Over 60% Reduction in Costs for a Global Chemicals Manufacturer with Network Optimization

Warning symbol for chemical hazard on chemical container in industry

About

Industry

  • Chemicals

SERVICES PROVIDED

  • Consulting
  • Supply Chain Optimization
  • Network Modeling
  • Xonar

The Challenge 

A global chemicals distributor engaged BridgeNet Solutions (BNS) to redesign and re-engineer its US and European supply chains to improve service performance, achieve cost optimization, and reduce CO₂ emissions. The customer’s existing distribution networks faced challenges in managing operating costs, warehouse footprint, and transport efficiency. 

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The Solution 

BNS began with a customer collaboration workshop and initial analysis to identify opportunities for transforming the US and European distribution networks. Both teams shared data on operating costs, network constraints, and strategic objectives. 

Using these insights, BNS conducted detailed data gathering and rate benchmarking to establish a baseline for improvement. Several network models were then developed and iterated to test different design scenarios and validate assumptions. The process concluded with a final proposal and transition plan to guide the customer through network migration and an inventory centralization initiative. 

The Results 

  • Over 60% supply chain cost savings 

  • Warehouse network reduced from 25 to 18 locations 

  • 6 million kilometer reduction in distance traveled 

  • More than 40% reduction in CO₂ emissions 

  • Launch of an inventory centralization project to further streamline operations