Bonduelle Optimizes Supply Chain Strategy Supported by Korus Consulting

2022: Optimization of the supply chain development strategy in Russia and the CIS until 2024

KORUS Consulting Group announced on October 3, 2022, the construction for Bonduelle (Kuban canned food) Bonduel-Kuban of a digital model of the optimal supply chain for frozen products and conservation from production to sale. With its help, the company determined the potential to reduce unit logistics costs by 2024 to 16% through the implementation of strategic decisions. Also, the results of the calculations showed the possibility of savings in current supply chains by 10%.

To increase the efficiency of Bonduelle supply chains - from production to sales - the manufacturer decided to reduce the volume of inventories and shipping costs to customers, as well as find the optimal ratio of its own warehouses and capacities of 3PL operators. To achieve these challenges, Bonduelle chose a supply chain mathematical modeling tool and scenario analysis. The Supply Chain Planning CORUS Consulting team became a partner in the project.

Consultants collected data on Bonduelle's logistics processes, built mathematical doppelgangers and calibrated them. Together with the manufacturer, they analyzed scenarios for the development of supply chains and logistics infrastructure. The result was scenarios of optimal configuration of logistics flows on current and potential infrastructures, as well as recommendations for reducing inventory and changes in current infrastructure by 2024. The calculated strategic model showed the potential to reduce unit logistics costs by 16%. And within the current infrastructure, savings in supply chains, subject to certain conditions, can be about 10%. Also, KORUS Consulting experts gave recommendations on changing the manufacturer's current infrastructure, which will help Bonduelle reduce its inventory at an unchanged level of service.

The project required a lot of effort from the team and a lot of data. However, the company was able to obtain valuable recommendations in a short time to achieve not only current goals, but also those related to business development in the coming years, noted Yuri Rudenko, director of logistics at Bonduelle.

The Bonduelle case is very interesting for the market. He showed that even highly specialized companies that are highly dependent, for example, on harvest times, can find tangible savings potential in the supply chain. Together, the companies have seen opportunities to reduce supply chain costs, and CORUS Consulting hopes to continue cooperation so that buyers will continue to receive fresh Bonduelle products at a minimum price. told Dmitry Krasilov, Head of the Supply Chain Planning Department of KORUS Consulting Group.