The client’s existing operational setup posed two main challenges – the plants/warehouses were operating in silos and production was decided only based on the line’s production capability, without consideration of whether it would be optimal to distribute the manufactured product from the same plant. Additionally, the production schedule was not determined based on a comprehensive long-term view of production and distribution needs and constraints.
To optimize the overall cost to serve we created a robust supply chain optimization platform with emphasis on production cost, , inter-warehouse transfer cost, distribution costs, and inventory holding costs.
Created a supply chain optimization framework with key focus on:
The platform provided realized savings of $17 M p.a. in overall cost to serve which was a 6% improvement on the costs
