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​A LARGE F&B MANUFACTURER

SITUATION

Our Client is one of the major players in the APAC Food & Beverage market. A complex and capillary distribution network allowed to reach Its leadership position in the domestic market. A very competitive market has been eroding the business profitability and its internal complexity became an obstacle to find efficiency opportunities to revert the situation.

CEL Consulting was asked to help to redefine the client’s Route to Market strategy, identifying practical and more strategic ways to improve profitability and business performance.

 

PROBLEM

How can we improve profitability and increase market coverage while reducing the complexity of distribution network? 

 

APPROACH

  • Use geographical analysis and market data to identify, locate and categorise current and potential customers, deduct regionalised market share and market coverage landscape at regional, channel and product category level. From there determine potential areas for expansion and extra revenue to be expected.

  • Build a granular model of the Client’s distribution network using an Advanced Business Simulation (SIMCEL), representing with high precision the actual business logics.

  • Analyze current performance to spot operational and business opportunities and define improvements to be tested.

  • Simulate improvement scenarios to evaluate the feasibility and quantify the benefits.

  • Elaborate a business case to support the recommendations in improving Client business profitability.

 

RESULT

  • CEL consulting drafted an action plan of sales and operational improvements what represents an increase of 60% net profit within the next 3 years.

  • Improvements proposed:

    • Route to Market review

    • Distributor commission and performance review

    • Transportation outsourcing

    • Inter-Island coastal shipment

    • Distribution network review

  • Every opportunity was delivered with the necessary details to allow their implementation.

 

CEL

Supply Chain & Operations In Emerging Markets

www.cel-consulting.com

#CEL #CELconsulting #operations #supplychain #emergingmarkets #supplychainoptimization #routetomarket #networkoptimization #businesssimulation

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