Coco

 

SITUATION

Our client is one of the leading energy companies in the Netherlands. Specializing in generating power using renewable resources, our client excels in the production and transmission of gas, electricity, heat and related services.

Our client is embarking on a challenging project establishing a wood pellets plant in Southern Vietnam with the capacity to produce nearly 150,000 tons of pellets per annum, supplying a power plant in Europe.

Logistics being so critical to the success of this business venture, our client requested the support of CEL to design the entire supply chain in Vietnam.

 

PROBLEM

What is the ideal Supply Chain structure and the critical elements to support cost-efficient and reliable logistic operations?

 

APPROACH

  • Conduct field survey to identify strategic suppliers, logistics providers and the best location for wood pellet production plant

  • Identify the most cost-effective logistics structure for transport and storage of raw materials (wood waste, sawdust) and finished products (wood pellets)

  • Model supply chain structure based on supply chain flows, operating cost and environmental sustainability

  • Identify and model partnership needs between operators, investors and the client. Define supply chain capabilities and KPIs to measure supply chain performance.

 

RESULT

We helped our Client by

  • Identifying critical supply chain elements - wood waste suppliers, pellet factory location and size, warehouse location and size, truck fleet requirement, port with necessary equipment and barge providers.

  • Offering 3 logistics scenarios based on different OPEX, CAPEX and Operational Risk variants

  • Recommending KPIs, modelled on Reliability, Profitability and Sustainability, to measure supply chain performance

  • Designing a partnership model between key stakeholders - Client, Dutch government, Operators and other Investors.

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