[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.
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【Solution】 ■ Analyzing the revenue structure and inventory fluctuations of each profit center, from factories to logistics warehouses, wholesalers, and retailers, to identify issues. ■ Changing the management system to implement mixed deliveries of small lots with high frequency for each item (SKU) and adjusting factory production cycles from monthly to shorter cycles of half-month or weekly. *For more details, please refer to the PDF document or feel free to contact us.
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For more details, please refer to the PDF document or feel free to contact us.
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The goal is to eliminate waste in the operational system and the power system! Achieving both "inventory reduction and prevention of stockouts," "energy conservation," "new products and new businesses," and "developing people who are passionate about proactive reform" is a challenging endeavor for many companies. The reasons hindering results are believed to be primarily due to partial improvements that do not address the root problems, such as symptomatic treatments that overlook the whole picture, the easy introduction of IT like ERP, balancers for rotating shafts that do not consider rotational friction resistance and eccentric centrifugal force compensation, and the proliferation of numerous projects aiming for short-term results, such as mimicking competitors. Our consultant, Zenjiro Nimaoka, has acquired patents for technologies that suppress rotational shaft imbalance, solved many technical issues in mechanics and IT at an engineering company, developed management systems, and gained experience at a global consulting firm, mastering management analysis and prescriptions. Through numerous publications and consulting experiences, he has synthesized "management and mechanics" through management education in MBA and MOT. Based on MOT management education, we provide consulting for business diagnostics and strategic proposals, system design, and project support for new products and new businesses. We can respond nationwide, primarily in the Kanto region, so please feel free to consult with us.