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.
Business Transformation- Case Study

POPULAR CASE STUDY

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.
The Essence Of Business Transformation

METHODOLOGY

We modelled delivered cost at key locations for every  competitor for pricing strategy.

regional supply chain strategy north and south america
Large scale cost saving

RESULTS

Distance and access to Product 1 are the main drivers of the final Product 2 supply chain cost* at the intended markets.

regional supply chain strategy
Global Supply Chain Group - Listen to this case study in a Podcast
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