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IGNITE 2015 EU - DuPont's Project Cornerstone: A Journey to Global Logistics Visibility

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This was presented at Elemica's Ignite2015 Conference in Europe on September 15th, 2015.

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IGNITE 2015 EU - DuPont's Project Cornerstone: A Journey to Global Logistics Visibility

  1. 1. DuPont’s Project Cornerstone: A Journey to Global Logistics Visibility 15 SEP 2015 Chris Cameron Director Business Process Solutions, Elemica
  2. 2. 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
  3. 3. 9/28/15 DUPONT CONFIDENTIAL 3 3 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
  4. 4. 9/28/15 DUPONT CONFIDENTIAL 4 4 Track & Track Context
  5. 5. 9/28/15 DUPONT CONFIDENTIAL 5 5 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)
  6. 6. 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
  7. 7. Solution Model DuPont   Dominant   Partner(s)   A  B   Global  Logis7cs  Visibility   Secondary  Sources   Ter7ary  Sources   Analy&cs   Secondary  Service  Providers  
  8. 8. 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)  
  9. 9. 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  
  10. 10. Pilot Functional Views
  11. 11. 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
  12. 12. Shipment
  13. 13. Multiple Updates
  14. 14. Alert
  15. 15. Pilot Results
  16. 16. 9/28/15 DUPONT CONFIDENTIAL 16 16 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!
  17. 17. 9/28/15 DUPONT CONFIDENTIAL 17 17 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….
  18. 18. Changes & Full Rate Roll- Out
  19. 19. 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
  20. 20. Additional Questions
  21. 21. DuPont’s Project Cornerstone: A Journey to Global Logistics Visibility 15 SEP 2015 Chris Cameron Director Business Process Solutions, Elemica

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