Case Study
Operational planning optimization with cost reduction and service level improvement
Facing growing pressure on service levels, a leading Brazilian LPG distributor optimized its S&OP and S&OE processes, identifying up to 10% in potential cost reductions.
Client
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One of the leading LPG distributors in Brazil. The company serves approximately 10 million households and commercial customers, holds more than 20% market share, and sells over 1.5 million tons annually.
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The company operates a national logistics network with more than 20 production units and more than 40 storage facilities, supporting its presence in Brazil's residential and bulk LPG markets.
Challenges
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The company sought a tool to support its S&OP and S&OE processes.
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It was necessary to quantify the gap between actual planning costs and optimized planning costs.
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The solution needed to account for operational constraints, procurement rules, inventory policies, lead times, and service level requirements.
Our Approach
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Applied Optima to optimize S&OP and S&OE processes, aligning execution with planning.
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Applied operational constraints, lead times, and inventory policies within the model.
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Ran scenario simulations to identify cost reduction opportunities and service level improvements.
Results
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Potential reduction of R$ 2.2 million in transportation costs, improving overall logistics efficiency.
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Improved service levels and greater operational consistency.
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Up to 10% cost reduction through S&OP and S&OE process optimization.