This document discusses a supplier collaboration project between Dow AgroSciences and its suppliers. The project aims to improve communication and collaboration through an Elemica portal that allows for order responses, advanced shipping notices, forecast sharing, and eInvoicing. The project scope and timeline involve onboarding suppliers to the portal over 2-4 weeks. Initial feedback from suppliers and Dow has been positive, with productivity improvements and potential cost savings. Key learnings included involving stakeholders, showing value to suppliers, and managing change.
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Key Facts About The Dow Chemical Company
2014 Sales of $58.167 billion
Dow at a Glance
• 2014 Adjusted EBITDA of ~$9.3B
• ~53,000 employees
• Manufacturing in 35 countries
• Sales in ~180 countries
2014 Dow AgroSciences
Sales by Geography
North America
40%
EMEAI
19%
Asia Pacific
10%
Latin America
31%
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Dow AgroSciences -Global Operations Span the Globe
Worldwide
presence
Facilities in more
than 40 countries
and products sold
in more than
130 countries
More than 9,000
employees
worldwide
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Opportunity
• Dow AgroSciences continues to grow at a fast pace and collaboration
with our suppliers is key to ensuring our future. We need to be more
responsive and agile in responding to unplanned events.
DOW AGROSCIENCES RESTRICTED
Examples:
Lack of visibility on incoming raw materials from China
Finding out something did not ship, only when it did not arrive in
the US (4 week), limits us on ability to make changes to
production schedules or receive supply from another source.
Lack of forecast visibility to our supplier
Strong selling season has stocked us out of bottle caps. Supplier
extends lead time from 45 days to 80 days. Dow AgroSciences’
sales are time sensitive. If product is not on the shelf when
customer needs it, we will miss the sale.
Lack of communication that container did not load on ship.
Material sits at port for 3 weeks, unable to find space on a vessel.
No communication from Forwarder until material was supposed to
arrive. Risk of not only being fined by government for lack of
product but also for crop loss.
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Case for Change
2014 Situation
Variability in our demand, challenges
supplier’s ability to supply
PO count has more than
doubled in three years
2011 2012 2013 2014
PO Count
PO
FAX
Email/phone or no
responses
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Supplier Collaboration Project
• Automation via ELEMICA portal
§ Order Response - confirmation of date, quantity and price
§ Supplier Advanced Ship Notification (ASN) - integrated into SAP
§ eInvoicing
§ Forecast Collaboration
• Raw Material and Packaging vendors (not currently B2B)
DOW AGROSCIENCES RESTRICTED
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Elemica
Scope / Timeline
Supplier
(portal)
Dow
SAP
(idoc)
Orders
Order Response
Advanced Ship
Notice
Order Response
Invoice
Forecast
Advanced Ship
Notice
Invoice
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Value
DOW AGROSCIENCES RESTRICTED
*assumes 6 min/order
FEEDBACK
• Positive response from Suppliers.
“All orders in one place vs. multiple
emails /order.
• Additional suppliers are asking to be
on the portal.
• Dow planners are asking to have
more suppliers on the portal. It
reduces rework, increases
confidence in planning system.
Productivity Improvements
• Order Response
• Savings of 6-10 min/order
by Planning organization
• eInvoice
• Reduction in errors,
• Savings of 15 min/order
by Accounts Payable.
Potential savings
Inventory reduction in chain
Better prices
Less expedited freight
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• Send initial communication (through Procurement)
• Provide webex or video training
• Complete setup in Portal and SAP
• Go Live
• Follow up and Support
• 2-4 weeks
Vendor On-Board Process
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• Availability of supplier
• Start slow to go fast
• Don’t underestimate change management internally
§ Get key stakeholders involved early.
• Show value to supplier
Learnings