The business challenge

A multi-billion dollar U.S.-based food and beverage organization with multi-tiered supply chain serving mostly B2B customers was working to meet the new product volume needs of a strategic partner, which required the construction of a new production asset. The organization needed to isolate the actual costs impact to their system wide manufacturing network to determine how, where and when to meet their customers.

The Baker Tilly approach

Baker Tilly performed detailed supply chain mapping and analysis by collating data from all significant material movements throughout their operating system, including the development of a dynamic scenarios based analysis tool.

The resulting cost drivers were then applied to a new co plant and location and combined with detailed water, waste water, electricity, natural gas utility information, as well as the state, local and federal tax credits/impacts to establish holistic understanding of operating costs for a given scenario.

Throughout the development process, our team worked side by side with the client’s engineering, finance and operating teams to define and measure critical drivers through the project’s evolution.

The business impact

After many modeled reviews, Baker Tilly helped secure the site and supporting infrastructure agreements to construct the new Greenfield project at the defined costs established. The optimized site substantially reduced the total supply chain costs [by $5M+/year] currently being incurred by the organization.

These estimated savings, along with an additional $7M in State and Federal tax credits,

$10M+ in tax-exempt bonds we also secured, were used to offset the $50M project cost.

For more information on this topic or to learn how Baker Tilly specialists can help, contact our team.