Achieving Agricultural Excellence:
El Cerezo's Transformative Success
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Grupo Agrícola El Cerezo is a Mexican family-owned company dedicated to the development of agricultural crops and the commercialization of products since 1987.
The company began with the cultivation of beans, then grains and vegetables. In 1989, they started growing potatoes and broccoli and in 2003, they ventured into berry crops with the production of strawberries. This led to a commercial relationship with Driscoll's, the world's largest distributor of berries. In 2007, they added blueberry and raspberry crops and in 2014, they added blackberry crops. In 2016, they added asparagus to their portfolio.
Leveraging over three decades of remarkable success and expertise, El Cerezo embarked on a strategic partnership with London Consulting Group to propel their operational transformation. This collaborative effort targeted a diverse range of critical needs, encompassing enhancements in organizational structure, budgetary control, digital maturity, land preparation, pest prevention and beyond. Together, they traced a path towards heightened efficiency, innovation and sustainable growth, with the shared goal to redefine the landscape of agricultural excellence.
Challenge
Navigating Growth Challenges: El Cerezo's Path to Agricultural Excellence
El Cerezo was facing an array of complex challenges that formed an essential part of the consulting project. To propel the business towards transformative success, key areas of improvement were identified and meticulously addressed.
CHALLENGES
● Enhancing the organizational structure, optimizing budgetary control and fostering digital maturity emerged as critical pillars for growth. Demand planning and scheduling, along with resource planning, were intricately woven into the project's framework to streamline operations.
● A predominant focus lay on ensuring effective land preparation, executing cultural activities with precision, implementing robust nutrition and pest prevention strategies.
● Programming and executing harvests needed to be strategically aligned, to ensure smooth and efficient transfer of fruit to the customer. Also, the assignment, execution and control of the packing plant floor had to be streamlined to enhance productivity and output.
● To nurture excellence across the organization, a need to fortify the competency architecture was identified, including personnel development and induction, while also emphasizing the significance of enhancing knowledge management. Furthermore, addressing strategies to engage the workforce, foster a culture of leadership and implement a robust governance model became imperative challenges to be tackled in the project.
As the consulting endeavor unfolded, El Cerezo took a transformative journey with London Consulting Group to redefine the landscape of agricultural excellence through efficient operations, strengthened leadership and a culture of continuous improvement.
Objective
Elevating El Cerezo's Operations through
Comprehensive Transformation
Following a comprehensive assessment of its operations, El Cerezo, in collaboration with the London Consulting Group’s team, identified pivotal transformation points to elevate various aspects of the organization. These transformational objectives are structured around the following core pillars:
Institutionalization
● Design and implementation of the macro and microstructure of the group.
● Establishment of the Government Model.
Operational Excellence
● Standardization and implementation of operational processes for the 7 crops and 6 different locations in the group.
● Increase in productivity and quality of all crops.
● Increase labor productivity in the field.
● Increase in the productivity of the asparagus packing plant.
● Digitization of the field.
● Negotiation with suppliers.
● Increase equipment availability through maintenance.
Human Resources & Competency Development
● Implementation of remuneration models.
● Definition of technology architecture and data as a service in the cloud.
● Data analytics for correct decision making.
● Developing staff by competencies.
● Decrease rotation.
● Improve resource utilization.
● Ensure adoption and use by collaborators.
Implementation
Driving Innovation: Redefining El Cerezo's Landscape
Strategy and Structure
● To foster consistency and efficiency, a homogeneous structure was introduced across business units, introducing the role of Branch Manager.
● The microstructure of each area was carefully defined and implemented, working in conjunction with designated leaders for optimal operational integration.
Operations
● To enhance crop management, the concept of clustering was introduced, categorizing crops based on shared characteristics. A Power BI tool was devised to generate crop maps, enabling formalization of clusters and providing vital support for nutritional and irrigation plans.
● The implementation of an annual plan of critical activities and specific nutritional plans were tailored to each location, aimed to ensure compliance with different phenological stages, culminating in higher yields per hectare. Additionally, an annual plan of pulses was developed, employing defined variables to strategize irrigation pulses for optimal crop growth.
● Defining critical irrigation variables (PH, conductivity, pressures, humidity, etc.) and monitoring them through typical weeks and checklists streamlined operations, ensuring the best possible crop health. A proposal was implemented to establish optimal monitoring routes for comprehensive coverage of surface areas and homogeneous sampling in different sectors.
● Digital tools were harnessed to measure pests and diseases by crop, enabling efficient data compilation for accurate reports and indicators.
● To boost personnel productivity, a comprehensive catalog of cultural tasks was developed, along with a performance-based measurement system. Objectives and productivity standards were defined for each activity and systematically recorded and monitored using applications like Monday.
● To empower data-driven decision-making, dashboards were created to monitor weekly planning compliance for each crop, providing detailed insights on varieties, ranches and personnel.
● The generation, analysis and feedback model were established, creating production projection boards to optimize volume production in the best market window. The TVC indicator was designed to gauge packaging production efficiency through time, speed and quality metrics.
● Data entry processes were streamlined, capturing operating times, downtime, quality sampling and production queries in real-time.
A Power BI tool was designed to facilitate market price consultation by zone, size and variety, providing crucial insights for negotiating closing prices with customers.
Supply Chain
● Striving for better supplier conditions, the Annual Negotiation Plan was devised to foster favorable outcomes. Leveraging Power BI, technical data sheets were generated, assessing consumption patterns and average prices per SKU, providing valuable insights for negotiation discussions.
● To streamline procurement, the purchase replenishment tool was developed, offering greater certainty by identifying needs based on minimum, maximum, reorder points and inventory days. Integration with SAP ERP and Power BI dashboards ensured seamless data synchronization.
● To combat cost overruns, a price variability tool was introduced, validating unit prices prior to each purchase, thus reducing unnecessary expenses.
● Additionally, a Cost-Consumption Matrix and an inventory purification indicator were created, contributing to inventory optimization in key warehouses, achieving quick wins in inventory management.
● To further optimize warehouse operations, layouts were meticulously designed and maximum volumetry calculations were performed to maximize space utilization.
Change Management & Leadership Development
● In a concerted effort to drive successful organizational change, a robust Change Management strategy was initiated. A meticulous analysis identified employees and positions affected by the implementation of the designed solutions, gauging the degree of impact. To ensure a smooth transition, a comprehensive plan encompassing Awareness, Desire, Training, Empowerment and Reinforcement was crafted, empowering leaders to spearhead the transformation.
● Recognizing the pivotal role of leaders, an Agile Leadership Program was launched for the first and second-line leadership teams. This program fostered strategic thinking, agility in methodologies, leadership coaching, emotional intelligence, OKR (Objectives and Key Results) establishment, impactful communication and time management balance. Empowering leaders with these crucial skills facilitated effective execution of initiatives and facilitated the adoption of the company's new culture.
Innovation Hub
As a part of the change management and leadership development programs, the Innovation Hub played a pivotal role in fostering employee adoption and utilization. During the Agile Leadership and Leadership Accelerators programs, participants engaged in two-month improvement projects, proposing their own ideas and implementing learned tools and methodologies. The Innovation Hub served as a platform for teams to apply agile methodologies like Design Sprint, Design Thinking and Scrum, highlighting key project concepts. Over 130 collaborators participated in 16 innovation projects, including the development of 4 apps enhancing internal user experience and 13 projects aimed at improving service levels and driving cost savings.
Organizational Development by Competencies
● To establish a robust Competency Architecture, competencies were meticulously defined, providing a solid foundation for position profiling. Talent acquisition was streamlined through the creation of models, tools and dashboards in Power BI, ensuring optimal staffing levels and effective candidate search channels. The induction process was revamped, fostering engagement and alignment with company values.
● Talent development strategies were implemented, incorporating evaluations and Individual Development Plans (IDP) to nurture employee growth. Additionally, knowledge management was enhanced, evaluating and selecting an appropriate Learning Management System (LMS) while curating a wealth of supportive content. Through these initiatives, Grupo El Cerezo forged a path towards organizational excellence and continuous development.
Digitization of Income Statement
● Through the design and implementation of a sophisticated management dashboard, the company gained real-time insights into income, expenses and profitability across cost centers and ranches. This digitization was a culmination of efforts that began with the digitization of the field and accurate consideration of cost centers per crop. With this powerful tool, executive management can now make strategic decisions backed by concrete data, enabling informed investments, expansions, contractions and ultimately driving increased profitability.
● Financial statements were seamlessly digitized and integrated into Power BI, allowing for quick and intuitive visualization, thus empowering informed decision-making and strategic planning.
Results
Transformative Success:
Key Outcomes Achieved by El Cerezo
Through a robust partnership with London Consulting Group and a comprehensive consultancy approach, El Cerezo’s team successfully attained the project's set objectives, yielding significant outcomes across various crucial domains, including:
Operations
● Nutritional plan compliance achieved a 42% increase.
●Hydroponic crops witnessed a 43% improvement in drainage percentage.
●Confidence in pest & disease sampling experienced a rise of 24%.
Supply Chain
● IAgrochemicals and fertilizers price variability reduced, yielding an $800K benefit.
● Supplier service level increased by 29% through strategic management.
● Achieved a 31% improvement in compliance with 5S audits, promoting efficiency and safety.
Organizational Development by Competencies
● Fully profiled all first, second and third-line positions.
● Achieved a 51% reduction in personnel recruitment time.
● Boosted employee satisfaction by 71% within their first 30 days of employment.
These aspects contributed to the project's success by ensuring strong leadership involvement, cohesive vision alignment, user-driven decisions and effective change management for collaborators, leading to a successful transformation in El Cerezo's operations.
Testimonials
What our clients
have to say
"I always like to share best practices and experiences with my business colleagues and friends, which is why I decided to open the doors of my company by inviting them to a major meeting to see first hand all the methodology used, the initiatives carried out and the great achievements made in conjunction with London Consulting Group in the LONCER project.
The projects with London were and continue to be the right path that EL CEREZO took towards professionalization and I hope that my colleagues will make the same wise and timely decision that I did"
-José Luis Mariscal Fernández
Chief Executive Officer Grupo Agrícola El Cerezo
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