Plant & Yield Management & Portfolio Optimization 

A large chemical company with a supply disruption and a very large product portfolio needed to optimize their asset loading and plant yield based on product profitability and plant capacity constraints

Challenge

Optimize plant and product portfolio

To optimize plant yield and product portfolio, the BU director wanted to

  • Get insights on the pricing power, growth potential, profitability, exchangeability of products
  • Understand the scale of free/attainable volume at products with high profitability
  • Determine locked volume to increase product profitability

Approach

Product Mapping and Attainable & Locked Demand Analysis

A data-driven product mapping exercise was undertaken to link product BoMs to features to application lifecycles to customer benefits and profitability. This enabled a definition of the core portfolio and actions on rationalization and replacement of products with low RoS with high RoS alternatives within clusters.

For high RoS products, further analysis of attainable and locked demand was carried out by assessing price elasticities. This was used to optimize product distribution to the highest paying customers, within contractual constraints.

Methodologies 

  • Time-adjusted Self-organizing Maps
  • TASOM, Fuzzy C-Means, Similarity Matrices
  • Price elasticity analysis

Results

  • Reorganization and redefinition of the portfolio to enable sales to perform value selling
  • The impact from portfolio rationalization and replacement arrive in Q4 2020
  • Can also be used for equipment cleaning (chemical cleaning) process
To know more
Contact Us