Smarter Decisions Without Big Investments: A Colombian Dairy Company Case Study
You don’t need to wait for things to break before you improve them. That was the thinking behind a recent project with one of Colombia’s leading dairy companies. Their supply and distribution network worked just fine — but when a key milk supply contract was about to expire, they saw a chance to do better.
So they teamed up with Factible Tools to take a closer look. The outcome? A 6% increase in operational profit, without major investments. Just smarter decisions, backed by data.
Why rethink a network that’s already working?
You can edit text on your website by double clicking on a text box on your website. Alternatively, when you select a text box a settings menu will appear. your website by double clicking on a text box on your website. Alternatively, when you select a text box
The company had a solid team and well-developed Excel tools. But with the Yarumal milk supply contract nearing its end, some important questions came up:
- Is this still the most efficient setup?
- Could we serve the market at a lower cost?
- Are there better sourcing or production options now?
The contract’s expiration created a window to test ideas, explore alternatives, and see if the network could be simplified or improved.
The six steps we followed
At Factible Tools, we have a simple approach for this kind of project. It’s structured enough to cover what matters, but lean enough to avoid wasting time. Here's how we did it:
- Understand the business and set the scope: We looked at operations, market conditions, and key constraints. The goal wasn’t to model every detail — just the ones that drive results.
- 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
The results spoke for themselves:
- +3.75% profit by simply optimizing raw milk flows — no structural changes.
- +2.43% more by adding a new distribution center in Valledupar.
- Over 6% increase in operational profit, with no major investment.
All of this was done with a tool that’s easy to use, even when the questions are complex. The team could load data, explore scenarios, and make confident decisions — without needing a full-time analyst on standby.
A final thought: Model before you move
This project is a good reminder that you don’t always need big investments to make big improvements. What you do need is a clear way to explore your options.
With the right tool, you can simulate, compare, and decide — all before committing time or money. That’s what Factible Tools delivered: a smarter way to move forward.
