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— × Solvay

Simplifying the product and customer portfolio of a chemicals business.

Company
Solvay
Sector
Industrials
Subject
Strategy · Operations
Duration and format
Study.

The context

A speciality chemicals business carries a portfolio of several thousand references, inherited from decades of customer-specific developments, and wants to finally tighten it.

The brief

Put a number on the contribution of each product and each customer, and make simplification decidable.

What we did

We segmented the portfolio on the margin it generates — a minority of references generates most of the margin — then crossed that segmentation with the customer one, which changes everything: the long tail of products is bought mostly by the largest customers, and cutting it mechanically comes at a price. We then opened the full range of levers, from the status quo to minimum order quantities, from formula consolidation to plant centralisation, all the way to discontinuation — with a step-by-step method to work through each case.

The impact

A decision basis product by product, and a leadership workshop that decides instead of deferring.

Let’s talk about you.

Describe your challenges in three lines; we reply within 48 hours with a proposal.

Let’s talk