Case study

Specialty chemicals company

Distribution strategy for an international specialty chemicals company

Following a series of acquisitions this client had over 100 warehouse sites supporting 11 related businesses across Europe. The capital required to update these facilities to meet the latest safety and environmental standards was not readily available and operating costs were rising.   
    
PA involved all 11 businesses in developing and agreeing a long-term strategy for warehousing in Europe, visiting over 70 warehouses to audit their needs for meeting operational and environmental standards.

Following the audits, the PA team analyzed various possible logistics network options using PANEF (PA's computer model for logistics networks), identifying short and long term savings opportunities.

We then identified and assisted in selecting contractors to build and operate two major European warehouses. The client was able to close half of the existing warehouse locations even before the two new major warehouses were operational.

• Savings of 21% on warehouse operating costs, 5% on stocks and millions of pounds on transport costs
• Avoiding capital expenditure of millions of pounds on upgrading unnecessary warehouse sites to meet health, safety and environmental regulations.