Healthy Diets

SITUATION

Our Client is a profitable business with strong brand recognition and holding a leading position in the South America Food & Beverage market. However, its Supply Chain struggles to meet customer demanding Service Level Agreement while keeping operational costs under control.

With little room for market growth, increasing service level is key to increase business profitability and consolidate customer loyalty.

 

 

PROBLEM

How can we increase the service level and maximize profit in the short and long term? 

 

APPROACH

  • Use an Advanced Business Simulation tool (SIMCEL) to build a granular model of the Client’s distribution network, representing with high precision the actual business logics

  • Analyze current performance to spot operational and business opportunities and define improvements to be tested

  • Simulate improvement scenarios to evaluate the feasibility and quantify the benefits

  • Elaborate a business case to support the recommendations in improving Client’s profitability

 

 

RESULT

  • Most promising opportunities resulted in an increase of 7.1% of the net profit

  • Service Level is estimated to increase of 1.3%, while inventory to reduce by 2%

  • Improvements proposed:

    • Optimize inventory in the distribution network

    • Implement customer prioritization rules

    • Replenish Regional DC using Full Pallet instead of carton picking

    • Review the distribution network

    • Extend Shelf Life

  • Every opportunity was delivered with the necessary details to allow their implementation​

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