case study
Grab Food Case Study
Through joint workshops, Connected Sourcing and Grab came up with a 3 stage plan:
Stage 1: Standardisation
A full review of each market needs, expectations and wants was conducted, as well as an audit of existing bag designs. A gap analysis allowed teams to identify the most important market concerns and to standardise the bag designs across markets to meet those needs. This resulted in a significant reduction in the number of bag designs but overall an improvement in functionality.
Having a standardisation of products ensures consistency and one efficient, centralised process for manufacture. The negatives means that there is less for ad-hoc adjustments and bespoke tweaks to products, or market-specific branding.
| Standardisation | |
|---|---|
| Pros | Cons |
| Brand continuity & consistent product | Less room for bespoke adjustments |
| Single centralized processes | No unique market-related branding |
| Cost savings | Reduced flexibility |
Stage 2: Consolidation
Bringing together data across the markets, allowed for central control of forecasting, an understanding of regional priorities and a simplified ordering process. With better visibility of future requirements, there was the ability to plan the manufacturing better and ensure no expensive air freights needed for last minute market launches.
case study
Having an established Just In Time model in place has many advantages. Clients don’t have capital tied up in stock. No excessive manufacturing – which can increase costs as resources like labour, materials and storage add up. By using a just-in-time model, each step of the process is only performed when the specific requirement is there. This process also increases efficiency as all resources are working to exact order quantities.
In order to deliver on the above requires Connected Sourcing to work very closely with the factories to ensure that they understand the way of working and are able to adapt to production needs as required.
To ensure security of supply, Connected Sourcing would hold buffer stock on behalf of Grab in the central warehouse and only bill once bags are ordered.
To find out more about our JIT warehousing and distribution solutions please contact us at [email protected]
Stage 3: Just-In-Time Manufacturing, Warehousing and Distribution
Once the data was unders control, Connected Sourcing implemented best practices for JIT manufacturing and centralised a warehouse for stock management on behalf of Grab. Local market teams could then place orders for draw down of the stock from Connected Sourcing.
| Just-In-Time Manufacturing | |
|---|---|
| Pros | Cons |
| No capital tied up in stock – only manufactured specifically when required | Not immediately available for shipment |
| Cost savings – no wasted resources, storage costs or excessive manufacturing | Potential delays in the flow of production |
| More efficient | More pressure on factories to manage |
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Just In Time Manufacturing with Connected Sourcing
Maximize your business’ efficiency, reduce costs, and remain competitive in the global market with Connected Sourcing’s Just In Time Manufacturing (JIT Mfg) services. If you’re interested in reducing the amount of inventory in the production process and getting what is only needed for your business, then this service is for you.
Why is Just In Time Manufacturing Essential?
Excessive supplies can be harmful and costly for your business which is why Just In Time manufacturing is an option that can help prevent these kinds of issues.
JIT mfg can help reduce your company’s lead time and ensure that you have the parts or products in the right quantity when you need them. This allows you to easily keep track of your supplies and reduce waste, as products are delivered only depending on the demands.
How can Connected Sourcing help you with JIT production?
If you’d like to make your business more productive and cost-efficient, Connected Sourcing could be the perfect solution for you.
Connected Sourcing is not just about making sure you have the suitable components or products, though. As part of our service, we’ll work closely with you by efficiently connecting and sourcing with suppliers, thus generating better deals and reducing your overall cost.
By connecting you with our large pool of suppliers, your company can gain access to new technologies, materials, and services, allowing you to create better products for your business.
The Benefits of Just In Time Production
Revolutionalizing the manufacturing system around various business industries, Just In Time production are used by some world’s leading manufacturers, and for a good reason.
Lower inventory costs
Connected Sourcing can help your business cut back on excessive inventory costs and storage space by focusing on producing only exactly what is needed and when it is needed. This means that Just In Time can significantly reduce costs while also allowing you to efficiently manage your budget and inventory as well.
Streamlined processes
The flexible design of the Just In Time production process makes it more streamlined, allowing for faster delivery of goods, better inventory management, and lower cost for all the necessary components.
Moreover, this process makes it easy to quickly respond to market changes and consumer demands, considering that you’ll only receive what you initially ordered. This helps to ensure that production is always running smoothly, which is extremely useful for any business to thrive.
Reduced defects and waste
Just In Time manufacturing also help to reduce waste. It eliminates the need to produce more than necessary, which is an ideal concept to adopt whether you’re just a starting business or on the more experienced side.
The components used in production are only produced when they are immediately needed, thus preventing any wasted materials and resources.
Improved quality
Connected Sourcing will help your business search for manufacturers that produce goods of the highest quality. This means that we’ll take into account the quality of raw materials to ensure that any equipment is working like they’re supposed to.
In addition, our team also pays attention to the details of the production system to guarantee your company that the goods are of the best quality possible.