18 October 2015

Categories: Industry


A Swedish and leading global manufacturer of natphtenic specialty oils (NSP), transformer oils and bitumen products with 3 refineries, 3 hubs and 26 tankdepots worldwide and strong growth ambitions.


The client wanted to make an assessment of their global naphtenic logistic network and provide a logistic blueprint that was cost efficient and could accommodate further growth. The company wanted to achieve more effiency, reduce working capital and become more agile. The client wanted to move from a decentral management of the supply chain to a more centally managed organisation. Gwynt was selected to lead a logistic network optimisation project, because of our extended experience with the chemical industry and our expertise with logistic network projects and simulations.


We started with understanding the network flows including restrictions and created a fact based overview of the current state. We builded a logistic model with a base case reflecting original logistic cost structures and flows. We identified potential scenarios by comparing centre of gravity analyses, end-to-end logistic cost per ton and throughput per tank on the different depots.


A new footprint and implentation roadmap were established including: more direct shipping from the hub(s), closing depots and specific tanks, optimising tank set-up and shifting blending activities and optimal safety stocks and shipping sizes. The client saved more than 20 million euros annually and created a cost effective network allowing further growth.

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