Get Inspired Multi Million Dollar Decisions

Boosting Confidence in Multi-Million Dollar Decisions

The challenge: Deliver high customer service while keeping asset & cost levels low

Imagine 200 million trays, 30 million pallets, and a huge customer base that depends on these assets to keep a reliable supply chain. Trays and pallets that are re-used and need to rotate as quickly as possible. This business planning process is highly complex. Delivering high customer service while keeping costs as low as possible is a challenge this company copes with every day. To address this challenge, the player in returnable supply chain equipment wanted to gain more insight into this loop. In particular, they needed answers to questions like:

■ How much do we need to invest to be able to serve our new customers?
■ How do we rebalance our assets efficiently to minimize our total costs?
■ What is the Cost-to-Serve for each new customer?

Answering these questions is time-consuming and leads to limited scenario analysis - resulting in less informed and intuition-based decision making when millions of dollars are at stake.

How we created value: An integrated solution enabling daily data-driven decision making

To enable data-driven decision making and embed it in day-to-day operations, we created an optimization solution using the ORTEC Supply Chain Design engine. This engine has enabled the company to easily test the results of their objectives, and run “what if” scenarios. Using an agile development cycle, we developed solutions for both the pallet and the tray division. To make sure the solution for the tray division was fully in line with their soon to be developed SAP environment, we performed an elaborate footprint to eliminate any inconsistencies and to guarantee its sustainability. As the process spans multiple levels and divisions, the commitment of all teams has been crucial in capturing available data, creating a holistic view of the process and stimulating adoption. To deliver an integrated solution, we used the AIMMS platform in combination with the ORTEC Big Data Portal.

Better results: Confident decisions leading to high customer service & lower costs

Moving from separate spreadsheets and planning tools to an integrated solution has enabled the company to run scenarios more quickly and accurately, resulting in betterinformed decisions. Using the solution for both S&OP and business planning has increased planning quality and speed, leading to more reliable customer service and efficiency. This has the potential to deliver significant bottomline results in terms of operational and inventory holding costs, while reducing CAPEX on the returnable assets.

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We would love to join you in your journey toward data-driven decision making.
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