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Global FMCG manufacturer - reorganising the factory footprint by dynamic modelling

PA created 'virtual worlds' to rapidly explore options for change - highly valuable in complex restructuring and transformation projects to minimise costs and develop a robust future strategy.

Following major growth through acquisition, a global FMCG manufacturer experienced costly overcapacity and inefficiencies across the production network. The number of options, interdependencies and risks involved required PA's expertise to guide the manufacturer through choices, evaluating risks and benefits and advising on the most beneficial route.

In short the client had to redesign its production footprint to remain competitive and to realise the strategic benefits of the acquisition. The production review required to achieve this needed to consider which factories should close; what products should be produced where; and what should be done with expensive plant assets.

Specifically, PA built a dynamic production footprint model allowing the client to rapidly evaluate many different production scenarios and economic developments by 'safely' testing the impact of various product moves, factory closures and timing of decisions and actions.

With the help of PA's model, the manufacturer established a five-year production plan that gave not just the optimum footprint but also the optimum sequence and timing to achieve the most effective transition. The project was fundamental in optimising profitability throughout EU operations for the FMCG manufacturer.

To find out how PA can apply dynamic modelling for your factory footprint, please contact us now.

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