How EyeOn’s Supply Chain Network Design helped Cloetta optimize the positioning of their new DC

About Cloetta

Cloetta, founded in 1862, is a leading confectionary company in Northern Europe. Products are sold in more than 50 countries worldwide with Sweden, Finland, Denmark, Norway, the Netherlands, Germany, and the UK as the main markets. Owning some of the strongest brands on the market, such as Läkerol, Cloetta, CandyKing, Jenkki, Kexchoklad, Malaco, Sportlife, and Red Band, Cloetta has seven production units.  

Spanning production facilities across five distinct countries, the company manages an international distribution network, facilitating an integrated flow. From raw materials, through the transformation into finished products, Cloettas goods navigate through both global and local Distribution Centers (DCs) before reaching the ultimate destination – the hands of their candy-loving end-customers. 

 

 

The challenge

Cloetta is navigating through substantial challenges, prompted by ambitious growth targets and the projected shift in demand dynamics across regions.  

Cloetta has recently made a strategic choice to invest in a modern greenfield manufacturing site in the Netherlands. Once executed, the overall material flows of the network will change. This triggered Cloetta to initiate a study on defining an optimal warehouse set up in Western Europe. The End-to-End Supply Chain Vision is to work on an optimized SC footprint, leveraging on economies of scale, where found applicable.   

 

The project

Prompted by the challenges described above, Cloetta sought support from EyeOn to address a pivotal question: 

  • What is the best position for new DCs to effectively serve Western Europe, and how should cross-docking operations be organized? 

In partnership with EyeOn, Cloetta leveraged EyeOn’s cutting-edge Supply Chain Network Design technology. The collaborative effort involved creating a reference scenario reflecting the current demand as well as future growth, establishing a shared set of assumptions for comparison, and analyzing and optimizing four distinct future scenarios.

 

Visual 1: Cloetta’s supply chain flow map

The implementation yielded invaluable insights for Cloetta, including: 

  • Optimization Potential: A clear understanding of short- and long-term optimization opportunities within their supply chain. 
  • Strategic Direction: Clarity on the optimal positioning of one new DC’s or more to efficiently serve western Europe. 
  • Cost Impact Analysis: Quantified insights into the cost implications of various alternatives, aiding informed decision-making. 

Fuelled by the positive outcomes of this endeavor, Cloetta is well-positioned for upcoming progress and is further exploring additional strategic aspects.

 

Visual 2: volume passing through Cloetta’s market warehouses in each of the scenarios

 

Results

The usage of EyeOn’s cutting-edge technology in combination with EyeOn’s business expertise effectively addressed Cloetta’s challenges posed by ambitious growth targets, shifting demand dynamics, and logistical intricacies, equipping Cloetta with valuable insights and helping them connect, understand, and get value out of their data. 

This collaboration underscores the essential role of leveraging data for informed data-driven decision-making beyond ‘gut feeling’, positioning Cloetta for sustained growth and operational excellence. The journey from identifying challenges to implementing solutions marks a significant milestone, showcasing Cloetta’s resilience and dedication to navigating the ever-changing confectionery industry landscape.

 

Interested in how EyeOn can help you make your supply chain fit for purpose? 

For insights into how EyeOn can tailor innovative solutions for your supply chain challenges, or to explore the details of this transformative project, contact the expertise owner Dina Smirnov.     

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