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Network Optimization for a Fortune 500 CPG Co.

Network Optimization for a Fortune 500 CPG Co.

Supply Network for their India Arm

 
  1. Original Supply Chain configuration was driven by Fiscal Incentives. Benefits of scale outweighed by fiscal savings.

 2. Original configuration not optimal for post fiscal scenario

 3. Delivered optimized Manufacturing Network to re-configure Supply Chain for intrinsic efficiency

      • Leverage impact of “scale” & “scope”
      • Leverage emerging import & export opportunities

 4. Base Case vs. Optimized Results

Picture1 | Algorhythm Tech
S ark | Algorhythm Tech

*Road map for Transitioning to the Proposed Network

Distribution Network for their India Arm

Objectives

  1. To Optimize the distribution network and deliver minimum network cost
  2. Simulate the Impact of reducing CST on the Network cost and number of Warehouses
  3. Simulate the Impact of Increasing Serviceability on the Network Cost and Inventory Days
  4. Optimize the Mode of Transportation and simulate usage of new Transportation Modes
Picturee3 | Algorhythm Tech

Numbers not real but proportions are maintained

Picturee | Algorhythm Tech
Picturee4 | Algorhythm Tech

Distribution Network for their China Arm

Objectives

 
  1. Identify Right linkages between Factories and RDCs and between RDCs and Drop Points 
  2. Identify Direct Shipment Opportunities to Drop Points  from Factory
  3. Find Optimal number of Regional DCs
  4. Optimal Sourcing in case of constraint product availability
  5. Maximize Volume discount on freights
Chinamap | Algorhythm Tech

Numbers not real but proportions are maintained

China arm 1 | Algorhythm Tech
China arm 2 | Algorhythm Tech

Supply Network for entire Europe

Their Supply Network consisted of several dozen factories. They wanted to explore addition of multiple third parties and asses the cost benefit of shifting a good proportion of their production to third parties. Rhythm was used to Optimize the Supply Networks which demonstrated a potential savings of nearly 4%.

Key Objectives

1.Optimized Sourcing for each product market combination

2.Evaluate addition of category specific third parties in different parts of Europe and optimize sourcing from own vs third party factories.

3.Assess the risk due to cost shifts from the third parties

4.Evaluate the best combination of third party factories to go for.

5.Ensure minimum volume constraint with own and third part factories.

SC1 | Algorhythm Tech

Supply Network for Africa

Key Objectives

1.Optimized of Sourcing with the existing Network based on Material Cost, Production Cost, Freight and Duties

2.Evaluation of Noodle Manufacturing at the current pack sites

3.Closure of least economical factories to minimize the total fixed and variable cost

4.Evaluation of Noodle consolidation at Bigger Factories for entire Africa

map | Algorhythm Tech
Mappp | Algorhythm Tech

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