Hear from Mr. Ahmed Ibrahim, Head – Value Delivering Unit, KINDUZ Egypt Office on how we help our customers challenge the odds and deliver unmatched outcomes.
A leading edible oil company in Egypt needed to reduce its costs dramatically in response to the devaluation of the national currency by 97%. The inflation has resulted in 30% inflation in prices and an expected increase in their cost of goods sold (COGS) by 65%
KINDUZ team, led by Mr. Ahmed created a strategy to help them reduce their costs and improve their operating profits by 15% in less than a year.
We identified all the factors impacting their operating profits and experimented the impact of improving each factor by 1% on the operating profits.
- Increasing price per unit of product by 1% will improve operating profits by 11%, along with brand upgrades
- Decreasing the variable cost by 1% will improve operating profits by 9%
- Increasing the sales volume by 1% will improve operating profits by 2%, using a volume discounting strategy
- Operational Improvements
- Decreasing the oil processing loss by 10%
- Decreasing packaging material loss by 20%
- Decreasing Energy costs by 20%