A leading food manufacturing company in the U.S was facing several operational and supply chain challenges due to the growing complexity of its supply network. Serving millions of customers across the globe and sourcing its raw material from a number of suppliers, the company was also rapidly scaling up its online sales. Rapid expansions along with M&A’ presented several operational and network optimization challenges for the manufacturer. This is when they approached Quantzig to leverage its supply chain network optimization expertise to redesign its supply chain to manage complexity and boost overall performance.
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The Business Challenge
The impact of supply chain operations on procurement cost and service efficiency has made it crucial for businesses to optimize the flow of products and goods within their supply network. Today, most businesses are busy focusing on improving service levels and reducing working capital across the end-to-end distribution network and fail to align their network optimization programs with long-term business goals.
Supply chain network optimization initiatives provide the ability to determine the costs and benefits of adopting a company’s overall network in response to such changes. At Quantzig, we focus on developing dynamic supply chain network optimization capabilities that align the network to long-term business goals, while empowering businesses to evaluate their assets on an ongoing basis.
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With highly perishable products and a large number of SKU’s driving complexity, a U.S. food manufacturing company was looking to assess their existing operations to determine the optimal number of warehouses that would help them fulfill customer demand and minimize distribution costs. They approached Quantzig to leverage its network optimization capabilities to address key challenges pertaining to logistics and overall fulfillment costs.
Solutions Offered and Value Delivered
Quantzig’s supply chain network optimization experts worked closely with the client to understand the company’s profitability targets and growth ambitions. The key phases of this engagement included a detailed evaluation of current supply chain performance, recommendations for improving supply chain operations, a pilot phase, and a final implementation. Analyzing and extracting insights from the client’s internal supply chain data helped us uncover several cost-saving opportunities during the evaluation phase.
Adopting a structured approach to supply chain network optimization can help businesses to tackle network complexities and achieve substantial reductions in inventory costs. Request for more information right away!
Our supply chain network optimization solutions also empowered the client to:
- Enhance value creation through the use of more systematic order management systems
- Achieve significant improvements in performance by shortening the internal clearance processes
- Reduce inventory costs by 65%