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Eastman Chemical

SCOPE OF SERVICES

- Site selection project for the world’s largest PET resin plant, a $1B investment

- Ton-center network analysis, preliminary screening of over 40 initial prospect sites

- On-site logistics due diligence at 12 semi-finalist sites in four states

- Carrier negotiations, detailed cost analysis, site layout engineering at two finalist sites

SITUATION DESCRIPTION

Already the market leader in polyethylene terephthalate  resin, Eastman Chemical developed a new proprietary manufacturing technology that would allow the production of PET resin with significantly lower energy and labor costs.  Project V was initiated in order to select the site of a brand new PET plant, which would become the world’s largest at an annual capacity of 1.7 billion pounds.  Logistics was a top criteria for the site selection process in order to fully capitalize on the potential of the new manufacturing technology.

PLG ACTION & RESULTS

- Combined raw material logistics costs, demand forecast data, site operating costs, and finished goods transportation costs to develop a logistics cost model for each prospective site

- Performed on-site logistics due diligence at 12 semi-finalist sites, including cost and risk analysis of rail routes and service, highway access, pipeline access, and port facilities;  uncovered hidden risk exposures within transport modes and prospective service providers

- Negotiated advantaged rates, service commitments, and capital investments from logistics providers as a condition of site selection

- Designed and engineered optimized site logistics plan and transportation infrastructure for new plant, including rail access and storage, loading racks, port access, and roadways Continue Reading

Lempster Wind Farm

Scope of Services

Provided comprehensive procurement and turnkey project management for the supply chain design and execution for all wind turbine components inbound to the Lempster, NH wind farm.

Situation Description

In July 2008 Gamesa Wind USA found itself under pressure from its client and the threat of significant detention/penalties to complete the transportation of components to and erection of a wind farm proximal to Lempster, NH by November 2009. The vast majority of efforts to initiate this project up to this point had failed to achieve any results.

PLG Action and Results

•  Rescued distressed wind farm by assuming complete supply chain
•  Reduced handling and transportation costs by diverting tower vessel to port facility proximal to wind farm
•  Implemented rail solution for the transportation of nacelles across 5 different railroads
•  Placed PLG Managers at strategic and critical points in the supply chain to ensure timely execution
•  Successfully limited demurrage and detention time
•  Cargo delivered on schedule avoiding eminent threat of crane detention and client penalty exposure of $10MM+
•  Completed project 20% under the original budget Continue Reading

IMPSA Northeast Brazil Wind Farm

This project focused on developing a supply chain strategy for wind component shipments from all over the world for delivery to IMPSA, a wind energy leader in South America.

Scope of Services

•  Turnkey procurement and project management of supply chains from China, Germany, India, Canada, and the USA to Brazil
•  Over 200 blades plus hubs, rotors, and other related cargo

Situation Description

As an early mover and now the largest wind farm developer in the fledgling wind energy industry in South America, IMPSA found itself in need to procure transportation for over 200 blades plus hubs, rotors, and other related cargo from suppliers in Canada, China, Germany, India, and the USA to project sites in Brazil.

PLG Action and Results

•  Selected and engaged reputable forwarding firm (TransGroup Worldwide) to jointly procure and manage the transportation of components across four continents
•  Sourced and manufactured stackable fixtures for the blades to improve vessel capacity utilization, resulting in a 20% reduction of transportation costs
•  Deliveries continue to be completed on time and within budget
•  Additional shipments under negotiation Continue Reading

Mississippi Lime

Founded in 1907 and built on one of the world’s richest limestone reserves, Mississippi Lime is the most diversified producer of high‐quality lime and calcium‐based products in North America. With thousands of rail shipments per year, a diverse mix of car types and fleets, and complex infrastructure requirements for in‐plant and outside plant storage and switching, the client needed to reduce costs and optimize the operations and efficiency of the company’s complex rail activities, procurement, assets, and physical plant.

Scope of Services

•  Comprehensive Rail Assessment, including benchmarking and analysis of freight spend, fleet assets, switching operations, inventory control, rail‐to‐barge operations, in‐plant infrastructure, technology, and carrier negotiations
•  Identify, quantify, and prioritize cost reduction and efficiency improvement initiatives
•  Develop rail strategy to support client’s commercial objectives and long‐term corporate planning

Situation Description

Founded in 1907 and built on one of the world’s richest limestone reserves, Mississippi Lime is the most diversified producer of high‐quality lime and calcium‐based products in North America. Continue Reading

WATTS Water Technologies

“PLG did a great job of quickly understanding our business and integrating with the Watts team. This teamwork and their deep logistics knowledge enabled us to formulate and execute our improvement strategy most efficiently.”  - Taylor Robinson, EVP Supply Chain

Challenge/Situation Summary

Determine the optimal number, size and location of U.S. distribution centers, considering both service and distribution/ transportation costs

Solution Summary

Provided a comprehensive distribution center strategy and other network improvement opportunities with a potential annual cost reduction of 10%; also provided benchmarking insight regarding competitors’ business levels and practices

Company Profile

Founded in 1857, Watts Water Technologies, Inc. is a leading provider of safety, quality, conservation, and flow-control products to water infrastructure markets in North America, Europe and China, with annual revenue of $1.4 billion. The company’s products are typically used inside homes and buildings in support of wastewater, fire protection, irrigation, foodservice, potable water, and HVAC systems.

Challenge/Situation

Providers of water management products primarily compete in two major markets: residential and commercial construction/improvement. Continue Reading