Case Study
National warehouse network reconfiguration strategy
Segment: Utilities
Solutions: Optimization Technology / Operational Strategy
Client
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One of the largest power sector companies in Latin America and a leader in electricity generation and transmission in Brazil.
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The company is responsible for more than 20% of Brazil's installed capacity. And more than 90% of its capacity comes from sources with low greenhouse gas emissions.
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The company's shares are listed on the Brazilian stock exchange, with a market value on the order of R$170 billion (recent data).
Challenges
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The project aimed to assess alternative configurations for the company's logistics network, integrating warehouses, routes, and transport of MRO materials, as well as inventory and disposal policies.
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The need to raise the service level of warehouses and ensure regulatory compliance in the Brazilian electric sector highlighted the importance of optimizing inventory positioning.
Our Approach
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Development of a customized optimization model in AIMMS® software, representing current and alternative logistics flows within the MRO item fulfillment network, to identify the best flows for meeting demand.
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Estimation of costs and timelines for implementing the chosen strategy and development of the implementation plan for the proposed improvements, focusing on the feasibility and effectiveness of the solutions.
Results
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Potential to reduce storage and transportation logistics costs by up to 20%.
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Reduced other indirect costs (procurement, tax, among others) by approximately 13%.
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Potential to reduce headcount by ~6% and decommission approximately 30% of storage facilities.