Clarkston Consulting recently partnered with a biomaterials science manufacturer on a logistics partner strategy. Read a synopsis of the project below or download the full logistics strategy advisory case study here.
The global industrial complex is committed to decarbonization. Leading institutions are pledging net-zero targets, or carbon neutral, starting in 2025, and countries, including the U.S., have pledged to be net-zero countries. The Climate Pledge is a commitment to reach net-zero carbon emissions by 2040 – 10 years ahead of the Paris Agreement. Clarkston recently supported a logistics strategy advisory for a sustainable manufacturer looking to support this commitment to decarbonization.
Carbon black is a pigment made from petroleum with a large carbon footprint; it’s also carcinogenic. The client – a biomaterials science manufacturer – has developed technology and products made from biomass waste to be carbon-negative, supporting companies’ missions to be carbon-neutral and aligned with U.S. government objectives. Our clients’ products include textile inks, packaging inks, and footwear inks. In their business maturity cycle, they are moving to late-stage adoption conversions with brands. However, our client was receiving variable adoption costs from interested brands as these brands looked toward a more sustainable approach to standard carbon black ink. Clarkston advised the client in support of determining more realistic brand adoption costs and a logistics strategy optimizing outbound logistics to lower adoption costs.
The client was modeling logistics modes and types of potential partners and services as they planned for managing export to global markets in support of their multi-phase commercial demand buildout and execution. Clarkston advised on landed cost components and cost reduction strategies, increasing the client’s understanding of controllable and non-controllable elements. Clarkston advised on best practices as the client continued to establish their strategy framework. The conversations refined the client’s needs and their logistics determinations for appropriate next steps. The definition of strategy included market-level analysis by growth phase, service expectations, and resulting cost impact as they assessed what type of service/partner would they best be served by. Their logistics strategy balanced these components to best articulate brand costing in support of customer requirements.
Clarkston guided their logistics partner strategy as the client looked to determine and source partners as they entered global trade. This partner strategy included carrier, forwarding, brokerage, warehousing, and distribution. Clarkston shared best practice guidance for executing a third-party logistics (3PL) and request for proposal (RFP) process and support of a potential 3PL bid with suggested warehouse requirements to consider and additional services of value add, importing, returns, and reporting. Clarkston also discussed bid scenarios, target services, regional expectations, and RFI/RFP processes and timelines. As a result, the client was in an improved position and best understood how to continue to proceed as they continued their growth in commercial accounts.