the eastman chemical journey to be a supply chains to admire winner for 2014 and 2015

9/13/2015 September 2015, p.1Supply Chain Insights Global Summit #ImagineSC

Supply Chain TransformationThe Eastman Chemical Company Journey to Be

a Supply Chains to Admire Winner

Kevin PruittDirector, Supply Chain Execution & Global Logistics

Eastman Chemical


Eastman Chemical Company

• A global specialty chemical company headquartered in Kingsport, Tennessee• Approximately 15,000 employees and over 50 manufacturing sites around the

globe• Serving customers in approximately 100 countries• A company dedicated to environmental stewardship, social responsibility and

economic growth• 2014 ENERGY STAR® Partner of the Year Sustained Excellence• 2014 Ethisphere’s World’s Most Ethical ® Companies• 2015 Glassdoor Employees’ Choice Best Places to Work (# 30)• $10.5B Revenue


A long history of creative thinking and industry solutions


Journey toward specialty chemical company


Diversity is a source of strengthEnd-market and geographic diversity contribute to consistent

earnings and cash flow growth


Eastman is a market leaderof our sales revenue is from product lines in leading market positions2/3


Eastman’s Integrated Supply Chain is:


Integrated Global Supply Chain Transformation Journey


Key “Takeaways” for successful supply chain transformation

• Focus on your customers

• Integrate procurement and supply chain operations

• Continually develop and improve capabilitiesPeople, Process, & Technology

• Align / collaborate with business partners

• Create value that contributes to business success


It is an on-going journey


Integrate Supply Chain & Procurement Operations

Integrated Global Supply Chain

Global Supply ChainVice President

Global Procurement Vice President &

Chief Procurement Officer

Supply ChainExecution Logistics

DirectProcurement & Alternate Methods Of Supply

IndirectProcurement


Integrated Global Supply Chain Organizational Strategy


Advantages of an integrated philosophy and approach Supply chain processes are cross functional - optimization of the processes

requires integration of the functional organizations

Capabilities are enhanced with a talent management strategy that moves employees throughout the various functions.

Common objectives, goals, initiatives and measures ensure the optimization of the corporation

“dashboard” of integrated metrics

The ultimate objective is to be a reliable supplier to our customers

The integrated approach to supply chain management enables our service and reliability

“to be the reason customers do business with Eastman”


Continually develop and improve capabilities

Business management

skill set

Transactional talentprofile

High performing

analytical & leadership capabilities

• Develop a high performing workforce• Sustain knowledge and expertise globally – robust “bench” &

succession plans• Enhance leadership skills• Utilize advancing technology to automate - improve productivity

and service


Center of Excellence – Key to driving improvement


Integrated Global Supply Chain “Roadmap”


Critical Success Factors for driving transformation and improving capabilities

Developed structured “roadmap” – aligned priorities across the organization

Championed by leadership of the organization

Developed governance process for each initiative

Formed Center of Excellence – dedicated resources to drive improvement

Formed partnerships with IT and Businesses to complete initiatives

Demonstrated value achieved as progress was made

Implemented solutions globally


Align and collaborate with internal business partnersProactive business alignment

Reactive to business

Business partnership

React to business requests

Proactively lead initiatives in support of

business strategy

Champion initiatives that contribute to business results

• Align resources with business management and S&OP teams• Gain and share market insight • Provide commercial and contract expertise • Accurately forecast materials, services, and distribution costs• Develop options or solutions for business issues / challenges • Champion initiatives to execute business strategy • Deliver value


Enable business success

Bottom line, value focus

Purchase price focus

Value, growth focus

Driven by cost Driven by valuecontribution

Driven by value contribution to enable growth

• Balance service, cost and working capital• Consistently deliver value greater than the cost of the organization• Drive strategic savings projects in:

• Procurement strategies for services and material• Network optimization for lower distribution cost and working capital• Trade and duty optimization• Supply planning and asset optimization

• Ultimately be viewed as a Value Partner rather than a Cost Center


IGSC – Must Continue to be strategic contributor to business success

Pressure to deliver value

• Stronger alignment with business strategy

• More innovation

• Continued cost pressure

• Proactive risk management

Focus areas for success

• More collaboration

• Translation of insights into business options

• Strong bias for action

• Robust talent management strategy

Successful Supply Chains will be a source of strategic contribution to business partners


It is an on-going journey


Integrated Global Supply Chain Vision 2020

BusinessPartnership People

Processes /Systems


Learnings from past failures that can accelerate your success

• Business Priorities – roadmaps and initiatives must be driven by what the business needs to be successful

• Balance of Talent and Technology – implementing technology without the talent to optimize utilization will yield less than desired results

• Master Data – do not underestimate the value of accurate master data

• Unrealistic Timelines – process improvement is not easy; build aggressive but realistic timelines for major improvement projects


External Recognition

Recognized Eastman as a having a “Supply Chain to Admire” 2014 & 2015 - annual top supply chain listing

Recognized Eastman with the Green Supply Chain Award

Recognized Eastman’s Supply Chain Roadmap as a top 100 Supply Chain project for 2014

Supply Chain research company recognized Eastman as a “Supply Chainovator”

Highlighted Eastman’s “end-to-end supply chain integration” and “continual improvements as helping Eastman be a leader on a global scale”