“Logistics costs of chemical companies average between 10 and 20 percent of revenues. Taking a total supply-chain approach to logistics efforts to balance the trade-offs between cost and customer service, companies are saving as much as four percent in sales, while improving customer service.” Steve Hamilton, CEO,
ChemLogix

Inbound Consulting

In most industries, the management and optimization of outbound logistics is already an established priority, however many tend to ignore sourcing and inbound supply management. Worse yet, in the highly competitive chemical industry, a bad habit of “service give away” often exists as a sales-side agenda.

Maintaining a “service at all cost” posture can result in inefficient modes of operation, a loss of visibility of cost differentials between global, regional or local sources of materials and limited order quantity optimization. Balancing the demand for high service levels with a sound sourcing strategy not only ensures competitiveness but is also key to long-term viability of chemical companies.

Restoring Inbound Order

ChemLogix helps chemical companies to unlock cost savings in raw materials sourcing while maintaining high service levels by focusing on three key areas; Supplier Service & Delivery, Integrated Sourcing Strategy and Operations & Reporting.

Supplier Service & Delivery
ChemLogix maintains baseline data associated with service level and service reliability vs. the cost of supply. Using this data, we can ensure that the proper stock position and access to regional and global supply is maintained necessary to achieve the reliability of service.
Integrated Sourcing Strategy
While Global sourcing is all the rage, the absolute dollar savings opportunities for most chemical companies are roughly equivalent in global, regional, local raw materials categories. Accordingly, developing a sound sourcing strategy typically includes four key improvement steps.
  1. Defining alternatives to the present service & delivery cycle.
  2. Placing materials & suppliers in global, regional and local raw materials categories.
  3. Developing the Inter and Intra-regional North American sourcing footprint.
  4. Integrating the sourcing footprint with product distribution & import / export gates.
Operations & Reporting
ChemLogix provides operational support to clients in four key areas;
  1. Standardization of terms and conditions (T&C) to drive economies of scale.
  2. Automation of order, shipment & accounting transaction process for all materials.
  3. Optimization of modes and order quantities within the North America footprint commensurate with service alternatives.
  4. Reporting utilizing the Inbound Performance Dashboard which defines monthly service, commodity & logistics costs, and working capital metrics vs. targets.

For a no-obligations discussion of how ChemLogix can deliver value to your company through our Inbound Consulting services call 215-461-3805 or email information@chemlogix.com.

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