“We tested every scenario before moving a single piece of equipment—the model showed us exactly how to consolidate three factories without disrupting supply.”
— Supply Chain Director
The Challenge
A biscuit manufacturer was operating three factories across different locations, each with its own overhead structure, workforce, and logistics arrangements. Senior management knew consolidation could unlock significant savings, but the complexity of combining operations without disrupting customer supply made the decision difficult to commit to.
The questions were numerous: Which products should run on which lines in the consolidated factory? How should equipment be transferred to minimise production gaps? What stock build would be needed to maintain supply during the transition? And would the projected £18 million investment actually deliver the anticipated returns? Without answers, the rationalisation remained a spreadsheet exercise rather than an actionable plan.
The Solution
We modelled all three factories and the proposed consolidated operation, applying Lean principles to redesign the production layout and material flows. The model enabled scenario planning that turned a high-risk consolidation into a phased, controlled transition.
Lean Redesign
Rather than simply relocating existing operations, we redesigned the consolidated factory using Lean principles. This meant eliminating waste in material handling, reducing work-in-progress inventory, and configuring lines for efficient changeovers. The result was a factory design that would outperform the sum of the three it replaced.
Product-Line Allocation Scenarios
We developed alternative scenarios for combining products onto lines in the consolidated factory. Each scenario was modelled for capacity, changeover efficiency, and labour requirements. This gave management options to evaluate—not a single take-it-or-leave-it proposal—and allowed them to choose the configuration that best balanced efficiency with operational flexibility.
Phased Transfer Planning
The model managed the complexity of transferring equipment from three sites while maintaining customer supply. We planned each phase of the transition, calculating the stock build required to cover production gaps and sequencing equipment moves to minimise risk. The result was a detailed roadmap that turned an 18-month consolidation into a series of manageable steps.
Logistics Optimisation
Consolidating to a single site transformed the logistics network. We modelled inbound material flows and outbound distribution to optimise the new factory’s location within the supply chain. Fewer sites meant simpler logistics, reduced handling, and shorter average distances to customers.
The Results
The model transformed a risky consolidation into a controlled, value-generating programme:
£10 million annual savings in overhead and labour costs by combining three factories into one efficient operation.
Transportation costs halved through optimised logistics from a single, strategically located site.
£18 million investment validated with scenario modelling that proved the business case across multiple configurations.
Zero supply disruption through phased equipment transfer with calculated stock builds covering each transition stage.
Optimised product-line allocation based on modelled scenarios rather than historical assumptions from the legacy factories.
The manufacturer consolidated with confidence—knowing that every phase of the transition had been tested before a single line was moved.