Description

Tessenderlo Group is an organization with a worldwide presence that provides solutions for global needs in food, agriculture and water management. The SOP Plant Nutrition segment features the supply of potassium sulfate fertilizers to agricultural end-markets.

Opportunities

Sales & Marketing of SOP Plant Nutrition have recently provided new business requirements to ensure and strengthen their competitive advantage. Groenewout assisted in investigating how these requirements could be met from a supply chain perspective and reviewed its impact on cost and service efficiency.

Solution

• Mapping processes, capacities & lead-times of bagging & bulk container stuffing operations.
• Reviewing inventory management policy with the aim to reduce customer lead-times and meeting the new business requirements.
• Model development to simulate To-Be situation.
• Optimization of To-Be situation in 4 jointly defined logistics concepts, based on the new inventory management policy.
• Elaborating business case for preferred logistic scenario:
• Engineering of logistic concept (processes, FTE’s, storage requirements, MHE).
• Calculating required building space and land plot.

Benefits

Deliverables include:

• Advice on lead-time reduction based on As-Is vs To-Be bagging planning process.
• Quantification of various logistics concepts to support the decision making process.
• Evaluation of the viable logistics concepts on both quantitative (business case, CAPEX & OPEX) and qualitative (pro’s & con’s) aspects.
• Optimized inventory management policy and corresponding advice on storage & production capacity requirements given business forecast.
• Operational cost calculation for new distribution network.
• Advice on feasibility of printing-on-demand solutions to increase customization of end product.