Unearthing Profitability via Cost to Serve Optimization

In order to rapidly get their Supply Chain Analytics capabilities off the ground, the Tessenderlo North American team selected anyLogistixTM as their primary Supply Chain Design and Optimization platform given the exceptional customer service and rapid time-to-value for solutions. The initial project Tessenderlo tackled was to optimize the cost-to-serve for two of its core product offerings. These products were produced and distributed out of multiple plant locations, creating complexities around competing production resources, available storage, and transportation assets. With the guidance of the anyLogistixTM team, the Tessenderlo Supply Chain Analytics practice decided on the following approach: Create a baseline scenario model to best understand the current state of the supply chain with a key focus on plant capacity utilization, production costs allocation, transportation spending, and terminal distribution costs. Run a series of scenarios to identify an array of optimal methods to serve end customers. The primary objective was to uncover how asset utilization and associated costs (plant, production, storage, transportation, etc.) varied when shifting production and distribution among the various plants. Review the top 10 scenarios with the Tessenderlo key stakeholder project team to validate the results and decide on the most appropriate future state scenario to implement.