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Distribution Strategy Review

Chemicals - Speciality Chemicals

Issue

  • This large chemicals distributor was facing a double hit from reduced volumes and reduced margins as the business became more commoditised.
  • There had been an internal strategic review of the physical supply chain, we were then asked to validate this analysis and consider any other relevant options

Solution

  • Led a small consulting team, who worked with the senior managers of this company to review their UK distribution operations.
  • This was primarily a strategy supply chain modelling assignment using specialist software (CAST), however part of the out-put was to provide advice upon the potential out-sourcing of this function. Specific responsibilities included:
    • designing, reviewing and summarising a data based analysis of the business (to feed into the model)
    • developing design of the model with the specialist (CAST) modellers
    • agreeing modelling scenarios
    • reviewing and analysing model output
    • final presentation with recommendations

Benefits

  • A validation of the original strategy, with proven fall back positions should it not be obtainable
  • Advice upon the ‘pros’ and ‘cons’ of out-sourcing the supply chain
  • High level next steps for the business identified

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