Case Study
Strategic logistics network redesign to optimize costs and generate sustainable value
Segment: Industrial / Chemicals
Solution: Optimization Technology
Client
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Multinational operating in more than 22 countries and owned by an international investment manager, the client operates in Brazil’s Northeast, producing specialty chemical feedstocks since the 1980s and marking Brazil’s entry into a strategic segment of the chemical industry.
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Since then, the company has become one of the leading suppliers to the national detergent industry and currently manufactures 250.000 tons of chemicals per year, with annual revenues of approximately €370 million.
Challenges
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Operations concentrated in Northeast Brazil, with distribution to Latin America, requiring greater logistics efficiency to meet demand.
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Growing competitive pressure (including imports) and the need to protect margins.
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Need to assess structural network alternatives (modes, distribution centers, and fleet) using a robust analytical basis to support strategic decisions.
Our Approach
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Development of a customized optimization model, integrating the logistics network, costs, capacities, and constraints.
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Simulation and comparison of strategic scenarios, including modal shifts (rail and coastal shipping), new distribution centers, and network redesign.
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Techno-economic assessment of alternatives, supporting investment decisions and the definition of the optimal network configuration.
Results
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Structured redesign of the logistics network, with greater operational efficiency and support for growth.
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Identified cost-reduction opportunities with the potential for annual savings on the order of USD 800 thousand, mainly associated with modal optimization.
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Robust analytical basis for strategic decisions, with comparable, quantified scenarios geared toward value generation.