Case Study

Driving Cost from the Supply Chain while Maintaining Resiliency Against Threats

Driving Cost from the Supply Chain while Maintaining Resiliency Against Threats

Driving Cost from the Supply Chain while Maintaining Resiliency Against Threats Industry: Consumer Staples Problem: How to stay lean; sustain operations while extending the supply chain. Mission: Develop a complete supply chain for a set of recently merged production and distribution operations. Seek to reduce annual operating costs, including overhead, while maintaining sufficient redundancy to guarantee the system’s ability to recover from internal or external interruption. Results: Initial optimization exercises proved an 8-12% savings opportunity in total supply chain cost, an annual savings in excess of $100 million. Secondary (“softer”) optimization exercise sacrificed 1.5% of the savings, while maintaining far more robustness and slack capacities in the supply system. Thus providing

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