Case Study
Strategic redesign of the logistics network with cost optimization and sustainable value generation
A multinational chemical producer redesigned its logistics network, identifying close to USD 800,000 in annual savings potential through modal optimization.
Client
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Multinational operating in more than 22 countries and owned by an international investment manager, the client operates in Brazil’s Northeast, producing specialty chemical feedstocks since the 1980s and marking Brazil’s entry into a strategic segment of the chemical industry.
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Since then, the company has become one of the leading suppliers to the national detergent industry and currently manufactures 250,000 tons of chemicals per year, with annual revenues of approximately €370 million.
Challenges
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Operation concentrated in Brazil’s Northeast, with distribution across Latin America, requiring greater logistics efficiency to meet demand.
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Increasing competitive pressure (including imports) and the need to protect margins.
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Need to evaluate structural network alternatives (modes, distribution centers, and fleet) using a robust analytical basis to support strategic decisions.
Our Approach
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Construction of the client's logistics network in SC Navigator, enabling Network Design scenario simulation and integrally representing the logistics network, costs, capacities, and constraints.
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Evaluation of redesign alternatives for the logistics network, including potential new warehouse locations connected to highways, railways, and/or ports.
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Technical-economic evaluation of alternatives, supporting investment decisions and definition of the optimal network configuration.
Results
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Structured redesign of the logistics network, with greater operational efficiency and support for growth.
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Identification of cost reduction opportunities with potential annual savings on the order of USD 800 thousand, mainly associated with modal optimization.
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Robust analytical foundation for strategic decision-making, with comparable, quantified, and value-creation-oriented scenarios.