Type of Business Packager and distributor of industrial gasses
Revenue: $1 billion
The Challenge: The distribution costs were excessively high for one of the major divisions. If costs could not be reduced by 20%, the division would have to be sold.
The Goal: This division had grown through acquisition, and there were many cultural and process barriers to overcome.
The Process:
- A network analysis was conducted looking at the total cost to package and the total cost to distribute from all of the locations in the division
- The network was optimized for cost while ensuring that no process constraints were violated
- Worked through cultural and process barriers
Results:
- 30% reduction in total distribution costs for the division were achieved
Duration: Three months from beginning of the project to achieving results
Consultant's Role:
- Worked with process experts to develop a network analysis
- Worked with process experts to optimize the network
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