A global producer of frozen potato products, with multiple production facilities across Europe, faced the challenge of optimizing its logistics network.
The company supplies wholesalers, large restaurant chains, private label food service and catering outlets, while warehousing and transportation are outsourced to external partners.
The Supply Chain team manages these logistics processes and was faced with the task of integrating future growth scenarios into their network strategy. Challenges and Approach To prepare the logistics network for future growth, we began with a comprehensive analysis of the impact of various growth scenarios on the existing network.
We collected the necessary data and ran simulations to evaluate various future scenarios.
These scenarios ranged from expansions within existing locations to the development of completely new locations.
For each scenario, we determined the impact on total logistics costs and cost per ton, comparing both the current situation and projections for the coming years.
We then provided advice on which scenarios could be developed further with the company’s logistics service providers. Results The analysis provided important insights into capacity bottlenecks and the timing of future adjustments.
We presented selected scenarios to management, including options for expansions.
One of the key outcomes was an expected 21.5% reduction in cost per ton compared to the base case (an extrapolation of the cost of the current network).
In addition, a 5.3% reduction from current costs was achieved.
These results provide the company with a clear direction for the optimization of their logistics network, which will not only allow them to reduce their costs, but also better prepare them for future growth.
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