Overcapacity in the chemicals sector affecting profits
Improvements programme developed and implemented resulting in major profit achievments
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