Check performance supply chain results in significant savings

April 6, 2016 1587

voridian-1

Description
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.

Opportunities
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.

Solution
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.

Benefits

  • 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.
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50 years of experience

Consulting firm with over 50 years of experience.


European database

Availability of a European logistics database with benchmark figures on transportation and warehouse costs.


Network design

Full scope expertise on network design, as well as warehouse design (conceptual layout, logistics - and storage equipment) and logistics building design (engineering and investment calculations).


Implementation support

Ability to support implementation of new logistics concepts (70% of Groenewout revenue is with existing customers in follow-up/implementation projects.


Extensive knowledge

Extensive operational knowledge, hands-on, pragmatic and bottom-up approach.


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