Production network optimization and plant investment strategy

Production network optimization and plant investment strategy

Client Challenge

A $7.7 billion multi-national beverage company with 11 production locations required an updated capital investment plan for their production network including the primary facility.

Volume declines and product mix changes triggered the need to substantially reduce production and distribution costs for the primary plant as well as optimize the overall network.

There was a lack of consensus on the most effective network role and production plan for the primary plant in the context of the beverage market demand changes nationwide.

Radian’s Impact

Provided beverage production and distribution network optimization expertise to evaluate the production strategy and provide decision support.

Led a cross-functional team through a strategy development process to create detailed investment alternatives and production facility options for an optimized supply chain network.

Developed production and supply chain analyses, consolidated capital estimates, and financial impact models to assess the most effective options.

Results

Developed a focused strategy and extensive financial models for $500 million to $1.5 billion capital investment options and supply chain configurations.

Delivered a comprehensive financial plan to build board-level consensus for a new 5-year capital investment and production strategy.

Delivered network optimization models for future scenarios and a $1.1 billion capital plan aligned with the business strategy.