Industry Solution Sheet: Agribusiness

Challenges and Capabilities
The world’s oldest industry, agriculture, is currently
undergoing a profound transformation, changing
the way that agribusiness enterprises do business.
These companies (which are engaged in the farming,production, processing, and distribution of agricultural
goods) have made great strides in terms of efficiency
and output, with total factor productivity increasing by
an average annual growth rate of around 2.2% overthe past 50 years and global food supply tripling overthat same time period (far outpacing world population
growth, which doubled)*.
But the question that is top of mind today for many
agribusiness industry executives is: Where will thenext productivity gains come from?
To answer this question, leading agribusiness enterprises are looking to advanced analytics technologies.
Indeed, the introduction of sophisticated, data-driven
advanced analytics tools and new agritech, IoT, anddrone technologies in the 21st century has usheredin an industry-wide revolution, and agribusinessplayers across the business spectrum (from crop
producers to breeding companies to food processing
companies to agrichemical, biofuel, seed, and animal
feed manufacturers) are constantly discovering newopportunities to:
Break down silos across their operational networks
and drive greater integration, alignment, automation,and optimization across their value chains.
Boost the efficiency of their farming, disassembly,
blending, transport, and other processes – sothat they can make the best use of their raw
materials (plants and animals) and resources(such as workers, equipment, fields, andprocessing facilities).
Improve their end-to-end planning and decision
making in order meet demand in the most profitable
and sustainable manner possible.
* “Productivity Growth in Global Agriculture Shifting to Developing
Countries” by Keith Fuglie and Sun Ling Wang, published in
Choices: The magazine of food, farm, and resource issues.

Produced by Gurobi in collaboration with Dr. Evan Shellshear, Head of Analytics at Biarri.

Industry Solution Sheet: AgribusinessOne key technology that is helping to fuel this revolution
is mathematical optimization – a powerful prescriptive
analytics software tool that enables agribusiness players
to make optimal, data-driven plans and decisions andmove products from farm to factory to market to tablein the most operationally- and cost-efficient way.
Indeed, with mathematical optimization, agribusinesscompanies can make the best possible decisions –while taking into account forecasted and real-time
market demand, weather patterns, price fluctuations
and exchange rates, and other factors – in wide rangeof strategic, tactical, and operational areas including:Portfolio: Which products to produce andwhen to produce them?
Production: How to schedule, manage, andutilize critical resources and run farming,
breeding, and production operations?

Workforce: How to create rosters andschedules for workers?
Logistics: How to transport products
across the entire supply chain network?
Inventory: Which products to keep inwhich locations at specific times?
Leading agribusiness enterprises utilize mathematicaloptimization – in a wide variety of off-the-shelf andcustom-built applications – to cultivate, facilitate, andautomate optimal, integrated planning and decision
making and realize tremendous business benefits
including superior on-time, in-full (OTIF) delivery
performance and service levels, better utilization ofresources and raw materials, reduced operating costs
and excess inventory, and greater revenue growth andprofitability.

Raw Materials: How to process (disassemble,assemble, blend, and package) raw materials
to transform them into products?

For more information, visit Gurobi.com, email us at info@gurobi.com, or call +1 713-871-9341

Industry Solution Sheet: Agribusiness
Optimizing Operations Across The
End-to-End Agribusiness Value Chain
With mathematical optimization, agribusinesscompanies can foster greater alignment, agility,efficiency, and profitability across their end-to-end
operations.
Supply Chain Network Design

Demand Forecasting and Planning
Utilizing mathematical optimization techniques
like constrained forecasting in combination withmachine learning to improve forecast accuracy.

Product Portfolio Optimization
Selecting the best mix of products to satisfy
market demand and increase profit.

Supply Planning
Optimally matching supply with forecasted
demand to maximize profit margins andcustomer satisfaction.

Farming, Breeding, Collection,and Production Operations
Optimizing the utilization of critical resources(including workforce and machines) in order toboost efficiency and output and minimize costs.

Inventory Management
Optimizing inventory levels (storing the rightamount and type of goods in the right locations
at the right times) in order to reduce holding
costs while maximizing service levels.

Transport and Distribution

RetailFor more information, visit Gurobi.com, email us at info@gurobi.com, or call +1 713-871-9341

Industry Solution Sheet: AgribusinessBusiness Benefits
By leveraging mathematical optimization, agribusinessenterprises can unlock the value of their data by using
it to optimize their end-to-end planning, decision making,and operations and achieve numerous key businessoutcomes including:• Minimizing operating, labor, inventory,
and other costs.
• Increasing resource utilization and efficiency.
• Optimally matching supply and demand.
• Foster enhanced supply chain integration,visibility, and agility.
• Improving utilization of raw materials.
• Ensuring compliance with environmental
regulations and alignment with sustainability
initiatives.
• Boosting service levels, OTIF delivery
performance, and customer satisfaction.
• Driving improved bottom-line results
and revenue growth.

Case Study: At A Glance
Company Name: Alliance Group
Company Description
One of the largest lamb and mutton producers in theworld, exporting to 65 countries and representing over
15% of the world’s cross-border mutton trade.

Solution
A cloud-based mathematical optimization application– built by Biarri and powered by the Gurobi Optimizer –that enables Alliance to automatically generate
optimal sales and production plans and make thebest possible decisions to manage its sales andproduction operations.

Results
Increased revenue by determining the optimal
product mix to satisfy customer demand.
Reduced operating costs and improved efficiency.
Greater supply chain visibility and control acrosssales and production operations.
Read the full case study here.

For more information, visit Gurobi.com, email us at info@gurobi.com, or call +1 713-871-9341