Maximizing Supply Chain Profitability for an F&B Manufacturer
Supply chain managers spend a lot of time looking at ways to reduce costs. Logistics is often the biggest point of interest since there are a multitude of elements that make up logistics costs. To fully analyze cost-saving opportunities in your logistics, it’s important to understanding the drivers of the logistics costs and how they have an impact on overall supply chain management activities.
THE PROBLEM:
A large food & beverage manufacturer was staring at rising logistics costs but had very less visibility into the drivers of these costs. The costs were accounted for when the products were sold to consumers and not as they pass through the supply chain. The company wanted to nail down the specific drivers of these costs to enable better decision-making at strategic points across the value chain.
The MU SIGMA APPROACH:
Mu Sigma’s proprietary problem-solving accelerators AoPS and muUniverse helped the team understand the interconnected nature of the problem space. The accelerators enabled the team to look beyond a single piece of the puzzle at a time and visualize the impact of various elements on the specific problem at hand.
THE IMPACT:
After mapping the problem space, it was evident that an analytics-driven intuitive dashboard can help understand the drivers of logistics costs. The dashboard was designed in collaboration with finance and supply chain teams within the client’s ecosystem and periodically improved based on iterative feedback from users. This gave the client deeper visibility and enabled outcomes including:
• Breaking down costs to granular line items
• Providing accurate and near real-time data to finance and supply chain teams
• Standardizing logistics cost reporting
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