Cosmo Tech

Localization Strategy
  1. Manufacturing
  2. Case Study

Finding the Right Production Localization Strategy

How a Fortune 500 optimized its sourcing strategy within existing and constrained production facilities.

Key Figures

+6%

profit increase

80,000

simulations

22,000

decision variables

The challenge

The challenge

Our client is a global industrial actor with annual revenues in excess of €20 billion, nearly 70 production plants worldwide, and operations in more than 170 countries.

His local to local strategy is to manufacture a product near the point of sale. It poses difficulties due to market heterogeneity and to the industrial capabilities covered by the factories, which differ from one plant to another.

So where should he manufacture his products when product ranges tend to renew themselves more and more quickly?

Main Features

Unlimited what-if scenarios

Unlimited what-if scenarios

Design & simulate scenarios to predict the impact of changes on key parameters such as custom duties or currencies.
How-to optimization

How-to optimization

Find the best ratio between local production and imports to maximize profit.
Sensitivity analysis

Sensitivity analysis

Get insights about your most influential resources and variables with the greatest impact on supply chain resiliency.
Solution

Solution

With Cosmo Tech Supply Chain, a realistic and exhaustive Simulation Digital Twin of the strategic supply chain and production centers. The software was designed to:

  • >Model our client’s multiple production & distribution centers and its complex flows
  • Create a baseline model that could serve as a foundation for more granular models to analyze specific situations
  • Predict the environmental impact of each scenario.
  • Identify the product families which drive CO2 emissions

Thanks to the Cosmo Tech Supply Chain, 80,000 scenarios were simulated to find the best capacity investment and identify the best production centers to manufacture his products.

Results

Results

Our holistic digital twin simulation platform enabled our client identify an actionable strategic sourcing plan for the next five years. Once implemented, this plan will increase the company’s profit margin by more than six percent over that same period.

Solution Overview

Cosmo Tech Supply Chain, our Simulation Digital Twin solution for Strategic Sourcing, is designed for enterprises looking to find the best localization strategy for their products.
See the full solution

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