Executing Strategy Is Key To Companies Seeking Supply Chain Efficiencies

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9th November 2010, 05:48am - Views: 1965

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Executing Strategy Is Key to Companies Seeking Supply Chain Efficiencies

MIDLAND, Mich., Nov. 9, 2010 /PRNewswire-AsiaNet/ --

    While many companies are effective at developing supply chain strategy to boost efficiencies in their processes,

many fail in the execution of that strategy, according to Michael R. Levely, global process and operations manager

for the XIAMETER(R) brand from Dow Corning.

    "Without proper execution, the efficiencies and cost savings that companies are striving for will never be

realized," said Levely. "Formally instituting standard processes - and enforcing these processes as part of your

day-to-day operations - is critical to achieving efficiency benefits."

    These costs savings in the supply chain are especially important for multinational companies that have to deal

with rising freight costs, excessive inventories and warehouse inefficiencies, Levely said. Customizing orders and

addressing special shipping requests add significant costs to the order and delivery process. If companies can find

a way to standardize these services, the savings will directly impact the bottom line.

    As an example, the XIAMETER(R) web-enabled business model has created significant efficiencies through

supply chain innovations since it was launched by Dow Corning in 2002.

    "A major contributor to the XIAMETER business model's cost efficiency has been automation," Levely said. "Our

SAP(R)-based global IT platform has provided the backbone for this efficiency."

    When a customer places an order online, the SAP system identifies the first available shipping dates. When the

order is confirmed, the material is scheduled to be produced and shipped "just-in-time," without human

involvement. Customers receive automated order confirmations, shipping notices and electronic invoices. This

automation allows for a reduction in manpower and inventory, ultimately adding to the bottom line.

    "An additional element resulting in cost efficiencies has been our business rules," Levely said. "In order to

standardize, you have to set and abide by business rules that apply to a broad set of customers. Companies can

provide options, but those options must be limited."

    For instance, the XIAMETER brand requires minimum-order quantities. Customers must purchase full pallets or

full batches of material, which reduces the number of shipments to customers overall. It also enables fuller

truckload shipments and controls inventory. Customers can still buy in large volumes. The brand provides

transparent volume and price tiers, giving customers options based on how they want to purchase.

    Mandatory lead time requirements for all products allow for just-in-time manufacturing and shipping, and reduce

late shipments. While credit terms have been standardized (30 days), customers have different options to choose

from (15, 45, 60 days at a premium).

    SAP's global IT platform tracks shipments and business rule compliance, ensuring that orders are standardized

and not able to be customized.

    Elements such as minimum order requirements, lead times and pricing must be tailored to the potential and

maturity of the market. However, expectations must be set with employees and customers that the business rules

will be enforced. This strengthens a company's ability to maintain efficiencies in its supply chain.

    Based on its success and ongoing research of customer needs, Dow Corning last year expanded the

XIAMETER business model to include more than 2,500 products. The launch included a new order entry platform

with enhanced self-service functionality, and introduced volume quantity, pricing and credit term options, as well as

    To hear more from Levely, watch the video (http://www.youtube.com/watch?v=j0YVfsIMwT8) on the

XIAMETER(R) channel (http://www.youtube.com/user/XIAMETER) on YouTube or follow the XIAMETER brand on

Twitter (http://twitter.com/xiameter) for all the latest news.

    About XIAMETER

    The XIAMETER(R) brand of Dow Corning Corporation offers market-based prices for standard silicone products.

Introduced in 2002, the brand offers 2,500 products including silicone fluids, sealants, silanes, emulsions and

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rubber. The XIAMETER brand is a no-frills model offering cost effective products through streamlined services and

a web-enabled order platform. Learn more at http://www.xiameter.com.

    About Dow Corning

    Dow Corning (www.dowcorning.com) provides performance-enhancing solutions to serve the diverse needs of

more than 25,000 customers worldwide. A global leader in silicones, silicon-based technology and innovation, Dow

Corning offers more than 7,000 products and services via the company's Dow Corning(R) and XIAMETER(R)

brands. Dow Corning is a joint venture equally owned by The Dow Chemical Company and Corning, Incorporated.

More than half of Dow Corning's annual sales are outside the United States.


    CONTACT: Cathy Yang, 



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