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
Smarter Commerce, Smarter Planet
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.
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.
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.
Expected to reduce supply chain network costs by 10 percent
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.
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.
IBM ILOG LogicNet Plus XE
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