Case Study: Thermal Coal Producing Company achieves $250M annual margin increase with River Logic

How this company saw $250M USD in annual margin increase

The Top Russian producer of thermal coal (annual ~100M tons) faced a fragmented, sequential planning process across 30 mines, 30 enrichment plants, dozens of storage sites and hundreds of domestic and export customers. Production, sales and finance created plans in sequence with limited ability to optimize blends, transport and pricing jointly, causing long cycle times, high FTE consumption and low agility. To address this, the customer engaged River Logic and deployed its Enterprise Optimizer / Intelligent Model for Integrated Business Planning (tactical 3–18 month horizon).

River Logic implemented an end-to-end integrated planning model that captures blending constraints, product substitution, multi-criteria sequential optimization and transport/port costs, integrated with SAP. The River Logic solution delivered measurable impact: a $250M USD annual margin increase (≈4% of revenue), 200% reduction in required resource time, 100% customer satisfaction, faster scenario solves (annual model ~2.5 minutes) and much-improved planning agility and forecast accuracy across production, sales, delivery and finance.