse.
- Decrease in emergencies and orders outside the normal reorder process
- Monitoring focused on daily and weekly administrative indicators, allowing preventative actions, not only corrective ones.
- Operations for reception, storage and filling orders were redesigned and implemented to ensure freshness and efficiency.
About Sintec
Sintec is the leading consulting firm focused on generating profitable growth and developing competitive advantages through the design and execution of holistic and innovative Customer and Operations Strategies. Sintec provides a thorough and unique methodology for the development of organizational competencies, based on three key elements: Organization, Processes and IT. Furthermore, Sintec has successfully carried out more than 300 projects on Commercial Strategies, Operations and IT issues with more than 100 companies in 14 countries throughout Latin America. Our track record of more than 25 years makes Sintec the most experienced consulting firm in this area of expertise in the region.
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