Südzucker

Swift prediction of best production and distribution plans leads to reduction in supply chain network costs

Published on 14-Aug-2013

"The new solution helped us meet our ultimate goal of creating and maintaining the most cost-efficient and flexible supply chain network possible while continuing to ensure the same level of superior customer service." - Christopher Bauer, strategic sales development, Südzucker

Customer:
Südzucker

Industry:
Consumer Products, Industrial Products

Deployment country:
Germany

Solution:
Smarter Commerce, Smarter Planet

Overview

Based in Mannheim, Germany, Suedzucker AG is a producer of sugar and agriculture-based products such as functional food, starch and bakery additives as well as fruit products and bioethanol.

Business need:
The company needed a technology solution that could provide detailed analysis of all trade-offs and options to create a cost-efficient, flexible supply chain network across Europe.

Solution:
The solution helps the company analyze trade-offs between production, warehousing, transportation costs and service requirements, and identify optimal network configuration for different cost and service objectives within just a few hours, not weeks.

Benefits:
Expected to reduce supply chain network costs by 10 percent

Case Study

Based in Mannheim, Germany, Suedzucker AG is a producer of sugar and agriculture-based products such as functional food, starch and bakery additives as well as fruit products and bioethanol. It processes agricultural raw materials to produce safe and high-quality products, with the distribution of sugar beet seeds to farmers as its primary operation. The company leads the market with a wide range of sugar products for home and commercial use. It also participates in related segments of the food industry, such as frozen food and fruit-juice concentrates. The sugar segment of Suedzucker operates 29 sugar factories and three refineries in 11

European countries and produces 5.4 million tons of sugar. The sugar is converted into more than 2,000 different products that are distributed to several thousand customers across Europe each year.

The Opportunity
With about 30 sugar factories and several refineries in 11 European countries, Südzucker wanted to continue expanding its business across the continent and needed to modify its supply chain network to ensure excellent customer service, yet minimize operational costs. Its existing evaluation process was extremely time-consuming, labor-intensive and error-prone. The company needed a technology solution that could provide detailed analysis of all trade-offs and options to create a cost-efficient, flexible supply chain network across Europe.

What Makes It Smarter
Businesses are always looking to lower operational costs of their manufacturing and distribution supply chain. Südzucker identifies the most strategic and cost-effective options for aligning and expanding its supply
chain network across Europe by using a sophisticated analytics solution. The solution helps the company analyze trade-offs between production, warehousing, transportation costs and service requirements, and identify optimal network configuration for different cost and service objectives within just a few hours, not weeks. The business can now create and execute optimal production and distribution plans that minimize logistics costs and maximize the use of manufacturing and packaging facilities across Europe. For example, Südzucker now accurately predict the effects of fluctuating transportation costs across the continent and the financial value of moving the production of specific sugar products to a facility in France or opening new manufacturing or warehouse locations in France, which may be in closer proximity to existing and new customers.

Real Business Results
• Expected to reduce supply chain network costs by 10 percent
• Gained the ability to rapidly adjust to changing customer demand and transportation costs
• Optimized the use of available plant capacity on an ongoing basis

For More Information
Please contact your IBM representative or IBM Business Partner. Visit us at ibm.com/ilog.

To learn more about Südzucker, visit www.suedzucker.de.

Products and services used

IBM products and services that were used in this case study.

Software:
IBM ILOG LogicNet Plus XE

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America August 2013 IBM, the IBM logo, ibm.com , ILOG and LogicNet Plus are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml. This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data discussed herein is presented as derived under specific operating conditions. Actual results may vary. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.