How Will Your Ability to “Survive” In the Downturn Enable You To “Thrive” In The Upturn By Pierre Minguet LogiChem 2011 will be the event's tenth anniversary and an opportunity for the most senior chemical supply chain & global logistics directors from the European chemicals community to come together once again share experiences, make new contacts and benchmark the latest chemical supply chain initiatives. Not only will LogiChem 2011 be a chance for the chemical industry to reminisce about the last ten years but an opportunity to shape the next decade. To celebrate a decade of LogiChem, there will be an exciting three day programme filled with networking opportunities in our new location, Antwerp.

1. How Will Your Ability To “Survive” In the Downturn
Enable You To “Thrive” In The Upturn
Pierre Minguet – Business Director, Polystyrene
April 2010

2. 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

3. A World of Change
And You Know What ?
3

4. 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

5. The ‘Fixed Points’ and …
IN
BASF
Polimeri
Dow
Total
Synthos
5

6. 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

7. The Logistics Equation
FASTER + CHEAPER = BETTER
AND clearly, three significant Sources of Value are also :
• Flexibility
• Safety / Stewardship
• Service
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8. “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 !
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9. 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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10. 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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11. 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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