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    Food Processors

    We improved output by 50% for a major processor preventing the need for further capital investment

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    Four practical initiatives for food processing executives

    Accelerate EBITDA and Cash improvement in your business 

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Food Processors: Adapting to changes in the food and beverage supply chain

The global food and beverage industry is facing unprecedented challenges that will alter the food and beverage supply chain for years to come. Changing demographics in ethnic mix, age, income and household size will materially impact the food processing sectors with demand both positively and negatively impacting the entire F&B value chain.

With the change in nutritional content of products and an increasing environmentally conscious consumer combined with tightening environment and safety shifts, the way the industry grows, processes, manufactures, stores, packages, distributes and sells will change fundamentally.

Recent LNS research showed that 65% of beverage and 69% of food companies saw compliance with food safety and sustainability legislation as one of their biggest challenges. Other key challenges include managing global supply and demand chains, 50% and 46% respectively, labeling and traceability issues, 42% for both sectors and rapidly changing consumer preference, 38% and 30%.

This increased change in consumer preferences for healthier, higher quality, premium priced food is having a major impact on category changes, with a shift towards more perishables, smaller, localized niche suppliers and specialty brands. This will influence production capacity and availability, SKU proliferation and inventory control. In addition, logistics operations are also being stretched given the need for more localized and smaller suppliers.

M&A activity also presents both a major opportunity and a threat to companies operating in the F&B value chain. Smart Pre M&A predators will be well prepared for pre-acquisition operational due diligence, post acquisition integration, centralization and synergy cost reduction, and will have the expertise to execute strategic asset disposals. At the same time, debt-laden companies will need to prepare themselves for the post zero-interest-rate world by driving cost reduction, rationalization and spin-offs of non-core / orphan assets.

Areas of Innovation

This is an industry sector where significant competitive advantage tends to come through improved efficiencies driven by the need to adapt to changing regulatory requirements, shifting customer preferences toward “healthier” food choices and narrowing margins and transparency. Areas of particular focus for innovation include:

  • Increasing manufacturing efficiency
  • Improving supply chain responsiveness and transparency
  • Managing operational risk more effectively Improving customer service and ensuring regulatory compliance
  • Combating the scarcity of available talent by developing your existing capabilities
  • Responding to an increasing environmentally conscious consumer combined with tightening environment and safety shifts

In an industry sector where margins are tight and customer expectation is constantly rising, striving to achieve Total Value Optimization™ has never been more vital.

What Maine Pointe Achieves

Company overview

A world's largest oilseed processor and seller, with 22,000 employees in more than 30 countries.

What we did


  • Defined and implemented a proactive maintenance process
  • Targeted increases in Overall Equipment Effectiveness (OEE) from 62% to 75%
  • Established an inventory policy to reduce finished goods inventory

Outcome


  • Processing maintenance downtime reduced to 1%to 2% per week
  • Processing production increased from weekly average of 7.7M lbs. to 9.2M lbs.
  • Packaging OEE increased from 52% to 63%
  • Significant improvements in cross-functional communications

Company overview

A leading producer of fully-cooked refrigerated entrées with the majority of their business being private label.

What we did


  • Strategically sourced food, packaging, MRO, transportation and distribution categories involving incumbent and prospective suppliers
  • Developed and implemented a Management Operating System (MOS) to improve performance of every attribute of the business

Outcome


  • Improved supplier relationships which led to a positive shift in perception among the supply base
  • Enhanced the professional environment with an increased emphasis on planning, execution and category leadership
  • Realigned the distribution network resulting in the selection of a 3PL provider
  • Achieved more than 12% in savings with ROI of over 3:1 

Clients Speak


I am happy to report that, not only were our joint savings targets exceeded, but that our supplier relationships and transparency have also improved dramatically. The practical and pragmatic approach of the Maine Pointe team, has laid a solid foundation for ongoing improvements within our procurement department.”

CEO, Food Processing

Our experience with Maine Pointe was a very positive one. Apart from the significant financial benefit accruing from our procurement and supply chain engagement, we will continue to benefit from the up-skilling of staff, process innovation and change mentality the engagement delivered. Maine Pointe are professional partners, focused on delivery and making the results stick. I have no hesitation in recommending Maine Pointe to others.

Rob Burnett, CEO Bernard Matthews