How Will Your Ability To “Survive” In the Downturn

Enable You To “Thrive” In The Upturn

Pierre Minguet – Business Director, Polystyrene

April 2010
 Agenda

Context of Changes

The case of the “Polystyrene Industry”

Volatility

The Supply Chain Equation

Knowing the Business, in detail.

The place of the Customer.

Key take-away.

2
 A World of Change

And You Know What ?

3
 The Polystyrene Industry has changed

3090 kta in 2005

Dow Barry, UK, Nov 05 (75 kta)
Linpac, UK, Jun 06 (35 kta)

INEOS NOVA, UK, Oct 06 (180 kta)

BASF Tarragona, Dec 06 (70 kta)

Total Gonfreville, Dec 06 (40 kta)
Dow Terneuzen, Dec 08 (50 kta)
Dow Bilbao, May 09 (65 kta)
BASF Ludwigshafen, Jun 09 (80 kta)
INEOS NOVA, NL, Sep 09 (90 kta)

2405 kta
Total : 685 kta or 22 % of 2005 capacity

4
 The ‘Fixed Points’ and …

IN
BASF
Polimeri
Dow
Total
Synthos

5
 100

110
50

60

70

80

90

Demande PS Europe 2007-2009

janv-07

(Base 100 - January 2008)

févr-07

mars-07
avr-07
mai-07
juin-07
juil-07
août-07

sept-07
oct-07

nov-07
déc-07

janv-08
févr-08

mars-08

avr-08
mai-08

juin-08
juil-08

août-08

sept-08
oct-08

nov-08
Source : Estimation Ineos Nova

déc-08

janv-09

févr-09
Volatility
Source : Estimation Ineos-Nova

mars-09

avr-09
mai-09

juin-09
juil-09

août-09
6

sept-09
oct-09
 The Logistics Equation

FASTER + CHEAPER = BETTER

AND clearly, three significant Sources of Value are also :

• Flexibility
• Safety / Stewardship
• Service

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 “Nicole”

Customer Focus:

One Single Point of Accountability for the Sales Force in
the Supply Chain Area.
• Nicole is the point of Engagement with Service Providers.

The “BAR” session
• Platform for discussing logistics issues with the Business.

Customer Survey to measure your position relative to

competition.

You may not like the outcome but,

It drives solid improvements to your business !

8
 The Analytical Side of Supply Chain

Margin by Customer
Margin
e
m

Cumulative Sales Volume

lu
Vo

Knowledge of margin by customer, by plant (ship-to),

by grade, by pack type
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 Information Management

The Flow of “Information” is as important as the flow of

“Products”.

Reliability of data is key …. Variable Costs, Timeslots,

Cannot operate a system being blind …. ATP

Quest for Greater Efficiency …. Fixed Costs

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 Summary & Key Messages

Tough market which requires flexibility from our Supply

Chain Partners.

Structurally

On a month to month basis.

The Long Term seems often to be a year.

Sources of Value are Costs, Speed, Safety

Availability and Integrity of data to support analyses

Customer focus

Benchmark yourself versus your competitors

Efficiency of our Collaboration for Mutual Business.

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