Production Footprint Optimisation combines data processing and mathematical modelling methods to: optimally allocate production sites, evaluate related risk and ensure strategic investment initiatives.
Our client is a global manufacturer of comfort and technical foams that is undergoing a consolidation process evaluating its organically grown and fragmented footprint.
- The primary objective is to shape the footprint in a way to yield both mid-term cost advantages as well as low long-term risks mitigation in respect to cost and market uncertainties.
- After some initial discussions, it was agreed that an `emotion-less´ evaluation based upon numbers, facts and mathematics would provide a valuable addition to the decision making process.
- The necessary data was collected and fed into the optimisation model by recreating the actual footprint and deriving meaningful scenarios (e.g. new plants, market growth, shifts in cost structure). The optimised scenarios were visualised and presented with interactive features to navigate the results and review various conclusions.
- Following this initial project the model has been further evolved to address more industry and customer-specific scenarios. The tool is now frequently used to support many projects on a global and local level that has an an immediate impact on production allocation, investments and logistics.