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42 Supply chain savingsBarloworld Supply ChainSoftware helps identify $1bnsaving for Egyptian GovernmentBarloworld Supply Chain Software’s CAST product has helped identify a supply chain saving of$1 billion USD for the Government of Egypt, which is the biggest ever saving recorded in a BarloworldSCS project.The Government of Egypt (GoE) operates a foodsubsidy program across the country. As a staple partof the Egyptian diet, Balady bread is considered themost important item in the program. With Egypt’spopulation of 78 million people and a land area fourtimes the size of the UK, the GoE faced a number ofchallenges within the Balady bread supply chain, andrequested the WFP (World Food Programme) toundertake a study (funded by the Dutch Embassy inCairo) to assess the efficiency and effectiveness of thesystem.The WFP selected its global partner, TNT Express,to help develop a supply chain solution. TNT thenapproached Barloworld Supply Chain Software (SCS)to assist.Barloworld SCS supplied the CAST software andtraining as well as additional support in building andoptimising the models.The CAST supply chain modelling software,developed by Barloworld SCS is a powerful, PCbased application used for global supply chainmodelling, network design and optimisation.CAST is used to evaluate and identify the ‘preferred’or optimal supply chain configuration and tocalculate the total cost to market, leading to costsavings and service improvements.The main project objective was to assess theefficiency and effectiveness of the existing supplychain of wheat flour for the subsidised Balady breadand propose a new efficient system to be piloted inone or two governorates as a best practice model.Barloworld SCS provided the CAST software aswell as additional training and support. Several otherinternational experts were also involved, to help identifyfurther improvement areas throughout the bakingand milling processes.The total annual cost savings calculated are inexcess of $1 billion USD, which includes the savingsIssue No. 3achieved through using ‘super bakeries’ andeliminating losses in the supply chain, reducing thetotal amount of wheat required.Chief Operating Officer at Barloworld SCS, EwanFrench, says “The project, which was carried out byTNT for the Egyptian Government, was very successfuland has helped to identify savings in excess of $1billion USD, which is a first for a CAST project.”He goes on to explain that further work is required inorder to realise the savings identified in the modellingexercise.Following the success of the modelling exercise,TNT has purchased Barloworld SCS CAST software todeploy on other supply chain projects.Barloworld SCS is a leading global supply chainplanning company, providing expertise, tools andsolutions to help companies optimise their supplychain networks, inventory and transportation. To findout more about solutions available from BarloworldSCS, visit www.barloworldscs.comwww.warehousinglogisticsinternational.com