Savage Case StudyToll Processing
Leading chemical supplier seeks alternative method for product transport.
The paper chemicals division of a global, Fortune 100 chemical manufacturer, secured the business of a paper mill in Maine. This contract required the transport of a chemical product, a fragile solution requiring strict temperature ranges, to be transported over 800 miles from the chemical factory located in the south eastern US, via 45,000 pound tank trucks. Often the mill required delivery with only a two-day lead time. The chemical company was struggling to meet the mill’s short lead time and to control the cost of transporting their product over such a long distance. The chemical manufacturer came to Savage to create and deliver a cost-effective solution.
Collaboration produces a toll processing solution for just-in-time delivery.
Savage and the chemical company worked together to devise a toll processing solution for the remix and transport of the chemical solution required by the mill. Savage operates a state-of-the-art, 60,000 square foot Toll Processing Facility in Auburn, Maine that specializes in bulk chemical mixing, dispersing, slurrying, dissolving, blending and diluting. This facility is only 40 miles from the chemical manufacturer’s paper mill customer. Our Savage engineering and project management team worked with the chemical company to fully understand the product processing specifications. Our process engineering team, with deep paper industry experience, first conducted a processing test on a small laboratory scale to ensure we could meet our customer’s product quality specifications. The small scale test was successful and a full logistics and processing plan was developed to satisfy the paper mill’s lead time and reduce the customer’s overall transportation costs and carbon footprint.
Today, the chemical manufacturer ships solid powder, which is 25% of the volume of the final liquid product, to the Savage toll processing facility in Maine, where it is then processed to the customer’s specifications. Savage blends the powder with various liquids into the final solution, and stores it at the required temperatures, for just-in-time delivery to the mill. Once the chemical product is in the final form, Savage performs all quality testing in-house in our ISO-9000 certified lab, with industry standard certificates of analysis. Savage handles the order placement services for the chemical company and provides bulk product delivery via tank truck to the mill.
Turn-key, end-to-end solution benefits business and the environment.
The Savage toll processing operation blends chemical powder into the required warm, liquid blend close to the end user. Therefore, our customer was able to reduce transportation costs up to 50% by reducing transport of the full solution from 800 miles to 40 miles. By storing the finished product at Savage, in close proximity to the mill, delivery with only a two-day lead time is now seamless. From an environmental perspective, without the Savage toll processing solution, our customer would need to ship 4,000 tons per year via a 45,000 pound tank truck 800 miles — producing 637 tons of CO2 per year. By collaborating with Savage, the chemical company is able to process powder into the end product chemical solution and ship it by 62,000 pound tank truck only 40 miles to the paper mill — resulting in only 153 tons of CO2 per year. This solution realizes a 76% reduction in CO2 per year — the equivalent of taking 81 automobiles off the road.
About Savage Toll Processing Solutions
Our ISO-9001 toll processing operations convert your raw materials into finished products to help reduce your manufacturing and transportation costs and your environmental impact. Savage has the expertise and the capabilities you need to make toll processing a key supply chain strategy. Contact Savage for complete information on our toll processing services.