Case Study: Philip Morris International (PMI) achieves hundreds of millions in cost savings and faster 10-year planning with River Logic

Philip Morris International - Customer Case Study

Philip Morris International (PMI) was shifting its product mix from cigarettes to electronic formats and needed to determine how to allocate resources across 40+ manufacturing sites and external providers to meet demand while maximizing NPV. PMI engaged River Logic to tackle these strategic and operational planning challenges using a Digital Twin of its full value chain.

River Logic built a 10-year, monthly-resolution Digital Twin that combined physical constraints, sourcing rules, plant capacities, costs and forward-looking financials fed from 70 input tables, enabling rapid scenario analysis. The River Logic solution extended the planning horizon from 2 to 10 years, reduced scenario lead time from weeks to days, identified hundreds of millions in cost savings, and delivered a roadmap to improve asset utilization and an optimized global sourcing network.

Philip Morris International (PMI)

Alexandros Skandalakis

Director Manufacturing Capacity and Footprint