+85
Interviews conducted across production and headquarters teams
Identifying $10M Savings in Chemical Supply Chain Assessment: Building a More Agile and Transparent Supply Chain Across the Americas
Industry: Chemicals
Industry: Private Equity
Service: Cost and Value Engineering
Service: Operations Strategy and Transformation
Service: Supply Chain
Our Client
A private equity-owned global chemical manufacturer operating an extensive shipping network across North and South America.
The Challenge
The company faced growing challenges in service reliability, transportation efficiency, and cost visibility following multiple acquisitions.
- Customer service decline due to order fulfillment and transportation inefficiencies.
- Limited visibility into railcar dwell times and inconsistent maintenance practices.
- Excessive logistics costs, including oversized fleet and port detention fees.
- Disconnected systems causing poor inventory and production coordination.
Real Results Achieved Together
The assessment identified high-impact improvement opportunities and established actionable roadmaps to deliver sustainable cost savings and operational agility.
+100
Cost-saving initiatives identified and evaluated
$10M+
In validated annual savings potential
Transformation Impact
- Optimized fleet sizing and positioning to reduce dwell times and costs.
- Centralized maintenance and infrastructure management delivering multi-million savings.
- Eliminated port detention fees through improved scheduling and coordination.
- Enhanced system integration and data visibility via SIOP implementation.
- 4 key workstreams prioritized for implementation
Our Approach
EFESO mobilized a cross-functional team of logistics, rail, and chemical industry experts to conduct an 8-week supply chain assessment focused on uncovering cost-saving opportunities and performance improvements.
Fleet Sizing and Positioning
- Reduced average dwell times over 20 days by 20%, saving ~$2M USD.
- Transitioned short-distance deliveries (under 250 miles) from rail to truck, saving $1M USD.
- Combined savings potential: $3.5M USD.
Maintenance and Infrastructure Optimization
- Identified inconsistent maintenance practices and idle assets.
- Designed a centralized maintenance program and dedicated railcar service/storage infrastructure generating $5M USD annual savings.
Plant-to-Port Cost Reduction
- Eliminated $1M+ USD in annual port detention fees by improving scheduling and broker coordination.
System Integration and Data Visibility
- Implemented a Sales, Inventory & Operations Planning (SIOP) process to enhance coordination and ensure real-time data supports cost-saving initiatives.
EFESO also supported the client’s steering committee in evaluating investment needs and operational risks to ensure sustainable impact.
Related Services
Cost and Value Engineering
Rising costs demand optimization from design through production. We apply cross-functional value engineering, zero-based redesign, and continuous cost tracking to protect margins.
Operations Strategy and Transformation
Helping organizations rethink how they create value. We strengthen performance, build resilience, and accelerate growth across every layer of your business.
Supply Chain
Supplier complexity obscures 70% of your value creation. We strengthen networks through supplier development programs, risk mitigation strategies, and collaborative innovation platforms.
Facing Similar Supply Chain Visibility or Cost Challenges?
- Seeking to reduce logistics costs through improved visibility and integration.
- Wanting to optimize fleet sizing, maintenance, and infrastructure efficiency.
- Looking to align planning and execution through data-driven processes.
- Needing a rapid assessment to unlock immediate cost-saving opportunities.
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