Capacity Planning and Network Optimization Solutions Helped an American CPG Firm Reduce Production Costs by 8%

Jul 15, 2021

Effective capacity planning is a must for any company, including large-scale enterprises and small and medium-sized businesses, to accurately meet short- and long-term market demands. Optimum capacity planning is crucial as it directly impacts budget centers. At Quantzig, we focus on providing automation-based capacity planning solutions that allow decision-makers to plan manufacturing resources better, optimize production schedules, detect and eliminate bottlenecks, and provides a bird’s eye-view on

US-based CPG firm wanted to address the challenges arising from the surge in demand for products. A detailed analysis revealed that this CPG giant lacked an automation-based capacity planning and network optimization framework, due to which they were facing several business challenges. In this success story, Quantzig’s SMEs share industry insights on how CPG and retail companies can improve their capacity planning and network optimization strategies by leveraging data-driven supply chain analytics solutions.

With automation-based capacity planning linked to demand forecasting, capacity can be analyzed for trends, and production requirements can be quickly adjusted as per requirements. Schedule a 4-week-complimentary pilot with us, wherein Quantzig’s SMEs, help you solve business challenges and achieve strategic objectives most important to your organization.

The Client:

The client is an American CPG industry giant with business operations running in North America and Canada. They are well-known for catering to a vast customer base and was recognized as one of the best performing CPG companies for the variety of goods they offer.

Business Challenge:

Since the outbreak of COVID-19, the world witnessed a significant shift in consumer behavior and a sudden surge in demand for daily utilities, essential healthcare products, and over-the-counter drugs. Due to their disorganized capacity planning and network optimization strategies, this CPG giant failed to fulfill the increasing orders for various product segments. The client was also looking forward to gaining insights into the dynamic customer buying trends and improving their demand forecasting capability while deploying an automation-based capacity planning and network optimization strategy.

Wonder how capacity planning allows decision-makers to scale back capacity resources to improve overall business efficiency and meet service commitments? Speak with our SMEs today!

Solution Offered:

The primary stage of this collaboration revolved around statistical analysis that leveraged predictive modeling to forecast market demand at a large scale. The use of network optimization models further enabled the client to deploy a business management strategy for addressing the challenges of production planning and shifting buying patterns. This resulted in a reduced production cost while meeting customer demands and lowering supply chain network shocks.

Request for more information to know how our supply chain optimization solutions have helped CPG firms understand buying trends, meet customer demands effectively, and consistently drive increased sales.

Business Outcome:

Quantzig’s demand forecasting and network optimization experts helped this American CPG organization increase demand forecast accuracy and enhance capacity planning. The critical business outcomes were:

  • Reduced supply chain shock levels
  • Reduced production costs by 8%
  • Improved network optimization strategies that resulted in reducing delays in product deliveries
  • Increased customer acquisition levels further resulted in a 12% increase in quarterly sales

Request a free proposal to gain limited-period complimentary access to our supply chain analytics platform to eliminate costly inefficiencies and solve your critical business challenges.

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