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| 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 |
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