AgriMax: Cutting Costs 23% Without Cutting Corners
How an agricultural supply company reduced operational costs by 23% while improving delivery times and customer satisfaction.
Operational Costs
Delivery Time
Customer Satisfaction
Order Error Rate
! Challenge
AgriMax, an agricultural supply distributor in the interior of Sao Paulo, was growing revenue but watching margins shrink. Logistics costs were rising, warehouse operations were inefficient, and the team was working harder but not smarter. Customer complaints about delivery delays had doubled in six months.
→ Approach
We embedded with the operations team for three weeks to map every process from order intake to delivery. We identified redundant handling steps, poor route planning, and warehouse layout issues that were adding 30% unnecessary cost to every order. We redesigned the warehouse layout, implemented route optimization, and restructured the order fulfillment process.
✓ Results
Within six months, AgriMax reduced operational costs by 23%, cut average delivery time from 5.2 days to 3.1 days, and improved customer satisfaction scores from 72% to 91%. The operations team now runs on documented processes they helped design, reducing dependency on tribal knowledge.
The Challenge
AgriMax had been a trusted agricultural supply distributor for over a decade, serving farms and cooperatives across western Sao Paulo state. Revenue was growing 15% year-over-year, but margins were shrinking. The operations that worked for a R$10M business were breaking at R$25M.
The most visible symptom was delivery delays. Customer complaints had doubled in six months, and the operations manager was putting out fires daily instead of managing strategically. The warehouse team worked overtime regularly, but orders still shipped late.
Our Approach
Phase 1: Operations Audit (Weeks 1-3)
We embedded with the AgriMax operations team — not just interviewing managers, but observing warehouse workers, riding along on delivery routes, and timing every step of order fulfillment. We mapped the actual process (not the theoretical one) and measured cycle times at each stage.
Key findings:
- Orders were handled 4 times between receipt and shipment (should be 2)
- Delivery routes were planned manually by a single driver coordinator using paper maps
- Warehouse layout had not been updated since revenue was one-third the current level
- No standardized picking process — experienced workers were 3x faster than new hires
Phase 2: Redesign (Weeks 4-6)
We co-designed solutions with the AgriMax team:
- Warehouse reorganization — ABC analysis of inventory, zone-based layout, standardized picking routes
- Route optimization — Implemented route planning software integrated with their order management system
- Process standardization — Created visual work instructions for picking, packing, and loading
- Quality checkpoints — Added two inspection points that caught errors before they became customer complaints
Phase 3: Implementation (Months 2-6)
We phased the rollout to avoid disrupting active operations. Warehouse reorganization happened over two weekends. Route optimization was piloted with one team before full rollout. Training was hands-on, not classroom-based.
The Results
The numbers tell the story, but the cultural shift matters more. The operations team went from firefighting to managing. The warehouse supervisor now uses a daily dashboard instead of walking the floor to figure out what is behind schedule.
AgriMax is now positioned to grow to R$40M without proportional cost increases — the operational foundation supports it.
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