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Distribution Network Optimization

April 06, 2016 6780 Views

Ciba (SWX: CIBN) is a leading global specialty chemicals company, dedicated to producing high-value effects for its customers’ products. Ciba provides products and one-stop expert service in three segments: Plastic Additives, Coating effects, Water-& paper Treatment.
This relates to products – adding performance, protection, color and strength to plastics, paper, automobiles, buildings, home and personal care products and much more. Ciba is active in more than 120 countries around the world and is committed to being a leader in its chosen markets. In 2007, the Company generated sales of CHF 6.5 billion from continued operations and invested over CHF 260 million in R&D.

In defining an integral, new supply chains strategy in Europe, Groenewout was asked to define the accompanying optimal European Distribution Network Footprint, with a focus on the number of warehouses and their respective locations

Groenewout provided a number of deliverables

  • Optimal European distribution footprint with its operational logistics costs, investment & transition costs
  • Assessment on delivery reliability and lead-times
  • Customer profitability analysis
  • Analysis on minimum customer order values.


  • An improved European distribution footprint with a savings potential of circa 10% in logistics operational costs
  • A number of quick-wins that lead to financial savings and/or customer service improvements when implemented
  • A MS-Access based tool that allows sales & marketing to conduct different profitability assessments on their customer base.