A globally recognized manufacturer produces a group of products for the baking industry. The product is packed-out in 8-pound boxes, yet the minimum order quantity is 2k pounds and customer lead times are 4-6 weeks. In addition to missing out on opportunities for customers neither requiring nor wanting such large deliveries, our client struggled to meet the lead times. Manufacturing facility operations were complex enough handling the needs of their large, strategic customers.
Xenon Arc stepped in and changed the dynamic. To help simplify facility operations, Xenon Arc supplies our client with long range purchases plans. Furthermore, Xenon arc purchases product in 40k pound quantities and over time, builds an inventory position. These two actions alone meaningfully reduced stress and complexity within the facility while further improving our client’s service levels with their large, strategic customers.
As for the small-to-mid customers, their service levels improved dramatically. Xenon arc’s systems and processes now enable customer to purchase product XYZ in more desirable smaller order quantities. And since Xenon arc takes an inventory position, it dramatically improves customer service levels as demonstrated by on-time / in full delivery rates, with significant reduction in lead times combined with near immediate access to highly skilled, knowledgeable technical resources.
In the end, by reducing complexity and facilitating better resource planning, our client was able to meaningfully reduce costs while, more importantly, expanding the total addressable market for product XYZ and improving service levels to all constituents.