At a Glance
After eight weeks of a project with Renoir, the client achieved:
- 24.8% average seasonal retail sales growth for live birds in one region
- 10.6% average seasonal company outlet sales growth for live birds for the same region
- 3% reduction in power consumption for its Feed Processing Plant
- 11.7% reduction in blasting operations power consumption for its Chicken Processing Plant
- 3.7% reduction in overall power consumption for its Chicken Processing Plant
Background
The client is a prominent player in poultry integration, poultry feeds, premixes, solvent extractions and edible oils refining. Headquartered in Asia, its operations are now vertically integrated to meet its production and processing needs.
Consistent business growth and the increasing demand for quality chicken provided the impetus for them to enter new commercial areas as they organically grow their business. The group deals with more than 2000 retailers and has over a hundred company owned outlets to sell live birds.
The Challenge
The client’s senior management felt there were opportunities to improve overall business performance. It concluded that the sales of live birds from retail and company-owned outlets could be sustainably increased, whilst plant availability and production costs could be improved for its chicken processing and feed plants.
Given our sector and regional experience, Renoir was asked to undertake an analysis of the client’s Sales and Production functions. The purpose of the analysis was to understand where performance could be improved, quantify the potential and develop an approach to realise these areas of growth.
The analysis determined that there were indeed significant opportunities and that there was a business case for change. However, fundamental to the sustainability of the improvements was the need to develop effective management control systems within Sales and Production. Renoir was subsequently invited to participate in the implementation of the required changes.
What We Did
Renoir’s Focus Process® commenced with the selection of a Task Force consisting of client employees working full time on the project. To manage the various initiatives and ensure participation from all key process owners, three Management Action Teams (MATs) involving participants from all key functions were formed – two for Sales and one for Production.
Full-time Renoir consultants supported both the Task Force and MATs. A market mapping system developed also provided an assessment of geographical areas that were either not being targeted or where demand was not being met. This provided a clear view of the geographies where supply could be amended to match, shape or manage demand.
For both Sales and Production, the approach focused on the development of management control systems to identify performance gaps or opportunities, and then ensure that action was taken to address them. Given there would be changes to working practices, it was essential that all impacted staff were given the necessary training and coaching in the new ways of working.
Sales Process Improvements
- Streamlined processes for improving wallet share from existing primary customers, adding new primary customers and identifying secondary customers along with their association with primary customers.
- Establishing management control systems & processes to align sales planning and reviews.
- Implementing systematic data logging, data analysis and resolution of customer issues.
Production Planning Improvements
- Breaking down the existing process into stages to improve data capture and identify improvement areas.
- Developing and implementing a fit-for-purpose operations and maintenance management control system.
Results
By week eight of the project, the Strategic Integration Meeting, a key component of Renoir’s Focus Process®, resulted in the formal approval of a time-bound implementation roadmap that would not only resolve the prevailing issues in a sustainable way but also establish a culture of continuous improvement.
Subsequent to the SIM, management system elements were installed to improve planning for sales, setting KPIs and reviewing performance. The review mechanism to monitor performance and progress for all levels was implemented and incentives were introduced for sales employees.
The flow of information from source to decision makers was improved, so that there was timely resolution of issues relating to customer management and product delivery. To improve the availability of data and expedite decision making, systems for efficient data capture and reporting were established.
Expansion of Distribution Network and Channel Partners
Discussions and training were conducted for all levels to enable the company to take action in response to competitor actions, manage channel partners to address market requirements, improve the sales approach and better manage customer relationships.
Multiple initiatives were completed at the production facilities, including:
- Installation of a Downtime Tracker for the Feed Plant: All downtime could then be captured and causes of issues identified.
- A Daily Recycle Feed System for the Feed Plant: To ensure feed spillage was recycled and mismatches averted resulting in better power efficiency and yield.
- Root Cause Analysis: Leveraged across both plants to identify true causes of downtime and yield issues.
- Installation of Short Interval Control for the Processing Plant Blast Room: To improve blasting efficiency and reduce power consumption.
Significant improvements in performance were achieved during the course of the project:
- 24.8% average seasonal retail sales growth for live birds for one region
- 10.6% average seasonal company outlet sales growth for live birds for one region
- 3% reduction in power consumption for its Feed Processing Plant
- 11.7% reduction in blasting operations power consumption for its Chicken Processing Plant
- 3.7% reduction in overall power consumption for its Chicken Processing Plant
“Our engagement with Renoir has been a great experience for us. We have seen improvements in our processes, systems and culture. They have helped our team to understand the KPIs in each business segment and have established systems to further improve our efficiency. The Renoir team put in great efforts to help us optimize our operations.”
CEO
The project not only established management control systems across all business units under scope, namely, Retail Sales department, Outlet Sales department, Production Units for Feed Plant and Chicken Processing Plant but also laid the foundation for operational excellence initiatives and encouraged the entire team to achieve better results. As a consequence, the client is much better placed to meet the challenges of this highly competitive and dynamic market.
Accelerate growth with enhanced sales and production processes.