operations flexibility in process industries - Roland Berger Strategy ...

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6A specialty chemicals manufacturer combines network andgeographic flexibility to satisfy its global customer baseInterview example: Specialty chemicalsSITUATION/CHALLENGEGlobal customer base…SOLUTIONNetworkflexibility• Products are produced in technologically identical("twin") plants (e.g. 2-3 twin plants per region)• Local production for local demands• Free capacities are shared within every region• Payoff time for local infrastructure shortens astransportation costs are on the rise…requires presence in localmarketsGeographicflexibility• Increase of local l coverage with partnerships (logisticssuppliers) and joint ventures (e.g. [not yet] favorableM&A targets)• Leveraging advanced planning systems (e.g. SAPAPO) for fully leveraging capacities• Utilizing standardized IT systems for effectively routingflow of goods & products together with logisticspartnersOwn siteJoint ventureSource: Roland Berger interviews, 200836
7The specialty chemicals company uses hedging and selective M&Astrategies to react on changing business environmentsInterview example: Specialty chemicalsSITUATION/CHALLENGEWinning with acquisitionsSOLUTIONSelectiveM&Astrategy• Flexibility for product technologies is achieved byselectively acquiring specialized competitors• Post-merger integration of acquisitions is donecarefully on R&D to allow for quick response onchanging technological requirements• Immediate integration of acquisitions into global leadbuyer structure• Centralized production only for business units offeringsignificant economies of scale• Risks of volatility reduced by broad business portfolioRaw material price increaseUSD/t+105%timeHedging withfutures• Prices for important raw materials are secured byusing futures e.g. on commodities such as palm oil• High planning security as prices are locked in• High flexibility to get the optimum independently ofprice developments• Possibility to smooth out peaks and downsSource: Roland Berger interviews, 200837
Page 1: OPERATIONS FLEXIBILITYIN PROCESS IN
Page 4: The study covers three process indu
Page 7 and 8: Eight trends in the pharmaceutical
Page 9 and 10: Six trends in the consumer goods in
Page 11 and 12: Participants of this study confirm
Page 13 and 14: Different flexibility types exist:
Page 15 and 16: 1 DEMAND FLEXIBILITYPredicting year
Page 17 and 18: 3 NETWORK FLEXIBILITYFlexible produ
Page 19 and 20: 5 BUSINESS PORTFOLIO FLEXIBILITYM&A
Page 21 and 22: Choosing the most suitable flexibil
Page 23 and 24: 2DEDUCT OPERATIONS FLEXIBILITYBusin
Page 25 and 26: 4MEASURE IMPLEMENTATIONDecisions re
Page 27 and 28: DBest practice flexibility levers27
Page 29 and 30: M&A FLEXIBILITY LEVERSWith regard t
Page 31 and 32: 1A manufacturer of pharmaceutical p
Page 33 and 34: 3A consumer goods and a pharmaceuti
Page 35: 5A large consumer goods company fac

operations flexibility in process industries - Roland Berger Strategy ...

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