Success story Supply Chain
Barloworld Supply Chain Software helps identify $1billion saving for Egyptian Government
Barloworld Supply Chain Software’s CAST product has helped identify a supply chain saving of US$1 billion for the Government of Egypt – the biggest ever saving recorded in a Barloworld SCS project.
G
overnment of Egypt (GoE) operates a food subsidy programme across the country. As a staple part of the Egyptian diet, Balady bread is
considered the most important item in the program. With Egypt’s population of 78 million people and a land area four times the size of the UK, the GoE faced a number of challenges within the Balady bread supply chain, and requested the WFP (World Food Programme) to undertake a study (funded by the Dutch Embassy in Cairo) to assess the efficiency and effectiveness of the system.
The WFP selected its global partner, TNT Express, to help develop a supply chain solution. TNT then approached Barloworld Supply Chain Software (SCS) to assist. Barloworld SCS supplied the CAST software and training as well as additional support in
“ Barloworld SCS provided the CAST software as well as additional training and
support. Several other international experts were also involved, to help identify further improvement areas throughout the baking and milling processes.”
building and optimising the models.
Calculating the total cost to market The CAST supply chain modelling software, developed by Barloworld SCS is a PC-based application used for global supply chain modelling, network design and optimisation. CAST is used to evaluate and identify the ‘preferred’ or optimal supply chain configuration and to calculate the total cost to market, leading to cost savings and service improvements.
The main project objective was to assess the efficiency and effectiveness of the existing
supply chain of wheat flour for the subsidised Balady bread and propose a new efficient system to be piloted in one or two governorates as a best practice model.
Barloworld SCS provided the CAST software as well as additional training and support. Several other international experts were also involved, to help identify further improvement areas throughout the baking and milling processes.
The total annual cost savings calculated are in excess of $1 billion USD, which includes the savings achieved through using ‘super bakeries’ and eliminating losses in the supply chain, reducing the total amount of wheat required.
Ewan French, chief operating officer at Barloworld SCS, said: “The project, which was carried out by TNT for the Egyptian Government, was very successful and has helped to identify savings in excess of $1 billion USD, which is a first for a CAST project.” He also explained that further work is required in order to realise the savings identified in the modelling exercise. Following the success of the modelling exercise, TNT has purchased Barloworld SCS CAST software to deploy on other supply chain projects.
The CAST supply chain modelling software, developed by Barloworld SCS is a PC- based application used for global supply chain modelling, network design and optimisation.
www.logisticsit.com
Barloworld SCS is a global supply chain planning company, providing expertise, tools and solutions to help companies optimise their supply chain networks, inventory and transportation.
October 2011
MANUFACTURING &LOGISTICS
IT 47
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