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Problem:
A niche, branded food products company struggled with stagnant revenues and declining margins. The company had has a sole-source arrangement with an ingredients supplier. The manufacturer's attention to product quality and customer service had slipped while production and storage costs increased.
Action:
Cambium Strategy analyzed the client’s historical purchasing and sales data and mapped product flows across the company's national supply chain to identify opportunities to reduce order-to-delivery lead times, inventory carrying costs and transportation costs. Cambium Strategy bid the business and negotiated a new supplier and distribution arrangement for the client.
Results:
Our client achieved more consistent product quality, lower landed costs, and shorter order-to-delivery lead times. In turn, they provided their customers with fresher product that was also more cost competitive.
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