1996- Chemtrade Logistics
Supply Chain Optimization
 
 
  The Company
 


Chemtrade is one of the world´s largest suppliers of sulphuric acid, liquid sulphur dioxide (SO2) and sodium hydrosulphite (SHS), and a leading regional supplier of sulphur and sodium chlorate. Chemtrade obtains these products through long-term marketing services agreements and its own production facilities and distributes them to customers around the world.

   
  Goals and Issues
 


Chemtrade provides removal services for approximately 40 key producers under unique contracts that are structured to manage commodity price and volume risk and transportation costs. In its 70 year history, Chemtrade has never caused unscheduled downtime for a producer. The organization required a supply chain optimization system to address strategic issues and maintain its high service standards towards suppliers and end markets with a continually growing network.

   
  Implementation and Results
 


Chemtrade has been using OptiNet Plus™ for over a decade. The system is being used by all of its business units to make strategic and tactical decisions. Large volumes of data flow automatically between OptiNet and their SAP R3 environment. Most of the input data is sourced from SAP R3 and key logistical and financial output is uploaded back.

The system is being used both as a monthly planning and corporate budgetting tool. Chemtrade bases its quarterly latest estimate and annual budgets on this system. Its margin optimization capabilities allow the various business units to evaluate both product and customer profitability.

Over the years, OptiNet Plus™ has been used to evaluate key strategic issues, including a number of major acquisitions. In the past few years, Chemtrade has expanded its product line considerably and each new business unit has been incorporated seamlessly. New constraints, enhancements and reporting capabilities have been incorporated into the system as the real world business has changed.

   
  Our Tools
 
This is our most complex network optimization system as Chemtrade has been using linear programming techniques to optimize networks for over 30 years. They were very happy to migrate from their more cumbersome mainframe based tools to the leading edge capabilities of the customized OptiNet Plus™ solution in 1993. The system was designed and developed to fit the needs of a veteran user of supply chain management systems.