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S.C. Johnson Walks the Escalator

Earlier this month, I explained how supercomputers are becoming a more practical business tool. To this end, this recent article entitled ”Crude Calculations” got me thinking about how manufacturers might employ these new beasts.

For one thing, as oil prices continue to stay high, the decision of where to locate a manufacturing facility is no longer so clear cut. This is because every $10 increase in the price-per-barrel of oil adds 4 cents per transportation mile to a product. This isn’t a big deal if it is a high margin product, but for lower margin items it could be a make or break decision. By running through a series of calculations a supercomputer could, however, help a company arrive at an optimum location.

Another area where supercomputers can play a useful role is in truckload utilization. S.C. Johnson & Sons saved $1.6 million last year by combining multiple customer orders and products to load the fullest, best-configured trucks possible. Is it possible your organization can also “jump the curve” by utilizing supercomputers?

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