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Improved Capabilities of the Supply Chain for Popcorn, Indiana

DP&C was able to reduce manufacturing, materials, warehousing and transportation costs and improve the overall capabilities of the supply chain.  Popcorn Indiana is a manufacturer of healthier, whole grain snacks with facilities in New Jersey.

The Challenge

  • Too many manual, redundant processes
  • High labor due to inefficient manufacturing
  • Disconnected systems causing higher costs for manufacturing, materials, inventory and freight due to a lack of real time visibility of information
  • Inefficient supply chain planning causing material obsolescence on time sensitive finished goods
  • High transportation expense due to one manufacturing location shipping to national customers
  • Poor facility storage utilization causing excess outside warehouse use

The Solution

  • Increased overall capability of supply chain through improved systems, processes, and functional accountability resulting in more efficient sales order to cash, purchase order to pay, and manufacturing order to inventory
  • Evaluated personnel and recommended realignment to better support business objectives
  • Created and executed better linkage between materials, transportation and customer service management to reduce inventory on hand versus sales orders resulting in improved cash flow
  • Linked material and transportation planning together to gain execution efficiencies and improved customer service
  • Increased utilization on freight to trade transportation to reduce transportation expense
  • Improved timely, accurate visibility of information for faster, more informed management decisions

The Results

  • Saved $3,100,000 in Freight Management and Expenses (FME) costs, lowering FME as a percent of sales from 11.5% to 9.4%
  • Lowered costs by:
    • Manufacturing – $900,000
    • Distribution – $200,000
    • Materials Management – $200,000
    • Finished Goods – $300,000
    • Personnel – $500,000
  • For every $1 spent, $5 were returned to the organization