CASE STUDY SS-FB-IT-05 | Integration
Beverage Plant Integration & Manufacturing Footprint Consolidation
Consolidating Three Manufacturing Sites Into One Integrated Center of Excellence
20–35% ↓
Potential Site Overhead Reduction
6–12% ↓
Potential Direct Procurement Savings
15–22% ↓
Potential Outbound Logistics Cost per Case
Challenge
Three-Plant Footprint Consolidation Requiring Production Continuity, Environmental Segregation, and Cold-Chain Control
- Complex Footprint Rationalization: Three manufacturing nodes had to be consolidated into a single Center of Excellence while maintaining production and customer service.
- Dual-Format Processing Risk: Dry collagen powders and liquid RTD products required strict physical zoning, differential airflow, and separate cleaning regimes.
- Cold-Chain Sensitivity: Functional elixirs and active ingredients required tightly controlled refrigerated or specialized thermal processing conditions.
- Regulatory Complexity: Operations spanned dietary supplement and conventional food requirements, increasing compliance and validation demands.
- Service-Level Exposure: Poorly sequenced line transfers could create stockouts, emergency co-packer dependence, regulatory risk, and degraded OTIF performance.
Solution
On-Site Integration Management Combining Governance, Process Mapping, Inventory Protection, and Phased Execution
- On-Site IMO Leadership: Established floor-level governance to coordinate workstreams, resolve issues, and maintain day-to-day accountability.
- Process and Culture Mapping: Documented tribal knowledge, cycle times, changeover bottlenecks, and line sensitivities across legacy sites.
- Stage-Gate Playbook: Structured integration around quality, food safety, EHS, SKU rationalization, and clearly defined readiness criteria.
- Phased 12-Month Roadmap: Sequenced baseline assessment, site preparation, inventory pre-build, line transfer, commissioning, cutover, and decommissioning.
- Integrated Systems and Planning: Unified ERP/WMS, lot traceability, FEFO inventory rules, and SIOP to connect forecasts, capacity, materials, and production scheduling.
Results
Expected Synergy Capture From a Disciplined 3-into-1 Manufacturing Consolidation
- 20–35% Site Overhead Reduction: Eliminating redundant leases, plant management, maintenance overhead, and utility infrastructure creates substantial fixed-cost opportunity.
- 6–12% Direct Spend Savings: Aggregating packaging, collagen peptides, resveratrol, and botanical ingredient volumes improves purchasing leverage.
- 15–22% Logistics Cost Reduction: Consolidating fragmented refrigerated LTL shipments into coordinated multi-temperature FTL networks lowers outbound cost per case.
- 18–25 Days Lower DIO: Unified ERP/WMS visibility and consolidated safety-stock modeling reduce network-wide inventory after stabilization.
- Protected Customer Service: Dynamic pre-build inventory and phased commissioning are designed to absorb relocation downtime and sustain greater than 98.5% OTIF fulfillment.