Case Study: Nestlé USA achieves significant transportation and production cost savings with FICO Xpress Optimization

Nestle USA Applies Optimization Models to Save on Transportation and Production Costs

Nestlé USA, the U.S. arm of the world’s largest food company, faced a complex supply‑chain challenge: with dozens of brands and thousands of SKUs shipped from multiple plants to six distribution centers, the company needed to reduce production and transportation costs while meeting service‑level agreements and avoiding product scrapping and stockouts.

Using FICO® Xpress Optimization, Nestlé built models for production planning, load building, redeployment and a customer-facing loading app to find optimal shipment combinations and rebalance inventory. The solution delivered significant transportation and plant cost savings, reduced shortages and scrapping, increased sales and customer satisfaction, and provided flexible, fast‑recalibrating analytics that have run effectively in production for years.

Nestle

Shan Collins

Vice President of Planning and Center of Excellence