CHEMWORLD
WINTER/SPRING 1995
Logistics Strives For Continuous Customer Satisfaction
BRIEFS
Letter Of Intent Signed To Purchase Crop Protection Business Of Solvay Duphar B.V.
Uniroyal Chemical has signed a letter of intent to purchase the worldwide crop protection business of Solvay Duphar B.V., headquartered in The Netherlands. The business, which has annual sales of approximately $60 million, includes all crop protection assets associated with the production and sale of Casoron® herbicide and Dimilin® insecticide. Both of these products are currently sold in selected geographic regions by Uniroyal Chemical under marketing agreements. Uniroyal Chemical plans to continue production at the Ankerweg plant which is located near Amsterdam. Subject to the execution of a definitive acquisition agreement, it is expected that the acquisition will be completed early in 1995. ■
UNIROYAL CHEMICAL
If you ask Uniroyal Chemical’s Director of Logistics worldwide, William T. “Bill” Mischou, what he believes characterizes value-added customer service today and into the 21st century, you’ll hear a firm three-word response: “Reliability, Resilience and Innovation.”
Reliability is providing the right products and service at the right price, delivered as requested by the customer, in the right quantity and package, and without damage. Resilience is the ability to recover when you didn’t do what you were supposed to do right in the first place. Innovation means doing more than just meeting your customers’ basic requests, but also doing more than what the competition does — in essence, doing what’s more than expected and “delighting” the customer.
And these three principles seem to be working. In 1994, the Logistics Department successfully managed to keep inventory levels at a relatively low percent of the company’s total sales on a worldwide basis, while ensuring that Uniroyal Chemical plants around the world received the correct amount of raw materials to manufacture products to meet customers’ needs on a timely basis (on-time service averaged in the mid-90 percent range, with the ultimate goal of 100 percent for all businesses). Ironically, as sales have increased over the last decade, Logistics has been able to more effectively service customers using less inventory each year — a tribute to the management philosophy of efficient worldwide teamwork.
“We are constantly facing a balancing act among customer service, working capital and plant operations,” stated Mischou. “This means providing the best possible service to the customer, while simultaneously keeping working capital costs low through inventory management, but not so low that we jeopardize the efficiency of our plants or lower our on-time delivery
goals. This is, by far, our greatest continuing challenge.”
One of the most remarkable features of Uniroyal Chemical’s Logistics Department is the fact that worldwide operations and functions are housed in one central location — Middlebury headquarters in Connecticut, USA. The department’s individual functions work together as well as interface with
The Logistics Function
[DIAGRAM showing interconnected circles around central “LOGISTICS” hub, including:
– Production Planning
– Customer Service
– Inventory Management
– Transportation
– Warehousing
– Responsible Care® (Distribution Code)
– Packaging
– Forecasting
– Hazardous Materials]
internal and external groups, including production plants worldwide (each with its own offshore logistics manager, who works with identical goals and objectives and coordinates them through their U.S. counterparts); business, marketing and sales managers; research and development; technical service; outside tolling facilities; business boards; field sales; customers; and other logistics team members.
The Logistics Department’s six primary functions are:
■ INVENTORY MANAGEMENT
Inventory management is the effective balancing of working capital inventory asset needs while meeting customer requirements, plant operating efficiencies and business objectives. This includes working with the businesses to eliminate slow-moving products, and working with plants to eliminate off-
grade products. Capacity expansion recommendations also are generated from this area.
OPERATIONS MANAGERS
• John F. Honyotski
(Rubber and Specialty Chemicals)
• Carlton R. Chickering
(Royalene® EPDM, Paracril® nitrile rubber, Adiprene®/Vibrathane® urethane prepolymers, and new products)
• Donald A. Delagrange
(Crop Protection Chemicals)
■ CUSTOMER SERVICE
Customer service is the processing and expediting of 60,000 customer orders annually and striving for 100 percent satisfaction to customers through error-free, on-time delivery of products and services. Customer service provides shipping locations with accurate and timely orders. Coverage is provided 24 hours a day, seven days a week for emergency situations.
CUSTOMER SERVICE MANAGERS
• Raymond F. Pecock
(Rubber and Specialty Chemicals, Royalene® EPDM, Paracril® nitrile rubber, Adiprene®/Vibrathane® urethane prepolymers)
• Donald A. Delagrange
(Crop Protection Chemicals)
■ HAZARDOUS MATERIAL AND WAREHOUSE OPERATIONS
Hazardous material management is the establishment of policies and procedures to ensure safe handling and shipping of all products in accordance with Responsible Care® guidelines and government regulations. This includes the continuous monitoring of Uniroyal Chemical’s compliance with HAZMAT procedures and policies, and the establishment of policies, procedures and training for the safe shipment of all samples and other non-standard products.
Warehouse management includes providing outside warehouses with current company policies, procedures and product information. Monitoring
continued on page 8