Consultancy carried out by ILOS achieves a 10% reduction in logistics costs in a Food and Beverage company
We carried out a consultancy project for a large company in the food and beverage sector, focused on serving the entire Latin American market. In addition to having a complex and inefficient logistics network, the company's production was divided into several factories and the manufacturing lines had high levels of idleness.
We reviewed and optimized the company's Latam manufacturing and transfer network, concentrating production in fewer operations and lines. The new network resulted in total costs 10% lower compared to the baseline, with a potential savings of almost 200 million dollars in 10 years.
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project type
- Optimization of the logistics network
Segment
- Consumer goods
ILOS consultancy indicated the possibility of reducing operating costs by 10% in a multinational food and beverage company.
Challenge
A global food and beverage company had manufacturing lines with high levels of idleness and a complex and poorly optimized logistics network.
ILOS solution
ILOS carried out a project to optimize this company's manufacturing network throughout Latin America, enabling production to be concentrated in fewer operations and lines.
Results
- Possibility of reducing OPEX by up to 10% of operating costs, which equates to hundreds of millions of dollars in savings for the company over 10 years.
- Identification of the possibility of a 19 pp increase in the occupation of production lines, reducing idleness.
