Chemical Supply Chain

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A Collaborative Approach To
Chemical Supply Chain Visibility Using Cloud Technology

By Theo Zwygers

LogiChem 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.

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Chemical Supply Chain

  1. 1. Case Study:A collaborative Approach toChemical Supply Chain Visibilityusing Cloud TechnologyLogichemDüsseldorf, April 22, 2010Theo Zwygers, LyondellBasellPaul Simon Thomas, GT Nexus
  2. 2. About Us GT Nexus Confidential 1
  3. 3. Verbatim at Logichem…. During the last 2 days “Volatility” “Flexibility” “Speed” “Networks” “Collaboration” “Open borders between partners” “Involve customers, suppliers and service providers” “Increase visibility across the Supply Chain….” Ironically most of the systems that are supposed to enable this change are: Proprietary, Intra-company focused, Installed behind firewalls, costly, take time to install… GT Nexus Confidential 2
  4. 4. The Trouble with Supply Chain Visibility Everybody seeks supply chain visibility and control. Few have it. IT systems fail at “inter-enterprise”. Supply Chain Agility1 NEED Sense & respond – demand driven supply Visibility Velocity Variability Multi-enterprise Value Chains2 CONTEXT Globalization Outsourcing Collaboration Process optimization across value chains Single-Company IT Systems3 INFRASTRUCTURE “Closed” ERP data and process model Data locked up in partner systems Over 50% of value chain data is locked up in partner systems. GT Nexus Confidential 3
  5. 5. On-Demand technology:the key to Inter-Company collaborationConnecting partners and allowing them to share informationand data on one single neutral platform.Allowing them to share cost, establish standard and spreadbest practice Manufacturers Logistics Carriers Neutral, Web-based Web- Platform Events, Documents Events, Documents and Information and Information Suppliers GT Nexus Confidential 4
  6. 6. On-Demand technology:the key to Inter-Company collaborationConnecting partners and allowing them to share informationand data on one single neutral platform.Allowing them to share cost, establish standard and spreadbest practice Manufacturers Logistics Carriers IT Analysts and Neutral, Experts call it CLOUD Web-based Web- technology Platform Events, Documents Events, Documents and Information and Information Suppliers GT Nexus Confidential 5
  7. 7. How does GT Nexus enable SC Collaboration? GT Nexus runs the global trade and logistics portal A unique profile A Shipper Community Independence from all players 10 years of experience A focus on IT Global presence On-demand PLATFORM Broad Capabilities 100% On-demand (SaaS) solution Freight Procurement Thousands of companies and users Transportation Planning and Execution Large integrated partner network Supply Chain Visibility 99.9% Uptime and 24x7 global support LSP Monitoring & Compliance GT Nexus Confidential 6
  8. 8. The Issues Lyondellbasell is Addressing We move large quantities of products across regions Working capital Ability to track 2000 individual shipments per month Use multiple shipping lines across independent suppliers Sailing time / Transshipments Our customers care about delivery, not vessel departure Manage actual delivery date Reduce customer safety stocks Polyolefin markets are volatile, requiring short delivery time Use the ocean as a floating distribution centre Bring your product virtually closer to the market Long supply chains need impact management Multiple carriers and modes Increased frequency of shipments Transit time visibility and shipment Delay Management GT Nexus Confidential 7
  9. 9. LyondellBasell Solution on GT NexusLyondellbasell has visibility into direct shipments from supply sourcesto customers to keep customers notified and anticipate any disruptions Supply Sources Customers Saudi Arabia Australia Netherlands Korea 310 315 Supply Sources have What is next? Up to 30 Ocean Carriers discrete visibility into their shipments • Add more carriers, supply only sources and customers • Shipment Planning and Execution on GT Nexus GT Nexus Confidential 8
  10. 10. Benefits and Success Factors Benefits: An IT tool oriented making data transparent and manageable A user friendly format, managing the huge data streams A system that proactively provides alerts on deviations Independent from 3PL’s, forwarders etc A tool to provide data for shipping line evaluation Key to Success: Grow the number of users Force information standardization across carriers Force transparency and improvement of data reliability Integration into ERP systems GT Nexus Confidential 9
  11. 11. QUESTIONS ?Thank you for your attention Theo ZWYGERS, LyondellBasell Paul SIMON THOMAS, GT Nexus GT Nexus Confidential 10
  12. 12. Case Study:A collaborative Approach toChemical Supply Chain Visibilityusing Cloud TechnologyLogichemDüsseldorf, April 22, 2010Theo Zwygers, LyondellBasellPaul Simon Thomas, GT Nexus

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