Case Study – Circa 2010-2020 Timeframe
End-to-End Supply Chain Modelling Project
GLOBAL MANUFACTURING FOOTPRINT OPTIMISATION
Supply Chain Optimization
Annual Savings
Higher equipment utilization
Lower logistics rates and costs
Improved service levels less logistics chaos
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Complex optimization – including production, logistics, distribution and entire SCM
Global Supply Chain Group case studies illustrate past client problems and how they were solved using supply chain thinking. All client identifying information is disguised. To protect client confidentiality, only details that asssist in illustrating the situation, the key problems and the solution are given. The intent is to discuss only those details that readers could find useful for their situation, and apply in read world problem solving.
PROJECT DETAILS
- Client – Global top 3
- Industry – Fertilizer, Agriproducts, Chemicals
- Geography – Australia (imports into Australia from Arabian Gulf, USA, Togo, Morocco, SE Asia, China)
- SCM Specialization – Shipping, Optimization, Procurement, Organization Capability Review.
POPULAR CASE STUDY
- BUSINESS TRANSFORMATION
- OPERATIONAL NETWORK RATIONALISATION
- OUTSOURCING 3.0
- GLOBAL MANUFACTURING FOOTPRINT OPTIMISATION
CLIENT SITUATION
- This multibillion-dollar manufacturer and importer has nearly 50% market share.
- Import shipping costs had nearly doubled in 2 years. The shipping department was engaging the market in a transactional manner.
- The client wanted to find a strategic solution to ensure lowest costs, highest service delivery and no surprised.
METHODOLOGY
- Increased parcel size (Panamaxes).
- Information asymmetry reversal.
- Long-term contracts.
- Formal, fact-based negotiations with a deeper supply base.
RESULTS
- Envisaged savings of $X m to $XX m p.a.
- Significantly increased control over shipping
- Performance improvement and assurance of vessel availability.
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