Situation

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A large confectionary company in the United States was expanding one of its factories to add more manufacturing lines. This expansion would reduce the space available for the packing of the products.

 

Challenge

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The client came to LogiChain Solutions while considering repurposing two of their buildings, which were being used to pack products on automated and manual lines, to house the new manufacturing lines. They needed a packing operations strategy and a recommendation on whether to keep the packing operations in-house, outsource either the manual or automated packing operations, or outsource both. 

 

Rene’s recommendations were also to include potential locations for any outsourced operations.

 

Action Steps

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Rene first analyzed the various packing operations and the required functions performed in the two buildings. Recommendations for each of the services was then defined as well as the pros and cons of outsourcing versus keeping the packing operations in-house outlined. The recommendations included related costs and the overall impact on the manufacturing and logistics network of the client.

 

Rene provided an evaluation assessment of optimal locations for the outsourced packing operations based on customer demand, geography, available capacity, and capabilities in the existing logistics network.

 

Results

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Based on the packing operations strategy and recommendations that Rene put together, the client was able to successfully make a decision on what packing operations they would outsource, when to do so, and which locations they would outsource to.