Description

Huntsman Advanced Materials is a leading global chemical solutions provider in technologically advanced epoxy, acrylic and polyurethane-based polymer products.

Opportunities

Huntsman requested a review on the Center-of-Gravity (CoG) of their European Distribution center (EDC) in Mannheim, Germany. Circa 50% of the shipments reside from this EDC, where the remaining volume is distributed from local satellite DCs. The products are packed in both drums or IBCs.

Solution

• The logistics contract was close to its end-date, and Huntsman would like to incorporate the new CoG results in the evaluation of a potential new logistics contract.
• The distribution strategy was reviewed and Huntsman would like to have an indication of the impact of these new strategies on their logistics network footprint. These new strategies were:

‒An adjusted Make-to-Stock versus Make-to-Order ratio.

‒Deliver smaller customers through local/national distributors, rather than direct deliveries.

Benefits

• A simulation of five viable Center-of-Gravity footprint scenarios, differentiated for the considered strategies on MTO/MTS, % of local distributor deliveries, sales growth figures and average shipment sizes.
• Identification of quick-wins in the current transportation network through transport benchmarks and identification of inefficiencies in the existing transport flows.