Network Optimization for a Fortune 500 CPG Co.
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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
4. Base Case vs. Optimized Results
*Road map for Transitioning to the Proposed Network
Numbers not real but proportions are maintained
Numbers not real but proportions are maintained
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%.
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.
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