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Pennzoil
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Facilitating
supply chain rationalization at Pennzoil
The Challenge
Following the acquisition of Pennzoil by Shell
Oil Products, the Pennzoil supply chain had
to be rapidly aligned and harmonized with
that of Shell Lubricants to capture synergies
and provide the combined businesses with the
means to serve a larger and more complex,
geographically far-flung customer base with
the highest levels of service.
The Solution
Bristlecone examined key rationalization issues
including location of distribution centers
and plants to optimally serve customers; consolidation
of manufacturing plants and elimination of
redundancies; and expansion and consolidation
of distribution facilities. Using the network
design functionality within SAP’s Advanced
Planner and Optimizer (APO™), Bristlecone
was able to devise a rationalization strategy
for the Shell Lubricants-Pennzoil supply chain,
and a comprehensive model to facilitate supply
chain rationalization.
Business Impact
Shell Lubricants realized considerable efficiencies
by adopting the streamlined supply chain model
that emerged through this rationalization
study.
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