Optimizing 100+ branch network for industrial chemical merger

August 3, 2022
Team 3TO

Two large industrial product companies merged and needed to optimize their inter-branch supply chain network, post merger. These global distributors asked us to build a model of their network and identify key areas for savings.

Business Situation

With the merger, the two large industrial companies had a combined network of 100+ branch locations. The companies had overlapping territories and supply chains in most areas of the United States. Each company had a complex array of truck & rail transportation lanes & shuttles to consider.

Solution & Results

We built & exercised a network design model to optimize the combined network of the 100+ branch locations. Combining the two companies allowed for economies of scale in inter-branch & inbound transportation (e.g. leveraging rail). We identified over 7% savings in the network for the large industrial company, focused on inter-branch only

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