Rhodia Eco Services and Supply Chain Best Practices

Rhodia Eco Services and Supply Chain Best PracticesTopics:- Rhodia Eco Services - Supply Chain Best Practices for reliable supply- Vendor-Managed Inventory to improve reliability with lower working capital and distribution costs65 Years of Regeneration 1943 - 20081About Rhodia Eco Services• Headquartered in the U.S., (while Rhodia is French owned)• Six main plant locations, servicing the U.S. & Canada.• Three core business activities– Acid Regeneration Services– Sulfuric Acid and Sulfur Products– Industrial Hazardous Waste Treatment (“Treatment Services”) 65 Years of Regeneration 1943 - 20082Eco’s Core Business is the Regen Acid businessStep 1 -Fresh Sulfuric AcidRefineries use the sulfuric acid to make cleaner burning gasolineCleaner-Burning GasolineStep 2 - Regen Plants recycle spent acidSpent Sulfuric Acid65 Years of Regeneration 1943 - 20083Reliability of supply is the key customer service parameter for Eco…• With most customers, we are the sole supplier.• Typically, long term partnership relationships.• Our customers depend on our delivering acid for their operations to run.– Safely– Reliably– Meeting their changing demands65 Years of Regeneration 1943 - 20084Supply Chain Best Practices are critical to reliable supply…Customer Planning & DemandMonitoringPlant CapacityEquipment Supply Logistics ReliabilityOptionsExcellence65 Years of Regeneration 1943 - 20085Supply Chain Monitoring is a key best practice.Planning & MonitoringPlant Capacity•Good Tactical Planning and S&OP Processes•Supply Chain Monitoring•Supply Chain Networking65 Years of Regeneration 1943 - 20086With VMI through Elemica, we monitor customer inventory levels & demand.On-hand reading of acid and spent inventoriesAcidSpentAlkylation Fresh acidprocessSpent acidFresh acid consumption 65 Years of Regeneration 1943 - 20087VMI helps as a shorter-term planning tool (Pull System).Objective: Keep Objective: Keep fresh inventory On-hand reading spent inventory < > min safety of acid and spent max ‘safety stockinventoriesstock’AcidSpentAlkylation Fresh acidprocessShipment PlanningSpent acidbased on customer Fresh acid forecast, rates, consumption inventory, & in-transit shipments.65 Years of Regeneration 1943 - 20088Benefits of the visibility (and improved lead time) includes…• Reliability of supply• Higher asset utilization– Of logistics equipment (rail/truck)– Of plant facilities• Lower overall inventory levels– At customer sites– At our sites• Lower distribution costs with less expediting• Also, efficiency in transactional work65 Years of Regeneration 1943 - 20089In the present economy, this translates into…• Lower inventories across supply chains to match lower demand• Cost reduction –– Less logistics equipment– Lower freight ratesObjective is to maintain our reliable performance (customer service levels)We should come out of this in a strong position as the economy takes off.65 Years of Regeneration 1943 - 200810Document Outline

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