Maia Global performed an independent analysis of the apple juice industry in Argentina. The analysis was performed across the industry as a whole with a particular focus on the export supply chain. It consisted of mapping the end-to-end supply chain, seasonality, costs, quantities and all other factors to identify where improvements could be made. We identified a number of areas of potential improvement.
The Maia Global team built a roadmap of improvements, many of which can be quickly implemented in order to realize the economic benefits. The items that required investment were considered in a later phase. The key benefits identified were as follows:
There is little sharing of information between parties in the value chain. This leads to inconsistent market returns, expensive transport contracts, excessive storage and other supply chain costs. With improved information sharing between partners there would be less duplication of inventory and overall reduced costs. This is support by using the Maia-View information portal.
Implementing standard operating procedures would provide the industry with consistency, standard reporting, key performance indicators and improved visibility. With a more simplified supply chain, the industry would benefit from enhanced time efficiency, and also achieve savings of up to USD 0.35 million per year.
Maia Global not only manages international supply chains, we also strive to make them work as efficiently as possible. The industry is heavily reliant on transporting their goods using conventional bulk reefer ships. Through a strategy that encompassed container utilization, routing optimization, inventory management and staged deliveries, it was estimated that savings of up to USD 5.0 million per year could be achieved.
Packaging is not always given the importance it deserves, whereas Maia Global considers packaging as a fundamental pillar of the supply chain. The proposed solution for this project involved implementing a reusable packaging rental program that would support cash flow improvement, enhanced container utilization and removal of packaging waste. The direct savings that could be achieved were estimated at USD 1.28 million per year.
Not all improvements were designed to be implemented during the initial phase. After the main initiatives are put in place, all the remaining improvements can be made in order to add further economic savings and other benefits.
Overall, Maia Global was able to identify that the expected benefits to the industry were estimated to be in excess of USD6.5million per year. It also had a number of non-quantifiable benefits such as enabling the producers to focus on their core business, improving cash flow and opening up access to new sales markets.
For more information, please contact the team at Maia Global on info@maia-global.com to see what we can do to help your business.