LLamasoft: New budget and annual operating plan achieves 40% decrease in distribution costs
LLamasoft's client had grown over time through many acquisitions and needed to rationalise a consolidated supply chain management footprint to drive efficiencies and reduce cost structures, while also ensuring that capacities were available to cover forecast demands. There was also a need to determine the cost baseline for the annual operating plan and budgeting exercises.
Their execution systems were not designed to handle the combined networks and they operated by enforcing rules built on the individual companies rather than on the best plan for the combined company. This led to the underutilisation of their logistics assets. Change needed to come from outside the system, but in a way that would allow the whole to work better to the service of their customers.
We helped them to:
- build a supply chain digital twin of the network
- include current capacities and potential capacities to evaluate additional investments through scenario planning and trade off analysis
- update and maintain monthly plan versus executed plan to understand deviations and required adjustments to the plan.
- Enhanced and more-compelling financial budgeting tool, providing better visibility and reasoning behind the budget requirements and KPIs across different processes.
- Easy to maintain model to identify deviations of the annual operating plan during the year
- Support management decision making process on resources and investment prioritisation.
Supply Chain Agility
Because the future seems increasingly uncertain, the world needs more resilient supply chains. To that end, we are partnering with LLamasoft to help support businesses across a range of decision challenges, such as:
- Operating model and supply chain management
- Supply chain risk and resilience
- Sourcing strategy and risk
- Cross-border trading, tax & tariffs (eg Brexit)
- Factory capacity and strategy
- Inventory and working capital
- Warehouse estate and strategy
- Network infrastructure and strategy
- Cost to serve
- Deal or merger synergy
- Sustainability strategy