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The Need for Transformation in Supply Chain to Meet the Needs of Tomorrow

The Need for Transformation in Supply Chain to Meet the Needs of Tomorrow. IIMM Disha Conference, Mumbai. 24-January-2013 Michael Wheeler. A Transformation Case Study. The need for transformation at OxyChem : Highly commoditized products

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The Need for Transformation in Supply Chain to Meet the Needs of Tomorrow

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  1. The Need for Transformation in Supply Chain to Meet the Needs of Tomorrow IIMM Disha Conference, Mumbai 24-January-2013 Michael Wheeler

  2. A Transformation Case Study • The need for transformation at OxyChem: • Highly commoditized products • Global competition from low labour cost countries with world scale manufacturing and low-cost feed stocks • Corporate need for OxyChem to supply free cash flow to Occidental Petroleum’s Oil & Gas arm for increased exploration and production • The solution: • Order Fulfilment • Demand chain planning driving production planning and scheduling; • Logistics network optimization; • Procure to Pay • Strategic Sourcing; • Centralized procurement; • VMI; • Vendor joint improvement programs; • Customer Relationship Management • Leadership, team work and personal transformation.

  3. What’s Needed in Tomorrow’s Supply Chain • Procurement and engineering teaming to lower total life cycle cost from conceptual engineering to final design; • Integrated planning and scheduling providing accurate demand forecasts and execution to the schedule; • Supplier relationship management and joint improvement programs; • Competent and curious employees; • Proactive risk management / supply disruption management; • Digitization of the Supply Chain and big data analytics.

  4. Observations on the Needs of Transformation in India • Planning; • Employee development; • Diligence and sustainability; • Teamwork and trust; • Deference to seniors and an environment for open dialogue; • A strong case for change; • Become a strong competitor on the global stage.

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