MEDIA RELEASE PR42098
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
XIAMETER(R) channel (http://www.youtube.com/user/XIAMETER) on YouTube or follow the XIAMETER brand on
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
rubber. The XIAMETER brand is a no-frills model offering cost effective products through streamlined services and
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.
SOURCE: XIAMETER
CONTACT: Cathy Yang,
+021-3899-5500,
cathy.yang@dowcorning.com
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