Huntsman: Optimizing Market Portfolio for Strategic Advantage

The Challenge

Huntsman, a leading global chemicals company, faced a critical challenge: managing instances where demand surpassed supply capabilities. The company needed a sophisticated approach to determine which orders to commit to that would consider various factors, including product differentiation, margin, and customer value. Additionally, Huntsman sought to optimize the selection combination of MDI (Methylene diphenyl diisocyanate) & polyols and make optimal use of di-iso streams, which are crucial components in their product line.

How ORTEC Creates Value

ORTEC addressed Huntsman's challenge by implementing the AIMMS optimization tool, a powerful solution designed to identify the optimal order selection. This tool enabled Huntsman to analyze complex data and various scenarios to determine the best course of action when fulfilling orders.

Impact & Benefits

The benefits of utilizing the AIMMS optimization tool were significant and multifaceted:

• Strategic Customer Valuation: Huntsman gained insights into the strategic value of their customers, allowing them to prioritize relationships that align with long-term corporate goals.
• Informed Decision-Making: The company could now make informed decisions that balanced corporate strategy with profit margins, ensuring that each order commitment supported Huntsman's broader business objectives.
• Optimized Product Selection: By leveraging the optimization tool, Huntsman could select the ideal combination of MDI & polyols for production, enhancing their product offerings.
• Efficient Resource Utilization: The tool facilitated optimal usage of di-iso streams, ensuring resources were used effectively to maximize output and minimize waste.

Through ORTEC's market portfolio optimization solution, Huntsman was able to navigate supply and demand challenges strategically, ensuring that order commitments were not only profitable but also aligned with the company's long-term vision and customer value propositions. This strategic approach to market portfolio optimization has positioned Huntsman to continue leading in the energy sector while maintaining strong customer relationships and operational excellence.