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Value Chain Improvement project for a leading provider of chemicals gains € 7M loss elimination

Client situation & approach

Our client is a leading provider of speciality chemicals and services to the food, healthcare, industrial and energy sectors. The business had grown rapidly as a result of acquisitions and was already quite advanced with functional initiatives to reduce cost. The targeted next step in maturing Supply Chain practices was to seek a holistic optimisation of the inbound materials supply taking into account the total cost of ownership, We supported this process by:

  • Development of a customized and holistic Total Cost of Ownership (TCO) approach across the value chain
  • Identification of main loss/benefit areas from a TCO perspective and set up of targeted projects to address those
  • The inclusion of both suppliers and internal functions throughout the process and building their capability for improvement.

Results

  • €7M Loss elimination delivered through 19 focused projects
  • Development and implementation of TCO loss eradication methodology.