Increasing future profits through detailed analysis and forecasting
CASE STUDY - FOOD PRODUCTION
The Situation
Over the past few years, the farming industry has been extremely difficult, faced with the challenges of environmental concerns, world industrialised production methods, never-ending demand for cheap food and the below-cost selling strategy by major supermarkets.
The impact of extreme weather conditions lead to underperforming yields on crops and below par margins.
Through the Bord Bia Lean Programme, Pembroke Alliance was appointed to facilitate the Mini Lean Plus Programme.
The Objectives & Challenges
The main objectives of the programme were to concentrate on:-
Increase Yields and Margins,
Introduce KPIs to the business
Improve Productivity levels, and
Maintain a Sustainable future
In order to achieve these objectives a number of challenges had to be overcome:-
Non-Controllable challenges with Weather
Managing change, and getting staff used to the accountability that comes with having production metrics in place.
The industry is faced with continued difficulty in recruiting Staff
“We knew that understanding our data would be key to the growth of the business but didn’t know where to look or how to start.
Pembroke gave us templates and tools that quickly uncovered a number of areas that we could improve upon”
A quote from the owners
The Outcomes
The following outcomes were achieved:-
Identified the main factors contributing to the underperforming yields and margins.
Prepared both optimistic and pessimistic 3 Year Forecasts for the business
Established detailed costings with accurate margins for each crop
Prepared and produced detailed Cash Flows for Chilli and Garlic Business
Installed a new lean Cash Management System
Carried out a detailed energy audit
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