News: Barloworld Supply Chain Software helps identify $1bn saving for Egyptian Government
Barloworld 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
Barloworld SCS project.
Government of Egypt (GoE) operates a food subsidy program across
the country. As a staple part of the Egyptian diet, Balady
bread is considered the most important item in the program.
With Egypt's population of 78 million people and a land area four
times the size of the UK, the GoE faced a number of challenges
within the Balady bread supply chain, and requested the WFP (World
Food Programme) to undertake a study (funded by the Dutch Embassy
in Cairo) to assess the efficiency and effectiveness of the
The WFP selected its global partner, TNT Express, to help
develop a supply chain solution. TNT then approached Barloworld
Supply Chain Software (SCS) to assist.
Barloworld SCS supplied the CAST software and training as well
as additional support in building and optimising the models.
The CAST supply chain modelling software,
developed by Barloworld SCS is a powerful, PC based application
used for global supply chain modelling, network design and
optimisation. CAST is used to evaluate and identify the
'preferred' or optimal supply chain configuration and to calculate
the total cost to market, leading to cost savings and service
The main project objective was to assess the efficiency and
effectiveness of the existing supply chain of wheat flour for the
subsidised Balady bread and propose a new efficient system to be
piloted in one or two governorates as a best practice model.
Barloworld SCS provided the CAST software as well as additional
training and support. Several other international experts were also
involved, to help identify further improvement areas throughout the
baking and milling processes.
The total annual cost savings calculated are in excess of $1
billion USD, which includes the savings achieved through using
'super bakeries' and eliminating losses in the supply chain,
reducing the total amount of wheat required.
Chief Operating Officer at Barloworld SCS, Ewan French, says
"The project, which was carried out by TNT for the Egyptian
Government, was very successful and has helped to identify savings
in excess of $1 billion USD, which is a first for a CAST
project." He goes on to explain that further work is required
in order to realise the savings identified in the modelling
Following the success of the modelling exercise, TNT has
purchased Barloworld SCS CAST software to deploy on other supply