BCG Medium Cost Saving

Steel Co.

ProHub Comment

This is an operations optimization case requiring candidates to analyze transportation logistics across four modes and identify capacity utilization inefficiencies. The case demonstrates how seemingly independent data points (high truck usage) can reveal deeper operational issues (vessel scheduling constraints) that offer significant cost savings opportunities. Strong performance requires connecting exhibits to operational insights and recognizing KPI misalignment as a root cause.

Estimated Time 15 minutes
Difficulty Medium
Source NYU
50 / 100

Our client is a steel manufacturing company in the Netherlands. They are considering investing in an advanced analytics tool that will help them better predict inventory schedule. They are also looking at immediate methods to save costs and would like your help with the following:

A) Steel coils are currently transported from the factory to customers via Railways, Trucks, Vessels and Barges. They would like us to analyze these four methods, and suggest any opportunities for cost saving

B) Suggest any alternative techniques to save cost in the immediate future

Clarifying Information

  1. Operates internationally in 100+ countries (the candidate should realize this given use of vessels and barges)
  2. Customers are predominantly large B2B manufacturers who the company enjoys both short and long-term contracts with
  3. For this case, assume steel is only manufactured as coils
  4. Objective is to identify cost saving with no particular target