Changes in consumer demand and behaviour are driving transformations in the global FMCG industry. Our client (top 5 cosmetic brand) is investing to meet the growing demand and initiated an extensive expansion project to further increase its capacity and automate key portions of the outbound site logistics.
Our client was looking for an evidence-based way to assess if their expansion plans are robust and if the selected materials handling equipment and automation are the right choices. Stress testing the site expansion design and material flows using real-world operational variability and complexity gives the client insights to validate and change plans before committing CAPEX. Royal HaskoningDHV supported the top-tier FMCG company by performing a predictive simulation study to evaluate and optimise the on-site logistics and operations.
For this project we needed to accurately predict how production, warehousing, material movements, and other logistic factors affected the operational efficiency of the plant. We jointly developed a simulation model with the right amount of detail to answer client’s key questions. The simulation model helped to guide evaluations including:
- Assessing whether the selected materials handling equipment and automation are the right choices
- Quantifying the impact of changing operational strategies (including replenishment strategies)
- Predicting the warehouse utilisation rates (both on pallet & case level)
- Identifying and solving logistical bottlenecks
- Optimising asset/resource efficiency (e.g. docks, palletisers, conveyors etc.)
We are proud of this joint effort applying digital tools to more accurately predict the performance of various future scenarios which enabled our client to confidently select the best possible solution. In the upcoming months, our client wants to integrate the simulation model into its business to guide future operational decisions.
Client feedback: “We are impressed with what Royal HaskoningDHV has done in the modelling & simulation project. What Royal HaskoningDHV has delivered for us is helping us out a lot in project design and operational planning. Big thanks to the project team again!”