Chemicals

Streamlining product and customer portfolios

For the chemicals division of an international conglomerate, Arthur D. Little helped to reduce complexity in the product and customer portfolio

Challenge

We were asked to streamline the product and customer portfolios within three months, and to secure management buy-in for the solution.

Approach

Our team carried out an ABC analysis to understand complexity in the customer and product portfolios, then worked with division management to agree reductions. We implemented the reductions by working side-by-side with management and employees

Value

Our work reduced customer and product portfolio by 20 per cent each, resulting in a reduction in complexity and an increase in return on capital of 2 per cent.

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