Chemical Manufacturer Optimizes Transportation and Logistics

Client Context

A privately owned national distributor of industrial chemicals with multiple distribution centers faced poor financial performance due to inefficiencies in its global supply chain. The company struggled with inconsistent lead times, high inventory levels, and rising transportation costs, which negatively impacted operations and profitability.

Key Challenges

• Supply chain complexity outpacing operational capabilities.
• Inconsistent lead times, affecting order fulfillment.
• Excessive inventory levels, leading to inefficiencies.
• High transportation costs due to suboptimal routing and scheduling.

Approach & Key Success Factors

EFESO developed a structured supply chain optimization strategy to enhance efficiency and financial performance:

1. Logistics & Transportation Optimization

• Implemented best routing practices and optimized transportation schedules.
• Balanced freight payloads, reducing overall transportation costs.

2. Inventory Management Standardization

• Defined optimal order quantities to prevent excess inventory buildup.
• Established min/max inventory guidelines, forming the basis for a standardized purchasing procedure.

3. Playbook for Supply Chain Best Practices

• Developed a Best Practices Playbook to standardize logistics and supply chain processes.
• Created a culture of performance accountability to sustain improvements.

RESULTS AT A GLANCE

$3.9M

Increased EBITDA

30%

Reduced overall transportation cost

95%

Reduced lead-time variance