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Mid-Term Logistics Optimization in Chemicals: All for One and One for All


A.T. Kearney

In the chemicals industry, tactical logistics management poses an opportunity for competitive advantage. It can save an average-size chemicals company up to $73 million annually through increased efficiencies and responsiveness; for the whole chemicals industry, the savings could surpass $9 billion.

A look into the world of logistics in the chemicals industry reveals an interesting state of affairs. Long-term logistics planning is largely in place to ensure there is infrastructure to support chemical companies’ needs for several years out. Short-term logistics runs pretty well, too, with transport and warehouse managers seeing to regular daily and weekly transportation needs.

In between the two extremes, however, is a gap in logistics planning. Some chemical companies sense it; others have yet to identify it. A fortunate few know the opportunity that mid-term logistics poses. To achieve logistical performance that is outstanding enough to be a competitive differentiator, these chemical companies and their logistics partners call to mind the phrase Alexandre Dumas’ sword-wielding heroes took as their motto in The Three Musketeers: “All for one, and one for all.”

In logistics terms, that means collaboration, mid-term planning, and more prolific information exchange to put the building blocks of tactical logistics into place.


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