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Large Packaged Foods Manufacturer Eliminates Redundancy in Supply Chain

Challenge: One of North America's largest packaged foods producers acquired a major frozen food manufacturer. With fuel costs on the rise, the company needed to re-evaluate their inbound and outbound distribution strategies given the expanded network. Specifically, which DCs should service which customers and what was the optimal quantity and location for DCs and what the fuel cost "tipping point" would be where the optimal network would not be advantageous.

Solution: A network optimization model was used to establish and validate the baseline merged supply chain, determine the optimal network configuration and conduct sensitivity analysis.

Results: The analysis showed that savings could be achieved by simply realigning which customers were sourced by which DCs, eliminating redundant shipments coming from multiple sources and reducing expensive cross country shipments.

About the Solution Provider: LLamasoft supply chain design software helps organizations worldwide design and improve their supply chain operations. LLamasoft solutions enable companies across a wide range of industries to model, optimize and simulate their supply chain network, leading to major improvements in cost, service, sustainability and risk mitigation.



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