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River Logic Partners with Philip Morris International to Create Digital Twin of the Company’s Global Manufacturing Network
September 15, 2020

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DALLAS, Sept. 15, 2020  /PRNewswire/ — River Logic, the leading provider of prescriptive analytics technology, successfully deployed supply chain optimization technology for manufacturing at Philip Morris International (PMI), a multinational tobacco company with approximately 40 manufacturing centers around the world.

“We are thrilled at the opportunity to be a preferred technology vendor and help address Philip Morris International’s supply chain optimization needs,” said Carlos Centurion, President of River Logic. “When it comes to sourcing optimization on a global scale, especially for an industry that is changing so quickly, it’s crucial that manufacturing companies consider the end-to-end value chain, not just the supply chain.”

In partnership, River Logic and PMI created a digital twin of the company’s global manufacturing footprint, equipped with advanced prescriptive analytics capabilities. The solution offers scenario analysis capabilities that enable PMI to assess the impact of changes in local market regulation, business disruption, product portfolio changes, equipment moves, and more on a monthly basis versus only on a yearly basis. A key technology requirement was the capability to run forward looking optimization scenarios using robust financial modeling to represent manufacturing costs, duties, and transportation costs across the network.

“With the introduction of the smoke-free product category in PMI’s portfolio, our business ecosystem is changing drastically. There are so many non-standard complexities and new constraints across our value chain that traditional tools and techniques could no longer support us in setting up our roadmap,” said Alexandros Skandalakis, Director Manufacturing Capacity and Footprint at PMI. “Implementing River Logic’s solution enables us to extend the number of variables that could impact decisions, such as sourcing options, capacities and capabilities, inter-trading-zone product duties, inter plant product transfer prices, and distribution costs. We reduced spread sheet simulations by 90% and decreased the time required for scenario evaluation from weeks to hours. Today, we have a digital, collaborative and cross-functional tool helping us identify and quantify sourcing opportunities at a global scale, across different product categories, for up to a 10 year glide path period.”

About River Logic
River Logic has been a global innovator in prescriptive analytics (optimization) since 2000. Its platform offers a unique combination of prescriptive analytics, visualization, and embedded knowledge (i.e., financial modeling, cost accounting, business constraints) that enables users to configure code-free prescriptive analytics models that are more expansive than those built with other tools. By understanding how to best utilize cross-functional resources and manage tradeoffs, companies make more impactful decisions.

Press Contact
Shannon Kearns
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About Philip Morris International: Delivering a Smoke-Free Future
Philip Morris International (PMI) is leading a transformation in the tobacco industry to create a smoke-free future and ultimately replace cigarettes with smoke-free products to the benefit of adults who would otherwise continue to smoke, society, the company and its shareholders. PMI is a leading international tobacco company engaged in the manufacture and sale of cigarettes, as well as smoke-free products and associated electronic devices and accessories, and other nicotine-containing products in markets outside the United States. In addition, PMI ships a version of its IQOS Platform 1 device and its consumables authorized by the U.S. Food and Drug Administration to Altria Group, Inc. for sale in the U.S. under license. PMI is building a future on a new category of smoke-free products that, while not risk-free, are a much better choice than continuing to smoke. Through multidisciplinary capabilities in product development, state-of-the-art facilities and scientific substantiation, PMI aims to ensure that its smoke-free products meet adult consumer preferences and rigorous regulatory requirements. PMI’s smoke-free IQOS product portfolio includes heat-not-burn and nicotine-containing vapor products. As of June 30, 2020, PMI estimates that approximately 11.2 million adult smokers around the world have already stopped smoking and switched to PMI’s heat-not-burn product, available for sale in 57 markets in key cities or nationwide under the IQOS brand. For more information, please visit and