Wawasan Foods is a leading food manufacturer in Malaysia. They specialize in serving myCanai, a premium frozen flatbread dough. Renowned for their commitment to quality—free of artificial coloring and preservatives—Wawasan Foods boasts an elite clientele including 5-star hotels, airlines, and restaurants.
Despite their market reputation, Wawasan Foods faced crucial challenges such as;
- An unproductive workforce
- Pressure to drop prices
These factors were shrinking profit margins; calling for a transformative solution.
The Challenges
With rising competition and embedded inefficiencies, Wawasan Foods wants profitable growth. The management needed a way to:
- Identify a minimum volume order to breakeven
- Establish pricing strategies
- Fence unprofitable customers
- Measure the cost impact from operational inefficiencies
Cost Engine App
Wawasan Foods partnered with Marie Data Systems to become the first customer of the Cost Engine App. The supply chain engineers at the startup engaged closely with Wawasan Foods to model their operations:
- Integrating Cost Engine App: Shadow the operations at Wawasan Foods
- Tracking order costs: Measure the profit margin to serve customer orders
- Room for improvements: Highlight low-hanging fruits for a more profitable future
- Dynamic pricing: Set the minimum order for doorstep deliveries and gung-ho pricing for larger volumes
The integration of the Cost Engine App was completed and delivered to Wawasan Foods within a 60-day timeframe.
The Results
With the Cost Engine App, Wawasan Foods;
- Remove loss-making practices: Discontinue inefficient small-order doorstep deliveries
- Expand market reach: Introduce competitive pricing for larger orders, opening new markets
- Target marketing: Tailormade marketing for profitable but low volume order customers
- Negotiate with confidence: Armed with their breakeven point for any particular order, Wawasan Foods can step into customer negotiations with confidence
The Conclusion
The Cost Engine App empowered Wawasan Foods to turn operational challenges into strategic opportunities. By focusing on efficiency and profitability, Wawasan Foods is now able to compete more effectively in Malaysia’s frozen food market, driving growth and sustaining its premium brand position.
For more information on how the Cost Engine App can transform your business, visit Marie Data Systems or contact Arun C. at arun.c@gomarie.com