Analytics enabled

Getting value from every link

The challenge for one leading beverage producer involved sustained cost increases for primary packaging used in many of its product lines, a problem made worse by difficulties in communication and collaboration across siloed processes.

While the S&P organization understood that many of these underlying causes for increasing cost pressures were upstream in the supply chain, the company had been unable to identify the appropriate corrective action. Without a unified, holistic view of the supply chain, the company’s product and supplier valuechain would remain vulnerable.

The company looked to team with Deloitte for addressing its immediate challenges and growing the organization’s own analytics capabilities. The goal? To better serve constituents across all functions and supply chain disciplines, and to reduce the risk of future issues. The company decided to apply analytics to its operational and cost reduction challenges in an effort to improve transparency and better evaluate the impact of decisions across the supply chain.

Mining and modeling

Using exploratory analytics techniques, the company was able to take the first step in uncovering actionable opportunities that could deliver results in the near-term. The company relied on Deloitte’s Analytics Answers™ approach to thoroughly identify, dissect, and address the company’s supply and value chain issues.

The findings from the exploratory analytics methods revealed deeper issues that required further investigation and analysis. Thorough, advanced optimization algorithms enabled the company to evaluate 1,800+ variables and meet and control 750+ constraints designed to uncover issues at their core—with confidence in the actions needed to capture value.

Saving millions

The two-pronged approach reaped immediate and long-term benefits, for this company. Performed over six weeks, the company’s exploratory analytics effort uncovered a number of opportunities that could be addressed immediately, generating $5.2 million in actionable benefits and collaboration throughout both the company’s supply base and internal functions resulted in another $13 million in actionable annual savings.