Kevin Pruitt, Director of Supply Chain Execution and Logistics, Eastman Chemical Company Eastman Chemical Company, with the best supply chain performance for two consecutive years, shares their definition of the end-to-end supply chain and insights on driving supply chain improvement. A presentation from the 2015 Supply Chain Insights Global Summit

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Supply Chain Transformation
The Eastman Chemical Company Journey to Be
a Supply Chains to Admire Winner
Kevin Pruitt
Director, Supply Chain Execution & Global Logistics
Eastman Chemical

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Eastman Chemical Company
• A global specialty chemical company headquartered in Kingsport, Tennessee
• Approximately 15,000 employees and over 50 manufacturing sites around the
globe
• Serving customers in approximately 100 countries
• A company dedicated to environmental stewardship, social responsibility and
economic growth
• 2014 ENERGY STAR® Partner of the Year Sustained Excellence
• 2014 Ethisphere’s World’s Most Ethical ® Companies
• 2015 Glassdoor Employees’ Choice Best Places to Work (# 30)
• $10.5B Revenue

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A long history of creative thinking and industry solutions

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Journey toward specialty chemical company

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Diversity is a source of strength
End-market and geographic diversity contribute to consistent
earnings and cash flow growth

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Eastman is a market leader
of our sales revenue is from product lines in
leading market positions2/3

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Eastman’s Integrated Supply Chain is:

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Integrated Global Supply Chain Transformation Journey

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Key “Takeaways” for successful supply chain transformation
• Focus on your customers
• Integrate procurement and supply chain operations
• Continually develop and improve capabilities
People, Process, & Technology
• Align / collaborate with business partners
• Create value that contributes to business success

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It is an on-going journey

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Key “Takeaways” for successful supply chain transformation
• Focus on your customers
• Integrate procurement and supply chain operations
• Continually develop and improve capabilities
People, Process, & Technology
• Align / collaborate with business partners
• Create value that contributes to business success

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Integrate Supply Chain & Procurement Operations
Integrated Global Supply Chain
Global Supply Chain
Vice President
Global Procurement
Vice President &
Chief Procurement Officer
Supply Chain
Execution
Logistics
Direct
Procurement
& Alternate
Methods
Of Supply
Indirect
Procurement

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Integrated Global Supply Chain Organizational Strategy

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Advantages of an integrated philosophy and approach
 Supply chain processes are cross functional - optimization of the processes
requires integration of the functional organizations
 Capabilities are enhanced with a talent management strategy that moves
employees throughout the various functions.
 Common objectives, goals, initiatives and measures ensure the optimization of
the corporation
“dashboard” of integrated metrics
 The ultimate objective is to be a reliable supplier to our customers
The integrated approach to supply chain management
enables our service and reliability
“to be the reason customers do business with Eastman”

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Key “Takeaways” for successful supply chain transformation
• Focus on your customers
• Integrate procurement and supply chain operations
• Continually develop and improve capabilities
People, Process, & Technology
• Align / collaborate with business partners
• Create value that contributes to business success

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Continually develop and improve capabilities
Business
management
skill set
Transactional
talent
profile
High
performing
analytical &
leadership
capabilities
• Develop a high performing workforce
• Sustain knowledge and expertise globally – robust “bench” &
succession plans
• Enhance leadership skills
• Utilize advancing technology to automate - improve productivity
and service

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Center of Excellence – Key to driving improvement

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Integrated Global Supply Chain “Roadmap”

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Critical Success Factors for driving transformation and improving capabilities
 Developed structured “roadmap” – aligned priorities across the organization
 Championed by leadership of the organization
 Developed governance process for each initiative
 Formed Center of Excellence – dedicated resources to drive improvement
 Formed partnerships with IT and Businesses to complete initiatives
 Demonstrated value achieved as progress was made
 Implemented solutions globally

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Key “Takeaways” for successful supply chain transformation
• Focus on your customers
• Integrate procurement and supply chain operations
• Continually develop and improve capabilities
People, Process, & Technology
• Align / collaborate with business partners
• Create value that contributes to business success

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Align and collaborate with internal business partners
Proactive
business
alignment
Reactive to
business
Business
partnership
React to business
requests
Proactively lead
initiatives in support of
business strategy
Champion initiatives
that contribute to
business results
• Align resources with business management and S&OP teams
• Gain and share market insight
• Provide commercial and contract expertise
• Accurately forecast materials, services, and distribution costs
• Develop options or solutions for business issues / challenges
• Champion initiatives to execute business strategy
• Deliver value

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Enable business success
Bottom line,
value focus
Purchase
price focus
Value,
growth
focus
Driven by cost Driven by value
contribution
Driven by value contribution
to enable growth
• Balance service, cost and working capital
• Consistently deliver value greater than the cost of the organization
• Drive strategic savings projects in:
• Procurement strategies for services and material
• Network optimization for lower distribution cost and working capital
• Trade and duty optimization
• Supply planning and asset optimization
• Ultimately be viewed as a Value Partner rather than a Cost Center

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IGSC – Must Continue to be strategic contributor to business success
Pressure to deliver value
• Stronger alignment with business
strategy
• More innovation
• Continued cost pressure
• Proactive risk management
Focus areas for success
• More collaboration
• Translation of insights into
business options
• Strong bias for action
• Robust talent management
strategy
Successful Supply Chains will be a source of strategic contribution to
business partners

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It is an on-going journey

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Integrated Global Supply Chain Vision 2020
Business
Partnership
People
Processes /
Systems

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Learnings from past failures that can accelerate your success
• Business Priorities – roadmaps and initiatives must be driven by what
the business needs to be successful
• Balance of Talent and Technology – implementing technology without
the talent to optimize utilization will yield less than desired results
• Master Data – do not underestimate the value of accurate master data
• Unrealistic Timelines – process improvement is not easy; build
aggressive but realistic timelines for major improvement projects

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External Recognition
Recognized Eastman as a having a “Supply Chain to Admire” 2014 &
2015 - annual top supply chain listing
Recognized Eastman with the
Green Supply Chain Award
Recognized Eastman’s Supply Chain
Roadmap as a top 100 Supply Chain
project for 2014
Supply Chain research company recognized Eastman as a “Supply
Chainovator”
Highlighted Eastman’s “end-to-end supply chain integration” and
“continual improvements as helping Eastman be a leader on a
global scale”

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Key “Takeaways” for successful supply chain transformation
• Focus on your customers
• Integrate procurement and supply chain operations
• Continually develop and improve capabilities
People, Process, & Technology
• Align / collaborate with business partners
• Create value that contributes to business success