Optimising an industrial company's supply chain through advanced analytics
A global Fortune 500 company achieved major cost savings through the application of a cutting-edge advanced analytics solution in its complex multi-modal supply chain.
Our client, a global Fortune 500 company with multiple production facilities in India, supplies its products through a complex supply chain network covering multi-modal transport including road, rail and coastal. It also exports its products to a number of countries globally.
As a part of its COVID response strategy, the client realised a need for sharp cost cuts in one of its divisions with $2bn in revenue
While there were attempts to identify cost reduction opportunities internally they were only incremental and did not meet the client’s requirement of substantial savings. Therefore the client approached Kanvic to apply its combination of business, operations and analytics expertise to uncover greater economies.
Framed the issue and made sense of the data
Kanvic's strategy and supply chain experts first framed the key issues facing the client by clearly defining the plants, pricing zones and transport modes to be covered. We then identified and requested the most relevant data sets available internally for further analysis.
Conducted data wrangling
Using an array of analytics tools Kanvic's advanced analytics team conducted data wrangling to structure, clean, enrich and validate the client's data.
Built and ran optimisation algorithm
Our team then selected appropriate optimisation algorithms drawing on combined business expertise, technological capability and data science knowledge.
Established proof of concept and piloted the solution
The results produced by the optimisation algorithm were then compared against the client's existing spreadsheet based tool to present the relative benefits. Once the clear advantage of the new tool was established the Kanvic team helped implement it in the client's organisation.
Immediate savings of INR 30 Crore
Our solution identified and realised immediate annualised cost savings of INR 25-30 Crore by optimising the modes of transport and shipment patterns.
Identified additional opportunities to save INR 100 Crore
Through supply chain re-imagination driven by advanced analytics we identified savings that could potentially add Rs 100 Crore per annum to the bottom line.
Transformed attitudes to analytics
Kanvic's engagement was the first large-scale deployment of advanced analytics in the client's organisation and acted as a catalyst for applying analytics within the business garnering a high-level of engagement and adcovacy from the leadership team.
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