The beverage industry, also known as the drink industry, is responsible for the production of a diverse range of beverages and ready-to-drink products. This sector encompasses the manufacturing of various liquid consumables, including but not limited to bottled water, soft drinks, energy drinks, milk products, coffee and tea-based beverages, nutritional drinks, and alcoholic beverages. The industry plays a significant role in providing consumers with a wide array of choices to meet their hydration, taste, and nutritional preferences.
Use Case – Margin Contribution Planning
The world's largest brewing company produces various well-known global brands, including popular beer brands. Nearly all of the ingredients used in their beers are sourced from U.S. farms, and the company has a long history of collaborating closely with growers to guarantee the use of top-quality ingredients in their brewing process. For a comprehensive list of the company's 100+ brands.
- ~$50 B Revenues
- 100+ Countries
- ~30k+ Employees
- 500+ Brands
- Decision making and planning is delayed due to the length the process takes.
- Performance is a core issue; The current process requires 1.5-2 days to process any updates made by the management team during the Budgeting/LE process.
- Given the age of the process, some of the data sources have become inaccurate.
Denotes the additional revenue generated per product or unit sold, calculated by subtracting the variable portion of the firm's costs.
Focusing on niche or unique products that cater to specific consumer preferences or emerging trends.
Proactive planning for uncertainties, enhance resilience, and adapt swiftly to changing circumstances.
Internal reports used to run the organization, make business decisions, and monitor progress to make more accurate, data-driven decisions.
- Margin Contribution, or the profitability of a product. A positive MACO means the product is profitable; a negative MACO indicates the product is not profitable.
- Our goal as a rational business is to maximize profitability and minimize loss, so the output of this project is used to guide decision-making around production, transportation, and selling of the Products.
- To yield MACO Analysis, sales to retailers, or amount of beer sold to a retailer has rates applied to it. To obtain revenue, we would analyze the sales to retailer volume & price to consumer data.
- By leveraging modern technology and building a flexible tool, project aims to enable business users to work quickly to drive business decisions. Leveraging a modern tool will decrease this process time from days down to minutes.
- Current state process incorporates inaccurate data. By conducting various interviews and intimately understanding data requirements, this project will connect to the correct data sources.