Putting in place the right supply network for the future

Overview

Together with a leading Food & Beverages client, we developed a supply network vision for the coming 4 to 7 years to be prepared for the new and upcoming sugar regime. Combining the company executives’ strategic visions, the in-depth process knowledge of various subject matter experts and our own supply chain & production modelling expertise into a future state manufacturing footprint.

Client Profile

One of Europe’s largest privately hold food processing companies. Active in starch and glucose sectors, it manufactures and distributes its final products towards food, animal food, paper & corrugated carton industry.

Challenge

The sugar and sugar-related industries are facing one of the largest market transformations ever as a result of changing European regulations. Elimination of the historical European production quotas triggers all industry players to review their current manufacturing footprint. Aligning the supply network with the opportunities & threats ahead to remain competitive in a new and reformed market will be crucial.

Solution

We put our simulation tool (T.O.M. – Together We Optimise your Margin) in place to model the customer’s complete current state manufacturing network. After first validations, we used our switch board to play different future state scenario’s for review the executive team. A selected subset of to 2 to 3 potential asset footprints & allocation regimes was tested for robustness in assumptions and interdependence via Montecarlo risk analysis. A final qualitative assessment enabled final selection of the most valuable future scenario, shaping the customer’s future and stronger competitive position.

Results

  • Realistic quick wins, indicating more than 5% EBITDA increase
  • Long term supply chain network design
  • Adopted solution by the CEO driving the company’s future under the new sugar regime

Take the next step


Koen Jaspers

koen.jaspers@bluecrux.com
+32 479 30 13 41