Korus Consulting Optimizes Supply Chains in Cherkizovo Group

2021: Supply Chain Optimization

Korus Consulting Group on June 17, 2021 announced the completion of the Cherkizovo Group supply chain optimization project. The results of the project allowed to review the formation of current product flows and determine the most effective changes for delivery routes. In the future, the implemented IT solution will help the company achieve a monthly reduction in operating costs.

To optimize existing ones, supply chains reduce storage costs and transport logistics identify potential growth zones, Cherkizovo needed an industrial SCD system. The company chose a solution based on, and LLamasoft Supply Chain Guru as an implementation expert - KORUS Group of Companies, a Consulting strategic partner in. LLamasoft Russia

KORUS Consulting created digital doubles of supply chains - mathematical models that depict the path of products from production to store shelves and take into account the costs associated with these processes. To do this, experts collected a range of data: information about logistics costs, production recipe, characteristics of infrastructure facilities and production sites, customer data, sales statistics, etc. Key prerequisites were identified, reflecting the peculiarities of Cherkizovo supply chains and business processes. Among them are the specifics and limitations of production, requirements for the freshness of products, including in the ultra fresh category, customer service conditions and much more. All these conditions required the creation of large-scale, complex mathematical models.

In addition to the global optimization of all supply chains of Cherkizovo Group, KORUS Consulting specialists solved more specific problems: increasing the efficiency of individual routes in certain regions of the country, optimizing product sorsing taking into account the peculiarity of customer service, as well as increasing the margin of business as a whole. The recommendations formed based on the results of the simulation will allow Cherkizovo to reduce the monthly costs of using the warehouse infrastructure and transport, as well as significantly optimize the total operating costs.

To automate the data processing processes used in modeling and analysis, experts integrated the LLamasoft Supply Chain Guru platform with the ETL system LLamasoft: Data Guru. The IT tool has made it easier to process, convert, and use information in calculations.

The complexity of supply chains in meat processing imposes certain requirements on both the processes within the company and the tools that support these processes. For efficient business development, we must carefully weigh each of our solutions in terms of the economy and the level of service that we provide to our customers. The introduction of the scenario planning tool allowed us to make more balanced decisions in a shorter time frame, given the impact on all segments of the group's business, quickly find potential opportunities to reduce costs and increase profits, "says Yevgeny Subbotin, director of logistics and supply chains at Cherkizovo Group.

Created models allow you to manage supply chains and test even the most complex business hypotheses in a short time and in a risk-free environment. The use of digital doubles pays off quickly: in our assessment, the recommendations offered as a result of the simulation will help the company reduce operating costs monthly. Supply chain management at the Cherkizovo business scale will help minimize costs associated with the use of logistics infrastructure and transport by millions of rubles, "commented Dmitry Krasilov, head of Supply Chain Design at KORUS Consulting Group of Companies.

A competency center has been created in Cherkizovo Group to consolidate the project result and simulate different supply chain scenarios on its own. KORUS Consulting trained key business users.