Danone-Waters in Mexico, also known as Bonafont, is one of the leading divisions of Danone, offering high-quality water. The company has 5 factories, 39 distribution centers, more than 18 production lines, and 170 stock keeping units (SKUs) distributed to over 300 destinations.
Overview of Bonafont's network (click to enlarge)
For this project, Bonafont partnered with VP Consulting, a company known for its expertise in supply chain transformation. The main objectives were to increase Bonafont's supply chain efficiency, prepare for future challenges, and support sustainable production growth.
Bonafont needed to determine whether its existing manufacturing strategies could support anticipated growth. It was important to explore optimization opportunities for the production lines and evaluate the available capacity. This was critical, as it had a significant impact on the company's operations and spending plans and was key to keeping up with growing demand.
Essentially, the company needed to determine whether it had to optimize its current production lines or identify new locations to increase supply chain efficiency. But it wasn't just a matter of where to produce in general. The nuance was to understand precisely where to produce each specific product unit.
VP Consulting took a comprehensive approach to address the challenge. It involved detailed modeling and optimization of various processes within Bonafont. The company used a mix of anyLogistix's features, a supply chain design and optimization software, and focused on transportation flows and production constraint analysis. VP Consulting evaluated various elements of the beverage supply chain, including production rates and product details, to rationalize paths for supply chain efficiency and growth.
Fixed cost and step time limit per line
(click to enlarge)
The simulation modeling considered the specifics of 5 manufacturing sites, more than 18 production lines, and 170 SKUs. This provided a comprehensive and thorough analysis of each major component of the beverage supply chain.
VP Consulting also added custom constraints to the model to reflect Bonafont's complex supply chain. After going through all of this, the team had a better understanding of how efficient the supply chain is. They also became more familiar with the specifics of the products and the practical challenges they might face.
After that, VP Consulting optimized the processes and used simulation modeling to reduce transportation and manufacturing costs. At the same time, they needed to increase productivity and meet demand effectively.
The company implemented anyLogistix's greenfield analysis to accurately locate the customers. To understand potential demand changes and to increase production capacity, they created on-demand "what-if" scenarios. These scenarios showed how each SKU behaved on each production line and how different locations compared in terms of capacity. Through this detailed approach, VP Consulting and Bonafont identified the best strategies to optimize production lines and support continued growth.
The comprehensive solution implemented led to tangible and impactful results for Bonafont. Working with VP Consulting helped Bonafont make informed and data-driven decisions. Using the anyLogistix model, they also improved supply chain efficiency and drove growth. As a result, they opened a new factory with two production lines, which increased production capacity by 13%.
Optimized GIS map of the beverage supply chain network (click to enlarge)
In addition, adjustments to production lines made operations smoother and more efficient. This change not only increased production capacity but also resulted in significant cost savings of 5%. These developments were expected to have a payback period of 2 to 4 years, which demonstrated the sustainability and long-term viability of the implemented solutions.
The success of the project has also enabled Bonafont to remain flexible and ready for any challenges, keeping its growth on track. The improved digital system helped the company gain better visibility into its entire supply chain. As a result, Danone-Waters has positioned itself as a business success story in Mexico.
This case study was presented by VP Consulting and Danone-Waters Mexico at the anyLogistix Conference 2023.
The slides are available as a PDF.
