CONSULTING
SERVICES FOR SHIPPERS OF CHEMICALS AND PLASTICS:
Our primary client base consists of shippers, large and small. This is
because it is the shipper community with the greatest financial investment
in distribution – shippers are normally the ones paying the freight
bill, owning and leasing private railcars, and relying on transportation
networks to satisfy their customers.
We have worked with all types of plastics and chemicals
shippers, including large chemicals producers, brokers and distributors,
and foreign producers with import activity in the US.
The range of services provided to shippers includes:
| A. Total Logistics Assessment |
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The Total Logistics Assessment is perhaps the quickest
and most effective way for your organization to benefit from a relationship
with PLG. As part of the Assessment, we bring a team of experts
to your headquarters to perform an in-depth analysis and benchmarking
of all aspects of your logistics – modes, assets, freight
spend, processes, technology, and distribution network. We then
develop a plan to achieve improved efficiencies and cost reductions
that are real and tangible. The final step is implementation, which
we perform for you on a turnkey basis. The up-front costs are nominal,
but the immediate and long-term benefits are significant.
The reason that the Total Logistics Assessment works is because
virtually all shipper logistics departments are affected by one
or both of two challenges: Either downsizing has shrunk the depth
and breadth of internal logistics knowledge, or management is understaffed
and overworked to an extent that it’s impossible to have the
time or resources to really dig deep for improvement opportunities
and at the same time keep up with evolving industry trends and best-practices.
Through the Total Logistics Assessment and subsequent relationship
with your company, PLG delivers efficiency, cost-reductions, process
improvements, and a bolstering of your internal logistics knowledge
and management skills. |
| B. Logistics planning & strategy |
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I. Distribution network design and optimization
We have experience in designing optimum distribution networks,
including vendor relationships, value added services, multi-modal
services, and key customer service plans. Chemicals and plastics
present unique challenges in this area, since specialized material
handling equipment and procedures are needed for safe and efficient
distribution of these products.
Case studies
II . Logistics infrastructure |
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1. Plant facilities
One of the most critical phases of plant site selection, expansion,
and planning is ensuring that your logistics infrastructure can
support current and future business objectives. Obvious issues such
as competitive rail access are but one of many considerations, in
addition to logistics facilities investments, inventory control,
feedstock supply, and modal flexibility/options. PLG can develop
an optimized site logistics design and operating plan for any type
of facility, from large chemical complexes to small processing plants.
In addition, PLG can provide turnkey development of logistics infrastructure,
including sale-leaseback and lease development financing.
2. Terminals/Distribution Centers
For some sensitive products and markets, shippers may choose to
develop and operate their own private distribution centers. Such
centers can include warehouses, rail terminals, and transloading
facilities. PLG can provide site selection, design, operating plans,
and turnkey development for such facilities, as well as assist in
the overall distribution strategy for an internal facilities network. |
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III. Logistics Assets |
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Private railcar fleet sizing & management
Accurate sizing of private railcar fleets requires a range of data
inputs, including transit times, dwell times, hold times, consignment
terms, product wheel/production schedules, and out-of-service rates.
Our consultants have decades of experience in the proper sizing
and deployment of private chemicals fleets.
Case studies
Private truck fleets
Strategies around private truck fleets can include trailer equipment,
power units, or both. Certain specialized products will require
specialized truck equipment. PLG can assist you in determining whether
private or contract fleets are best suited for your business needs,
as well as assist in establishing trucking operations. |
| C. Logistics procurement |
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I. Transportation |
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1. Contract negotiations strategy & planning
Whether it’s rail, bulk truck, marine, TL/LTL, or warehousing/packaging,
major contract negotiation events are a critical piece of your overall
logistics spend and can impact your competitiveness for years. The
critical advantage you can have in negotiations is PLG providing
analysis, support, and strategies for success. Our team includes
veterans of major contract negotiations from both the shipper and
carrier sides of the table, and can bring a powerful combination
of benchmarking, negotiations strategies, and industry expertise
on your behalf.
Case studies
2. Cost benchmarking – Rail and Bulk Truck
Utilizing a variety of data sources, including the STB waybill
sample, PLG can evaluate your current spend in the areas of rail
and bulk trucking to determine your competitive position relative
to the rest of the market.
Formal RFP Bid Processes
One of the keys to effective vendor negotiation, in addition to
any reorganization or re-evaluation of a distribution network, is
conducting a formal Request For Proposal bid process. The purpose
of an RFP process, as opposed to less formal methods of procurement,
is to ensure that all vendors compete on an equal footing and in
an objective and competitive environment. PLG has expertise in conducting
formal RFP procurement process events across all modes.
Case studies |
| D. Technology |
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PLG can assist you in the effective use of technology,
not only systems and software specifically for logistics, but also
the integration of logistics functions and objectives with existing
ERP systems such as SAP. We can bring your organization up to speed
on systems for railcar management, fleet tracking, RFID, WMS, and
supply/demand chain planning. |
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