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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 Company
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.

  • Margin Contribution

    Denotes the additional revenue generated per product or unit sold, calculated by subtracting the variable portion of the firm's costs.

  • Specialty Planning

    Focusing on niche or unique products that cater to specific consumer preferences or emerging trends.

  • Scenario Planning

    (What-If)
    Proactive planning for uncertainties, enhance resilience, and adapt swiftly to changing circumstances.

  • Management Reporting

    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.

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