Approaching Supply Chain Performance From the Market Side In 20 April 2010 - LogiChem Dramatic Improvement by extending supply chain, process improvement & management practices to the demand side of the business By Peter Murray 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.

1. Approaching Supply Chain Performance
From the Market Side In
20 April 2010 - Logichem
Dramatic Improvement by extending supply chain,
process improvement & management practices to
the demand side of the business
Peter Murray, CIRM
EI DuPont and Nemours Company
Supply Chain Development & Innovation Leader

2. Introduction
DuPont
– Market Driven Science Company
– Creating sustainable solutions essential to a better, safer and healthier life for people
everywhere.
– Evolving for our 3rd Century
• Gunpowder Petrochemicals Sustainable Solutions for a better life
Peter Murray – Supply Chain Development and Innovation Leader
–Supply Chain Center of Competency
–10 years with DuPont – Supply Chain Transformation
–11 years in defense, industrial equipment, software, consumer products
–Supply Chain, Operations, S&OP, Demand, Product, Business Management - Sustainability
–APICS Board of Directors, Supply Chain Council, Institute of Business Forecasting
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3. Of Supply Chain’s and Volcanoes
Losses – Euro 2B and climbing – chaos with travel, good not moving time marches on …
European Flights Resume, London Remains Closed
Applause, cheers and whoops of joy rang out from Asia to
New York to Paris on Tuesday as airplanes gradually took to
the skies after five days of being grounded by the drifting
volcanic ash that has crippled European air travel.
With Flights Grounded, Kenya’s Produce Wilts
Volcanic Ash Cloud Map - Europe
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4. Supply Chain Saves The World
Lessons learned and
applied to emerge stronger
at DuPont – and their
foundation in the APICS
body of knowledge and
AMR’s forward thinking
and experience – all this
you can apply as well
Why businesses exist and what we take how with us – there is
more when it comes to the company you choose and APICS
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5. Steps to success – lessons from our 8 year and continuing journey
1. Educate to build the foundation – do it widely and deeply start with the most interested
2. Develop a standard process approach to identify and place issues and opportunities
3. Create a vision and strategy that incorporates supply chain strategy with the rest of your
business strategy
4. Learn from others, learn, ask, check, compare, share, build - repeat
5. Apply standard solutions and methods that focus on reality vs perception or aspiration alone
6. Execute, Execute, Execute, improve execution and Repeat
7. Don’t ever give up
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6. Evolution – Long Term Path
Market Driven Science Company
• Our goal
Demand Driven Enterprise
• Near future
Effective and Efficient Advanced S&OP
Integrated Business Management
• 4 years
Competitive Imperative Strategic Supply Chain Capability
• 8 years
Optimizing The Safe Production Of The Molecule
• 197 years
5

7. How to go from great
concept nt
e
Marketing Effectiveness
To Reality em
ag
an
M
and
em
D
Supply Chain Capability
6

8. The Challenges of the last two years and for a least the next few
Yes!
Was and will not return for awhile
Somewhere in the future
Demand
Trouble!
Sep-Jan
How Do I deal
with this?
Today
Time into the future
Emerge stronger, use the new reality as an
opportunity…. Ellen Kuhlman CEO DuPont
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9. The essential defect ….
Market or demand side realities collide with asset or supply
side / supply chain designs … if you don’t address the root
causes
Excess / Wrong Inventory
Lost Margin
Supply Side Out Stock-outs Market Side In
Mix Issues
8

10. How fast can you change ? Sustainably Change?
EMERGENCY TRADING AREA ADDING &
CHANGES CHANGING
Supply STABILIZE CAPACITY FIRM FUTURE
PRODUCTION MATERIAL ORDERED PLANNING
CUSTOMER CUSTOMER
Demand COMMITMENTS REQUESTS/PROMISES
MADE
COST AGILITY
TIME
TODAY
1 Don't change your inventory or service strategy faster than your
total supply chain can effectively respond
You can either change your lead-times to customers, your supply
2 chain responsiveness or agility, or significantly improve your
demand sensing or accept lower fill rates for customers
EAME 0324-02 ~ 9

11. Numbers
•$3.4 Billion in free cash flow
•$1.5 Billion of cash from inventory
•$1.9 Billion in cost and capital
•$1.5 Billion in revenue gained or defended
•Margin improved by 2% - reversing a 12 year slide
•3 people 50 200 5000 55000
•One business, one project, one team, one person at a time, it multiplies, you can leverage it, it
grows and sometimes slips back
•20 APICS Certified People 50 200 250
Back in the Fortune 50 after 53 years,
APICS Article, DD has stabilized and is
improving – Supply Chain is strategic!
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12. Competitively advantaged supply chains are shifting much more demand
driven models
From To
Long and slow Fast and flexible
Forecast-based Demand-based
Product forward
Customer back
Cost-reduction Pressures
Function-driven Supply Chain Value and growth
Company Strategy-driven
Pressures Networked
Sustainable Does this
come in
Action GREEN?
MFG
distrib-
supplier MFG customer supplier
utor
Capability
Customers distrib-
utor
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13. What is a Supply-Chain its evolving to cover the
“value chain”.
The picture form the Supply Chain Council represents processes not
functions or departments
Product Management
Customer processes
Supplier processes
Product Design Sales & Support
DCOR™ CCOR™
Supply Chain SCOR™
SCOR Benchmarking Workshop 12
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14. The Future Of Supply Chain Management Is Now
1. View your supply chain as a strategic asset
2. Develop an end to end process architecture
3. Design your organization for performance
4. Build the right collaborative model
5. Use metrics to drive business success
Practical Application – Read the Book
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15. 14

16. Breaking Down Complexity
Two Types of Demand and address with two basic approaches
Predictable < Unpredictable
Statistical
Analysis
Demand Predictability
Strategy and
Marketing Business Plans
Input
Demand Plan
Sales
1-18/24 Months Input
Product/Brand
($ and Volume)
Management
Input
Customer
Input
Customer
Collaboration
Business Value/Return
Consensus Planning
Supply Chain Optimization Adv S&OP & Demand Chain
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17. Targeting Demand Improvement – Read On Your Own
Target Significant Variability
Aim For What Makes Sense
•Fix the aggregate
•Match demand plan purpose plans first
and detail to minimize time •Apply the 80/20 rule
spent on analysis •Learn from existing
•Don’t fool yourself with practices – don’t
unrealistic aspirations reinvent the wheel
•Control the inputs – don’t
y
•Speed matters –
De
teg
chase the outputs minimize data
ma
ra
•Adapt the demand plan
St
nd
gathering time
rhythm to the rhythm of nd
P
ma
roc
your markets
De
es
Demand Team
s
Organization
Enabling The Team
•Build the competency and expertise in your organization
•Make the process transparent, realistic, honest and disciplined–
enabling a continuous improvement mindset
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18. Supply Chain Performance + Demand Performance = Business Performance
Demand Driven Supply Chains
Reactive Reactive Business
• Expedite and Firefight
• Change only when necessary DMD
• / unavoidable
Responsive Business
Responsive
• Built on Anticipation
• Acts with Speed DMD
• Agile when change is needed
Business
Demand Driven
• Starts with Market and Sell Demand Driven
DMD
• Demand Sensing
• Demand Shaping
• Products That Drive Demand
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19. Competing
“The ability to learn faster than you competitors may be the only
sustainable competitive advantage” – Arie De Geus
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20. How you can get the benefit all the knowledge and experience
All that we have accomplished in DuPont is available to you via APICS, the Supply Chain,
Council, Institute of Business Forecasting, ISM and fine research groups like AMR and the
sharing amongst colleagues at functions like Logichem
1 Joined up decision making or Integrated Management
“Coming together is a beginning. Keeping together is progress. Working together is
success.” – Henry Ford
2 The knowledge is out there – take advantage of it – combine it with you will
to succeed
“We shall neither fail nor falter; we shall not weaken or tire … give us the tools and
we will finish the job.” – Winston Churchill
3 You have to effectively apply the knowledge with good timing to succeed
over time
“Take time to deliberate; but when the time for action arrives, stop thinking and go in.” –
Napoleon Bonaparte
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21. Final Message
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22. The task of integrated management is to make the strengths of people
effective and their weaknesses irrelevant. paraphase of wisdom from Peter F. Drucker
Questions or comments
Thank You
Peter.W.Murray@usa.dupont.com or Peter.Murraycirm@gmail.com
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