The bridge to economic value-added:

Akzo Nobel MA/CC

The Akzo Nobel sub-business unit MA/CC (methyl amines and choline chlorides) was confronted with severely mounting competition from low-cost countries in both the MA and the CC markets, combined with increased raw material costs. Management realized it could only survive by operating at lowest cost.

Sub-business unit manager Wim de Kruijff contacted ARV Group with the request that they bring in the tools, methods and experience needed to design and orchestrate project development, break down barriers between the various departments and coach key players in effecting the envisioned supply chain. Concrete results had to be seen within one year.

Multi-disciplinary approach

Following a four-week assessment, ARV Group reported that the return to EVA would require a multi-disciplinary approach aimed at far-reaching changes in both organizational structure and operating mentality. The four existing plants were to be rationalized in accordance with the principle of "multi-crafting". In addition to the drastic rationalizations needed, all key players in the chain also had to be convinced that various cost improvements could be effectuated while upholding the service levels towards the market, for the purposes of optimizing top and bottom line. This was necessary to ensure the effectuation of true lowest-cost logistical practices.

To pave the way for the rapid streamlining of  the organization, short lines of bottom-up communication were effected to allow daily, systematic review, and a system of monthly milestones was established. A performance-management system was also set up and embedded within the organization for purposes of boosting transparency and safeguarding lasting improvement.

Required performance at minimal costs

A thorough analysis of the logistical costs, followed by an analysis of the current market demands, correlating order portfolio, stock management and typical working processes formed the basis for discussions about what and how to improve, all aimed at reaching required performance at minimal costs.

Ultimately, the development of a tailor-made logistical control concept transformed the AN MACC operation into a performance-based organization. Business needs replaced individual needs, and true enterprise resource planning was put firmly in place.

Wim de Kruijff, SBU manager: "With the support of ARV Group, our organization started working together, focusing on the mutual goal and costs. For the first time, we gained the real capability to control and steer our supply chain, with focus on logistical performance and costs, thereby enabling a timely and effective response to changes in demand and ensuring lowest-cost supply costs to the market."