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Mondi Foods
Contributing to the companies profitability: a working capital reduction program...
Company profile
- Major European player in the fruit processing industry
- Management buy-out with plants in Belgium, Poland and Serbia
- Turnover: € 50 000 000
- Employees: 250 during low season, over 600 in high season
Company challenge
- Market is shifting towards high quality products
- Only profitable markets are those delivering high added value to the end consumer
- Distance between the company and the end market
- Highly fragmented supply
- Retail industry using the company as funding agency for highly seasonal stocks
Our challenge
- Increase profitability
- Reduce capital intensity in order to free borrowing capacity to invest in necessary growth
- Install mechanisms that increase impact on the supplier base
- Professionalize the logistics department
Our approach
- Assist in the development of a commercial strategy in clearing out the relationship between commercial strategy and working capital
- Develop an operational decision model through full account P&L’s that assists in awarding contracts
- 3-step stock reduction initiative
- Vertically integrate suppliers towards longer term relationships
The results
- Stock reduction with € 5 mln over 1 year on an average of € 13 mln
- Reduction of the non-saleable stock from 4000 T to 800 T
- Objective Supplier management through a fully automated vendor rating model
