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Ajinomoto Foods North America (AFNA) faced significant challenges during the COVID-19 pandemic, including rapidly changing consumer preferences, supply chain disruptions, and escalating freight and warehousing costs. Rather than merely seeking to return to pre-pandemic operations, AFNA's leadership aimed for a comprehensive transformation of their supply chain. They engaged Ernst & Young LLP (EY) to conduct an assessment that identified substantial opportunities for improvement in logistics, emphasizing the need for enhanced technology and digital support to achieve greater inventory visibility and optimal deployment. The tailored solution provided by EY involved a holistic digital transformation of AFNA's supply chain, which included the implementation of advanced logistics technologies and a new transportation management infrastructure. This infrastructure enabled multi-stop and multimodal shipments, automated carrier selection, and improved cost distribution and invoice verification. The project spanned over three years and encompassed a wide range of enhancements, from inventory optimization to process improvements in order management and demand planning. Notably, EY's collaboration with Blue Yonder, an alliance partner, facilitated the synchronization of forecasting and planning with warehousing and transportation, significantly streamlining operations. As a result of these initiatives, AFNA achieved remarkable quantifiable outcomes. The company saved approximately $40 million, with an additional $23 million projected in savings through April 2026. Inventory write-offs decreased by up to 40%, and warehouse recurring fees and costs associated with product redeployment were slashed by up to 50%. The logistics transformation also led to a 40% reduction in the number of carriers used, from over 100 to 60, which streamlined distribution processes across more than 1,000 transportation lanes. Furthermore, AFNA's on-time delivery performance improved, ensuring that the right products were available at the right locations when needed. The successful implementation of these changes not only optimized AFNA's supply chain but also empowered its employees through training and new operational practices. This transformation positioned AFNA as a leader within the global Ajinomoto organization, paving the way for future innovations in sustainable food production and distribution. The upgraded systems and processes have equipped AFNA to better meet consumer demands and adapt to market changes, ultimately enhancing their ability to deliver quality products efficiently.

Successfully completed $40M transaction

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