Philip Morris International Sees Millions in Opportunity from River Logic
"We are talking payback in couple of hours..."
- Dr. Alexandros Skandalakis – the Director Global Manufacturing Capacity, Strategic Assets and Capital Expenditures
About the case study
PMI’s product mix is transitioning from cigarettes to electronic formats. Across their network of 40+ manufacturing sites plus external providers, they needed to figure out how to best their resources to meet demand while maximizing the NPV across their existing assets and capital expense allocations. See how they were able to:
Extend planning horizon from 2 to 10 years while accommodating increased complexity and scale
Reduce scenario analysis lead time from weeks to days
Identify hundreds of millions in cost savings
Established a roadmap of how to improve asset utilization, down to the factory and machine level
Defined an optimum sourcing network, highlighting the fastest and most cost-efficient way to supply markets at a global level
