Distribution Network Optimization

April 6, 2016 2372

Ciba (SWX: CIBN) is a leading global specialty chemicals company, dedicated to producing high-value effects for its customers’ products. Ciba provides products and one-stop expert service in three segments: Plastic Additives, Coating effects, Water-& paper Treatment.
This relates to products – adding performance, protection, color and strength to plastics, paper, automobiles, buildings, home and personal care products and much more. Ciba is active in more than 120 countries around the world and is committed to being a leader in its chosen markets. In 2007, the Company generated sales of CHF 6.5 billion from continued operations and invested over CHF 260 million in R&D.

In defining an integral, new supply chains strategy in Europe, Groenewout was asked to define the accompanying optimal European Distribution Network Footprint, with a focus on the number of warehouses and their respective locations

Groenewout provided a number of deliverables

  • Optimal European distribution footprint with its operational logistics costs, investment & transition costs
  • Assessment on delivery reliability and lead-times
  • Customer profitability analysis
  • Analysis on minimum customer order values.


  • An improved European distribution footprint with a savings potential of circa 10% in logistics operational costs
  • A number of quick-wins that lead to financial savings and/or customer service improvements when implemented
  • A MS-Access based tool that allows sales & marketing to conduct different profitability assessments on their customer base.
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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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