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A Chemical Company’s Transformation Reduces Support Function Costs by 25%

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概要

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A planned divestiture required ChemCo*, a multibillion-dollar global chemical company, to radically redesign its cost structure. Working with us, ChemCo embarked on a multistage transformation to simplify its footprint, particularly within support functions like finance, IT, procurement and HR.

Over a four-month period, our team reviewed 15 support function processes, including financial budgeting, employee onboarding and requisition to pay. We found ways to remove 100% of stranded costs and design new solutions without interfering with ChemCo’s ongoing performance.

Our approach was designed to earn quick wins, prioritizing activities based on the value at stake and the feasibility of rapid results. A carefully executed communications plan ensured that all of ChemCo’s affected functions understood the benefits of the redesign. We streamlined time-intensive processes through standardization, centralizing operational authority and installing better demand management.

Experts from Vector℠, our integrated digital delivery platform, helped ChemCo automate numerous processes, bringing push-button simplicity to labor-intensive processes. We also helped ChemCo evaluate its manufacturing sites and categorize them as “rationalize,” “intervene” or “invest.” For each we developed clear business cases combined with a multistep Commercial Excellence program to pave the way for near-term EBITDA gains.

We identified more than $50 million in eliminable support function costs, and nearly 25% of those savings were captured in the first year. We also helped ChemCo develop the internal capability it needs to make these cost redesigns repeatable going forward.

VectorSM is a registered service mark of Bain & Company, Inc.
 
* We take our clients' confidentiality seriously. While we've changed their names, the results are real. 

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