Food Manufacturing Improvement

When a food manufacturer  worked to improve

We helped benchmark their performance improvement opportunities[pic 1][pic 2]

The Challenge[pic 3][pic 4][pic 5][pic 6]

The client is a world’s leading food manufacturer. Their senior management  team felt that their Selling, General & Administration Expense (SG&A) and Overhead costs were spiralling out of control. They were also interested in comparing their performance with industry best practice and  worked to improve the efficiency and effectiveness of it operations in the Asia Pacific.

How we  helped?

We were engaged to conduct an initial benchmarking exercise to assess the performance of a number of SG&A and Overhead functions and activities to identify potential improvement opportunities.

We analysed the costs for the Australian and New

Zealand businesses, and compared them against a set

of data metrics for industry peers across a wide range of functions:

•  Sales and marketing

•  Finance

•  Customer service and logistics

•  Procurement

•  Human resources

•  Office services

•  Administration

•  Research and development

•  Manufacturing administration

•  Information systems.

The analysis focused on developing high level cost related benchmark metrics by function, total cost and as percentage of revenue.

Value delivered

The benchmarking of SG&A and Overhead costs highlighted how the client’s current performance compared against industry best practice (globally, Asia Pacific and domestically).  This prompted identification of evidence based, practical improvement

initiatives to embed leading industry practice.

The benchmarking also provided a current performance baseline against which to measure performance improvement projects.

Contacts

Paul Wensor

Partner – Deloitte Consulting Tel: +61 3 9671 7297 pwensor@deloitte.com.au

Allan Mills

Partner – Deloitte Consulting Tel: +61 2 9322 7397 allmills@deloitte.com.au

Scott Alexander

Partner – Deloitte Consulting Tel: +61 2 6263 7311 scottalexander1@deloitte.com.au

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