Yield Reporting and Chargebacks

A client and their co-man recently negotiated terms for scrap and chargebacks for overuse. This is great for the brand, since there was a significant amount of waste every production run that they can get credit for. However, Krista was still in a position where she had to order excess materials just to produce the whole order; this number was different than the contracted scrap number.

She developed a yield report based on inventory before and after the production campaign. From this report, she could determine the pounds of excess ingredients compared to what was contractually allowed. This was used to:

  1. Concisely communicate the amount our client was due in credit for material overuse.
  2. Articulate actual overuse for each ingredient in the BOM.

The FoodOps team is working on the root cause of the yield issue with the manufacturer. Because of the report Krista made, we have already determined particularly difficult ingredients for the co-man to handle and can work with their technical team to problem solve together.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *