Our customer is a leading Brazilian producer of orange juice concentrate, processing more than 14 million boxes of oranges per annum. In a fiercely competitive market with constant downward pressure on prices, they needed to find ways to remove costs and non-value adding activities from the supply chain.
The team at Maia Global worked closely with the client to perform an end-to-end analysis of their business. We then identified the areas where best practices or improvements could be applied.
Maia Global decided to implement an ORCA packaging rental program across 90% of their volumes of orange juice concentrate. This would support their goal to move to a semi-bulk supply chain, improve container utilisation, reduce handling and improve cash-flow.
We implemented a certified international supply chain through until bulk conversion at the destination port. The customer was able to unlock the premiums that are realised by selling closely to the end customer. This removed at least one middle man, gave the customer more control of their sales and improved market intelligence. They enabled to finance their stock and receivables at much cheaper interest rates than could be achieved in Brazil due to this improvement.
The customer was nervous about the uncertainty of new costs. We provide a fixed cost rate per MT (metric ton) that locks their profits on customer contracts.
While it is not seen as the most “sexy” part of supply chain innovations, maintaining a strong platform is one of the most fundamental factors in unlocking savings. Customer specific standard operating procedures were implemented to govern the way MAIA Global managed the customer supply chain. This provided the customer with consistency, standard reporting, key performance indicators and supply chain visibility.
The customer was able to realise direct supply chain savings of more than USD45 per MT. Increased product premiums by over USD100 per MT, improved cash-flow and reduced administrative costs.
Overall, this program has improved the customers return on sales by more than 7.5%. For more information, please contact the team at Maia Global on info@maia-global.com.