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DuPont’s Project Cornerstone:
A Journey to Global Logistics Visibility
15 SEP 2015
Chris Cameron
Director Business Process Solutions,
Elemica
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
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
9/28/15 DUPONT CONFIDENTIAL
4
4
Track & Track Context
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)
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
Solution Model
DuPont	
  
Dominant	
  
Partner(s)	
  
A	
  B	
  
Global	
  Logis7cs	
  Visibility	
  
Secondary	
  Sources	
  
Ter7ary	
  Sources	
  
Analy&cs	
  
Secondary	
  Service	
  Providers	
  
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)	
  
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	
  
Pilot
Functional
Views
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
Shipment
Multiple Updates
Alert
Pilot Results
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!
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….
Changes &
Full Rate Roll-
Out
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
Additional
Questions
DuPont’s Project Cornerstone:
A Journey to Global Logistics Visibility
15 SEP 2015
Chris Cameron
Director Business Process Solutions,
Elemica

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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
  • 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
  • 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. 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
  • 14. Alert
  • 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. 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. Changes & Full Rate Roll- Out
  • 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
  • 21. DuPont’s Project Cornerstone: A Journey to Global Logistics Visibility 15 SEP 2015 Chris Cameron Director Business Process Solutions, Elemica