Putting in place the right supply network for the future

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Customer

One of Europe’s largest privately hold food processing companies. Active in starch and glucose sectors, they manufacture and distributes its final products towards food, animal food, paper & corrugated carton industry.

Challenges

The sugar and sugar-related industries are facing one of the largest market transformations ever as a result of changing European regulations. Elimination of the historical European production quotas triggers all industry players to review their current manufacturing footprint. Aligning the supply network with the opportunities & threats ahead to remain competitive in a new and reformed market will be crucial.

Solution

We put our digital tool LOP.ai in place to model the customer’s complete current state manufacturing network. After first validations, we used our switchboard to play different future state scenario’s to review the executive team. A selected subset of to 2 to 3 potential asset footprints & allocation regimes was tested for robustness in assumptions and interdependence via Montecarlo risk analysis. A final qualitative assessment enabled a final selection of the most valuable future scenario, shaping the customer’s future and stronger competitive position.

Results

Realistic quick wins, indicating more than 5% EBITDA increase

Long term supply chain network design

Adopted solution by the CEO drivng the company's future under the new sugar regime

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