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Increased efficiency through process optimization
Tailor-made S&OP process and portfolio strategy
CHT, a global manufacturer of specialty chemicals, developed a customized S&OP process and inventory strategy together with valantic. valantic supported the company in optimizing its planning processes, which led to an increase in efficiency, a reduction in storage costs and an improvement in service levels.
About the company
The CHT Group, founded in 1953 as CHT R. Beitlich GmbH in Tübingen, Germany, is a medium-sized global player for sustainable specialty chemicals. With headquarters in Tübingen and around 2,400 employees in 26 companies worldwide, CHT offers innovative chemicals, additives and auxiliary materials for industrial processes in sectors such as textiles, construction, paper, silicones and PET recycling. The Group focuses on four business areas: Textile, Washing Solutions, Construction Chemicals and General Industries. Through a value-oriented, sustainable corporate strategy, CHT optimizes production processes and improves the functionality, appearance and quality of end products in over 120 countries.
The project
The challenge
CHT faced several challenges: A complex sales organization with independent companies abroad, an extensive portfolio of more than 2,000 products and a production process with up to five stages. In addition, an inadequate inventory strategy led to stock overloads and long delivery times. It was also necessary to establish an efficient value chain across various production sites.
Consulting approach
- Design and implementation of a S&OP process
The aim was to develop a S&OP process that was tailored to two German production sites, but which would be scalable for the entire CHT organization. Valantic provided support in the conception and implementation phase through workshops, interviews and a detailed analysis of the existing planning processes.
The S&OP process was designed in such a way that it both met the current requirements and was prepared for a global roll-out. - Introduction of an inventory strategy
In addition, an inventory strategy was introduced that defined clear criteria for stock levels and enabled a standardized calculation of safety stocks and reorder points.
Solution and customer benefits
The S&OP process developed includes precise sales planning, capacity reconciliation and regular meetings. The inventory strategy led to a 10% improvement in service levels. At the same time, working capital was reduced by 20%. Costs for external warehouses were also reduced.
Conclusion
The introduction of a customized S&OP process and a new inventory strategy significantly increased efficiency. At the same time, storage costs and working capital were optimized. As a result, CHT is better prepared for future challenges.
