Blog Post
JBS optimizes profit with AIMMS-based S&OP
About JBS
JBS is a global leader in beef, lamb and poultry processing. With over 200,000 employees worldwide, the company has 340 production units and businesses in the foodstuffs, leather, biodiesel, collagen, metal packaging and cleaning products industries. Operating on all consumer markets and with an annual revenue of $27 billion, JBS is the world’s largest exporter of animal protein, selling to over 150 countries.
Challenge
Having a master production schedule that was supported by multiple spreadsheets, JBS’ operations department faced considerable challenges in their planning process. The company was in need of a solution that would allow them to explore the best ways to meet demand and allocate production capacity at their different plants while taking specific requirements like halal, kosher, and the legislation of the recipient countries into account.
Solution
JBS decided to redesign their processes to allow for a systematic assessment and optimization of multiple scenarios on a much more detailed level. The system that they developed enables them to respond rapidly to changing market prices for all of their (intermediate) products on a daily basis at over 50 primary processing plants for 2000+ SKUs. In addition, it allows them to compare these insights with the latest update of their demand scenarios, production capabilities, transport possibilities, and all associated costs.
Results
- A 25% increase to original margin
- 90% improvement on ‘adherence to plan’
- Increased adaptability and agility in the planning process
- An optimized product portfolio with the right inventory levels
- Integrating cost-to-serve analysis and considerations into the S&OP process
- The ability to collaboratively explore multiple scenarios
““Thanks to the flexibility of AIMMS, the development of new optimization modules can be done with the agility comparable to the dynamism of our company and its market. With the adoption of AIMMS PRO, JBS will make the best use of a corporate solution that brings optimization to business users through a central enterprise App store.”
– João Batista Rocha de Souza Integrated Planning Manager at JBS
Solution implemented by AIMMS partner:
