|
||||||
| Client: | A
global manufacturer of petroleum-based chemicals for industrial use. | |||||
| Problem: | This
chemical producer participates in a global market of increasingly “commoditized”
products, resulting in intense price competition, compounded by a weak economy.
Client’s goal was to take up to 10% out of a global logistics budget of over $500
million in 2002. | |||||
| Approach: | Conduct
workshops with corporate cross-functional teams to assess process/goals alignment
and validation of existing ideas. Develop an executable plan for achieving initiatives
from a prioritized schedule of project ideas. Generate unique perspectives on
value enhancement. Categorize projects and rank for execution phase. | |||||
| Results: | Two
working teams were created with a process plan to develop “fresh” logistics ideas.
Over 60 ideas were categorized and then priority ranked with a matrix weighting
process. Among executable projects identified: • Use of corporate leverage in bundling purchased railcar leasing, maintenance and management contracts • Use of single-sourcing tanker truck suppliers at each plant site • Optimization modeling for truck/rail/barge transportation • Optimization modeling for rail car fleet sizing • Focus on LTL trucking reduction | |||||
| ||||||
