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.
Faculty Profile prashantha K EEE dept Sri Sairam college of Engineering
Chemical Supply Chain
1. Case Study:
A collaborative Approach to
Chemical Supply Chain Visibility
using Cloud Technology
Logichem
Düsseldorf, April 22, 2010
Theo Zwygers, LyondellBasell
Paul Simon Thomas, GT Nexus
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. The Trouble with Supply Chain Visibility
Everybody seeks supply chain visibility and control.
Few have it. IT systems fail at “inter-enterprise”.
Supply Chain Agility
1 NEED Sense & respond – demand driven supply
Visibility Velocity Variability
Multi-enterprise Value Chains
2 CONTEXT Globalization Outsourcing Collaboration
Process optimization across value chains
Single-Company IT Systems
3 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. On-Demand technology:
the key to Inter-Company collaboration
Connecting partners and allowing them to share information
and data on one single neutral platform.
Allowing them to share cost, establish standard and spread
best practice Manufacturers
Logistics
Carriers
Neutral,
Web-based
Web-
Platform
Events, Documents
Events, Documents
and Information
and Information
Suppliers
GT Nexus Confidential
4
6. On-Demand technology:
the key to Inter-Company collaboration
Connecting partners and allowing them to share information
and data on one single neutral platform.
Allowing them to share cost, establish standard and spread
best 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. 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. 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
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9. LyondellBasell Solution on GT Nexus
Lyondellbasell has visibility into direct shipments from supply sources
to 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
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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
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11. QUESTIONS ?
Thank you for your attention
Theo ZWYGERS, LyondellBasell
Paul SIMON THOMAS, GT Nexus
GT Nexus Confidential
10
12. Case Study:
A collaborative Approach to
Chemical Supply Chain Visibility
using Cloud Technology
Logichem
Düsseldorf, April 22, 2010
Theo Zwygers, LyondellBasell
Paul Simon Thomas, GT Nexus