As a key adviser to companies in the chemical industry, our projects have ranged from supply chain optimisation to new product innovation. Working closely with our clients, we devise strategies, tailor solutions and help our clients to achieve sustainable results that can shape the course of the company.
Reducing Inventory Cuts Costs
PCG works with an manufacturer of paper and packaging products to implement profit improvements due to a downturn in the demand for industrial packaging.
PaperCo was experiencing lower sales volume in all of its product categories. Its business was impacted by environmental regulations and liabilities, a reduced demand for paper products due to a slowing market, and electronic communications reducing global paper demand.
The company was a market leader in uncoated paper production and industrial packaging.
PCG assisted PaperCo with profit improvements, which included resizing to a smaller asset base.
Another recommendation was identifying cost efficiencies in procurement. PCG examined supplier management contracts, freight costs, energy and raw materials, advised on alternative fuel mixture credits and made recommendations to centralise suppliers and optimise sources.
Another recommendation was to divest ownership of some forest land and invest capital into new plant machinery.
PaperCo benefited from profit improvements made through immediate cost reduction and yielded 15% cost savings in 12 months through sourcing initiatives.