CSC Drives Supply Chain Optimization for Petroleum Client
Client: The chemical division of a petroleum company
Challenge: The client was seeking opportunities to improve the performance of its Enterprise Resource Planning (ERP) infrastructure by improving supply chain optimization.
Solution: CSC collaborated with the client’s management team to reengineer key business processes, capture best practices and implement a continuous improvement program. The framework for this effort was driven by CSC's experience with the Four Levels of Supply Chain Optimization.
Results: The overall solution allowed the client to increase its cross-functional operation and substantially improve internal processes to reduce supply chain costs by 12%. By redefining organizational roles and processes, order fulfillment efficiencies were gained and order satisfaction was improved from 76% to 91%. As a result of increased capabilities, shorter cycle times and reduced "delivered" costs, the client enjoyed a significant increase in revenues.
Related Information
Read more about CSC's Chemical & Energy business.
Contact Us for more information about CSC's Supply Chain Solutions
The chemical division of an integrated petroleum company engaged CSC to evaluate opportunities for further improvement in their existing ERP (Enterprise Resource Planning) infrastructure. Working with the management client team, CSC identified five areas of special promise. The tactics included reengineering of key business processes, capture of best practices through applications of information technology, and commitment to a program of continuous improvement. The framework for the effort came from CSC’s experience with the Four Levels of Supply Chain Optimization, as described in Advanced Supply Chain Management, by CSC’s Chuck Poirier.
Early Results
The first stage of supply chain optimization is to “aggregate and leverage” known best practices for early impact. Joint CSC and company teams:
- Worked across functions, using technology as an enabler
- Reduced the supply base
- Improved purchace pricing and services
In the second level of supply chain optimization, the objective is “internal integration.” Working together, executive groups:
- Increased cross functional cooperation
- Substantially improved internal processes
Next, the teams focused on customer relationship management and fulfillment. CSC and the company teams:
- Redesigned and/or redefined organizational roles, job skills, management systems, company culture and behaviors, a new value proposition
- Improved efficiency and service in order fulfillment
Other improvements included:
- Substantial savings through outsourced barge and truck transportation
- Creation of enhanced customer service offerings, improving new business marketing tactics
- Creation of centralized processes powered by advanced decision support systems
- Increased revenues from better capabilities, shorter cycle times, lower delivered costs
- Lowered cost in procurement process from identification of need, sourcing, buying, receiving, payment
The resulting alignment of business unit strategies fueled other benefits for the petrochemical and specialties businesses including joint ventures for both business units.
Client Benefits
A summary of the results from the effort include:
- Significant impact on top line, bottom line and balance sheet
- Overall supply chain costs down 12%
- Logistics alliances in all modes
- Outsourced barge fleet
- Reduced motor carriers
- Improved order satisfaction from 76% to 91%
- Significant revenue generation from new services – increased share with alliance partners
Related Links
See our Supply Chain Management Offerings.
Learn more about our Alliances.
Contact Us for more information about CSC's Supply Chain Solutions.