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Operational Transformation: Reinventing the Success of Goya Foods
With a history spanning over eight decades, Goya Foods has emerged as a cornerstone of authentic Latin cuisine. Since its founding in 1936 by Spanish immigrants Prudencio Unanue and Carolina Unanue, the essence of Goya has been intertwined with the values of family and the achievement of the "American Dream".
Born from the vision of Spanish immigrants, Goya Foods, Inc. has blossomed into the premier Hispanic food company in the United States, offering over 2,500 premium products from the Caribbean, Mexican, Central American, South American and Spanish regions. Over the years, Goya Foods has evolved into a renowned leader in the Latin American food industry, confirming its position as a trusted brand rooted in American culture.
During the pandemic, Goya Foods faced significant challenges in its operations such as supply chain disruptions, a need to optimize the logistics structure and management to reduce warehousing expenses, control the raw material cycle and handling, among others. These challenges, despite being major obstacles, were addressed and overcome through the valuable collaboration with London Consulting Group.
challenge
Charting the Way: Goya Foods' Challenges
An assessment prior to the start of the project identified the challenges that Goya Foods faced, which laid the foundation for its supply chain transformation objectives.
CHALLENGES
● Cost overruns due to supply chain disruptions during the pandemic, especially in the coconut import process.
● High cargo handling costs and raw material losses due to long transit times.
● High storage, dispatch and other logistical charges.
● Lack of homogeneous information flow and definition of roles, functions and service levels.
OBSTACLES
● Lack of visibility in container management from shipment to downstream stages.
● Misalignment in sourcing processes affecting traceability and visibility.
● Delays in the container unloading and allocation process, impacting throughput.
● Need to establish processes and indicators to control the process from raw material and improve management and results.
Objective
Elevating Efficiency:
The Goya Foods Transformation
Following a detailed analysis of the entire operation, Goya Foods and London Consulting Group collaborated to strengthen the operation with an initial focus on optimizing the logistics process and coconut operation, maximizing efficiency, reducing costs and improving results in the food industry. Project objectives focused on:
To improve operation and visibility:
● To strengthen and integrate roles and responsibilities.
● Define control tools and unify information for greater integration.
● Improve the logistics operation, starting with the coconut process and extending to other products and foods in Goya DR.
Focus on the coconut logistics and production process:
● Control the coconut process at all stages, from reception to allocation to contractors and Goya personnel.
● Stabilize the coconut yield, achieving visibility at every step of the process.
● Optimize cost per raw material yield for coconut.
Financial and logistical impact:
● Achieve a decrease in overall logistics costs.
Implementation
Shaping Operational Change for Business Success
With a holistic approach, Goya Foods transformed its operation in collaboration with London Consulting Group, addressing key challenges and adopting innovative solutions to improve efficiency and quality in every aspect of its processes.
Planning and logistics
● Use of digital tools to streamline employee management, reducing time spent on operational activities and tracking processes. Simplification and connection of tools to databases in the ERP.
● Generation of real-time indicators to make informed decisions and improve visibility between areas of the company. Reports with system information to optimize processes and reduce operational time in activities such as imports, transit of goods and receptions.
● Transition from physical to digital document management through tools that facilitate daily management. Creation of real-time management dashboards and automatic notifications to inform stakeholders about new records or modifications.
● Implementation of a system to control incoming and outgoing materials, particularly coconut. Centralization of traceability and real-time notifications. Development of a dashboard of indicators fed by the APP for input and output control for a complete view of containers at different stages.
● Maximization of the use of the system for purchasing management, including requisitions, homogenization of conversion factors and units of measure, generation of purchase orders, expense tracking, supplier evaluation and alignment of processes and responsibilities.
● Implementation of a tool for efficient inventory replenishment.
Coconut Yield
● Optimization of operational processes by digitizing information and strengthening control from reception to supervision, covering aspects such as quality sampling per container and mass reception by contractors and at the Goya Floor.
● Development of applications using Power Apps and Sharepoint database. Implementation of digital tools in the processes of reception of coconut and in the dispatch to contractors and the Goya Floor, improving management and communication.
● Establishment of a solid control structure through a supervision checklist and the evaluation of supervisors through indicator boards.
● Improved management through updated logistical information and inbound notifications for coconut reception. In addition, the components of the planning project were integrated with the results and performance of the coconut.
● Digitization of more than 15 physical formats, which optimized the time spent generating manual reports (3+) and made it possible to generate statistics in real-time for more effective management analysis.
● A significant improvement was achieved in the Coconut Reception and Dispatch processes through the establishment of specific guidelines for both stages. In addition, digital tools were implemented to streamline the management of collaborators, resulting in greater operational efficiency in these key areas.
● In the quality sampling and dough reception process, significant progress was made through the implementation of digital tools that optimized the quality sampling process. Likewise, a significant improvement was achieved in the reception of dough to contractors and Piso Goya, providing greater efficiency in these key procedures.
● Automation of manual and repetitive processes, using performance indicator boards, considerably increasing efficiency. In addition, real-time reporting was implemented for agile decision-making and data visualization streamlined analysis.
● The introduction of the Supervision and Evaluation Model has been fundamental, since it involves the implementation of a supervision tool with follow-up and traceability, allowing more efficient control of processes. It also established a supervisor evaluation system.
● Sampling of relevant information through the implementation of information screens. Through the use of e-mail and televisions, production and quality data are presented in an effective manner.
Results
Redefining Operational Success with Transformative Results
Thanks to an effective collaboration with London Consulting Group through comprehensive consulting, Goya was able to transform its operations, achieving the following results:
- 48% reduction in handling days, 86% improvement in dispatch cost per container and 37% decrease in coconut container storage cost.
- 92% reduction in the discrepancy between reported and measured coconut yields.
- 100% compliance in contractor supervision and management of the Goya floor.
- Implementation of 25 digital processes in coconut sourcing and yield, improving efficiency and automation.
- Development of 9 digital applications to centralize information in coconut sourcing and yield, expansion of ERP, implementation of indicators and creation of strategic, tactical and operational dashboards with Microsoft Power BI.
- Establishment of 3 key forums in the governance model for project follow-up and feedback.
Testimonials
What our clients say
"The relationship with London has become more than just advice, it has become a true partnership. After this project, I would say that there is a different atmosphere, both in middle and senior management”.
-Alejandro Franco
General Manager, Purchasing and Logistics
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