Soaring operational costs and a lack of eco-friendly supply channels prompted an American multinational beverage company to move manufacturing back to the United States, close a factory in Singapore, and reallocate supply regionally. The supply chain director turns to Lagrange to stress test the supply chain, help minimize associated risks and maintain the service level.
How Lagrange helped
- Partnered with Lagrange’s executives to articulate a viable framework, including problem identification, and review alternative scenarios to mitigate risks.
- Leveraged process mining algorithms and simulation module of the Lagrange Platform to quickly build predictive models.
- Stress-tested the models under different scenarios to identify bottlenecks, and the effectiveness of the proposed solutions.
Lagrange provided support to the client:
- Developed a resilient and sustainable supply chain roadmap for establishing a new distribution hub and regional supply allocation, maintaining the 95% service level.
- Implemented a consolidation strategy and optimized fleet size, reducing carbon footprint by 15% and annual last-mile delivery costs by 30% or $5M.
- Applied best practices to inventory management, reducing total inventory by 25% or $2M.