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  • Crop Nutrients Slider.png

    Food and Beverage Success Story

    Improving logistics and procurement functions at a crop nutrients and ingredient producer delivered multimillion-dollar savings

Maine Pointe helped the company develop its first ever international strategic procurement function

The challenge

This wholesale organization is owned by agricultural retailers who do business throughout the central part of the United States and parts of Canada. The organization provides its owners with a competitive and reliable supply of crop protection and crop nutrients. It also offers other resources that help their owners succeed. These include employee development, safety and compliance, marketing, strategic planning and finance.

Executives had identified a number of issues in their logistics function, including:

  • Lack of clear structure, roles and responsibilities
  • Minimal cross-functional process and system integration
  • Customers and suppliers were controlling freight and supply chain value
  • The absence of logistics capability and visibility on potential lowest landed costs

In addition to this, the company had never implemented an international strategic procurement function. Aware that they were potentially leaving millions of dollars on the table, senior executives engaged Maine Pointe to help develop and implement new tools and processes and deliver the training required to make sure the improvements would be sustainable.

The solution

Our industry and practice specialists, supported by our Leader and Organization Improvement experts, deployed Maine Pointe’s cross-functional, Total Value Optimization™ approach. This involved:

  • Developing and implementing a corporate-wide LMOS
  • Defining operational KPIs with a management dashboard
  • Identifying core carriers for current outbound volumes
  • Defining service-level agreements
  • Creating a supplier shortlist
  • Conducting supplier evaluations and negotiations
  • Introducing a new set of import/export procedures and processes
  • Implementing a strategic sourcing process for outbound transportation
  • Implementing a cost-to-serve model for the organization’s private fleet
  • Defining the logistics organizational structure
  • Cascading clear goals and objectives through all functional areas of the organization

The cornerstone of our solution was to train, coach and mentor the client’s team and introduce clear job descriptions and organization design. This ensured that, at the end of the engagement, we left behind a trained team with the right tools and processes to deliver shareholder value and attract new farmer/ members.

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The results

  • Delivered total annualized savings of $17M: $16.2M from landed cost optimization leverage and strategic execution of opportunities in the US and Canada, and $0.8M freight rate and fuel surcharge savings
  • Reduced the carrier base from 399 to just 9 core and 30 regional carriers
  • Achieved a 7:1 ROI

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    Executives Speak

    A company CEO explains how his organization achieved savings three times higher than their expectations

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