Korus Consulting optimizes supply chain for Russian division of Mars Petcare

2021: Implement Strategic Supply Chain Planning

Korus Consulting On August 11, 2021, GK "" announced the completion of a project to develop and implement a strategic supply chain planning tool for. Mars Petcare For 9 months, the company's experts developed digital double a supply chain based on, ON LLamasoft created an expertise center and trained internal specialists, as well as integrated a solution to the IT business landscape. Simulation results showed the potential for significant cost savings in the company's current supply chains.

KORUS Consulting specialists collected an array of data, prerequisites and restrictions for the development of a mathematical model of the end-2-end supply chain: from raw materials suppliers to distribution centers of federal retail chains and other customers of the company. After the creation of the digital double, experts calibrated it. They adjusted the logic of the chains and analyzed deviations from P&L over a certain period. The calibrated model formed the basis of four optimization models: current, ideal, optimal chains for 2025, as well as a model of supply development on the horizon of five years. The results of the calculations showed the potential to reduce logistics costs. In the company's current supply chains, it can amount to several tens of millions of rubles a year.

As a tool, experts used the LLamasoft - Supply Chain Guru platforms to optimize supply chains and Data Guru to automate the process of assembling models, updating, checking and loading data.

KORUS Consulting created and trained the Mars Expertise Center, and also integrated the tool into the customer's IT landscape. Specialists of companies jointly formed a set of initiatives for implementing the obtained modeling results in the business, and also drew up a roadmap for the development of the tool, which the manufacturer plans to adhere to.

This project is one example of comprehensive network optimization of the complete end-2-end supply chain in the FMCG industry. Despite the fact that the existing chains at the time of the start of the project were already functioning quite efficiently, we managed to find additional optimization potential and build a detailed infrastructure development plan taking into account the characteristics of Mars. This will help the manufacturer not only save, but also adjust the strategic business development plan, "comments Dmitry Krasilov, head of Supply Chain Design at KORUS Consulting Group of Companies.

The creation of a digital dual supply chain and an expertise center for working with it will allow us to reach a different level of analytics of our capabilities and decision-making based on data, "comments Alexander Golubev, director of the logistics division of Mars Petcare in Russia.