1

Business Impact of a

Supply Chain Operating Network

Dr. Bernhard Herzog

VP Global Supply Chain

ELEMICA REVEAL FRANKFURT/M

October 2014

2

OXEA in brief

Launch: March 1, 2007 by the merger of

business units from two international

chemical companies (Celanese and

Evonik)

Owner: Oman Oil Company

Employees: approx. 1,500

Sales: approx. € 1.5 billion

Products: Oxo-Intermediates and Oxo-Derivatives,

such as Aldehydes, Alcohols, Esters,

Carboxylic Acids, Specialty Esters,

Polyols, Amines

3

Ethylene

Propylene

Butene

Higher olefines

Natural gas

Aldehydes

Alcohols

Esters Polyols Acids Specialty

Esters Amines

Raw materials Oxo-Intermediates Oxo-Derivatives

OXEA products find many applications in everyday life

Process

refining

Syngas

Process

refining

Higher

Aldehydes

&

Specialty

Derivatives

Sales by regions

Europe

49% NAFTA

32%

APAC

14%

South America

4% ROW

1%

Multistep value chain and a broad applications base

4

• We are #1 or #2 globally in products like Propanol, 2-Ethylhexanol,

Butanol and Butyl Acetate.

• We have strong market positions in both, Europe and the US

• More than 1,000 customers in different Industries guarantee

business stability and robustness

• We have the broadest product portfolio and the largest capacity in

Carboxylic Acids.

• We increase capacities to strengthen our market position and to

support our customers’ growth.

A world leader in Oxo and #1 in the merchant market

5

Where does OXEA deploy Elemica features?

• CUSTOMER MANAGEMENT (customer service & sales)

• LOGISTICS MANAGEMENT (transport & execution)

• NETWORK MANAGEMENT (terminals & warehouses)

• MONITORING (dashboards, alerts, notifications)

How does a Supply Chain Operating Network link

into the Elemica / OXEA relationship?

Elemica & OXEA

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Elemica‘s Definition of SCON:

A Supply Chain Operating Network gives you total control over your global supply chains

through integrated messaging, applications, and analytics across a network of trading

partners.

Capturing your transaction data, across all your trading partners, and translating it into

actionable information is key to driving value out of your supply chain.

This powerful combination of capabilities transforms your business from ordinary to

extraordinary, enabling you to outpace your competition in an ever more volatile and complex

marketplace.

Supply Chain Operating Network – What is it?

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Why is SCON so important to SC Management?

http://osd.cad.de/modelle_03.htm

Customers

Regulations

Systems

Planning Logistics

Products

Marketing

Suppliers Business Plan Supply Chain is a little bit like solving the Magic Cube

- complexity, experience, problem solving, speed ! -

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Rubik‘s Cube World Records since 1982

Year

Time [sec]

You cannot manage the next level without modern technology

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Modern technology is required to meet the needs of ever

better and faster problem solving.

For simple toys and even more for increasingly complex

business processes.

Especially Supply Chain Management depends heavily on

higher integration of modern technology to manage its

intricacy and challenges.

What do SC managers have to keep in mind?

10

To successfully compete,

Supply Chains of today

have to be:

- Quick

- Agile

- Flexible

- Accurate

At the same time

Supply Chains are

challenged by:

- Complex logistics

- Systems issues

- Legal requirements

- Lack of resources

SCON’s help reduce the amount of non-value adding work

Gain competitive advantage from using SCON

11

Modern Supply Chains are expected to

respond rapidly, effectively, and efficiently to

changes in the market place.

You will need to compress time to become

successfull in managing your flows under

the ongoing limitation of resources, i.e., you

will need to deliver more with less.

http://ygraph.com/chart/2416

… to focus on optimizing your flow of

material and goods.

… to reduce and limit processing

and maintaining information flows

… to invest in your relationship

management internally and externally

Free up time from your supply chain system and

use it …

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• Receive

Invoice

YOUR BUSINESS

• Order Goods

or Services

• Receive Supply

• Pay Invoice

OTP Cycle

• Receive

Payment

• Deliver Goods

or Services

OTC Cycle • Send

Invoice Manage

Inventory Manage

Inventory

In simple terms each business cycle runs on a standard, reproducible data

set, e.g., customer or material masterdata moving with each order.

The standard data set becomes enriched according to the needs of each

business step, e.g., shipping information for carriers.

A Supply Chain Operating Network helps with automatically moving and

enriching such information through all connected systems in a touchless mode

with high accuracy, high transparency, and at high speed.

SCON providers can help standardize and translate data

How SCON speeds up your business cycle

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The future and challenge of SCON

In an ideal world and an ideal Supply Chain there would be:

• One data standard

• One ERP standard

• One SCON provider

In real world this isn‘t and won‘t be the case, as there will

always be

• many ERP‘s and subsystems,

• different data types,

• concerns to become overly dependent

• different strategies to gain a competitive advantage

Thus, there will be needs to interconnect different SCON‘s

and to cooperate on data standardization or translation.

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THANK YOU!

“Reducing wasted time

automatically improves the

other measures of performance

in a multiplier fashion.“*

* Tersine, RJ and Hummingbird, EA (1995) Lead-time reduction:

The search for competitive advantage

15

Otto-Roelen-Straße 3

46147 Oberhausen

Germany

Tel. +49 208 693 3100

Fax +49 208 693 3101

info@oxea-chemicals.com

www.oxea-chemicals.com

www.oxea-werk-ruhrchemie.de