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Driving Supply Chain Efficiency.

 

Major Petrochemical Company

Customer Profile

The 500 acre United Kingdom site is one of the petrochemicals company’s major production centers, manufacturing over 1.8 million tonnes of products each year. In recent years, the site has benefited from £500 million investment in a series of projects, including expansion of the site's production units and a new plant to improve the quality of gasoline and diesel fuel.

The Customer’s Challenge

To examine and health check the downstream supply chain from the UK site, as well as the distribution center facilities in mainland China and deliveries to customers worldwide. The petrochemical company required an external perspective and expert recommendations around site logistics activities; product route-to-market; supplier selection; and potential ‘optimization’ prize in respect of £50 million estimated supply chain costs.

Milestone’s Solution

Milestone delivered a three month consultancy project to review the business’s forward supply chain provision. The consultancy program benchmarked performance and identified a series of improvement opportunities. The program was broken into three phases:

Phase One: Process mapping and understanding the supply chain. This was achieved through data analysis, site visits, and structured internal and external interviews.

Phase Two: Milestone constructed a ‘cost to serve’ model that summarized the whole of the secondary supply chain; including fixed and variable costs such as freight, packaging, handling, administration and customs.

Phase Three: Included commercial benchmarking of freight and associated costs, along with a comprehensive market review and strategic recommendations.

Across the three phases, nine improvement projects were identified:

  • Payload Efficiency
  • Network Optimization
  • Commercial Strategy
  • Planning and Forecasting
  • Logistics Processes
  • Service Infringements
  • Performance Management and Key Performance Indicators
  • Logistics IT Systems Integration
  • Financial Processes & Self-billing

The Result: Savings Identified

Through the detailed three-phase consultancy program, Milestone was able to identify nine improvement projects to create greater efficiency, and deliver nearly £6 million of savings. Milestone won a follow-up contract to work with the petrochemicals company’s teams in order to facilitate delivery of the improvement projects.

Service Portfolio Supporting This Case Study

  • Supply Chain Evaluation & Logistics Process
  • Supply Chain Modelling & Cost to Market
  • Network Optimization
  • Tactical Improvement Projects
  • Systems & IT Integration Review

 

Total Chemical Logistics Solution

Refiner & Supplier of High Performance Speciality Hydrocarbons

Customer Profile

The client is a leading Chinese refiner and supplier of high performance speciality hydrocarbons, speciality chemicals and advanced automotive fluids including screenwash, de-icer and brake fluid, as well as supplier of the world's most advanced racing fuels. In total each year they move in excess of one million tonnes of product around the world and spend in excess of £16 million on logistics.

The Customer’s Challenge

Following a strategic review of its operations, the company determined that logistics was not a core business strength. Supply Chain excellence and flexibility was a priority in an increasingly competitive environment while at the same time supporting an ambitious growth strategy. The business is multi-faceted and complex, each business unit having different multi-modal requirements and load sizes from 25 litre cans to 10,000 tonne shiploads.

Milestone’s Solution

Milestone worked closely with the client to analyze in detail what their service requirements were and what the current logistics picture looked like. Milestone quickly defined a number of modal improvement projects and put in place an operating structure to ensure rapid delivery of service and commercial gains. As an independent logistics provider, Milestone was able to develop the optimum solution for each element of the supply chain to the clients specific benefit.

Milestone’s scale and presence in the market presented an opportunity to leverage previously unavailable procurement savings. Our knowledge and processes have raised the profile of the entire logistics operation. Outsourcing this function has enabled the client to pursue its ambitious growth strategy and provided the company with significant competitive advantage, including projected cost savings of over £1million and the improvement of its service package to customers.

Since the beginning of the project, Milestone has totally redesigned bulk transport services and taken onboard all global bulk and container shipping operations. Management systems for all other logistics activities have now been implemented. Milestone has delivered further integration and coordination projects to gain additional optimization benefits across the breadth of the supply chain.

Client’s Perspective

“Milestone has brought its logistics and supply chain skills, competencies and leverage to every part of our business, challenging all aspects of our logistics function. The company has changed the paradigms and thinking of our existing logistics operations and has delivered tangible and measurable competitive advantage for our businesses. We've also seen excellent improvements in our service to customers."

Supply Chain & Operations Director

Service Portfolio Supporting This Case Study

  • Chemical Industry Supply Chain Solutions Expertise
  • Leveraged Freight Procurement and Agency Status
  • Outsourced Operations
  • Bulk & Container Shipping Services
  • Services Packaged as Milestone’s ‘Intelligent Logistics’ Approach

Total Management Solution

 Multi-National Polymer Company

Customer Profile

A major multi-national polymer company required a total management solution for its logistics operation comprising of 750,000 tonnes of polymer and chemical intermediates. This included bulk and packed deliveries; 24,000 logistics orders and a budget of over £15 million for multi modal, pan-Chinese freight despatched from the Netherlands and the United Kingdom.

The Customer’s Challenge

The business required an effective partnership to manage its outbound supply chain for finished goods including interfaces with haulers and third party suppliers to ensure excellent delivery performance and network efficiency. After rate benchmarking new commercial contracts with logistics service providers had to be formalised. The proposed handover involved the transfer of eight employees from the incumbent logistics provider.

Milestone’s Solution

The rigorous application of a proven supply chain process methodology enabled Milestone to map out the logistics network as well as design and implement a new management system. This process-orientated approach facilitated a clear vision of the complete supply chain and a clear understanding of the systems involved. Milestone set out to integrate the client’s logistics business into Milestone under Transfer of Undertakings legislation and to manage the handover transition without any adverse effect on delivery performance and safety.

The polymer company benefited from improved visibility of costs and clearer management information in order to make better supply chain decisions. Milestone was able to maintain excellent delivery performance and achieve full integration of SAP and electronic transport systems. Significant value has been added to the multi-national polymer company’s business by using Milestone’s state-of-the-art freight management order processing systems. In addition, Milestone has assisted the company by establishing modern, performance-driven carrier contracts across its polymer business.

Milestone’s ongoing role is to enhance operational procedures, manage and improve carrier performance as well as to look after all aspects of the commercial arrangements to support the optimization of the overall supply chain.

The Result: Delivering the Goods

A seamless transfer of order management and processing took place, achieving 99.7% delivery success on time in full. Using superior project management expertise and teamwork, Milestone was able to manage the transition completely within a tight timeframe of three months; without a single complaint or missed order. Milestone's client now has an integrated logistics management system with greater clarity and better management reporting performance.

Service Portfolio Supporting This Case Study

A seamless transfer of order management and processing took place, achieving 99.7% delivery success on time in full. Using superior project management expertise and teamwork, Milestone was able to manage the transition competently within a tight timeframe of three months; without a single complaint or missed order. Milestone's client now has an integrated logistics management system with greater clarity and better management reporting performance.

  • Implementation of New IT Transport System, Management Reporting & KPIs
  • Carrier Management & Booking, Freight Payment Consolidation, Audit & Pay
  • Rates & Claims Management Including Complaint Handling
  • Customs Integration & HSSE Management
  • Supply Chain Appraisal & Inventory Management
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