DuPont is Improving Resilience by Taking a Holistic View of the Supply Chain

We live in unstable times for global industry, especially when you consider the business of moving essential products around the world.

The COVID-19 crisis has highlighted many flaws in our supply chains, and one does not have to cast their mind far back to recall the issues caused by products and materials not being able to make it to their intended destinations.

However, since 2021, companies the world over have been taking the opportunity to review their supply chain processes and endeavour to discover better ways to facilitate the transportation of goods. Of course, data lies at the heart of many an attempt such as this and the most technologically savvy companies are leveraging the power of digital information to see the bigger picture when it comes to their logistics operations.

DuPont

One such company is chemical giant, DuPont. The Wilmington, Delaware based science and innovation focussed company has an incredibly complex supply chain the strategy for which is not defined by the logistics team – spread as it is across several countries – but rather by multiple business units within the DuPont operation.

This non-conventional structure means DuPont can often struggle to establish a complete picture of what is happening in its supply chain strategy and wanted to find a way to do so – especially in the wake of the COVID-19 crisis which has led so many companies to reassess their risk and seek to improve efficiency.

In addition to this need, DuPont also now needed to establish new levels of resilience. Multiple disrupting global events such as the tragic 2011 tsunami in Japan which affected its sole supplier plant and the 2013 strikes in the US which upset operations at many East Coast ports – and, of course, the aforementioned pandemic – have highlighted an urgent need for change within the organisational structure of DuPont’s supply chain.

“Overall, DuPont wanted to achieve holistic supply chain management,” according to DuPont Logistics Manager EMEA, An D’Haenens. “But we didn’t know how or where to begin. DuPont was looking for a way to begin the process of finding a solution that would enable everyone to access supply chain information, with visibility of different routes and specific modes of transport (sea, air, or road) along with both global and per-country perspectives.

” DuPont eventually found the direction it was seeking by partnering with data driven supply chain experts, Everstream Analytics and was set to begin its journey reassessing its supply chain operations.

Holistic Logistics

Together with Everstream Analytics, DuPont developed a unique supply chain risk management solution which would use digital information to build better predictive models. These models would empower DuPont to identify the weaknesses and vulnerabilities in its logistics operation and address them before events outside of the company’s control could exploit them.

The initial study on which the model would eventually be constructed focussed on seven individual risk categories which were identified as being ones most likely to cause future disruptions to DuPont’s global supply chain network – strikes, power outages, telecoms outages, industrial fires, terrorist attacks, IT failures, and the financial stress of suppliers.

Using these as identifying categories, Everstream Analytics then created a digital map of the entire DuPont supply chain network and then assign a risk exposure rating to each link as well as risk severity scores for each, and a resiliency rating based on the available alternative capacities, time-to-recovery, and the importance of the entity to continuing DuPont business. The solution identified risk hotspots and choke points as well as suggesting appropriate risk mitigations.

Establishing these ratings and points is enabling DuPont to achieve end-to-end supply chain visibility, quantify risk and establish appropriate and robust backup plans, demonstrate the case for operational improvements, and to avoid substantial risk related costs.

“Inventory loss from fire in just one European site could cost up to $1.65 billion and a 10-day transportation delay on major outbound lanes could result in $11.13 million in sales losses,” said Everstream Analytics. “Data like this supports early, fully informed decision making so that DuPont can respond promptly and effectively to disruption and execute on business contingency plans. This avoids the substantial costs of lost production and sales, premium-rate transport, personnel costs, and brand damage.”

Final Thoughts

Establishing supply chain resiliency is going to be incredibly important as we move out of the global pandemic and move into the next phase of our new normal. Those companies which are able to establish a big picture and holistic view of their entire logistics network are the ones which are going to be best positioned to respond effectively to whatever the next challenge coming down the pike happens to be.

You can hear DuPont Global Logistics Director, Mark Porter and Logistics Lead EMEA, Leo Kuetten speak at LogiChem 2022, being held in March at De Doelen ICC Rotterdam, The Netherlands.

Download the agenda today for more information and insights.