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Faster moving consumer goods
The growth imperatives and competitive pressures facing today’s retail businesses are directly impacting our clients in the FMCG world. Like their retail counterparts, FMCG companies are having to act quickly and decisively, even bravely, in order to stay ahead.
In a recent project our client, an ‘own label’ manufacturer, worked almost exclusively for one of the major grocery multiples. Extra volume from other customers would have made our client's two sites more cost effective, but they feared adverse reaction from the retailer. With our help, a new deal was negotiated that resulted in clear incentives on both sides.
Consolidation of manufacturing onto a single site coupled with modification of production and packaging equipment saw a sustainable cost reduction of £2.1m per annum - all from reducing overheads. The improvements in efficiency resulted in lower prices to the retailer and gave our client higher margins, a new lease of life and the opportunity to grow.
