Long-term CAPAX investment Strategy

Business Case:

A Labelling & Packaging company had a challenge identifying the investments it needed to make based on the forecasted demand for the upcoming 5 years. Based on their expansion policy, they wanted to identify the types of machines and the countries, they should invest in.

Business Situation:

The organization was operating with existing resources and forecasted significantly high growth in a few of its products. The company didn't have the required facilities or resources to serve the demand.

Solution:

Global production, raw material sourcing, local government regulations, and availability of skilled workers were the biggest factors that need to be considered while making the choice. Additional elements like carbon credit, duty charges, multiple BOMs, and processing capabilities of machines create a problem significantly complex to solve.

We developed a comprehensive supply chain capacity model. The data was collected from multiple stakeholders & business heads and coordinated well to understand some key business restrictions. Multiple iterations were performed to define the strategy. Outsourcing of goods and in-house production were validated to understand the cost impact. Finally, we shared the solution in automated visualization that helped them to make data-driven decisions.