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2010 Supply Chain Council. ALL RIGHTS RESERVED. | < filename > | Slide 1 | November 2, 10
End to End Supply Chain Transformation
Jan Eeckhoudt Lean Six Sigma DPC, DuPont
2 Contents
1. Introduction to DuPont and DuPont Performance Coatings 2. SCC and DuPont 3. Project DELIVER
Objectives Plan, phases Approach
4.Workstreams - Impact PRODUCT CUSTOMER ORGANISATION NETWORK TRANSPORT
5. Looking forward 6. Key Success Factors & learnings
3 DuPont Company Vision
To be the world's most dynamic science company, creating sustainable solutions essential to a better, safer and healthier life for people everywhere.
4
DuPont in 1802 DuPont in 2010
58,000 employees > 210 sites > 70 countries Hundreds of thousands of DuPont products and customers $26.1B in sales (2009)
40 employees 1 site 1 country 1 product 12 customers $15,116 in sales (1804)
5
DUPONT PERFORMANCE COATINGS
$3.4 B
DUPONT ELECTRONICS & COMMUNICATIONS
$1.9 B
* Includes $.1B in other sales including Applied BioSciences. Total company sales exclude transfers.
DuPont 2009 Sales by Segment - $26.1 (*)
DUPONT SAFETY & PROTECTION
$2.8 B
Protection Technologies Building Innovations Sustainable Solutions
DUPONT AGRICULTURE & NUTRITION
$8.3 B
Pioneer Hi-Bred Crop Protection Nutrition & Health
DUPONT PERFORMANCE MATERIALS
$4.8 B
Performance Polymers Packaging & Industrial
Polymers
DUPONT PERFORMANCE CHEMICALS
$5.0 B
Titanium Technologies Chemicals & Fluoroproducts
Core Markets: Production Agriculture Food & Nutrition Products
Core Markets: Consumer Electronics Advanced Printing Photovoltaics Displays
Core Markets: Construction Specialties Industrials & Chemicals
Core Markets: Automotive OEM Collision Repair Industrial Coatings
Core Markets: Automotive Packaging Electrical/Electronics Construction Consumer Durables
Core Markets: Industrial Personal Protection
Construction & Industrial Military & Law Enforcement
13 businesses
6
In 2009, 30% of sales were in Emerging Markets* *Refer to the companys website for a definition of emerging markets.
2009 Sales by Geography $26.1B
2009 Company Sales
7 Aligning Strategies with Megatrends
Market Opportunities
More food Better food
Alternative energy solutions Energy efficiency Renewably-sourced materials
Workplace safety Personal protection Environmental sustainability
Infrastructure Energy Materials applications customized for local markets
Megatrends
Increasing Food Production
Decreasing Dependence on Fossil Fuels
Protecting People, Assets & the Environment
Growth in Emerging Markets
Strategies
Grow production agriculture
Photovoltaics & Biofuels Lightweighting vehicles Accelerate conversion to bio-based raw materials
Accelerate innovation pipeline Strategic acquisitions Geographic expansion
Increase local application development Drive further penetration
The Needs of the World Drive our Science
More than 75% of R&D is directed toward megatrends
8 DuPont Performance Coatings
DuPont Performance Coatings serves the transportation industry Aircraft / Aerospace Automotive Commercial Recreation & Sports Vehicles
DuPont Performance Coatings Mission in E/MEA We will safely, ethically, and respectfully help our customers be successful by significantly improving our Quality & Supply chain responsiveness while delivering business innovation.
9 DuPont Performance Coatings
Automotive OEM Coatings: DuPont Automotive Systems is the largest global manufacturer of automotive OEM coatings providing technologically sophisticated and environmentally responsible coatings. Paint & Coatings for Metal Exterior, Plastic Exterior and Interior
Vehicle Refinish: DPC Refinish Systems is the largest global manufacturer of coatings for aftermarket car repair. Spies Hecker , Standox , DuPont Refinish
Powder Coatings: DuPont is the second largest world-wide manufacturer of powder coatings offering a complete product range including polyurethane, acrylic and thermoplastic polymers.
DuPont Nap-Gard Functional Coatings, Alesta Decorative Coatings
10 DuPont Performance Coatings
Electrical Insulation Systems
For many years, DuPont have been providing the electrical insulation market with Wire Enamels, Impregnating Resins and Core Sheet Varnishes now all combined under the single brand name Voltatex. The DuPont Voltatex products create value for the customers as they evolved from three complementary strategies: reducing environmental footprint, driving break-through product innovation and creating total system solutions.
11 DuPont Performance Coatings
Commercial Transportation
DuPont offers the commercial transportation industry a wide variety of products ranging from plastics and polymers to paints and car covers.
DuPont is a leading supplier of paint and finishes to over the road heavy duty truck companies, railroads, fire & emergency equipment, and fleets of delivery vehicles. DuPont's product offerings help to protect and enhance the performance of commercial transportation vehicles and personnel.
Imron , Centari ,
12 DuPonts Journey
Optimizing The Sustainable Safe Production Of The Molecule
Competitive Imperative Strategic Supply Chain Capability
Effective and Efficient Advanced S&OP Business Process
Demand Driven Enterprise
Market Driven Science Company
&
&
&
13 SCC Methods and SCOR support DuPonts Supply Chain Development
Enable
Metrics & Diagnostic
s
Benchmarking & ScorCards BPM
14 SCC & DuPont
Getting Started 2003-2006 Supply Chain Transformation Vision & Roadmap Metrics for awareness Independent projects Total Company Benchmark
Development of a Standard Approach to Supply Chain Management 2006-2009 Deeper use of metrics automation and analytics Major projects Deliver back to Plan Supply Chain Excellence Path
Implementation 2010 + BPM SCOR based, technical model Supply Chain Benchmarking / Segmentation SCOR Projects Integrated into Continuous Improvement Integration with S&OP, Product, Demand, Supply People, Process and Tools Integration to implement future state
15
The scene at start: End 2007 DPC had gone through many transitions and was falling short against benchmarks for service & cost. Customer service performance for the supply chain was not satisfactory for DPCs management or customers, FPDE & WC was too high.
Manufacturing Supply Chain Planning
Sales and Customer
Management
1. Supply Chain Cost not reflected
in Customer Policies
2. ATP process broken
3. Flawed replenishment
model
5. No MPS/MRP
-visibility -trade-offs
4. No use of / adherence to
stock triggers
6. Poor adherence to plan and high
variance
Benchmark Scorecards & Assessment interviews
16
The Deliver project was tasked with a holistic review of the European DPC supply chain
Address the holistic deliver process
to identify and execute specific projects that prioritize, optimize and enable project work underway
.to yield improvement in: on-time deliveries, working capital (inventory) and FPDE.
Build out a vision and multi-generational plan for DPC Europe
Focus on Refinish, OEM, and Industrial Liquids [but excludes Industrial powders]
Remit & Scope
On-time and in full delivery performance target: 10% point improvement in 2008 and another 5-10 points in 2009-2010 (based on deliver to request).
Secure finished product distribution expense reductions... estimated at 15%-20% Finished Product Distribution Expense
20% Inventory reduction
Benefit Aspiration
17
2008: We set up a project (using Six Sigma DMAIC method)
Approach: Deliver Improvement Programme
Define and Measure (4 Weeks)
Baselining
-Product flow -Process maps -Cost -Orgn -Interfaces -Hypothesis development
2 Capability & Organisation Assessment -5-level charts -Interviews -Orgn comparison
3
Bench-marking
-Costs -Service Levels -Operational -Process -Policy
4
Analyse (5 Weeks)
Initial Opportunity Identification -Gap analysis -RCA
5 High Level Design
-Process / Org redesign -Bus. case development
6
Improve (Design) (4 Weeks)
Implemen-tation Planning
-Socialisation -Impn planning
7 Project Setup
-Stakeholder Interviews -Review of previous studies -Agree timeline and scope
1
I II III Control
IV
Maintain, Monitor & Enhance
9
Detailed Design and Imple-mentation
8
Improve (Implement)
Deliver project Review
April 11th / 23rd
Analysis phase Review
March 19th 2008 2010
Critical to identify pain points & mid-term improvements and get fast return on investment.
18
and fully delivered its remit during these three phases
Address the holistic deliver process
Identify new projects and enable project work underway
Build business cases for each initiative
Create ownership and implementation plans
Secure a 10 point improvement in 2008 on time delivery
Obtain FPDE reductions
Initial Objective How have we done? Full review of SCOR processes and policies, network and logistics for DPC
Identified 5 key workstreams, with 14 major initiatives, ... many more
Cases built and validated totalling in excess of initial expectations
Project management proposal complete to enable execution
Project targets 15 20% FPDE and 20% working capital
Project Review
Status
Plan for minimum 10 point improvement in OTIF in 08 with additional 5-10 points in 09
19
Deliver created 5 workstreams with 14 initiatives & +60 projects
Product
Balance supply and demand early and in the right place
Create stock targets that account for real volatility
Reduce volatility
SKU rationalization
Network
Review warehouses across DPC and then
Close those with overlapping delivery areas
and configure the remainder according to customer demand
Finally optimise supply routes
Customer
Create customer segmentation and then differentiate supply chain policies accordingly
Ensure customer delivery processes drive SAP not the other way round
Transport
Impose central management on haulier purchasing
Tailor transport contracts to the demand profile of the business
Distinguish between transactional and cooperative relationships with transport providers
Organisation
Allow supply chain to focus primarily on cross-site planning
Where ever possible ensure supply chain activities operate across DPC
20
DPC OEM Refinish Industrial
Business
Block of analysis
Projects
Product
Network
Customer
Transport
Organisation
X
Organized around 5 workstreams across 3 segments or at DPC level
X
X
X
X
X
X
X
X
X X
X
X
... shock for the segments...
21 PROJECT DELIVER : based on SCOR
Assess perform
ance
Manage data
Manage com
pliance
Improve supply chain
Establish & m
anage rules
Enter order
Reserve inventory &
set delivery date
Consolidate &
build loads
Pick & pack product
Ship & invoice
Process inquiry
Detailed
prodn schedule
Make
Source raw m
aterials
Source carriers
Plan source raw
materials
Plan deliver
Plan demand
Plan make
Plan supply chain
Enable Plan Source Make Deliver
EP1 EP2 EP3 EP3 EP9a D1.2 D1.3 D1.1- D1.6
D1.8- D1.10a
D1.11- D1.15 M2-6 M1.1 D1.7a P3
P1.2 -P1.4 P2 P1.1 P4
Improve Systems
Data Accuracy
10 Simplify Product
Slate
7 Improve Forecasting
3 Improve Inventory
Management
2
Improve MPS Process 1
Define Resin Sourcing Process
S1-6
6 Manage Production Variability
4 Improve Customer Service
Rules
D1.1
Warehouse and
transport
8 Cycle Stock Mgmt
5 9
Full review of SCOR processes and policies, network and logistics for DPC
22 Product Workstream
Strategic Planning
Business Planning
Master Scheduling
Master Production Schedule
S&OP
Supply Plan
Plant and Supplier Scheduling
Execution
Material Requirements Planning
MIX: disaggregate
level - end item
Capacity Requirements Planning
Rough Cut Capacity Planning (RCCP)
Resource Requirements Planning Forecasting
And Demand Management
Input/ Output Control and Operation Sequencing
CAPACITY MANAGEMENT DEMAND
PRIORITY SETTING
FEEDBACK
Volume, value: product
family level
= within project scope
Goal: Design & Implement Integrated Planning Levels
11/2/10
23
Linked with Integrated Business Management long term Planning
Supply & Sourcing/Logistics Sales &
Marketing
Product Development
Technical Content Assessment
Process Tools
Technical Content Assessment
Process Tools
Technical Content Assessment
Process Tools
Mindsets & Behaviors (not part of Deliver)
Managing Process
Capability Building
24 The objective: Balancing CSL, WC and SC Cost : clearcoat example
Customer Service Level or cost for Lack of CSL
Process Total Supply Chain Cost Working Capital
Total Inventory down 43%
Safety stocks down 51%
No customer Shutdowns
96% Order Fulfillment w/o Expediting
95% MPS Stability 58% reduction in excess
stocks
Reduction of expediting cost
Balancing Supply & Demand
How: Forecasting improvement, DIBM, MPS, RCCP & Inv. Opt.
25 Working Capital Reduction 6 months Average inventory level -35%
6 IDS MMA -12 days
26 Customer Workstream
Define and introduce of DIFFERENTIATED service level policy Min order quantity Deliver frequency Fixed delivery schedules Surcharges for emergency shipments And having this automated in SAP
IT optimisation : delivery consolidation 1 shipment for many customer orders optimise warehouse and transportation cost
drivers
Result : 1% FPDE reduction Sales-to-cash reduction
Accounts receivables reduced by >15%
Touch free transactional processes in SAP
27 Organization workstream
Challenge:
755 DPC employees maintain the key supply chain processes across fifteen different organisation structures with many hand-offs & duplication, misalignment and in-efficiency.
Initiatives:
Allow supply chain to focus primarily on cross-site planning
Wherever possible ensure supply chain activities operate across DPC
Reduce the number of reporting layers
28
Supply Chain Manager Jeff Serpan (53.1FTE)
MPS / Supply + Inventory Supervisor
Hans Verbeek (20 FTEs)
Supply Planners Wuppertal
Incl. CS, Export 7 SOX (8 FTEs)
Supply Planners Mechelen
Incl. CS, Export & Metrics
(11FTEs)
Physical Distribution Supervisor
Ilse Lazou (14.1FTEs, incl. 1 open, 3HC=1.1FTEs)
Process & Project Supervisor
Philippe Rigaux (15FTEs)
Warehouse Operations Mechelen
(12.5 FTEs)
Warehouse Operation
Wuppertal Team (0.6 FTE)
Process + Project Team (5 FTEs)
Refinish Material + Customer Master Data
(9 FTEs)
Supply Chain Manager Klaus Rohde (53FTE)
Planning Manager Martin Rubach (29 FTEs)
Supply Network Planning Thomas Hahn (9FTEs)
Produktionsplanung* Michael Wilkesmann (6FTEs)
Vormaterialsteuerung* Markus Plog (6 FTEs)
Logistics Manager Werner Recks (22FTEs)
SOX Inventory Control Specialist
Melanie Waechter (1FTE)
Stammdaten Michael Hagemann (7FTEs)
Container Management Rolf-Guenter Krieger (2FTEs)
European Warehouses +
Freight Control U. Adler + S. Kalms (2FTE)
Dispatching Andreas Schmidt (11FTEs)
Admin / IT Ralf Dahlhaus (6 FTEs)
Supply Chain
Refinish OEM
Supply Chain Manager Guntramsdorf & Supply Chain Leader
Industrial Liquids EMEA
Dirk Verbole
Planung Stefan Guger
Strategische Planung /Bestandsmanagement/
Reporting / SOX
Susanne Samer
Operative Planung Edi Ovcak
Operative Planung Zelle Basecoat
Edi Ovcak
Sophie Frhlich
Operative Planung/Springerfunktion
Zelle CC/Hrter/Verdnnung/
Farblose HF Manuela Malek
Operative Planung Zelle Reiben/ IMRON
Cornelia Frisch
Lager/ Versand / Gefahrgutbeauftragter
Hans Teufelsbauer
Bestandsmanagement Alfred Prrer
Petra Heinrich
SOX / Reporting Claudia Steiner
Strategische Planung / Controlling
Susanne Samer
Site Manager Klaus von Juterczenka
Regional Supply Chain Manager - DPC Europe.
Randall K. Willis
Lager Christian Paukovits
Versand Sybille Muik
Versandabwicklung** Fr. Gutschi Fr. Htter
Fr. Lang Fr. Mikl Fr. Maul
Schichtgruppe 1* H. Birnbammer (Schichtfhrer)
H. Zilic
H. Schnitzer
Hauptgruppe* H. Kaminsky (Stellvertreteder
Vorarbeiter, Schichtfhrer)
H. Goger H. Haag*** H. Probst*** H. Fahnler H. Kberl
H. Nachtelberger
Schichtgruppe 2* H. Sassmann (Schichtfhrer)
H. Breit
H. Gspurnig
Vorarbeiter Christian Biricz
Industrial
Asun Martnez EMEA 94 fte
(excl. PoD)
Edith Gijsbregts
MECHELEN 54 fte
+ BeNe PoDs
Torsten Schrauf
COLOGNE 11 fte
Loredana Locati
CAVENAGO 9 fte
Christian Ekwall
GOTHEBORG 5 fte
+ Scan PoDs
Ramm Domingo
PESCOLA 9+ 4 fte
Joachim Walbrodt
PODs
Miek de Wel
FRANCE & BENELUX
10 fte
Wim Bernaert CE, EE,
MEA & A 12 fte
Kathrin Baldzun
UK & SCAN 6 fte
Sabine Melis
CB &Other 5 fte
Mila Herreros
DCS 16 fte
Virgilio Maia
M.MARTINS 4 fte
Key Users Other 4 fte
Geert Van Moer
IBIP 1 fte
Manager POD J Walbrodt
Project & infrastructure P Herzog
Manager Logistics Germany NW
M Duwart POD Support RSCAC
LC Freiburg J Owczaryszel
+7 LC Stuttgart
H. Koehler
+16
SH Karlsruhe P. Schubach
+6
LC Neu-Ulm M. Schneider
+11
Project & Infrastructure S. Duehr
Manager LogistIcs North RSCAN
U. Drosselmeyer
SH Saarbruecken H.J. Potthoff
+4
LC Koeln R. Welz
+17
LC Rhein-Ruhr U. Sperl
+16
LC Frankfurt M. Schmidt
+19
LC Hagen E. Ebbinghaus
+17
O. Benkau
C. Ebert
S. Hegemann
K.Vogeler
H. Wobedo
Secretary C. Schmidt
LC Berlin F. Friedrichs
+13
SH Nossen/Dresden K. Seiffert
+8
LC Bremen A. Seiderman
+3
LC Thorey R Killmann
+4
LC Lehrte D Karus
+14
SH Regensburg S. Muecke
+6
LC Meerane G. Schroeder
+5
LC Schweinfurt M. Leuchs
+7
LC Rostock M. Guthman
+6
SH Muenchen M. Berkenstraete
+7
SH Bielefeld E. Althof
+9
LC Nuernberg P. Borschel
+12
LC Hamburg T. Grothkop
+14
LC Magdeburg H.Mews
+6
Peter Czisch APC Manager
CS Leader Rudiger Baier
Customer Service Improvement Dieter Zander
Customer Service France Annik Duchee Customer Service Turkey
Customer Service South Africa
Team Leader CS Group 1 Stefanie Knaak
Team Lead CS Group 2 Gabriele Fontaine
14 CS Agents based on site
12 CS Agents based on site
Logistics
S&L Production Planning
Mechelen Ref Wuppertal OEM
Guntramsdorf Ind
Refinish OEM Industrial
Sales, Demand
Annemie Sollie Production Planning, Mechelen
Hans Asaerts MIXSB + primer
FP Planning, Scheduling, Scheduling Intermediates
Jan Bergmann DPC Operations Director, EMEA Andreas Bohlender DPC Operations Manager, Mechelen
Rita Lauwerts Raw Material Planning
Li Ma (Temp Contract) Raw Material Planning
Geert Simons (Project + IBIP Key user) Raw Material Planning
Derek Tutt Packaging Planning
Toon Gyssels (Contractor) Outsourced filling / packing / drumming
Packaging Planning
Erwin Boons (IBIP Key User)
Packaging Planning
Bert Vaes Container Planning + SOX reporting
OEM FP + other tasks
Johann Debacker FP Clears/MIXSB OEM
+ Intercompany Resins / Intermediates
Tessa Jacobs (temp contract) FP Planning Clears REF
FP planning + scheduling:
activators, thinners, Cromax
Sofie Wambeke (Contractor) CSR & Planning Intercompany Products
Jill Schoenmackers (Temp Contract) CSR & Planning Intercompany Products
Eva Gellaerts Master data
SOX Reporting
Maria Dalemans Batchcard Processor
Jovan Colans (Temp Contract) Batchcard Processor
David Claes Projects (IBIP, APO, LEAN, etc)
Werner Van Beneden Scheduling: Clears / Resins
Wuppertal Ref 221 RPSL Fertigung 218/222
FACPAC Fertigung 220 PRIME / PUTTI
Fertigung 208 ACTIV / THINN / CLEAR
Abfllung 218 Abfllung 222 Abfllung 220 Abfllung 228
Fertigung 218/222 MIXSB/MIXWB
Produktionsplanung
Abfllung 208
Abfllplanung Verpackungsdisposition Abfllkoordination
Produktionsplanung Produktionsplanung Produktionsplanung
Rohstoffdisposition Rohstoffdisposition Rohstoffdisposition
Produktionsplanung
Rohstoffdisposition
Fertigungssteuerung Fertigungssteuerung
Fertigungssteuerung Fertigungssteuerung
Etikettendisposition
Customer Service
Refinish OEM Industrial
15 different organization structures in DPC touching supply chain
29
Does the organisation
assure continuity of
process?
Process
Organisation Screens
Does the organisation
group appropriately by
function?
Does the organisation
group appropriately by
location?
Is the organisation
sized correctly?
Does the organisation
have the right spans of control?
Does the organisation
have an optimal upward
reporting?
A B C D E F
Function Location Size Spans Reporting
We have subjected these structures to six tests or screens
30
Three pure tone options have become apparent. Option 2, less hand-offs, simplified structure, more 1 DPC.
Process Level 1 Process Level 1/2 Status Quo
Option 1: Plan Driven/
Order Driven
Option 2: SC Back
Office Option 3:
End To End
Enable
EP1 Establish and manage rules SC SC SC SC
EP2 Assess performance SC SC SC SC EP3 Manage data SC/CS SC SC SC EP8 Manage regulatory compliance SC SC SC SC EP9a Improve supply chain S&L/SC/CS SC SC SC
Plan
P1.1 Demand planning Sales Sales Sales Sales P1.2-P1.4 Supply chain planning SC/CS SC SC SC P2 Plan source raw materials SC/OPS SC SC SC P3. Plan make SC/OPS SC SC SC P4 Plan deliver (warehousing and transport) SC/CS SC SC SC
Source S1-6 Source raw materials OPS/SC OPS OPS OPS D1.7a Source carriers S&L/CS S&L S&L S&L
Make M1.1 Schedule production OPS/SC OPS OPS OPS M2-6 Make OPS OPS OPS OPS
Deliver
D1.1 Process inquiry (including complaints) CS CS CS SC D1.2 Enter order CS CS CS SC D1.3 Reserve inventory & determine delivery date SC/CS CS SC SC D1.4 - D1.6 Consolidate & build loads CS/SC CS SC SC D1.8 - D1.10a Pick & pack product S&L/SC CS SC SC D1.11 -D1.15 Ship & Invoice SC/CS CS CS SC
31
As a result of this analysis we were able to isolate the Supply Chains Organisational Design Principles
Source: Organisation Workshop involving SC and CSR leads in April 2008
Themes Principles
The Supply Chain must be responsive to the businesses
Within the SC organisation there must be a strong link to the business teams. The people having this role will represent the extended SC (Buy-Make-Deliver)
The Supply Chain is an end-to-end, cross-site activity with planning at its core
Master Production Scheduling (MPS) to be done in SC by business short-term and product family mid-term
MPS to include Raw Material Planning, Production Planning, and Distribution Resource Planning however the changes involving Production Planning should be process-led and gradual
Detailed Scheduling, and Raw Material call-offs to be done in Manufacturing and across businesses on site
Whenever possible, the Supply Chain activities will be organised across DPC
The SC organisation will be evolving to a 1-DPC SC organisation
A number of discrete activities can be managed across DPC including: Metrics, ERP data, SOX administration, Container management
The Supply Chain organisation will not replicate roles better performed elsewhere
S&L to act as a 4PL governed by a SLA and therefore S&L is responsible for contract management and administration
Customer complaint management is done by the Customer Service team and not in SC
SC is accountable for the complete Warehouse Network Design. SC should delegate or outsource the day to day execution of Warehouse Operation and Dispatching where practical.
Customer service restructuring depends on DPCs value proposition to the market
Supply Chain organizational transformation is not contingent on CS reorganisation
CS reorganisation will require an in-depth understanding of customer requirements and the need for CSRs to play a sales assistant role
32 Organization workstream
Warehouse Lead
Continuous Improvement
Lead
DPC SC Planning
Lead
Business Link REF
Business Link OEM
Business Link IND
Control & ERP Data L.
EMEA SC Manager
CDC
LW & Consignment
Master Data Team 1
Master Data Team 2
LSS Continuous
Improvement Team (BB)
Control Team 1
Control Team 2
Container Management
Reporting Team
SC Planning MPS 1
SC Planning MPS 3..n
SC Planning MPS 2
SC Planning Resin
Liquid only Leveraged across DPC
Commentary
Requires standardised product hierarchy between three businesses
Resultant synergies will lead to increased efficiencies through greater scale and lower costs
One DPC should form basis of end-state business architecture, ensuring strategic alignment of future initiatives
and to design on a high level the new EMEA SC Organization
Container Mgt
Reporting layers were reduced from 6 to 4.
33 However structure is only one part of an organisations DNA
34
DPC EMEA Target Network Structure (1)
Note (1) OEM customer required, powder and consignment warehouses are not represented
Manufacturing site
Warehouse
Closing Warehouse
Multiple waves of consolidation Mostly into the Genk ELC
UK warehouse closure
Germany 3 locations
Portugal
France 2 locations
Spain
Italy
Network workstream
All Distribution projects will, by end 10, reduce FPDE by + 17%
35 Transport Workstream
Central procurement of freight
Extensive usage of groupage & intermodal shipments
Consolidation of many small deliveries to one customer delivery address on the same day, to one shipment.
Techniques to increase the transport loading factor
Pallet load optimization techniques
Parcel shipments rather than palletized loads.
Shipping policies such as min size & frequency
More robust process to manage and control rush shipments
36 Looking forward
Simplified Ship-tos
Closure of Geserick and LMS
Complete Q4 - 2008 2009 2010
Delivery Due List Service Policies (Small shipment upcharge)
Application of analytical safety stock calculation
Application of analytical safety stock calculation
SKU rationalization
Raw / Semi Inventory Reductions
Russia- Lane effectiveness
Turkey -Lane effectiveness
Freight Consolidated Settlement
ATP -PODs to DRP
ELC Delivery consol
Receivables reduction
Increase in forecast accuracy
Differentiated service levels
MPS
Resin availability
Production execution to
Plan
Carrier Management Small (parcel) shipments
MTO/ MTS policy change
NGST Inventory Exposure Reduction
Central Procurement of Transport
W1 warehouse closures
Heated transport
POD restructuring
2011+
Footprint reduction
Customer
Transport
Product Organisation
Supply Chain Re-organization
Network
M&B
DIBM MPS tools
AS
OTIF baseline
OTIF II
Pallet Load Opt
MPS-AS interface
ATP - STO
Product Master Data Management
Rush shipments
Adv Inv Mgt
RCCP
37 Key Success factors & - learning
The engaged, senior, Steering Committee created momentum both inside and outside the project team The team engaged the business and the business engaged the team consistently through all phases
The project used data and diplomacy to create change
Projects must be directionally toward the vision (Vision Required) and aligned with the strategy.
Results must be a COMMITMENT for the project team AND the line
Watch both the project validations AND the balance sheet, must hot bottom line.
Progress must be reported via routine reviews attended by key stakeholders, and senior leadership , based on a formal Program Management Office structure Projects touch and interact, strategic decisions allow projects to link, build or detract from each other A long term end-to-end strategic view that does not ONLY focus on pain points & quick hits. Projects must be transformational in nature, major step changes not small increments.
38
www.dupont.com