2010 Supply Chain Council. ALL RIGHTS RESERVED. | < filename > | Slide 1 | November 2, 10

End to End Supply Chain Transformation

Jan Eeckhoudt Lean Six Sigma DPC, DuPont

2 Contents

1. Introduction to DuPont and DuPont Performance Coatings 2. SCC and DuPont 3. Project DELIVER

Objectives Plan, phases Approach

4.Workstreams - Impact PRODUCT CUSTOMER ORGANISATION NETWORK TRANSPORT

5. Looking forward 6. Key Success Factors & learnings

3 DuPont Company Vision

To be the world's most dynamic science company, creating sustainable solutions essential to a better, safer and healthier life for people everywhere.

4

DuPont in 1802 DuPont in 2010

58,000 employees > 210 sites > 70 countries Hundreds of thousands of DuPont products and customers $26.1B in sales (2009)

40 employees 1 site 1 country 1 product 12 customers $15,116 in sales (1804)

5

DUPONT PERFORMANCE COATINGS

$3.4 B

DUPONT ELECTRONICS & COMMUNICATIONS

$1.9 B

* Includes $.1B in other sales including Applied BioSciences. Total company sales exclude transfers.

DuPont 2009 Sales by Segment - $26.1 (*)

DUPONT SAFETY & PROTECTION

$2.8 B

Protection Technologies Building Innovations Sustainable Solutions

DUPONT AGRICULTURE & NUTRITION

$8.3 B

Pioneer Hi-Bred Crop Protection Nutrition & Health

DUPONT PERFORMANCE MATERIALS

$4.8 B

Performance Polymers Packaging & Industrial

Polymers

DUPONT PERFORMANCE CHEMICALS

$5.0 B

Titanium Technologies Chemicals & Fluoroproducts

Core Markets: Production Agriculture Food & Nutrition Products

Core Markets: Consumer Electronics Advanced Printing Photovoltaics Displays

Core Markets: Construction Specialties Industrials & Chemicals

Core Markets: Automotive OEM Collision Repair Industrial Coatings

Core Markets: Automotive Packaging Electrical/Electronics Construction Consumer Durables

Core Markets: Industrial Personal Protection

Construction & Industrial Military & Law Enforcement

13 businesses

6

In 2009, 30% of sales were in Emerging Markets* *Refer to the companys website for a definition of emerging markets.

2009 Sales by Geography $26.1B

2009 Company Sales

7 Aligning Strategies with Megatrends

Market Opportunities

More food Better food

Alternative energy solutions Energy efficiency Renewably-sourced materials

Workplace safety Personal protection Environmental sustainability

Infrastructure Energy Materials applications customized for local markets

Megatrends

Increasing Food Production

Decreasing Dependence on Fossil Fuels

Protecting People, Assets & the Environment

Growth in Emerging Markets

Strategies

Grow production agriculture

Photovoltaics & Biofuels Lightweighting vehicles Accelerate conversion to bio-based raw materials

Accelerate innovation pipeline Strategic acquisitions Geographic expansion

Increase local application development Drive further penetration

The Needs of the World Drive our Science

More than 75% of R&D is directed toward megatrends

8 DuPont Performance Coatings

DuPont Performance Coatings serves the transportation industry Aircraft / Aerospace Automotive Commercial Recreation & Sports Vehicles

DuPont Performance Coatings Mission in E/MEA We will safely, ethically, and respectfully help our customers be successful by significantly improving our Quality & Supply chain responsiveness while delivering business innovation.

9 DuPont Performance Coatings

Automotive OEM Coatings: DuPont Automotive Systems is the largest global manufacturer of automotive OEM coatings providing technologically sophisticated and environmentally responsible coatings. Paint & Coatings for Metal Exterior, Plastic Exterior and Interior

Vehicle Refinish: DPC Refinish Systems is the largest global manufacturer of coatings for aftermarket car repair. Spies Hecker , Standox , DuPont Refinish

Powder Coatings: DuPont is the second largest world-wide manufacturer of powder coatings offering a complete product range including polyurethane, acrylic and thermoplastic polymers.

DuPont Nap-Gard Functional Coatings, Alesta Decorative Coatings

10 DuPont Performance Coatings

Electrical Insulation Systems

For many years, DuPont have been providing the electrical insulation market with Wire Enamels, Impregnating Resins and Core Sheet Varnishes now all combined under the single brand name Voltatex. The DuPont Voltatex products create value for the customers as they evolved from three complementary strategies: reducing environmental footprint, driving break-through product innovation and creating total system solutions.

11 DuPont Performance Coatings

Commercial Transportation

DuPont offers the commercial transportation industry a wide variety of products ranging from plastics and polymers to paints and car covers.

DuPont is a leading supplier of paint and finishes to over the road heavy duty truck companies, railroads, fire & emergency equipment, and fleets of delivery vehicles. DuPont's product offerings help to protect and enhance the performance of commercial transportation vehicles and personnel.

Imron , Centari ,

12 DuPonts Journey

Optimizing The Sustainable Safe Production Of The Molecule

Competitive Imperative Strategic Supply Chain Capability

Effective and Efficient Advanced S&OP Business Process

Demand Driven Enterprise

Market Driven Science Company

&

&

&

13 SCC Methods and SCOR support DuPonts Supply Chain Development

Enable

Metrics & Diagnostic

s

Benchmarking & ScorCards BPM

14 SCC & DuPont

Getting Started 2003-2006 Supply Chain Transformation Vision & Roadmap Metrics for awareness Independent projects Total Company Benchmark

Development of a Standard Approach to Supply Chain Management 2006-2009 Deeper use of metrics automation and analytics Major projects Deliver back to Plan Supply Chain Excellence Path

Implementation 2010 + BPM SCOR based, technical model Supply Chain Benchmarking / Segmentation SCOR Projects Integrated into Continuous Improvement Integration with S&OP, Product, Demand, Supply People, Process and Tools Integration to implement future state

15

The scene at start: End 2007 DPC had gone through many transitions and was falling short against benchmarks for service & cost. Customer service performance for the supply chain was not satisfactory for DPCs management or customers, FPDE & WC was too high.

Manufacturing Supply Chain Planning

Sales and Customer

Management

1. Supply Chain Cost not reflected

in Customer Policies

2. ATP process broken

3. Flawed replenishment

model

5. No MPS/MRP

-visibility -trade-offs

4. No use of / adherence to

stock triggers

6. Poor adherence to plan and high

variance

Benchmark Scorecards & Assessment interviews

16

The Deliver project was tasked with a holistic review of the European DPC supply chain

Address the holistic deliver process

to identify and execute specific projects that prioritize, optimize and enable project work underway

.to yield improvement in: on-time deliveries, working capital (inventory) and FPDE.

Build out a vision and multi-generational plan for DPC Europe

Focus on Refinish, OEM, and Industrial Liquids [but excludes Industrial powders]

Remit & Scope

On-time and in full delivery performance target: 10% point improvement in 2008 and another 5-10 points in 2009-2010 (based on deliver to request).

Secure finished product distribution expense reductions... estimated at 15%-20% Finished Product Distribution Expense

20% Inventory reduction

Benefit Aspiration

17

2008: We set up a project (using Six Sigma DMAIC method)

Approach: Deliver Improvement Programme

Define and Measure (4 Weeks)

Baselining

-Product flow -Process maps -Cost -Orgn -Interfaces -Hypothesis development

2 Capability & Organisation Assessment -5-level charts -Interviews -Orgn comparison

3

Bench-marking

-Costs -Service Levels -Operational -Process -Policy

4

Analyse (5 Weeks)

Initial Opportunity Identification -Gap analysis -RCA

5 High Level Design

-Process / Org redesign -Bus. case development

6

Improve (Design) (4 Weeks)

Implemen-tation Planning

-Socialisation -Impn planning

7 Project Setup

-Stakeholder Interviews -Review of previous studies -Agree timeline and scope

1

I II III Control

IV

Maintain, Monitor & Enhance

9

Detailed Design and Imple-mentation

8

Improve (Implement)

Deliver project Review

April 11th / 23rd

Analysis phase Review

March 19th 2008 2010

Critical to identify pain points & mid-term improvements and get fast return on investment.

18

and fully delivered its remit during these three phases

Address the holistic deliver process

Identify new projects and enable project work underway

Build business cases for each initiative

Create ownership and implementation plans

Secure a 10 point improvement in 2008 on time delivery

Obtain FPDE reductions

Initial Objective How have we done? Full review of SCOR processes and policies, network and logistics for DPC

Identified 5 key workstreams, with 14 major initiatives, ... many more

Cases built and validated totalling in excess of initial expectations

Project management proposal complete to enable execution

Project targets 15 20% FPDE and 20% working capital

Project Review

Status

Plan for minimum 10 point improvement in OTIF in 08 with additional 5-10 points in 09

19

Deliver created 5 workstreams with 14 initiatives & +60 projects

Product

Balance supply and demand early and in the right place

Create stock targets that account for real volatility

Reduce volatility

SKU rationalization

Network

Review warehouses across DPC and then

Close those with overlapping delivery areas

and configure the remainder according to customer demand

Finally optimise supply routes

Customer

Create customer segmentation and then differentiate supply chain policies accordingly

Ensure customer delivery processes drive SAP not the other way round

Transport

Impose central management on haulier purchasing

Tailor transport contracts to the demand profile of the business

Distinguish between transactional and cooperative relationships with transport providers

Organisation

Allow supply chain to focus primarily on cross-site planning

Where ever possible ensure supply chain activities operate across DPC

20

DPC OEM Refinish Industrial

Business

Block of analysis

Projects

Product

Network

Customer

Transport

Organisation

X

Organized around 5 workstreams across 3 segments or at DPC level

X

X

X

X

X

X

X

X

X X

X

X

... shock for the segments...

21 PROJECT DELIVER : based on SCOR

Assess perform

ance

Manage data

Manage com

pliance

Improve supply chain

Establish & m

anage rules

Enter order

Reserve inventory &

set delivery date

Consolidate &

build loads

Pick & pack product

Ship & invoice

Process inquiry

Detailed

prodn schedule

Make

Source raw m

aterials

Source carriers

Plan source raw

materials

Plan deliver

Plan demand

Plan make

Plan supply chain

Enable Plan Source Make Deliver

EP1 EP2 EP3 EP3 EP9a D1.2 D1.3 D1.1- D1.6

D1.8- D1.10a

D1.11- D1.15 M2-6 M1.1 D1.7a P3

P1.2 -P1.4 P2 P1.1 P4

Improve Systems

Data Accuracy

10 Simplify Product

Slate

7 Improve Forecasting

3 Improve Inventory

Management

2

Improve MPS Process 1

Define Resin Sourcing Process

S1-6

6 Manage Production Variability

4 Improve Customer Service

Rules

D1.1

Warehouse and

transport

8 Cycle Stock Mgmt

5 9

Full review of SCOR processes and policies, network and logistics for DPC

22 Product Workstream

Strategic Planning

Business Planning

Master Scheduling

Master Production Schedule

S&OP

Supply Plan

Plant and Supplier Scheduling

Execution

Material Requirements Planning

MIX: disaggregate

level - end item

Capacity Requirements Planning

Rough Cut Capacity Planning (RCCP)

Resource Requirements Planning Forecasting

And Demand Management

Input/ Output Control and Operation Sequencing

CAPACITY MANAGEMENT DEMAND

PRIORITY SETTING

FEEDBACK

Volume, value: product

family level

= within project scope

Goal: Design & Implement Integrated Planning Levels

11/2/10

23

Linked with Integrated Business Management long term Planning

Supply & Sourcing/Logistics Sales &

Marketing

Product Development

Technical Content Assessment

Process Tools

Technical Content Assessment

Process Tools

Technical Content Assessment

Process Tools

Mindsets & Behaviors (not part of Deliver)

Managing Process

Capability Building

24 The objective: Balancing CSL, WC and SC Cost : clearcoat example

Customer Service Level or cost for Lack of CSL

Process Total Supply Chain Cost Working Capital

Total Inventory down 43%

Safety stocks down 51%

No customer Shutdowns

96% Order Fulfillment w/o Expediting

95% MPS Stability 58% reduction in excess

stocks

Reduction of expediting cost

Balancing Supply & Demand

How: Forecasting improvement, DIBM, MPS, RCCP & Inv. Opt.

25 Working Capital Reduction 6 months Average inventory level -35%

6 IDS MMA -12 days

26 Customer Workstream

Define and introduce of DIFFERENTIATED service level policy Min order quantity Deliver frequency Fixed delivery schedules Surcharges for emergency shipments And having this automated in SAP

IT optimisation : delivery consolidation 1 shipment for many customer orders optimise warehouse and transportation cost

drivers

Result : 1% FPDE reduction Sales-to-cash reduction

Accounts receivables reduced by >15%

Touch free transactional processes in SAP

27 Organization workstream

Challenge:

755 DPC employees maintain the key supply chain processes across fifteen different organisation structures with many hand-offs & duplication, misalignment and in-efficiency.

Initiatives:

Allow supply chain to focus primarily on cross-site planning

Wherever possible ensure supply chain activities operate across DPC

Reduce the number of reporting layers

28

Supply Chain Manager Jeff Serpan (53.1FTE)

MPS / Supply + Inventory Supervisor

Hans Verbeek (20 FTEs)

Supply Planners Wuppertal

Incl. CS, Export 7 SOX (8 FTEs)

Supply Planners Mechelen

Incl. CS, Export & Metrics

(11FTEs)

Physical Distribution Supervisor

Ilse Lazou (14.1FTEs, incl. 1 open, 3HC=1.1FTEs)

Process & Project Supervisor

Philippe Rigaux (15FTEs)

Warehouse Operations Mechelen

(12.5 FTEs)

Warehouse Operation

Wuppertal Team (0.6 FTE)

Process + Project Team (5 FTEs)

Refinish Material + Customer Master Data

(9 FTEs)

Supply Chain Manager Klaus Rohde (53FTE)

Planning Manager Martin Rubach (29 FTEs)

Supply Network Planning Thomas Hahn (9FTEs)

Produktionsplanung* Michael Wilkesmann (6FTEs)

Vormaterialsteuerung* Markus Plog (6 FTEs)

Logistics Manager Werner Recks (22FTEs)

SOX Inventory Control Specialist

Melanie Waechter (1FTE)

Stammdaten Michael Hagemann (7FTEs)

Container Management Rolf-Guenter Krieger (2FTEs)

European Warehouses +

Freight Control U. Adler + S. Kalms (2FTE)

Dispatching Andreas Schmidt (11FTEs)

Admin / IT Ralf Dahlhaus (6 FTEs)

Supply Chain

Refinish OEM

Supply Chain Manager Guntramsdorf & Supply Chain Leader

Industrial Liquids EMEA

Dirk Verbole

Planung Stefan Guger

Strategische Planung /Bestandsmanagement/

Reporting / SOX

Susanne Samer

Operative Planung Edi Ovcak

Operative Planung Zelle Basecoat

Edi Ovcak

Sophie Frhlich

Operative Planung/Springerfunktion

Zelle CC/Hrter/Verdnnung/

Farblose HF Manuela Malek

Operative Planung Zelle Reiben/ IMRON

Cornelia Frisch

Lager/ Versand / Gefahrgutbeauftragter

Hans Teufelsbauer

Bestandsmanagement Alfred Prrer

Petra Heinrich

SOX / Reporting Claudia Steiner

Strategische Planung / Controlling

Susanne Samer

Site Manager Klaus von Juterczenka

Regional Supply Chain Manager - DPC Europe.

Randall K. Willis

Lager Christian Paukovits

Versand Sybille Muik

Versandabwicklung** Fr. Gutschi Fr. Htter

Fr. Lang Fr. Mikl Fr. Maul

Schichtgruppe 1* H. Birnbammer (Schichtfhrer)

H. Zilic

H. Schnitzer

Hauptgruppe* H. Kaminsky (Stellvertreteder

Vorarbeiter, Schichtfhrer)

H. Goger H. Haag*** H. Probst*** H. Fahnler H. Kberl

H. Nachtelberger

Schichtgruppe 2* H. Sassmann (Schichtfhrer)

H. Breit

H. Gspurnig

Vorarbeiter Christian Biricz

Industrial

Asun Martnez EMEA 94 fte

(excl. PoD)

Edith Gijsbregts

MECHELEN 54 fte

+ BeNe PoDs

Torsten Schrauf

COLOGNE 11 fte

Loredana Locati

CAVENAGO 9 fte

Christian Ekwall

GOTHEBORG 5 fte

+ Scan PoDs

Ramm Domingo

PESCOLA 9+ 4 fte

Joachim Walbrodt

PODs

Miek de Wel

FRANCE & BENELUX

10 fte

Wim Bernaert CE, EE,

MEA & A 12 fte

Kathrin Baldzun

UK & SCAN 6 fte

Sabine Melis

CB &Other 5 fte

Mila Herreros

DCS 16 fte

Virgilio Maia

M.MARTINS 4 fte

Key Users Other 4 fte

Geert Van Moer

IBIP 1 fte

Manager POD J Walbrodt

Project & infrastructure P Herzog

Manager Logistics Germany NW

M Duwart POD Support RSCAC

LC Freiburg J Owczaryszel

+7 LC Stuttgart

H. Koehler

+16

SH Karlsruhe P. Schubach

+6

LC Neu-Ulm M. Schneider

+11

Project & Infrastructure S. Duehr

Manager LogistIcs North RSCAN

U. Drosselmeyer

SH Saarbruecken H.J. Potthoff

+4

LC Koeln R. Welz

+17

LC Rhein-Ruhr U. Sperl

+16

LC Frankfurt M. Schmidt

+19

LC Hagen E. Ebbinghaus

+17

O. Benkau

C. Ebert

S. Hegemann

K.Vogeler

H. Wobedo

Secretary C. Schmidt

LC Berlin F. Friedrichs

+13

SH Nossen/Dresden K. Seiffert

+8

LC Bremen A. Seiderman

+3

LC Thorey R Killmann

+4

LC Lehrte D Karus

+14

SH Regensburg S. Muecke

+6

LC Meerane G. Schroeder

+5

LC Schweinfurt M. Leuchs

+7

LC Rostock M. Guthman

+6

SH Muenchen M. Berkenstraete

+7

SH Bielefeld E. Althof

+9

LC Nuernberg P. Borschel

+12

LC Hamburg T. Grothkop

+14

LC Magdeburg H.Mews

+6

Peter Czisch APC Manager

CS Leader Rudiger Baier

Customer Service Improvement Dieter Zander

Customer Service France Annik Duchee Customer Service Turkey

Customer Service South Africa

Team Leader CS Group 1 Stefanie Knaak

Team Lead CS Group 2 Gabriele Fontaine

14 CS Agents based on site

12 CS Agents based on site

Logistics

S&L Production Planning

Mechelen Ref Wuppertal OEM

Guntramsdorf Ind

Refinish OEM Industrial

Sales, Demand

Annemie Sollie Production Planning, Mechelen

Hans Asaerts MIXSB + primer

FP Planning, Scheduling, Scheduling Intermediates

Jan Bergmann DPC Operations Director, EMEA Andreas Bohlender DPC Operations Manager, Mechelen

Rita Lauwerts Raw Material Planning

Li Ma (Temp Contract) Raw Material Planning

Geert Simons (Project + IBIP Key user) Raw Material Planning

Derek Tutt Packaging Planning

Toon Gyssels (Contractor) Outsourced filling / packing / drumming

Packaging Planning

Erwin Boons (IBIP Key User)

Packaging Planning

Bert Vaes Container Planning + SOX reporting

OEM FP + other tasks

Johann Debacker FP Clears/MIXSB OEM

+ Intercompany Resins / Intermediates

Tessa Jacobs (temp contract) FP Planning Clears REF

FP planning + scheduling:

activators, thinners, Cromax

Sofie Wambeke (Contractor) CSR & Planning Intercompany Products

Jill Schoenmackers (Temp Contract) CSR & Planning Intercompany Products

Eva Gellaerts Master data

SOX Reporting

Maria Dalemans Batchcard Processor

Jovan Colans (Temp Contract) Batchcard Processor

David Claes Projects (IBIP, APO, LEAN, etc)

Werner Van Beneden Scheduling: Clears / Resins

Wuppertal Ref 221 RPSL Fertigung 218/222

FACPAC Fertigung 220 PRIME / PUTTI

Fertigung 208 ACTIV / THINN / CLEAR

Abfllung 218 Abfllung 222 Abfllung 220 Abfllung 228

Fertigung 218/222 MIXSB/MIXWB

Produktionsplanung

Abfllung 208

Abfllplanung Verpackungsdisposition Abfllkoordination

Produktionsplanung Produktionsplanung Produktionsplanung

Rohstoffdisposition Rohstoffdisposition Rohstoffdisposition

Produktionsplanung

Rohstoffdisposition

Fertigungssteuerung Fertigungssteuerung

Fertigungssteuerung Fertigungssteuerung

Etikettendisposition

Customer Service

Refinish OEM Industrial

15 different organization structures in DPC touching supply chain

29

Does the organisation

assure continuity of

process?

Process

Organisation Screens

Does the organisation

group appropriately by

function?

Does the organisation

group appropriately by

location?

Is the organisation

sized correctly?

Does the organisation

have the right spans of control?

Does the organisation

have an optimal upward

reporting?

A B C D E F

Function Location Size Spans Reporting

We have subjected these structures to six tests or screens

30

Three pure tone options have become apparent. Option 2, less hand-offs, simplified structure, more 1 DPC.

Process Level 1 Process Level 1/2 Status Quo

Option 1: Plan Driven/

Order Driven

Option 2: SC Back

Office Option 3:

End To End

Enable

EP1 Establish and manage rules SC SC SC SC

EP2 Assess performance SC SC SC SC EP3 Manage data SC/CS SC SC SC EP8 Manage regulatory compliance SC SC SC SC EP9a Improve supply chain S&L/SC/CS SC SC SC

Plan

P1.1 Demand planning Sales Sales Sales Sales P1.2-P1.4 Supply chain planning SC/CS SC SC SC P2 Plan source raw materials SC/OPS SC SC SC P3. Plan make SC/OPS SC SC SC P4 Plan deliver (warehousing and transport) SC/CS SC SC SC

Source S1-6 Source raw materials OPS/SC OPS OPS OPS D1.7a Source carriers S&L/CS S&L S&L S&L

Make M1.1 Schedule production OPS/SC OPS OPS OPS M2-6 Make OPS OPS OPS OPS

Deliver

D1.1 Process inquiry (including complaints) CS CS CS SC D1.2 Enter order CS CS CS SC D1.3 Reserve inventory & determine delivery date SC/CS CS SC SC D1.4 - D1.6 Consolidate & build loads CS/SC CS SC SC D1.8 - D1.10a Pick & pack product S&L/SC CS SC SC D1.11 -D1.15 Ship & Invoice SC/CS CS CS SC

31

As a result of this analysis we were able to isolate the Supply Chains Organisational Design Principles

Source: Organisation Workshop involving SC and CSR leads in April 2008

Themes Principles

The Supply Chain must be responsive to the businesses

Within the SC organisation there must be a strong link to the business teams. The people having this role will represent the extended SC (Buy-Make-Deliver)

The Supply Chain is an end-to-end, cross-site activity with planning at its core

Master Production Scheduling (MPS) to be done in SC by business short-term and product family mid-term

MPS to include Raw Material Planning, Production Planning, and Distribution Resource Planning however the changes involving Production Planning should be process-led and gradual

Detailed Scheduling, and Raw Material call-offs to be done in Manufacturing and across businesses on site

Whenever possible, the Supply Chain activities will be organised across DPC

The SC organisation will be evolving to a 1-DPC SC organisation

A number of discrete activities can be managed across DPC including: Metrics, ERP data, SOX administration, Container management

The Supply Chain organisation will not replicate roles better performed elsewhere

S&L to act as a 4PL governed by a SLA and therefore S&L is responsible for contract management and administration

Customer complaint management is done by the Customer Service team and not in SC

SC is accountable for the complete Warehouse Network Design. SC should delegate or outsource the day to day execution of Warehouse Operation and Dispatching where practical.

Customer service restructuring depends on DPCs value proposition to the market

Supply Chain organizational transformation is not contingent on CS reorganisation

CS reorganisation will require an in-depth understanding of customer requirements and the need for CSRs to play a sales assistant role

32 Organization workstream

Warehouse Lead

Continuous Improvement

Lead

DPC SC Planning

Lead

Business Link REF

Business Link OEM

Business Link IND

Control & ERP Data L.

EMEA SC Manager

CDC

LW & Consignment

Master Data Team 1

Master Data Team 2

LSS Continuous

Improvement Team (BB)

Control Team 1

Control Team 2

Container Management

Reporting Team

SC Planning MPS 1

SC Planning MPS 3..n

SC Planning MPS 2

SC Planning Resin

Liquid only Leveraged across DPC

Commentary

Requires standardised product hierarchy between three businesses

Resultant synergies will lead to increased efficiencies through greater scale and lower costs

One DPC should form basis of end-state business architecture, ensuring strategic alignment of future initiatives

and to design on a high level the new EMEA SC Organization

Container Mgt

Reporting layers were reduced from 6 to 4.

33 However structure is only one part of an organisations DNA

34

DPC EMEA Target Network Structure (1)

Note (1) OEM customer required, powder and consignment warehouses are not represented

Manufacturing site

Warehouse

Closing Warehouse

Multiple waves of consolidation Mostly into the Genk ELC

UK warehouse closure

Germany 3 locations

Portugal

France 2 locations

Spain

Italy

Network workstream

All Distribution projects will, by end 10, reduce FPDE by + 17%

35 Transport Workstream

Central procurement of freight

Extensive usage of groupage & intermodal shipments

Consolidation of many small deliveries to one customer delivery address on the same day, to one shipment.

Techniques to increase the transport loading factor

Pallet load optimization techniques

Parcel shipments rather than palletized loads.

Shipping policies such as min size & frequency

More robust process to manage and control rush shipments

36 Looking forward

Simplified Ship-tos

Closure of Geserick and LMS

Complete Q4 - 2008 2009 2010

Delivery Due List Service Policies (Small shipment upcharge)

Application of analytical safety stock calculation

Application of analytical safety stock calculation

SKU rationalization

Raw / Semi Inventory Reductions

Russia- Lane effectiveness

Turkey -Lane effectiveness

Freight Consolidated Settlement

ATP -PODs to DRP

ELC Delivery consol

Receivables reduction

Increase in forecast accuracy

Differentiated service levels

MPS

Resin availability

Production execution to

Plan

Carrier Management Small (parcel) shipments

MTO/ MTS policy change

NGST Inventory Exposure Reduction

Central Procurement of Transport

W1 warehouse closures

Heated transport

POD restructuring

2011+

Footprint reduction

Customer

Transport

Product Organisation

Supply Chain Re-organization

Network

M&B

DIBM MPS tools

AS

OTIF baseline

OTIF II

Pallet Load Opt

MPS-AS interface

ATP - STO

Product Master Data Management

Rush shipments

Adv Inv Mgt

RCCP

37 Key Success factors & - learning

The engaged, senior, Steering Committee created momentum both inside and outside the project team The team engaged the business and the business engaged the team consistently through all phases

The project used data and diplomacy to create change

Projects must be directionally toward the vision (Vision Required) and aligned with the strategy.

Results must be a COMMITMENT for the project team AND the line

Watch both the project validations AND the balance sheet, must hot bottom line.

Progress must be reported via routine reviews attended by key stakeholders, and senior leadership , based on a formal Program Management Office structure Projects touch and interact, strategic decisions allow projects to link, build or detract from each other A long term end-to-end strategic view that does not ONLY focus on pain points & quick hits. Projects must be transformational in nature, major step changes not small increments.

38

www.dupont.com