National Salad Producer – Cost Reduction
We undertook a review of the end to end business operations to identify cost reduction opportunities.
Situation
The client serviced major retailers, food service and QSR customers out of its plants throughout Australia.
After the loss of a major contract, the company needed to right size its operations and quickly reduce cost.
Our Approach
Westbourne undertook a review of the end to end business operations (including overheads) to identify opportunities for efficiency. The programme was structured around four streams:
· Operational effectiveness: Manning, line productivity, quality control, giveaway and waste, labour structures
· Simplification: SKU rationalisation, manufacturing footprint review
· Procurement: Sourcing produce, ingredients, packaging and indirects
· Overheads: Corporate office
The team focussed on quick wins and initiatives that could be delivered with little or no CAPEX.
Results
The review identified a series of opportunities which significantly increased EBITDA with no CAPEX outlay. Each opportunity was reviewed, validated and owned by a key client executive.
Westbourne also provided a programme management office (PMO) structure to ensure that all initiatives were managed effectively, value was being realised and that any risks or issues were escalated and addressed.
