The Client’s commitment to unpasteurized beer, product freshness, and a fully refrigerated distribution network supported a premium consumer experience but also introduced operational and logistical complexity. Production was managed on a brew-to-forecast and package-to-order basis, limiting scheduling flexibility, increasing changeover frequency, and reducing transportation efficiency. Client leadership wanted to understand the financial trade-offs associated with its freshness strategy and determine whether greater planning flexibility could improve efficiency without compromising quality or brand position.
First Key evaluated the operational and financial impact of alternative freshness and production-planning scenarios across two brewery and distribution locations. The team analyzed packaging schedules, changeover frequency, OEE performance, truck utilization, cold-chain operating costs, and distribution efficiency. Multiple planning scenarios were modeled to estimate the benefits of longer production runs, increased scheduling flexibility, and improved transportation utilization. First Key also quantified the cost of maintaining a fully refrigerated distribution network, providing leadership with objective data to evaluate the balance between freshness, service, and operating costs.
The resulting analysis quantified the true cost of the clients freshness strategy and provided leadership with a fact-based framework to balance quality, customer expectations, operational efficiency, and growth objectives.
• Quantified potential unit-cost savings of up to $7.38 per barrel at one brewery and $5.24 per barrel at a second brewery through increased freshness-policy flexibility.
• Identified approximately $450,000 in annual packaging savings through longer production runs, reduced changeovers, and packaging OEE improvements of 4% to 5%.
• Demonstrated truck-utilization improvements from 78%-82% to approximately 95%, generating potential distribution savings of $5.15/bbl and $3.70/bbl across the network.
• Quantified the incremental cost of maintaining a 100% refrigerated cold-chain distribution model at approximately $3.40/bbl and $2.72/bbl compared to non-refrigerated alternatives.
• Equipped Client leadership with a strategic decision framework to evaluate trade-offs between freshness, quality, service levels, operational efficiency, and future growth.
