Our client’s supply chain for glass bottles was a complex web of suppliers and bottlers spread across Europe, each with their own unique specifications for bottle colour, weight, and design.
We were tasked with streamlining this intricate network with the goal of minimising both total distance and carbon emissions. Ultimately, this would lead to significant cost reductions.
CZ Approach
- We developed an optimisation algorithm for all suppliers and bottlers that satisfied the various requirements and constraints of the complex supply chain.
- The algorithm was designed to minimise transportation distances and establish optimal warehousing inventory levels, it generated volume flow recommendations that aligned seamlessly with all demand constraints.
CZ Solution:
Our algorithm produced three optimised networks by altering supplier capacity and constraint types. By simulating multiple networks, we came to understand that changing supplier capacity had a significant effect on the network output.
Our solution reduced the overall distanced travelled in the supply chain by 60% and reduced route complexity, decreasing the total number of paths by 30%.
Outlook
As we continue to optimise, operate and enable trade in supply chains across the globe we are perpetually seeking innovative solutions to empower our clients whilst staying abreast of emerging trends and technologies. Supply chain optimisation will assume even greater significance in 2024 with forthcoming changes to emission credit charges, such as those under the EU Emissions Trading System.
Do you have a project we can help with? Talk to a member of the team to learn more