Case Study: Diageo achieves lower logistics costs and optimized inventory with AnyLogic

Distribution Network Planning & Inventory Optimization Supported by Simulation

Diageo, a British multinational alcoholic beverages company, faced rising sales volumes without corresponding profit growth because logistics costs were increasing, along with pressure to improve customer service levels, manage inventory, and support expansion plans in Russia. To address this, Diageo worked with AnyLogic, using AnyLogic simulation software for logistics network planning and inventory optimization.

AnyLogic helped build a detailed logistics optimization model covering factories, warehouses, border crossings, customs offices, and demand points, with forecasting and replenishment logic built in. The solution improved sales forecasting accuracy from 60% to 80%, reduced target stock levels by 40%, cut logistics costs per unit by 7%, and delivered a payback period of less than 2 years; it also showed that no additional warehouse space was needed.

Diageo