Project Brief and Highlights
ndustry: Food and Beverage
5 year deferment of $30 million in capital expenditures
Increase asset utilization from 60% to 90%

The company operates over 50 manufacturing facilities, has over 1,000 wholesalers, 200 SKUs, and an annual production capacity of over 120 million hectoliters.  Two specific areas of improvement were identified:
Asset Utilization
Inventory Management

Asset Utilization
Before: Variable asset utilization range from 20-100% impacting operations and cash flow.
After:  Implemented S&OP resulting in scenario planning analysis including capacity, inventory, asset investment, warehousing and labor resource allocation.
Key Results:
Deferment of $30 million in capital expenditures for minimum of 5 years
Production capacity utilization increased by over 50%
Ability to incrementally add capacity JIT

Inventory Management
Before:  Production and sales were not aligned. Inventory fluctuations were high.
After:  Inventory levels stabilized and adjusted upwards to meet peak sales periods.
Key Results:
Inventory buffer reduction from 2 months to 21 days
Long-term inventory visibility allowing for transition from month-to-month warehouse contracts to 5 year planning and significant cost savings.

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