REPORT ON THE SUPPLY CHAIN MANAGEMENT OF THE COMPANY DUPONT

Company Profile
DuPont has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials, and services since 1802. The company believes that by collaborating with customers, governments, non-governmental organizations (NGOs), and thought leaders, they can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment. Founded in 1802 in Wilmington, Delaware, DuPont first produced high-grade black powder for explosives. By the early 1900s, the companys focus shifted to chemicals, materials and energy to meet the changing needs of consumers and businesses. Today, DuPont delivers science-powered innovations that make real differences in peoples lives around the world. In fact, most homes and workplaces around the world include dozens of innovations made with DuPont materials. DuPonts ability to adapt to the evolving needs of customers and its foundation of unending scientific inquiry have enabled it to become one of the worlds most innovative and successful companies. DuPont has more than 8,500 scientists and engineers working across more than 75 research and development centres globally. In addition, DuPont continues to closely collaborate with our customers and key partners to meet market needs. To date, DuPont has been awarded patents for more than 35,000 inventionsa new invention every other day for 208 years.

Supply Chain Management

Responding to these growing pains, in May 2000 DuPont turned to G-Log, a global logistics and transportation software provider based in Shelton, Conn. DuPont selected G-Log's Global Command and Control Centre (GC3) software as the foundation for its centralized, web-based transportation and logistics management system called TransOval. When fully integrated, TransOval will be an umbrella, a one-stop shop for all our logistics, information, and services. The G-Log engine will drive about 65 percent of that. According to Derek Gittoes, vice president of product solutions, G-Log, GC3 software has enabled DuPont to adapt its IT infrastructure in three ways:

1. Create unity. One important component of the GC3 system is its ability to unify disparate processes and functions. For DuPont this means that it has one system with one view of all of its logistics-related activitiesregardless of business unit it is in, geography it is shipping to or from, mode it is moving on, or service provider that is involved in the activity. Using TransOval, anyone within DuPont's supply chain can log into the portal and manage logistics activities at any point in the order management cycle. 2. Gain control. The GC3 software similarly provides DuPont with greater cost and inventory control. In terms of cost, having visibility into the entire supply chain helps users identify shipment optimization opportunities. Accordingly, this information enables DuPont to manage and leverage its inventory to more efficiently and cost-effectively match supply to demand.GC3 helps centralize information on the TransOval portal, but also allows DuPont and its partners and customers to manage that information regionally. This dichotomy opens the door for DuPont to quickly react to changes in the supply chain, as well as tack on additional functionalities when necessary. Also, because much of DuPont's logistics activities are outsourced to third-party providers, having a centralized portal that they can plug into is essential in preserving seamless communication within the supply chain. 3. Increase flexibility. The determination when we embarked on the TransOval project was that we wanted to create more independence for the company. This way they will have more flexibility to unplug or plug with various providers based on the services they needed and the quality of services thry were getting. The ability to respond to supply chain initiatives and concernsnew customs requirements for exampleis much easier when information exists in one system rather than disparate business units. To that end, this flexibility allows companies to add on new businesses and partners as they move forward. It similarly gives them greater leverage to be more selective as to what service providers they do business with.

When fully implemented, TransOval will fulfill "four buckets of functionality within the order shipment lifecycle. These functionalities include: 1. Logistics order management integration of order management systems that exist among DuPont's global businesses. 2. Shipment planning and optimization including routing and carrier usage. 3. Execution two-way communication between TransOval and DuPont's business partners. 4. Financial settlement freight payment and cost allocation.

DuPont initially identified strategic elements that would be targeted for improvement to reach the corporate goals. To reflect this significant change, DuPont called the initiative the DuPont Supply Chain Transformation.

They identified supply chain development and interaction for Customer and markets Metrics and measurement capability Supply chain and enterprise systems Processes and process capability People development and competency. DuPont has adopted SCOR model for supply chain management. The Supply Chain Operations Reference (SCOR) model provides a unique framework that links performance metrics, processes, best practices, and people into a unified structure. The framework supports communication between supply chain partners and enhances the effectiveness of supply chain management, technology, and related supply chain improvement activities. SCOR is a consensus model. It was developed and continues to evolve with the direct input

of industry leaders who manage global supply chains and use it daily to analyze and improve the performance of their organizations. It features an intentionally broad scope and definitions that can be adapted to the specific supply chain requirements of any industry or application. SCOR model include: Rapid assessment of supply chain performance Clear identification of performance gaps Efficient supply chain network redesign and optimization Enhanced operational control from standard core processes Streamlined management reporting and organizational structure Alignment of supply chain team skills with strategic objectives A detailed game plan for launching new businesses and products Systematic supply chain mergers that capture projected saving