Case Study – Circa 2010-2020 Timeframe
Cost Reduction- Success Story
REGIONAL SUPPLY CHAIN STRATEGY
Cost Savings Initiatives
Commodity Boom
Investments in New capital types of equipment.
Lower costs structure
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Competitive advantage for decades worth hundreds of Millions of $ for project life.
PROJECT DETAILS
- Client – Global leader
- Industry – Chemicals and Ammonia
- Geography – South and Central America
- SCM Specialization – Greenfield plant operations and supply chain optimization – both inbound and outbound, Supply Chain infrastructure.
POPULAR CASE STUDY
- BUSINESS TRANSFORMATION
- OPERATIONAL NETWORK RATIONALISATION
- OUTSOURCING 3.0
- GLOBAL MANUFACTURING FOOTPRINT OPTIMISATION
CLIENT SITUATION
- The company was considering building a new greenfield plant for manufacturing in either Peru or Venezuela.
- The choice hinged on supply chain costs – both inbound costs for raw materials and outbound costs for the finished product – which made up nearly 40% of the total cost structure.
- The company needed to make a decision on the country, location within the country, supply chain infrastructure, supply chain systems, and operations.
METHODOLOGY
We modelled delivered cost at key locations for every competitor for pricing strategy.
RESULTS
Distance and access to Product 1 are the main drivers of the final Product 2 supply chain cost* at the intended markets.
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