Case Study: Cox Industries Inc. achieves 30% higher profitability and forecasts within 5% with River Logic

Cox Industries Discovers Hidden Opportunity Values & Nixes Home Depot

Cox Industries, a family-owned wood products manufacturer, faced rapid market change, regulatory pressure, unreliable data and the need to optimize its manufacturing footprint, product mix and capital allocation as part of its Integrated Business Planning efforts. To address these challenges the company turned to River Logic and deployed River Logic’s optimization and modeling solution (an Expert Business Planning Platform) to enable end-to-end planning across procurement, sourcing, logistics, inventory, capacity and demand/supply.

River Logic’s prescriptive models gave Cox visibility into constrained resources and the value of operational choices, driving decisions such as moving peeling from ~25% to 81% in-house and buying additional peelers to optimize drying, freight and sourcing. As a result Cox can now predict results within about 5%, identified a potential 30% increase in profitability in initial models, realized an over 2% increase in industrial business profitability from peeling and uncovered an incremental opportunity value of $1,047 net profit per hour—while improving capital allocation and organizational agility.

Cox Industries Inc.

Matt Yaun

Chief Administrative Officer