The Challenge
A world leading specialty chemicals company was challenged with a double-digit growing demand in Asia-Pacific (APAC). Amongst other things their logistics capacity and capability was not equiped to properly handle this increase in volume.
The symptoms were visible throughout the region and proliferated in many stocking points, plenty of inventory and low delivery performance.
ESCIMCO was approached to develop and deploy a Logistics strategy for the APAC-region.
The Approach
In close cooperation with the Business Units ESCIMCO defined the requirements for each of their markets and their expected growth. Additionally ESCIMCO assessed the capacities and capabilities of the logistics department in light of the Business Units’ requirements and growth predictions, as well as considering market conditions and technology developments.
Based on this review ESCIMCO defined a 5 ‘pillar’ Logistics’ strategy in cooperation with the various logistics managers. ESCIMCO discussed and fine-tuned this Logistics’ strategy with the Business Units to assure their full alignment.
ESCIMCO worked out the deployment roadmap. Regular alignment with the Business Units happened to review progress and adjust for market changes.
Safety standards were raised to meet global best practices.
ESCIMCO educated and trained the Logistics organisation. The organisation was adjusted when and where required.
The Logistics teams met regularly with the various Business Units. This assured that the Logistics teams were well aware of the customer demands and requirements.
A ‘fit for purpose’ central regional Logistics team was formed. This central team connected the various systems used across the region, with which it consequently coordinated logistics flows across and in/out of the APAC-region.
The Results
Safety performance improved considerably, and ‘safety’ became a mindset to all in the logistics organisation.
The complex regional organisational and operational logistics structure was drastically simplified and upgraded, while simultaneously cutting out excessive logistics cost. Additionally information systems were implemented linking local systems into a regional overview system, allowing for a much better control of the operation.
Delivery performance rapidly increased to consistently above 95% on time, while regional inventories reduced by more than 35%.
