Gurobi Optimization, LLC, a leader in decision intelligence technology, is partnering with Suzano, the world’s largest pulp producer, to enhance its supply chain logistics and advance its sustainability goals.
Bruno Scalia, Senior Data Scientist at Suzano, emphasized the importance of optimization in their planning process: “Optimization is crucial for our strategy. We begin with a high-level vision, then apply solutions to tactical and operational data to optimize processes, ensure reliability, and reduce risks associated with data inconsistencies.”
Suzano’s supply chain logistics must account for numerous factors, including shipping routes, transportation contracts, and capacity limits. The company’s sales and operations planning team leverages these factors to create a multi-objective mixed integer linear programming model, known as “SnOPy” (Sales and Operations Planning in Python). Alongside this, Suzano uses an operational model called “Tangram” and is planning to implement a tactical model, “Compass.” These models focus on short-term plans, covering one to three months, with varying levels of planning detail.
By running optimization models on Gurobi, Suzano has uncovered nearly R$76 million in new opportunities through flexible scenarios, while also reducing data management time by 60%. Moreover, optimized shipping routes have contributed to lower fuel consumption and reduced emissions.
Duke Perrucci, CEO of Gurobi, highlighted the significance of Suzano’s success: “Sustainability and profitability are often viewed as opposing objectives, but Suzano has demonstrated that both can be achieved simultaneously through effective supply chain optimization. We are proud to be their chosen solution provider.”
Scalia added, “With more efficient operations, we can offer more competitive pricing, superior products, and better customer service. In international planning, we’ve reduced the time required to create coherent plans from eight hours to just 20 minutes to one hour. While the precise financial impact is still being assessed, we anticipate improvements in vessel demurrage costs, as well as production and operating costs.