IGNITE 2015 EU - DuPont's Project Cornerstone: A Journey to Global Logistics Visibility
1. DuPont’s Project Cornerstone:
A Journey to Global Logistics Visibility
15 SEP 2015
Chris Cameron
Director Business Process Solutions,
Elemica
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
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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
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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. 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. Solution Model
DuPont
Dominant
Partner(s)
A
B
Global
Logis7cs
Visibility
Secondary
Sources
Ter7ary
Sources
Analy&cs
Secondary
Service
Providers
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. 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
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
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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!
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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….
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