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Hero

Leading Innovation in Food

INDUSTRY

Manufacturing

  
OUR ROLE

Operations

  
CLIENT

Dos Pinos

  

DOS PINOS

Dos Pinos is a Costa Rican cooperative leader in dairy and dairy products in Central America and the Caribbean, with more than US$1 billion in annual sales and a solid network of collaborators and production plants. Since its founding in 1947, it has promoted the cooperative sector in Costa Rica and diversified its portfolio, which today includes more than 900 products in 20 categories. With a vision of supporting producers and a focus on innovation and expansion, Dos Pinos exports its products to more than 20 countries and continues to grow in new markets and business lines.

In 2023, Dos Pinos embarked on an ambitious project with London Consulting Group focused on improving operational efficiency and strengthening its financial results. The initiative included optimizing key processes, from planning and production to marketing and logistics, in order to strengthen its market leadership position in the face of new competitive and economic challenges.

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CHALLENGE

INTEGRAL OPTIMIZATION: STRATEGIES FOR AN EFFICIENT VALUE CHAIN

Dos Pinos addressed several challenges to optimize its operation, from improving planning and supervision in manufacturing, strengthening product availability at optimal cost, to strengthening commercial efficiency and cost control. The company focused on integrating digital tools into the various processes and establishing efficient work models throughout the value chain.

CHALLENGES

Manufacturing

Optimize resources and reduce costs by improving floor control, operational analysis and execution of continuous improvement strategies, as well as operational planning and supervision, and strengthening collaboration with quality to maintain high standards and control costs.

Planning and Logistics

Improve sales forecasting, production planning and replenishment models to balance inventories and reduce costs, ensuring the accuracy of demand planning (DP), Materials (MRP), Production (MPS) and Distribution (DRP) processes.

Commercial

Focus sales force efforts on higher margin categories and optimize portfolios, implementing a proactive sales model with strategic orientation and order suggestion tools to improve commercial results.

Purchases

Integrate purchase planning with the general cycle, and improve negotiation conditions with suppliers, using strategies and tools to improve management and strengthen win-win relationships.

AgroVeterinarian

Optimize product portfolios and the replenishment model for branches and customer service, to ensure availability, reducing downtime, while aligning technical assistance with the commercial team to maximize resources.

Expenses

Control key expense accounts, such as fuel, insurance and energy, aligning transversal efforts in the areas to define common strategies for eliminating, reducing, substituting and negotiating consumption, and structuring an efficient expense control system.

OBJETIVE

STRENGTHENING THE FINANCIAL STRUCTURE FOR LASTING IMPACT

In collaboration with London Consulting Group, Dos Pinos established strategic objectives to strengthen its financial performance and its position in the face of the current international crises. The project focused on identifying and eliminating operating inefficiencies, generating cash flow surpluses and achieving record financial results for the benefit of its more than 2,000 associates.

IMPLEMENTATION

OPERATIONAL CONSOLIDATION: STRATEGIC IMPLEMENTATION IN EVERY CORNER OF DOS PINOS

Working with London Consulting Group, Dos Pinos implemented comprehensive strategies in several key areas, from manufacturing to logistics and commercial. Initiatives focused on optimizing operational planning and oversight, improving supply chain efficiency and strengthening cost control in production and purchasing, and improving the effectiveness of commercial forces to capture incremental market sales potential. This joint effort also fostered the use of advanced technological tools and the development of real-time monitoring and management models, facilitating informed and agile decision making throughout the organization.

Planning

Optimization of planning and distribution processes, improving key indicators, such as OTIF, Fill - Rate, ensuring product availability to meet demand, and optimizing the use of logistics resources.

Manufacturing

Implementation of initiatives to optimize costs and efficiency in plants, adjusting production schemes, reducing waste and downtime, and developing digital tools for real-time monitoring.

Purchasing and expense control

Optimization of key resources such as fuel, tires, cell phones and uniforms through consumption analysis, renegotiations and centralized strategies, reducing costs and improving quality.

Logistics

Strengthening warehouse supervision, minimizing product losses and overtime, thus increasing productivity in maquilas through contract renegotiation.

Commercial

Improved commercial efficiency with a cross-selling model, price optimization, redefinition of discount policies and modernization of technological tools for the sales force.

Organizational Structure

Redesign of the organizational structure to reduce the span of control, implementation of best industry practices and rationalization of personnel costs, maximizing efficiency and performance.

AgroVeterinarian

Drive cross-selling with algorithms and monitoring strategies, optimizing negotiations with suppliers and managing inventories at risk of expiration to minimize losses.

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RESULTS

SUSTAINABLE IMPACT: KEY ACHIEVEMENTS IN THE OPTIMIZATION OF DOS PINOS

Working with London Consulting Group, Dos Pinos transformed and optimized its operations in multiple key areas. Improvements ranged from production efficiency to cost control and better customer service, raising operating standards and taking advantage of strategic growth opportunities:

  • Increased sales per kiloliter through cross-selling strategies in the traditional channel.
  • Fill Rate optimization, minimizing losses and capturing additional sales.
  • Implementation of a Hybrid Service Model that drives the growth of key clients and strengthens the digital transformation.
  • Increased operating efficiency (OEE) of the plants in Costa Rica, reducing costs per kiloliter.
  • Decrease in production costs through adjustments in formulations, overdosage control and reduction of wastage, supported by active supervision.
  • Reduction of logistic expenses, including labor, assembly, warehousing and transportation.

The results achieved strengthen Dos Pinos' position in the market, consolidating its leadership in the region. The initiatives implemented not only drive growth in sales and operating efficiency, but also lay the foundations for a more agile management prepared to face the challenges of the sector. Among the main benefits that the project generated for Dos Pinos is the complete transformation of the Cooperative's culture toward a focus on generating results.

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TESTIMONIALS

EXPERIENCES THAT DRIVE CHANGE

"I have no hesitation in recommending London Consulting Group as a very professional and committed team, which has shown us the ability to generate great results, working closely and in an integrated manner with our collaborators, ensuring their involvement, participation and conviction in the initiatives implemented."

-Gonzalo Chavez

TRANSFORMING THE VALUE CHAIN VALUE CHAIN IN THE FOOD INDUSTRY

With London Consulting Group, optimize every step of your operations to achieve greater efficiency and sustainable results. Contact us and find out how we can take your business to the next level, fill out the form and get your free guide!