tel/fax +353 44 93 57878
mobile +353 86 222 0835
Contact Us
home page about services consult


 

condif

 

 

Case Studies

The objective of sharing the following case studies with you is to give you an indication of the different types of opportunities which exist to significantly increase your company’s profitability.

Company A is an Irish based chilled and frozen foods manufacturer with an annual turnover in excess of €100m. A project aimed at understanding in detail the manufacturing cost structure of a commodity on which A spends around €8m per annum resulted in a new deal which realised savings of €1.4m per annum.
..........................................................................................................................................
Company B is a significant player in the frozen foodservice market. B found that they were having increasing difficulty in competing in the poultry products section of their business due to the increasing penetration of imported products of high quality and low cost. A joint NPD/Purchasing project undertaken on B’s behalf saw them with a range of fully cooked products which matched or bettered the best available in the market; and savings of around 19% which enabled B to earn better margins, compete effectively and grow their poultry business ambitiously.
..........................................................................................................................................
Company C is a key branded player in the frozen retail market. C found that supplies of a commodity imported from North America and Canada were occasionally unreliable due to the variable shipping time. A project conducted on C’s behalf led to an agreement on the part of a European manufacturer to invest in the technology required to replicate the qualitative attributes of the imported commodity. C also benefited from a substantial cost saving as a result of the reduced shipping cost.
..........................................................................................................................................
Company D is a frozen and chilled food distributor, supplying the foodservice and independent retail sectors. The increasingly competitive climate in the foodservice market has meant that being even slightly out on price where some key high volume, internationally-traded commodities are concerned can lead to a substantial drop in sales within a matter of days. A project aimed at providing D with a mechanism to independently track price movements in these commodities has been successful. D is now equipped with a cost model for their key commodities, can independently track price movements and so negotiate the prices which will keep them competitive week to week.

In the pursuit of their business, Company E spends €1.5m approx. per annum on container transport of frozen and chilled foods. A comprehensive review of their business’ requirements conducted in conjunction with a review of the container traffic sector resulted in savings of 12% being negotiated.
..........................................................................................................................................
Company F, in order to reduce working capital and free up warehouse space for expansion; implemented a policy of lower stock holding. One of the effects of this policy was that it highlighted the poor service level of a small number of suppliers which occasionally led an embarrassing service failure to F’s customers. A KPI system based on ‘on time in full’ continuous rating and an agreed penalty system for faulty or late deliveries negotiated on behalf of F improved service levels significantly and recouped €80,000 approx. for F in the first year.
..........................................................................................................................................
Company G’s chicken supplier was reluctant to revise prices downwards in line with market movement. Following the identification of a suitable alternative vendor capable of meetings G’s product, service, technical and price requirements; the original supplier suddenly became willing to negotiate and an auction situation developed which led to even greater savings than had originally been envisaged.
..........................................................................................................................................
Company H found that following sudden shifts in the international marketplace, a recently entered into annual contract worth €4m per annum was now very uncompetitive. Delicate and lengthy negotiations resulted in the contract being reviewed to H’s satisfaction
...........................................................................................................................................

The opportunities to save money and increase profits are almost inexhaustible, especially when the continuously changing nature of the industry and commodity markets is considered. To discuss how Radix® Consultancy Ltd. can increase your business’ profits, click here

Radix Consultancy Ltd.
Mornin,
Moydow,
Co. Longford,
Ireland