This plant won the award for its innovative manufacturing process, its low energy consumption, but also for its "reduction in transportation and supply chain costs."
This case highlights the importance of good supply chain modeling. The right location and function of your facilities can make a significant difference to your overall strategy and to the bottom line.
Celebration Foods explains how they went about the site selection:
The first step was a supply chain optimization study. Officials selected a program from LogicTools, a Chicago-based supply chain specialist recently acquired by IBM. “Originally we were going to run about 75 models but ended up running more than 130, to be sure there was no second guessing when we turned dirt,” remembers Shanley. “No matter what scenario we presented—expanding the existing plants, using more copackers—the program only wanted to build one plant.”
It is interesting to note that the studies often come up with counter-intuitive solutions and that it is important to run many scenarios to make sure you have a good and robust solution.