Operations consulting case interview: Grocery distribution (w/ ex-BCG & ex-McKinsey Associate)

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Here's a consulting case interview featuring an ex-BCG Consultant and an ex-McKinsey Associate focusing on an operations case.
🎥 Your client, the CEO of a large grocery distribution center calls you. He enthusiastically describes a new technology that could be used to automate part of his company’s process. He asks whether you think this would be a good idea for his business.
Watch Matthew Calvert (Ex-BCG Consultant & Fuqua School of Business) run Dnaiela Boechat (Ex-McKinsey Associate & Columbia Business School) through this consulting mock case interview.
🎬 Video Sections:
00:00 About the case
00:42 Introductions
01:42 Case question
05:25 Structure
08:13 Cost vs Revenue
09:07 Potential costs
11:15 Chart reading
12:11 Calculating cost per week
17:01 Calculating cost savings
23:37 Calculating break-even
25:42 Potential alternatives
26:30 Synthesis
28:11 Conclusion
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#consultinginterviews #caseinterviewprep #mckinsey #BCG #consulting

Опубликовано:

9 июл 2024

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Комментарии : 11

@rod4326 Месяц назад

Maybe, from my point of view the candidate could be more structured in the brainstorming question "Which technology could the CEO fall into love in the next couple of years)": Here, the candiate could have stick again to the 3 steps in the value chain and sort ideas to the steps accordingly e.g. comissioner tools (Sorting); AI/ML for optimized trucks (Packaging) or Drones (Deliery) etc. Otherwise, thank you very much for the case!

@NottaVideoSummary 8 месяцев назад

00:06 Assess the implications of automating parts of the grocery distribution process. 02:26 Assessing investment in new technology for a large distribution grocery company. 05:14 Assess three main things: economic considerations, product considerations, and potential risks. 08:01 Assessing the economic viability of the investment 10:20 The main cost drivers in grocery distribution are equipment, labor, raw material costs, and shipping. 12:57 The total number of employees required in each function is 50 for receiving, 250 for holding and packaging, and 75 for shipping. 15:39 The total cost for implementing the new technology is estimated to be around $12.2 million per year. 18:18 The net savings in holding and packaging is 47.5% and in shipping is 100% 20:48 The cost savings from reducing the workforce and automation is 2.015 million on an annual basis. 23:20 The break-even period for the investment is approximately 3.9 years. 25:38 Investing in new technology is recommended due to good return, cost savings, and process automation potential. 28:01 Stakeholders management ----From Notta's video summarizer

@ArdA-oy8oc 2 месяца назад

Can you explain me the calculcation to find the break-even period ?

@nokotshehla2616 3 месяца назад

How common is this type of case during an interview for a BA

@mskpir00 Год назад

Why was the reduction in employee headcount relevant here? Shouldn't the cost saving in terms of labor hours suffice here?

@hasmo42 Год назад

Reduction in employee headcount can have poor PR implications for any company. It's also adds a humanizing element to the case - ie CEO should not be happy about layoffs. The CEO should factor that it may be profitable for the company, but it will impact some employees negatively

@daniilzlyvko978 9 месяцев назад

@@hasmo42 Well said

@ragibsadiyev6787 Год назад

She failed to inquire about the company operations model or the customer's primary objectives. Her structure was not MECE compliant, as she merely discussed costs. It is possible that the CEO is attempting to boost revenue or increase profitability rather than bear this cost over an extended period of time.

@omsuisse Год назад

I thought exactly the same. What does the client want ??

@lwebb9464 5 месяцев назад

Yes same thoughts I had, (OPERATIONS: How would it impact current operations and output?) , (INVESTMENT : Would it cost more to re-educate staff if the new technology is slightly different, which may lead to a slow down in product?), (What’s the goal behind the switch , will it drive revenues and output or no?) those are the 3 areas I would be most concerned for this case. I’m a new pm so I would appreciate your feedback. Thanks