Holistic View of Dupont Supply Chain Improves Resilience and Avoids CostEverstream Team
“This assessment was an eye-opener, because we never looked at supply chain risk holistically before. Now we know where the risks are.”
– An D’haenens, Logistics Manager EMEA, DuPont
Science and innovation company DuPont used Everstream Analytics to identify its major risk areas. The results are visibility across the entire supply chain, risk prevention, and cost avoidance.
With its broad portfolio, global footprint, and extensive network, DuPont has a highly complex supply chain. The strategy for this supply chain is defi ned not by the logistics team – which is located across several countries – but by multiple business units within the organization. A key challenge for DuPont was to achieve a holistic view of its entire supply chain in order to assess risk and improve efficiency.
Additionally, the company knew it needed greater supply chain resilience. It had experienced damaging disruptions, including the tragic 2011 tsunami in Japan, which affected DuPont’s sole supplier plant, and 2013 strikes in the U.S.A. which disrupted operations at East Coast ports. So another key challenge for DuPont was to monitor incidents and minimize impact on the supply chain.
DuPont wanted to achieve holistic supply chain management but according to An D’haenens (DuPont’s Logistics Manager EMEA) “We didn’t know how or where to begin”. The ideal solution would enable everyone in DuPont to access supply chain information, with visibility of different routes and specifi c modes of transport – sea, air, or road – along with both global and per-country perspectives.
Everstream Analytics Solution
DHL delivered a unique supply chain risk management solution called Everstream Analytics, customized to provide a continuous assessment study and software that improve the resilience of DuPont’s supply chain. This solution comprises both a targeted risk assessment process and a supply chain incident monitoring platform.
– Achieve a holistic view of the supply chain
to assess risk and improve risk management efficiency
– See strengths, weaknesses, and “what-if”
– Minimize impact of incidents on the
Everstream Analytics Solution
– Everstream Analytics: supply chain risk
– Visualizes entire supply chain; rates risk
– Identifies mitigations and risk impacts
– Finds “hot-spots”, “value at risk”, and
– End-to-end supply chain visibility
– Quantify risk and establish robust
– Demonstrate the case for operational
– Avoid substantial risk-related cost
To create transparency on exposure and vulnerability in multiple risk categories, DHL embarked on a major risk assessment exercise. Guided by DuPont, this bespoke study focused on seven risk categories deemed most likely to impact the supply chain: strikes, power outages, telecoms outages, industrial fires, terrorist attacks, IT failures, and the financial stress of suppliers.
After mapping and visualizing the DuPont supply chain, DHL was able to give a risk exposure rating to all elements of the supply chain. For this customized assessment, DHL provided risk severity scores for each supply chain entity in scope, and a resiliency rating based on the available alternative capacities, time-to-recovery, and the importance of the entity to DuPont business. It then identified risk hotspots and choke points, along with appropriate risk mitigations.
End-to-end supply chain visibility: Everstream Analytics provides DuPont with comprehensive, real-time, global and country-specific insight. Prior to this solution, “different people had been aware of different pieces of the supply chain” but not all of it, and D’haenens describes the risk assessment as “an eye-opener”. The team can now make contingency plans, manage and track risks, and receive alerts and incident status reports.
Quantify risk and establish robust backup plans: The bespoke risk assessment revealed disruption potential at Rotterdam and Antwerp ports in the Netherlands. This enabled DuPont to quantify the risk and establish more robust backup plans than simply shifting operations to alternative ports.
Demonstrate the case for operational improvements: The study also identified some supply chain partners with inadequate IT contingency plans and fire prevention systems, enabling DuPont to take risk-mitigation action. As the study is ongoing, it also provides continual guidance to maintain service levels, minimize disruption, adjust the supply chain, take additional mitigation measures, and achieve fast post-disruption recovery.
Avoid substantial risk-related cost: Everstream Analytics enabled DuPont to accurately estimate potential financial damage – 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 of sales losses. Data like this supports early, fully informed decision making, so 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.