Towards an E2E financially optimized supply with better throughput

Customer

One of Europe’s largest privately hold food processing companies.

Active in processing agricultural raw materials into sugar, alcohol and starch. Its final products are distributed towards food, animal food, pharmaceutical, paper & carton industry.

As the sugar quota was coming to an end -which meant that its sugar product supply network would be operating in a new & deregulated market- they needed to deal with this.

With market conditions also being increasingly volatile, the customer looked for a solution that could continuously optimize its E2E supply network. Also, they needed the security of operating at its financial optimum in every market situation.

Solution

Using LOP’s algorithms we derived the optimal throughput of the manufacturing network. The LOP end-to-end financial simulations thus optimized the network for EBITDA on a 2-year horizon.

Enabling what-if scenarios taking into account a.o. different key capacity assumptions, demand plans, sales price predictions, raw material fluctuations and many more, this ultimately led to a continuous support of the Integrated Business Planning process at group level.

  • Create a virtual twin

  • Get end-to-end visibility

  • Set smart parameters

  • Optimize end-to-end financials

  • Monitor the control tower

Results

+10% EBIT improvement identified

Asset throughput increased by 8%

Reduced energy use & cost

E2E thinking & acting across SC, OPS, Sales, Finance, Proc, ...

Key enabler for IBP process

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