Dow Chemical Continues to Improve their Supply Chain

Dow Chemical is a global monster when it comes to manufacturing chemicals and plastics. In one year Dow procures over 100 billion pounds of raw material from over 1000 suppliers and manages around three million product shipments. With operations like these Dow faces challenges managing such a complex supply chain.

In the early 2000s Dow Chemical acknowledged the need to improve their supply chain management and develop a stronger B2B communication network. It was at this time that Dow began to use Elemica. Elemica is a supply chain operation network that uses state-of-the-art solutions to connect companies to their supply chain networks including suppliers, logistics providers, and customers- perfect for a company as large and diverse as Dow Chemical. As described in the video below Elemica is all about gaining total control over your supply chain by making it easier for clients such as Dow Chemical to do business with their customers.

Dow Chemical has been extremely successful with their implementation of Elemica solutions. So much so that on February 9^th, 2016 Elemica endowed The Dow Chemical Company the award for the Overall Breakthrough of the Year category to recognize Dow as a company that drives innovation in supply chain. Through the use of Elemica to build exemplary B2B Networks Dow has successfully increased communication throughout their supply chain and, in addition replaced paper-based processes, reduced errors, improved productivity and lowered processing costs.

The Dow Company continues to take action to improve their supply chain through the use of social media. More recently the organization implemented another supply chain tool referred to as SCRAM (Supply Chain Resilience Assessment and Management). SCRAM is a tool that is used to identify potential resilience gaps between a company’s capabilities and vulnerabilities when faced with challenges.

In our global economy the old methods of risk management aren’t effective. As organizations are dispersed globally it has become even more crucial to build communication networks that can condense information from a variety of functional departments across multiple locations. SCRAM would enable communication and aggregate the information provided across Dow Chemical as respondents from different areas (both functional and geographical) answer questions regarding their capabilities and vulnerabilities in unpredictable situations. These answers are then combined and any imbalances in the company’s ability to cope with disruptions are unveiled. Building these strong communication networks with programs like SCRAM will enable Dow to cope with a continuous stream of surprises, ranging from anything including industrial accidents to economic shocks to natural disasters.

Lessons for Others

It is important to acknowledge and address challenges within your company- no matter how big or small. As more of our business is done globally social media tools including Elemica and SCRAM can be extremely helpful in establishing communication networks between your company and suppliers, logistics provides and customers which in turn can lead real business results.

If you have concerns as to the accuracy of anything posted on this site, please send your concerns to Peter Carr, Program Director, Social Media for Business Performance.

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