This study gives guidelines on where Danica LTD should direct its potential in order to achieve the development of production and entire supply chain process. The study consists of an introductory description of the company, it explains how meat production technology works and it sets goals after the determination of the problem of inadequate storage of sausage assortment, lack of capacity in final production stage and disproportionately large number of different format of packaging materials. The current situation is determined and examined and it is established that the production process is affected by some influential factors which slow down the production. Three possible versions have been made out of which version B is chosen as the medim- demanding. Alternative B is based on the premise of necessety to modernize and upgrade the warehouse for sausage assortment, on the necessity to educate and reallocate existing employees and to introduce the measure of performance indicators of their work. Employees will achieve better results if they work as a team and if they use „brainstorming“ technique. In the final stage, it is necessary to purchase another vacuum packaging machine and to standardize too large number of formats. All these activities must contribute, along with the elimination of unprofitable products, to the expansion of the range of new products that have to be successfully launched on the market and achieve the sales plans. This kind of solution has short and long term effects. Short-term and financially less demanding is a positive impact on the efficiency of employees: education and the introduction of key performance indicators, as well as reduction of out of stock and non-delivery to customers who have a direct effect on the profitability of sales, and hence the company. In the long term, reducing costs allows investment in new products and thereby increase of production, sales and market share of products of Danica LTD on the shelves of retail chains.