Supply Chain Consulting

In rapidly changing environments like the chemical industry, the ability to adapt is essential. However, a piecemeal approach to supply chain optimization can create a logistics network overwhelmed by inefficiency and waste. The accumulation of individual links, processes and procedures can mask excess costs caused by the misuse and misalignment of your supply chain’s resources.

ChemLogix has a track record of success working with chemicals companies in all parts of the supply chain where we’ve developed expertise and insights through the examination of three basic industry paradigms:

1. The Performance Challenge – our practice is that of optimizing trade-offs such as service, revenue, cost and asset return – rather than micro-managing single measures.
2. All Customers are Not Equal – we recognize that in most chemicals markets the chemicals business unit cannot profitably serve all customers in the same way.
3. There is No Single Supply Chain – For most chemicals business units, segmentation of the aggregate supply chain into categories is essential to driving optimized performance since each category has unique service, financial and operating characteristics.

Supply Chain Consulting Services

Armed with a sound fundamental understanding of chemical industry best practices and hands-on experience solving some of our client’s greatest supply chain challenges, ChemLogix affects supply chain improvement in the following three areas.

Baseline and Benchmarking

The first step in the search for step change improvements is the development of a baseline of performance. Once a baseline has been acquired it can then be compared to ChemLogix’s database of financial benchmarks for over 100 chemical companies at the company, business unit and category level.

Economics of Change

The “gaps” between the baseline and benchmarks are used to prioritize and define improvement areas within and between supply chain functions. These gaps often have a potential economic impact of over 2% of sales. Based on the gaps, the team defines a number of projects focused in performance reporting, sales and marketing, sourcing, production and distribution.

Implementation Planning

Once target projects are identified for economic feasibility and payoff they are prioritized for implementation as:

1. Proven Projects – ones representing “low hanging” fruit that require minimal process change to implement.
2. Probable or Pilot Projects – projects that require process change between multiple supply chain functions, which may require customer or supplier involvement.
3. Potential Projects – projects having very significant potential impact but also require significant process change.

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