Check performance supply chain results in significant savings
Voridian, an operating division of Eastman Chemical Company (NYSE:EMN), is the world’s largest manufacturer of polyethylene terephthalate (PET) for packaging and a global leader in the manufacturing of acetate tow. Voridian currently runs several factories, warehouses and stock holding points in Europe.
Voridian wanted to know if the performance of its European supply chain met the performances of comparable European supply chains. Besides, Voridian wanted to define possible business opportunities.
Voridian’s current European supply chain was reviewed. Alternative concepts based on redirection of good flows, producing product groups closer to the market and reducing the number of stock holding points in Europe were analyzed and compared. Furthermore, the transportation lead times to the customers of the several concepts and the implementation complexity were determined.
- 2.5% quick wins by redirecting of good flows
- 10.5% transportation kilometers savings by producing two product groups closer to the market
- 16.5% transportation kilometers savings and 10% inventory savings by closing 6 stock holding points throughout Europe and producing two product groups closer to the market.