Magic in chemistry: Fibrant makes decisions 7 times faster with CQM optimization tool
Some companies simply command admiration, and Fibrant is one of them. The company produces caprolactam, a widely used product in the fiber industry. You encounter it everywhere: in high-quality clothing, under the hood of your car, in cheese packaging, and even in your living room carpet. After all, these products could not be made without this material from Fibrant. Naturally, a chemical process of this kind requires efficient logistics. CQM developed a mathematical optimization tool that improves plant management, saves a great deal of time, and most importantly prevents unnecessary costs.
We are speaking with Bertin Terpstra, Supply Chain Manager
at Fibrant, about this great project.
Representing CQM, we also hear from
our colleague Jacob Jan Paulus, Principal Consultant.
What Fibrant Does
Fibrant produces basic chemicals that its customers polymerize into intermediate or final products. These form the basis for items such as clothing, toothbrushes, heat-resistant car parts, and household goods. Consequently, Fibrant’s high-quality fibers and plastics are found in a vast array of products. To manufacture these, Fibrant operates eight interconnected plants at the Chemelot site in Geleen. Suppliers also play a crucial role in this process, and Fibrant relies on them. In short: effective communication and coordination are vital!
Real-time Monitoring and Adjustment
The tool developed by CQM helps Fibrant better manage its plants and coordinate with all parties involved. Bertin explains: “It does this in two ways. Prices in the chemical market such as raw material costs or our own product selling prices fluctuate monthly. The tool gives us real-time insight, allowing us to make decisions based on current conditions much more directly. It enables us to quickly calculate production requirements and make adjustments as needed. For instance, if a supplier raises the price of a raw material, we can immediately see the impact on total costs and our margins. It is also valuable for the complex, one-off situations that can arise during chemical processing such as when a supplier fails to deliver, forcing us to switch to different raw materials. The tool calculates the costs involved and identifies the solution that minimizes losses while delivering the best outcome.”
The decision point for production
Jacob Jan adds: “Reaching a sound decision requires a high-level overview that considers the entire interplay between all factories, suppliers, and customers. If you know your product’s selling price and the costs associated with the production process, a critical decision point emerges. This is the point where, in response to market changes, you can decide whether it is better to halt or continue production or, for instance, decide how to proceed if a supplier drops out. Before this tool existed, decisions on the best approach were sometimes made on a factory-by-factory basis, leading to choices like switching to a different (and potentially more expensive) supplier even though it is now immediately apparent that such moves can sometimes cost more than they yield. Fibrant can now choose to reduce production to save costs; this cross-factory coordination enables better management.”
5 solutions in under a minute
Bertin: “The tool offers us many more benefits. The Supply Chain Management and Purchasing departments are now truly in the driver's seat. As a result, we are less dependent on input from other departments, allowing us to pivot quickly. Furthermore, we no longer have to perform mental calculations or rely heavily on Excel. Arriving at a single solution in Excel takes considerable effort, whereas this tool gives us five solutions to choose from in just a few minutes,” Bertin explains. “In highly complex situations, the tool helps us find the right factory settings much faster. It used to take us up to a week to come up with a solution; now, we can do it in a single day. That represents a six-day difference and a decision-making process that is seven times faster. For us, moving faster often translates into significant savings!”
Internal buy-in and persuasive power
“Moreover, the benefits go beyond just financial gains; the tool also helps us build internal support. Once a month, we hold a Sales & Operations Planning meeting attended by the Sales, Production, Finance, Purchasing, and SCM departments the team that steers the entire business. Managing operations becomes much easier when you can outline various scenarios and instantly visualize the (financial) consequences of a decision. It has vastly increased our powers of persuasion.”
Collaboration with CQM
All in all, it has been a highly successful project, and Bertin is very pleased with the results. “Working with CQM is a real pleasure. There are modelers who simply execute tasks, and then there are people who actively think along with you people who bring numbers and words together, who truly understand where the bottlenecks lie and translate that into a solid solution. That is CQM’s strength! On top of that, you get a dedicated consultant who is always there for you, responds quickly, and does whatever it takes to deliver. It’s fantastic. CQM also maintains a strong external focus. You might imagine mathematicians to be introverts who only see or care about numbers, but nothing could be further from the truth. CQM is actively engaged in its own positioning and its clients. Our case study proves this once again. There is so much warmth in your company; the human element shines through in everything. And all that from a company that loves working with numbers and formulas!”
Jacob Jan concludes: “Such praise for our organization and our partnership that’s what makes this profession truly rewarding. Of course, the mathematics behind this case study are stimulating and challenging, but making people happy, contributing strategic insights, and getting a behind-the-scenes look at great companies that’s what makes me enjoy coming to work every day.”
Making texts/images public and/or reproducing them is permitted only with the express consent of CQM.
Photo credit: Fibrant.
Are you also interested in an optimization tool for your logistics process?
Contact Jacob Jan Paulus.
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