DuPont’s Project Cornerstone: A Journey to Global Logistics Visibility

15 SEP 2015 Chris Cameron

Director Business Process Solutions, Elemica

DuPont and Elemica Global Logistics Visibility

•  Solution review of a DuPont / Elemica Project •  Project Goal

Data ownership of dominant 3PL partners to enable…

–  increase customer delivery satisfaction through visibility

–  efficient control of pipeline inventory through visibility

–  Increased admin effectiveness

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Background

Ø  S&D Diagnostics were conducted in the growth regions beginning in 2009

Ø  Key pain point: customers were calling DuPont CSRs to find the status of their deliveries – in come cases, customers called multiple times a day

Ø  CSRs spent a considerable amount of time manually tracking shipments using a multitude of disconnected systems

Ø  A small scale pilot (Project Cornerstone) was built in 2013 and kicked off in 2014 – validate gaps, address immediate pain points, and get an understand on the necessary tools, capabilities and competencies required to build out a full scale Logistics Shipment Tracking capability in DuPont

Ø  In order to minimize risks (technical, financial, resource, etc…), the approach was to maximize the leverage of existing assets and leverage a cloud based technical solution – Elemica Logistics Tracking

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Track & Track Context

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Project Summary

Pilot Project Goal Ø  Provide early warning functionality for the CSRs

Ø  Enable Logistics Shipment Visibility to a single modal transportation

Ø  Implement a Logistics Shipment Tracking technology platform capable of scaling to multi-modal and multi-enterprise levels

Ø  Gain experience, understanding and insight into the design and development of an integrated Logistics Tracking capability.

Ø  Validate use case scenarios and expected benefits as identified in the original project scope

Pilot Project Scope

Ø  US exports to Xingang,China for P&IP

Ø  US exports to Nheva Sheva, India for P&IP

Ø  US exports to Rio de Janeiro, Brazil for DCP (STO)

DuPont and Elemica Global Shipment Visibility

Pilot Solution Overview

•  An all modes solution to measure against a shipment baseline expectations

•  Visibility to the shipment movement legs & tracking for non-conformance

•  Alert required parties for variance or potential variance •  Provide Shipper ownership of the data to feed analytics •  A tool for continuous improvement

Solution Model

DuPont  Dominant  Partner(s)  

A  B  

Global  Logis7cs  Visibility  

Secondary  Sources  

Ter7ary  Sources  

Analy&cs  

Secondary  Service  Providers  

Solution Goal

A TREND Clients are moving this direction rapidly using multiple strategies ranging from; (*Gartner, “How to Enable End-to-End Supply Chain Visibility”-E2EESV)

Sensing  Demand  /  Constraint  adap7ve  SC  (Revenue  Focus  )    

Op7mized  (Cost    Focus)  

Efficient  (Cost  Focus)  

Solution Expectations

GOAL: An Operating E2ESCV Model to achieve hard cost savings and revenue enhancements; •  Inventory savings of up to 20% of

value •  Days Inventory on-hand decrease

from +10 to <7 •  Forecast accuracy increase up to 25% •  Improved SLA to consistent 98%

–  Cost – Carrier performance –  Revenue – Customer deliveries

•  Freight cost reductions between 3.5% and 5% of total volume

•  Workforce reduction (aversion) by 10%

Efficient  repor7ng  and  clean  data  (90%)  

Build  in  signal  points  and  planned  (pre-­‐approved)  

ac7ons  

Pilot Functional Views

Connect and collaborate with all of your land-based transportation providers for shipment booking, execution, and visibility

Elemica Logistics Management Solutions

Road Transport Execution

Connect and collaborate with all of your ocean transportation providers for shipment booking, execution, and visibility

Ocean Transport Execution

Schedule and manage carrier appointments to optimize site and carrier resources

Time Slot Management

Eliminate post-audits of freight invoices & accrual discrepancies thru carrier collaboration on freight costs & invoices.

Freight Cost Management

Speed order-to-cash cycle and reduce admin costs by synchronizing fulfillment data across your 3PL network.

Terminal & Warehouse Visibility

Connect and triangulate multiple sources of data for your global shipments to provide complete visibility and enable accurate exception management.

Global Shipment Visibility

Shipment

Multiple Updates

Alert

Pilot Results

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Project Performance

As of 2/28/2014, pilot project is 100% complete Cost

Ø  Budget at Start : $231M Ø  Actual Cost : $191M (as of EO January 2014) Ø  Cost Performance Index (CPI): 1.00

Project Duration:

Ø  Initiation Date: 6/17/2013 Ø  Implementation Start Date: 9/25/2013 Ø  Launch Date: 12/17/2013 Ø  Close Out Date: 3/14/2014 Ø  Schedule Performance Index (SPI): 1.04

3 months to configure and implement the

solution!

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Key Learnings

Ø  DuPont is dependent on the outsource parties for visibility data access and does not have a means for adjudicating that data via the current architecture

Ø  Lack of data ownership by DuPont prevents the visibility data from being used as a value add

Ø  Gaps in responsibility between integrated partners promotes lack of End to End visibility

Ø  Using 3PL supplied tracking tools (and having trained 200+ users) will potentially make it very costly and disruptive in the event DuPont decides to switch service providers

Ø  Move forward with project expansion….

Changes & Full Rate Roll-Out

Current Project

•  Business unit sponsorship was aligned and project began based on a modest target of 3 day’s inventory reduction

•  Scope was re-defined to include inbound shipments and STO moves in addition to customer deliveries

•  Supplier’s were added to the scope to give visibility to the point of origin

•  Strategic forwarder communications were added to give visibility to shipment legs

•  Additional forwarders and carriers were added to reach 21 partners

•  Roll out began in Q2 2015 •  Initial shipments have begun to flow

Additional Questions

DuPont’s Project Cornerstone: A Journey to Global Logistics Visibility

15 SEP 2015 Chris Cameron

Director Business Process Solutions, Elemica