Chemicals Case Study

Chemical manufacturer subsidiary

THE ORGANISATION

• The German subsidiary of a major, multi-national chemicals manufacturer

THE ISSUES / PROBLEMS

• Overcapacity within the chemicals sector
• Group looking for common basis across the whole Group on which to make strategic investment decisions
• Group looking for improved integration and profit improvement opportunities

PROJECT ACTIVITIES

• Carried out detailed review of all operational functions
• Engagement of the local management team in the review process and programme
• Detailed commercial analysis of customer, product portfolios and levels of contribution
• Examination of routes to market, processes, procedures and the cost of sales covering; direct sales workforce, agency relationships, effectiveness of sales administration procedures
• Examined demand patterns and the basis of trading; global contracts, tenders and periodic demands
• Detailed review of production planning and scheduling, including the effectiveness of recently installed SAP supporting systems
• Detailed review of product changeover and set-up procedures
• Review of purchasing procedures and effectiveness, identification of opportunities for purchasing savings
• Reviewed procedures for evaluation and implementation of new product streams

PROJECT RESULTS

• Developed and agreed detailed implementation programme with local management team encompassing:
  • Product and Customer rationalisation programme
  • Design development and implementation of improved marketing plan and sales management procedures
  • Programme for targeted purchasing improvements
  • Establishment of new production planning and scheduling function
  • Definition of production planning parameters, based on EOQ principles
  • Integration and acceleration of SAP implementation
  • Improved management procedures for control of the direct workforce
  • Evaluation procedures for managed development and implementation of new product streams
• Programme adopted, owned and implemented by local management and staff
• Major profit improvements achieved