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Chemical Manufacturer Optimizes Transportation and Logistics

The Situation

  • Privately owned leading national distributor of industrial chemicals with multiple distribution centers.
  • Global supply chain had not kept pace with the needs of an increasingly complex supplier base.
  • Poor financial performance due to inconsistent lead-times, high inventory levels, and high transportation costs.

Argo’s Solution & Approach

  • Identified and implemented best logistics routing practices, optimized transportation schedules, and balanced freight payloads yielding in a reduction in freight costs.
  • Introduced optimal order quantities and implemented inventory min/max guideline were the basis to creating a standardized set of purchasing procedures.
  • Developed a Playbook of Best Practices to standardize key supply chain and logistics processes creating a culture of performance accountability.

RESULTS AT A GLANCE

$3.9M

Increased EBITDA

30%

Reduced overall transportation cost

95%

Reduced lead-time variance

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