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Mining, Materials, & Chemicals Group Supply Chain Management. SCM Topics. Challenges Work Targets Initiatives & Thoughts Vendor Alliances. Challenges. Chemicals Industry bottoming out from major slump
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SCM Topics • Challenges • Work • Targets • Initiatives & Thoughts • Vendor Alliances
Challenges • Chemicals • Industry bottoming out from major slump • Continued disruption to industry from mergers/ acquisitions/ divestments - improvement decisions on hold • Getting in on the E-business front end - what does it mean for Chemicals? • Metals • Industry recovering from severe price competition and having to deal with over-capacity • Working to build relations - through PwC Audit
Work • MA Hanna Resin Distribution (delivered) • $??? • MA Hanna Norwalk Plant (delivered) • $600k, plant improvement/ cost reduction • MA Hanna Rubber Compounding (proposed) • Tenneco Packaging (delivered - add on) • Nalco (delivered) • $???, FVP in • Ashland (proposed)
Targets • Tier One • BP/ Amoco • Chevron Chemical • Lyondell • USSteel
Targets • Tier Two • Alcoa - Milled Products • Eastman Chemical • Nalco • IMC Global • Stepan Chemical • Rohm & Haas • Nucor
Initiatives & Thoughts • Chemicals “Point of View” document • Executive document • Insights to Chemical issues and SCM applications • Energy Innovation Center • Initial focus on E-Business with SCM underpinnings • “Brown Paper” SCM Chart • a • Full Value Procurement • Direct raw material spend • Sub-categorization of raw materials for strategic sourcing and spending cost reduction
Vendor Alliances • i2 - Chemicals and Metals • Focusing on co-target accounts • Seminars • Metals - May 19th • Chemicals - May 25th - special afternoon session • SAP APO • Involvement in APO training course creation • Relations with APO team members