Lamacon has developed a supply chain optimization model for Blago

2023: Supply Chain Optimization

LAMACON with the help of a mathematical twin optimized the supply chain for the Blago group of companies from the purchase of raw materials from farmers to the sale of finished products. The optimization model not only reflects the movement of goods along the supply chain, but also takes into account the distribution of the company's working capital. Lamacon announced this on August 10, 2023.

Within the framework of the project, the task was to obtain a plan for the purchase of raw materials, the organization of production and distribution of finished products, taking into account the possibility of using financial instruments - lending, resale of raw materials on collateral, etc. Modeling made it possible in a risk-free environment to determine where, when and how much to purchase, process and store raw materials in order to use the company's working capital with the greatest return and fully load production facilities.

LAMACON consultants, in close conjunction with the customer's experts and analysts, studied the Blago business processes and collected historical data for modeling. Based on the professional solution of Guru, a monthly optimization model of supply chains was developed, which includes factories, elevators and warehouses of finished products, as well as taking into account all the restrictions: available funds, seasonal availability of raw materials and the capabilities of the company's infrastructure.

Experts not only developed a digital twin model for testing various supply chain scenarios, but also helped Blago form an expertise center for further effective work with the developed tool.

Such a comprehensive model was first applied, but it has a high potential for use in any industry where it is necessary to model the optimal process of converting the company's working capital into products and then back into money.

The request of Blago, in fact, boiled down to whether we could directly take into account cash flows and working capital limits in the supply chain model. We have not heard about such cases even in world practice and, as far as we know, no one in domestic companies has done this before. We analyzed the complexity of the task and decided that it was within the power of a joint team. We are very glad that in the end we coped!, - shared Dmitry Krasilov, CEO of LAMACON.

Given the process maturity of our company, we understand that in order to remain competitive, it is necessary to fully look at our processes in commerce, production, logistics and finance, take into account their characteristics and limitations in a single circuit. At the same time, we cannot afford to stay at the level of standard office applications. Therefore, we decided to take advantage of the expertise of LAMACON and build a mathematical twin of our supply chains, which would also cover the financial circuit. As a result, we have not only a planning tool, but also our own expertise center, which will allow us to use the model independently in the future and provide our customers with products as efficiently as possible, - summed up the results of the project Marina Mikheychikova, director of digital transformation "Blago."