Case Study Farmer Brothers

Background

Farmer Brothers, established in 1912 in Los Angeles and now headquartered in Texas, specializes in roasting and distributing coffee and tea. They also offer culinary products to a variety of clients including restaurants, hotels, and convenience stores. With a focus on sustainability and social responsibility, they provide quality products and services like equipment solutions and training.

Challenge

The primary challenges faced by Farmer Brothers included managing a diverse and extensive product line with over 2,500 SKUs, leading to complications in inventory management and operational efficiency.

These issues were further compounded by the global pandemic, leading to exacerbated supply chain disruptions and affecting their ability to meet customer expectations consistently.

Solution

In response, Farmer Brothers engaged J. Gardner Group (JGG) for its expertise in supply chain management and strategic sourcing.

JGG’s approach involved a comprehensive and collaborative strategy, gathering SMEs from various departments to form a cohesive plan. They guided the SKU rationalization process, reducing redundancy and enhancing efficiency.

A key component of JGG’s solution was the implementation of their advanced stack, which featured tools harnessing AI. This technology allowed for sophisticated data analysis, providing intuitive and actionable insights that were pivotal in streamlining operations.

Results

The partnership yielded remarkable outcomes:

• The drastic reduction in SKU count streamlined operations, resulting in a more efficient supply chain and improved inventory management.
• The enhanced capability to meet customer demands and maintain service commitments led to improved service quality.
• The development of a business-focused mindset among team members resulted in a cultural shift toward more proactive and informed decision-making and contributed to ongoing operational excellence.