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[Consulting Case] Market Expansion Strategy Support for Beverage and Food Manufacturers

Expanding the market through supply and demand management of new products over standard items! Introducing consulting case studies.

We received a consulting request from a major domestic beverage and food manufacturer in China. The management challenges in the beverage and food industry are significant demand fluctuations, with excess inventory and stockouts being persistent themes. Excess inventory must be discarded once it passes its expiration date, while insufficient inventory leads to lost sales opportunities, impacting overall performance. Therefore, we analyzed the profit structures and inventory fluctuations of each segment, from factories to logistics warehouses, wholesalers, and retailers, assuming that each operates as a profit center, and identified the issues. We proposed changing the management system, implementing mixed deliveries of small lots with high frequency for each SKU, and adjusting factory production cycles from monthly to shorter cycles of half-month or weekly. We gained their agreement through an Excel simulation demonstrating how much inventory could be reduced and stockouts eliminated. [Effects] - By revising promotions that cause sudden increases and decreases in demand, we achieved demand leveling and production/shipping leveling, resulting in successful market expansion for new products through fresh rotation strategies. *For more details, please refer to the PDF document or feel free to contact us.

• Company：21世紀ものづくり日本 ISDI今岡システムダイナミックス研究所
• Price：Other

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