Mr. Salah Al Kharraz - supply chain a business or a service
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Mr. Salah Al Kharraz - supply chain a business or a service Mr. Salah Al Kharraz - supply chain a business or a service Presentation Transcript

  • THE KUWAIT SUPPLY CHAIN &LOGISTICS CONFERENCE & EXHIBITION 14 – 15 DECEMBER 2011 1
  • IS SUPPLY CHAINA BUSINESS OR A SERVICE! PRESENTED BY: SALAH AL-KHARRAZ INTEGRATED SUPPLY CHAIN LEADER EQUATE PETROCHEMICAL COMPANY 2
  • IS SUPPLY CHAIN A BUSINESS OR A SERVICE?Definition A Business definition is: • A business is an organization engaged in the trade of goods, services, or both to consumers. A Service definition is: • A type of economic activity that is intangible, is not stored and does not result in ownership. A service is consumed at the point of sale. Services are one of the two key components of economics, the other being goods. 3
  • IS SUPPLY CHAIN A BUSINESS OR A SERVICE?Evolution of SC 1. Creation Era • The characteristics of this era of supply chain management include the need for large-scale changes, re-engineering, downsizing driven by cost reduction programs, and widespread attention to the Japanese practice of management. 2. Integration Era • Is an era integrated under one plan and is Enterprise Resource Planning (ERP) enabled. 4
  • IS SUPPLY CHAIN A BUSINESS OR A SERVICE?Evolution of SC… Cont’d 3. Vertical Integration • This era in which vertical integration with the suppliers in upstream direction and customers in downstream direction is achieved. 4. Globalization Era • The globalization era, can be characterized by the attention given to global systems of supplier relationships and the expansion of supply chains over national boundaries and into other continents. 5
  • IS SUPPLY CHAIN A BUSINESS OR A SERVICE?Evolution of SC… Cont’d 5. Specialization Era • Industries began to focus on “core competencies” and adopted a specialization model. Companies abandoned vertical integration, sold off non-core operations, and outsourced those functions to other companies. This changed management requirements by extending the supply chain well beyond company walls and distributing management across specialized supply chain partnerships. 6
  • IS SUPPLY CHAIN A BUSINESS OR A SERVICE?Supply Chain Functions Electronic Data Communication Analysis Procurement Manufacturing Physical Distribution Order Management Supplier Customer Product Development Customer Service 7
  • IS SUPPLY CHAIN A BUSINESS OR A SERVICE?About EQUATE  Established in 1995, EQUATE is an international joint venture between Petrochemical Industries Company (PIC), The Dow Chemical Company (Dow), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC).  Commencing production in 1997, EQUATE is the single operator of a fully integrated world-scale manufacturing facility producing over 5 million tons annually of high- quality petrochemical products which are marketed throughout the Middle East, Asia, Africa and Europe. 8
  • IS SUPPLY CHAIN A BUSINESS OR A SERVICE?EQUATE ISC Handling Products  Solid Form:  Polyethylene  Polypropylene  Liquid Form:  Mono-ethylene Glycol  Di-ethylene Glycol  Crude Glycol  Styrene Monomer  Paraxylene  Heavy Aromatics 9
  • IS SUPPLY CHAIN A BUSINESS OR A SERVICE?The Key Parts of ISC A Supply Chain has three key parts: • Supply focuses on the raw materials supplied to manufacturing, including how, when, and from what. • Manufacturing focuses on converting these raw materials into finished products. • Distribution focuses on ensuring these products reach the consumers through an organized network of distributors, warehouses, and retailers. COMMUNICATION 10
  • IS SUPPLY CHAIN A BUSINESS OR A SERVICE?EQUATE ISC to Manage 11
  • IS SUPPLY CHAIN A BUSINESS OR A SERVICE?EQUATE 2011 Fact Sheet YEARLY FACTS & FIGURES (in MT) LIQUID PRODUCTS SHIPMENT PRODUCT MEG DEG CG SM PX HAS YTD QUANTITY 974,754 696,132 23,760 469,682 744,958 41,468 2,950,754 SOLID PRODUCTS SHIPMENT PRODUCT PE PP YTD QUANTITY 632,400 12,2409 754,809 12
  • IS SUPPLY CHAIN A BUSINESS OR A SERVICE?WAL-MART Supply Chain Global Fortune 500 List Rank Company Revenue in $ 1 Wal-Mart stores 219,812 2 Exxon Mobile 191,581 3 General Motors 177,260 4 Ford Motors 162,412 According to an analyst: Wal-Mart was able to achieve a leadership position in retail industry DUE to the efficient supply chain management practices. 13
  • IS SUPPLY CHAIN A BUSINESS OR A SERVICE?Conclusion Commodity business cannot be differentiated in the selling price, it by the best class in service… JIT/OTIF with the right KPI’s, and best customer service. 14
  • IS SUPPLY CHAIN A BUSINESS OR A SERVICE?Conclusion… (cont’d) Integrated Supply Chain is a BUSINESS not a moving commodities service 15
  • IS SUPPLY CHAIN A BUSINESS OR A SERVICE?Questions & Answers Q&A 16
  • IS SUPPLYCHAIN A BUSINESS OR A SERVICE?THANK YOU! 17