Beverages
Designing resilient distribution scenarios for future market shifts
Logio supported Plzensky Prazdroj in evaluating multiple distribution strategy scenarios based on a detailed model of the current network and its performance.
Outcome
Each scenario was backed by a feasibility study and quantified impact on key KPIs, which helped the brewery choose a strategy that improves speed to market, strengthens competitiveness and manages logistics costs that are influenced by distribution decisions by up to 80 percent.
Up to
0 % of logistics costs addressed through the chosen distribution strategy
About Plzeňský Prazdroj
Plzensky Prazdroj is a leading Czech brewery, producer of the original pilsner type beer Pilsner Urquell, headquartered in Plzen and owned by Asahi Group Holdings. It is the largest exporter of Czech beer, selling a broad portfolio of more than 50 beers and beverages from multiple brands to markets around the world.
Around 9 million hectolitres of beer produced at its breweries in 2019
Exports to nearly 50 countries worldwide
Approximate annual revenues of CZK 23 billion driven by domestic sales and growing export demand
Initial challenge
Plzensky Prazdroj needed to design several future distribution strategy scenarios that would reflect potential market changes and their impact on the supply chain. The company required a structured way to understand how different distribution set ups would affect service levels, competitiveness and logistics costs.
Project goal
The goal was to build a detailed model of the current distribution network and use it to evaluate multiple alternative scenarios, each with a clear feasibility assessment and quantified impact on key KPIs. This would help management choose a distribution strategy that speeds execution, maintains competitiveness and optimizes a logistics cost base where up to 80 percent of costs are influenced by distribution decisions.
Solution
Scenario modeling for smarter distribution strategy
Logio created a model of the existing distribution network of Plzensky Prazdroj and used it as a decision making engine to test and compare different future distribution strategies. For each scenario, Logio assessed feasibility and quantified the expected impact on key performance indicators.
Solutions implemented
Distribution Concepts
KPI Design & Performance Monitoring
Distribution Network Optimization
Simulation & Flow Analysis
Business Case & Feasibility Study
Impact
Fact based distribution strategy that manages most of the logistics cost base and reduces the risk of expensive mistakes.
Clear portfolio of scenarios
Management gained a structured set of distribution scenarios, each defined and modelled on the same factual basis, which made strategic choices transparent.
KPI driven scenario comparison
Each scenario included quantified impact on key performance indicators, which moved the discussion from intuition to measurable effects.
Up to 80 percent of logistics costs addressed
The work highlighted how distribution strategy influences up to 80 percent of logistics costs and showed where changes in the network could generate the largest effect.
Prepared for market shifts
Thanks to predefined and analysed scenarios, Plzensky Prazdroj is better prepared to react to future market developments without ad hoc decisions.
Lower risk of costly decisions
By testing scenarios in a model instead of in real operations, the company reduced the risk of distribution decisions that could lead to multimillion crown losses.
Ready to rethink your distribution strategy
If you are deciding between several distribution network options, we can help you turn them into clear scenarios with feasibility and KPI impact quantified. Let us talk about how data driven scenario modelling can reduce your logistics costs and protect you from costly strategic mistakes.
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