A wholesale food company with 14 plants in Western Canada needed to gain economies of scale by consolidating manufacturing. This became possible as laws governing transportation changed.
Actions
A large spreadsheet model was developed to complete the analysis, costing models, and optimization of locations.
Results
The result was closure of ten plants, building one new plant, and improving capabilities of three existing plants. Manpower levels dropped from 1250 to 625 with no loss in volume, and an increase in profitability.
