Catalysis Corporation: Outbound Freight Transport

Catalysis Corporation:  Outbound Freight Transport

NB: This case study has been based on true trading data but made anonymous to protect the identity of the company.  For the purposes of this case study the focus is restricted on the outbound logistics of specialist silicas from the main UK site (North West – Manchester Area)

The Catalysis Corporation is a global chemical business producing speciality inorganic chemicals and operates over 60 manufacturing sites in 21 countries. Annual sales revenues are in excess of $1 billion.

Silica is produced in two manufacturing plants at the main UK site located in the North West.  There is a wide range of Stock Keeping Units (SKUs) created through multiple production routes. The customer end use of silica is extensive, as a; flow aid in food; mild abrasives in toothpaste; filter aids in beer manufacture; catalyst support in ethylene polymerisation, to name a few. The sales value and contribution margin of these more speciality chemical products are significantly higher than the other bulk commodity chemicals produced at the site. Whilst Silica only accounts for 25% of sales tonnage, it contributes 70% of the site’s total sales by value and accounts for 74% of the site’s outbound freight costs (see Appendix A).

complete case study is attached below