[Consulting Case] Market Expansion Strategy Support for Beverage and Food Manufacturers

Expanding the market through supply and demand management of new products over standard items! Introducing consulting case studies.

We received a consulting request from a major domestic beverage and food manufacturer in China. The management challenges in the beverage and food industry are characterized by significant demand fluctuations, with excess inventory and stockouts being persistent themes. Excess inventory must be discarded once it passes its expiration date, while insufficient inventory leads to lost sales opportunities, impacting overall performance. Therefore, we analyzed the profit structures and inventory fluctuations of each segment, from factories to logistics warehouses, wholesalers, and retailers, assuming that each operates as a profit center, and identified the challenges. We proposed changing the management system, implementing mixed-load deliveries with small lots and high frequency for each SKU, and adjusting factory production cycles from monthly to shorter cycles of half-month or weekly. We gained their agreement through an Excel simulation demonstrating how much inventory could be reduced and stockouts eliminated. **Effects** - By revising promotions that cause sudden spikes and drops in demand, we achieved demand leveling and production and shipping leveling, resulting in the successful market expansion of new products through fresh rotation initiatives. *For more details, please refer to the PDF document or feel free to contact us.*

Management consultant/Small business consultantAudit/Accounting