Problem description
Basell Orlen Polyolefins Sp. z o.o. (BOP) is a Polish joint venture company specialising in the manufacture of polyolefins. It was established in March 2003 by Basell Europe Holdings B.V. and PKN ORLEN S.A. BOP is a member of the LyondellBasell and ORLEN family of companies. Each of the shareholders holds 50% of the shares. BOP is the only polyolefin producer in Poland and the biggest domestic manufacturer of plastic.
BOP has in Plock two world scale plants manufacturing polyethylene and polypropylene. The annual capacity of the plants amounts to 400 kts of polypropylene manufactured using Spheripol technology owned by LyondellBasell company and 320 kts of high density polyethylene manufactured using Hostalen technology, also on license from LyondellBasell.
Together with the manufacturing capacity of low density polyethylene installation, the annual capacity of the whole structure amounts to over 800 kts of polyolefins. Plock materials are loaded and dispatched from BOP Logistics Platform which is one of the biggest and most modern objects of this type in Europe. BOP has a fully dependent sales company Basell Orlen Polyolefins Sprzedaz Sp. z o.o. (BOPS) which offers products from Plock and materials from the portfolio of LyondellBasell to Polish polyolefin converters. Products offered by BOPS can be implemented in various ways, both on the consumer and on the industrial market, among others for manufacture of packaging, film, textiles, car parts and pipes.
BOPS possesses a complex sales network, developed channels of customer service and technical service for its customers in Poland.
BOP aims to meet plastic converters expectations by offering high quality products and logistics solutions suitable to their requirements. Additionally, BOP takes care of social and environmental issues. Realisation of safe and effective deliveries in the right sequence is crucial in polyolefins sector. In reply to this challenge, BOP offers best quality products and develops advanced logistics solutions.
The company implements unique projects of supply chain reconfiguration to meet plastic converters expectations.  BOP realises the strategy of continuous improvement. As a result of the best practice BOP fulfilled requirements of a large plastic converter located in Germany. The reliability and punctuality of deliveries were greatly improved after significant changes in the supply chain structure. More shipments are now realised by intermodal transport. In consequence, best practice allows to achieve permanent long-term economic, social and environmental benefits.

On the one hand, the company ensures safe work conditions in its facilities and cooperates with many Polish suppliers in the supply chain. On the other hand, BOP uses „green transport corridors” organising Intermodal shipments wherever possible. It is also caused by limited availability of dedicated silo trailers, for polyolefins’ transportation. BOP controls impact of its activities on the environment and measures levels of emissions . Its technologies are safe and meet the highest environmental standards in sector. BOP realises deliveries to converters located in different geographical regions. The most important purpose is organisation of shipments in the most effective way. To achieve this goal BOP implements projects of supply chain reconfiguration. These solutions are driven by specific market needs.

The solution at the initial stage
One of the largest BOP’s goods receiver is located in West Germany.
This buyer orders high volumes of two products „A” and „B” and requires best class logistics solutions. The most important factors are safety, punctuality (requirement of 98% of deliveries on time) and flexibility. Additionally, realisation of deliveries in the proper sequence is critical due to optimisation of conventer’s production costs. At the beginning of cooperation with this receiver, BOP included 2 hubs in logistics system. Both of them were located in Germany. Distance from the conventer’s facilities to the first hub was 200 km and to the second one – 500 km. Products were transported by rail to both hubs and then, by road to the final destination. Alternatively, both products were delivered directly from Plock to the receiver’s facilities by road transport (distance of 1 300 km). This model required the engagement of three different carriers. This system was characterised by lack of clarity in responsibilities between carriers. Additionally, the right sequence of deliveries was not ensured. Moreover, rate of deliveries on time was unsatisfactory. BOP made an effort to reconfigure this supply chain structure.

The solution at the final stage
Firstly, the structure of the system was changed. Nowadays, the best model includes 2 hubs, but only one of the former points and the new one, which is located 60 km away from the receiver’s facilities. Additionally, railway transport between Plock and new hub was arranged. As result, the share of intermodal shipments significantly increased – from 50% to 90% of all deliveries to goods receiver. Currently, all deliveries of „A” product are intermodal. Product „B” is delivered directly from Plock to the buyer localisation by road.
In the best class model, the main part of products is transported by railway transport. BOP cooperates with one logistics service provider which specialises in rail shipments. Logistics provider organises and manages deliveries in the right sequence.
This project of supply chain structure reconfiguration is great example of best practice. It concentrates on following issues: change of hubs’ localisation and usage of intermodal transport on large scale. Specially, this project illustrates need of continuous improvement of logistics solutions. It also proved that changes in supply chains are mostly driven by receiver’s expectations. In this case, they caused no doubt many advantages for the focus company and its
shareholders.

Challenges
Challenge 1: Localisation of hubs to ensure efficient flow of products in supply chain. Distances between these points and receiver’s facilities play important role. BOP reacted by selecting another location from available European container’s terminals.
Challenge 2: Access to transport infrastructure and network of connections were required for organisation of intermodal deliveries on such scale.
Challenge 3: Realisation of deliveries in the right sequence (batch management).
Challenge 4: Choice of the logistics service provider which specializes in railway shipments and meets all requirements regarding transport of polyolefins.

Lessons learned
• Key driver of the unique supply chain reconfigurations is a match with business strategy. BOP managed all changes which were required.
• Reconfiguration of supply chain is process-oriented. In consequence, it has significant impact on different processes, e.g. transport, warehousing, inventory management, relationships with goods receiver.
• Logistics solutions support successfully building of longterm relations on B2B market. Source of competitive advantage of BOP is not only production of high quality products, but also logistics and supply chain management.
• Best practice can be implemented in close cooperation with logistics service provider, whose core competence is required by the focus company. BOP’s logistics partner guarantees best-in-class organisation of intermodal deliveries in proper sequence.
• Best practice development requires continuous improvement. It is especially important on highly
competitive markets.

Success factors
• access to the infrastructure
• appropriate changes in supply chain structure
• excellence of logistics processes in supply chain
• implementation of solutions suitable to goods receiver needs
• creativeness of logistics managers in Basell Orlen Polyolefins
• business cooperation with well-known, specialised
logistics service provider

The benefits
This best practice project allows to achieve economic, social and environmental effects. BOP designed the supply chain configuration, which causes positive long-term results. Both BOP and goods receiver gain several important advantages. The biggest benefits are achieved at the economic level. Regarding the environmental and social dimensions the effects are well recognised, but not measured.
Economic
• satisfaction of large plastic converter, by meeting requirements of short leadtime and sequential batch management
• 99% of deliveries conducted on time
• increase in loading capacities of transport vehicles (from maximal level of 25 tonnes for road transport to 27 tonnes for intermodal shipments)
• higher effectiveness in inventory management
• decrease in logistics costs to this particular location by 10%
Environmental
• development of „green transport corridors” in European countries
• more effective facilities and vehicles use
• positive impact on resources utilisation
• reduction of CO2 emission
• decreased fuel consumption
Social
• decreased number of trucks on European roads
• reduction of road accidents number
• decrease in noise emission
• positive impact on air cleanness
• indirect, positive influence on health of local societies

Transferables

• Transferable across any geography.
• Not transferable across any company size.
• Transferable to other sectors, but the industry has to include products, that can be transported
effectively by rail.

Limitations
• Access to the infrastructure and connections system is critical.
• Purchasing volume of the company should be high enough to ensure effectiveness of railway deliveries.
• Products’ characteristics play important role.