Global specialty chemicals

Developing an advanced supply chain set-up

Background

Global colour and specialty chemicals company, in Brand & Performance Textiles, Packaging & Paper, and Coatings, Adhesives & Sealants.
Headquartered in Switzerland, the company generates approx. CHF1.3bn revenue (FY16) with 3,000 people across 35 countries with 26 manufacturing facilities.
The company was formed in 2013 as a spin-off from a major Swiss chemical/pharmaceutical conglomerate. A year later, it combined with the textile chemicals division of a German chemicals giant.
Because of the diverse & spread nature of the business, with increasing complexity across the Supply Chain, the client wanted to understand how to optimize logistics flows in (primarily) South America.

Business Relationship

Both the CEO and COO were a prior connection to the JENTS International leadership.
A professional relationship was developed over a number of years before engaging.
The client organisation was (formed and) owned by Private Equity.

Approach

In the context of geo-political and economic challenges, the company was aiming to generate substantial improvements from an optimized supply chain set-up in the LATAM region.
The goal of our initiative was to stabilize and improve customer service levels without increasing (preferably decreasing) cost.
Developed a baseline of the client’s existing logistics set-up, incl. shipment flows and warehouse data
Analysed total costing data (incl. taxation and use of Free Trade Zones).
Conducted modelling and business case development.
Simulated potential to be scenarios and initiated detailed implementation planning.

Results

Created full insight in inbound and intra-continent logistics flows and costings.
Provided clarity in potential impacts from sensitivity analysis.
Determined preferred logistics set-up for LATAM, allowing the company to improve customer service levels and capture significant cost savings by making use of an optimized Hub structure.

JENTS International

JENTS International is an advisory company specialized in identifying and realising operational performance improvements at accelerated pace for Private Equity and (Portfolio) Companies.

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