Strategic logistics network redesign with cost optimization and sustainable value creation

CLIENT

• A multinational operating in more than 22 countries, controlled by an international investment manager. The client operates in a major industrial hub in Northeast Brazil, producing specialized chemical inputs since 1981 — marking Brazil's entry into a strategic segment of the chemical industry.

• Since then, the company has become a leading supplier to the domestic detergent industry, and currently produces 250,000 tons of chemical products per year.

CHALLENGES

• Operations concentrated in a single production hub, with distribution across Latin America, requiring improved logistics efficiency to meet demand effectively.

• Growing competitive pressure (including imports) and the need to protect margins.

• Need to evaluate structural network alternatives (transport modes, distribution centers, and fleet) supported by a robust analytical foundation for strategic decision-making.

OUR APPROACH

• Built the client's logistics network in SC Navigator, enabling Network Design scenario simulation with integrated representation of the logistics network, costs, capacities, and constraints.

• Evaluated logistics network redesign alternatives, including potential new warehouse locations connected to highways, railways, and/or ports.

• Conducted technical and economic assessment of each alternative, supporting investment decisions and identification of the optimal network configuration.

RESULTS

• Structured logistics network redesign, delivering improved operational efficiency and a scalable foundation for growth.

• Identified cost reduction opportunities with annual savings potential of approximately USD 800,000, primarily driven by modal optimization.

• Robust analytical foundation for strategic decisions, with comparable, quantified scenarios oriented toward value creation.