Chemical Supply Chain

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1 Achieving standardization Achieving standardization of Supply Chain Processes of Supply Chain Processes to increase to increase end to end end to end transparency and decrease transparency and decrease costs costs Peter Devos Business Process Competence Dir. Monsanto Europe Düsseldorf April 21, 2010

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Achieving standardizationof Supply Chain Processesto increase ‘‘end to end’’transparency and decreasecosts By Peter DevosLogiChem 2011 will be the event's tenth anniversary and an opportunity for the most senior chemical supply chain & global logistics directors from the European chemicals community to come together once again share experiences, make new contacts and benchmark the latest chemical supply chain initiatives. Not only will LogiChem 2011 be a chance for the chemical industry to reminisce about the last ten years but an opportunity to shape the next decade. To celebrate a decade of LogiChem, there will be an exciting three day programme filled with networking opportunities in our new location, Antwerp.

Transcript of Chemical Supply Chain

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Achieving standardization Achieving standardization

of Supply Chain Processes of Supply Chain Processes

to increase to increase ‘‘end to endend to end’’

transparency and decrease transparency and decrease

costscosts

Peter DevosBusiness Process Competence Dir.

Monsanto Europe

DüsseldorfApril 21, 2010

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MONSANTO THE COMPANY AT A GLANCE

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Monsanto is an Agricultural Company

Crop Protection: RoundUp

Technology :

RoundUp Ready, SmartStax

Seeds: Corn, Soy, Rape, Cotton, Vegetables

“According to the UN, by 2050 the world needs to

double its food production to feed 9.3 billion people”

“Monsanto is committed to double yield of corn, soy and

cotton by 2030”

-Hugh Grant, Monsanto CEO

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Monsanto Factsheet

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Production Sites

Crop Protection Site

Vegetable Seeds Site

Row Crops Seed Site

161 Production Sites35 Countries

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SUPPLY CHAIN PROCESS MANAGEMENT

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Supply Chain Process Management

A Process is the way your supply chain people

are executing their daily job supported by IT-

toolsProcess

Technology People

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Supply Chain Process Management

The Quality of a supply chain organization is

determined by the quality of execution of its

business processesProcess

Technology People

Quality&

Productivity

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Supply Chain Process Management

The risk: a rigid process embedded in a resistent

organization without innovative thinking

Process

TechnologyPeople

Quality&

Productivity

- Org with resistance to Change- Lack of SC Agility- Reduced Scalability - Lack of leverage

CEO to SC Manager: Deliver my customers Now!!!!

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Renewed focus around Process Mgt

• Process Mgt is a way to prepare for the

Economic Upturn

– Status Quo is not acceptable

• Reorganizational pressures

– Do more with less people (= different from working

harder)

– Leverage existing people skills by new process & IT-tools

– Align Roles & Resp – process ownership

• More awareness that Supply Chain performance

is driven by process mgt

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SUPPLY CHAIN PROCESS MANAGEMENT

BUSINESS CASE

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Supply Chain Improvement

• Costs - WC

• Quality

• Volume

• Inventory

• Compliance

• Risk Mgt

Information Management within your Business Process

VisibilityTransparency

Information Reliability

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Process & Cost Improvements

Technical innovation

Process Improvement: where to start?

Supply Chain needs fast & agile responses & processes to serve the more demanding customers

Business

ICT need to cut costs & need longer leadtimes to cope with Requirements

IT

ROCK HARDPLATE

Wuff ??

Miaow ??

Wuff ??

Miaow ??

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Process & Cost Improvements

Technical innovation

Process Improvement @ Monsanto

Supply Chain needs fast & agile responses & processes to serve the more demanding customers

Business

ICT need to cut costs & need longer leadtimes to cope with Requirements

IT

EMEABusinessProcess

Competence Center

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Process Improvement: Monsanto case

EMEABusinessProcess

Competence Center

Roles Responsibility

• Std Process solutions• Tech Designs• Crossfunct. views

• Std process mappings• Lean – Six sigma• Power user Training

•KPI’s - dashboards• Reporting - analysis•Data transparency

•master data mgt• process parameters

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Some examples

1. Crossfunctional workshops around Business Process Improvement‘Streamline execution of business processes”

AS-IS * TO BE Process mappings

� People “on boarding” work as “owners” for change

� Install smarter business processes to make cost reductions sustainable

� Create ownership for the “end result”

� Encourage crossfunctional process thinking

� Map systems within business process

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Some examples

2. Installation of a standard DRP process accross EMEA

DRP Process orchestration

� Standardized delivery process� Logistics Costs tranparency & Cost savings� Process automation � Improved inventory prepositioning

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Some examples

3. Installation of central business dashboards: easy accessible

� Common SC process & master data => full business data transparency

� Daily order, inventory, business tracking� Right business decisions� Standard business process mgt => Agility

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Conclusions

• Process Management is a survival need in the current

business climate

• Process Management goes beyond six-sigma, lean and

IT-tools

• Process Management is working smarter versus

competition, not working harder

• Process improvement is not new, it’s a race without a

finish.

⇒ I wish you all the best with your process improvement endeavours

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Q&A