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From Data to Decisions: How a Dairy Company in Colombia Rethought Its Network — and Got a 6% Profit Boost

From Data to Decisions: How a Dairy Company in Colombia Rethought Its Network — and Got a 6% Profit Boost

May 16, 2025

Smarter Decisions Without Big Investments: A Colombian Dairy Company Case Study

Why rethink a network that’s already working?

  • Could we serve the market at a lower cost?
  • Are there better sourcing or production options now?

    • The six steps we followed

  • Get the data in: All the relevant information — locations, capacities, costs, constraints — went into a structured Excel file, then loaded into our cloud platform.
  • Validate the current setup: We built a model of how things work today (2024 setup), to use as a reference when comparing other options.
  • Look for quick wins: We loosened a few constraints — like expiring contracts — and asked the model where short-term gains might be hiding.
  • Explore bigger changes: Then we simulated what-if scenarios, like adding a new distribution center, to see if a different network design would help.
  • Compare and decide: We compared all the scenarios side by side. No guesswork — just clear numbers to support the final decision.

    • What came out of it

  • +2.43% more by adding a new distribution center in Valledupar.
  • Over 6% increase in operational profit, with no major investment.

    • A final thought: Model before you move

    Evaluate, compare, and optimize your supply chain — all before making a move.

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