Ici Supply Chain Management Report by Ali Raza

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Imperial Chemical Industries PLC
REPORT ON
BY: -
ALI RAZA----------------------------------------1390
AYESHA CURMALLY--------------------------1188
SYED SABIH AHMED-------------------------1303
SHOMAILA MALLICK-------------------------1185
FAIZAN SHEIKH--------------------------------1309
SUBMITTED TO:- RANA MUHAMMAD IDREES
COURSE: - SUPPLY CHAIN MANAGEMENT
Supply Chain Management Report

KASBIT (University With a Difference)
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ACKNOWLEDGEMENTS
Our all acknowledgments and regards to MERCIFUL ALLAH, Who

blessed us with courage and enhanced our skills in formation of the report.
In lasts but of course not the least We show homage and all gratitude to
our honorable teacher MR. RANA MUHAMMED IDREES, who supported us
and shared his great professional experience and knowledge with us and
the management of ICI for sharing very comprehensive information about
their production and transportation from raw material to finished goods
and whole process of supply chian.
DATED: 10-MAY-2010
TABLE OF CONTENT

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ICE’S VISION--------------------------------------------------------------------------------------
1
ICI GROUP IN BRIEF------------------------------------------------------------------------------
1
INTRODUCTION-----------------------------------------------------------------------------
-3
COMPETIVE AND SUPPLY CHAIN STRATEGIES---------------------------------------------------5
AN INTRODUCTION TO SUPPLY CHAIN MANAGEMENT ---------------------------------------6
DIRVERS AND SUPPLY CHAIN
PERFORMANCE---------------------------------------6
MODE OF TRANSPORTATION ------------------------------------------------------------------8
SUPPLY CHAIN DECISIONS------------------------------------------------------------------ 10
DESIGNING DISTRIBUTION NETWORK IN A SUPPLY CHAIN NETWORK------------------ 10
SUPPLY CHAIN MODELING APPROACHES------------------------------------------------ 12
CREATING VALUE BY ALIGNING SUPPLY CHAIN----------------------------- 13
EFFICIENT CONSUMER RESPONSE (ECR) ----------------------------------------------- 13
PLANNING DEMAND AND SUPPLY IN SUPPLY CHAIN-------------------------------------- 15
SYNCHRONIZATION OF PRODUCTION TO CONSUMER DEMAND------------------------ 15
DEMAND AND SUPPLY CHAIN SYNCHRONIZATION-------------------------------------- 16
DEMAND FLOW MANAGEMENT-------------------------------------------------------------- 16
SUPPLY FLOW MANAGEMENT--------------------------------------------------------------- 17
AGGREGATE PLANNING IN SUPPLY CHAIN------------------------------------------------- 19
PLANNING AND MANAGING INVENTORIES-------------------------------------------------- 21
MANUFACTURER------------------------------------------------------------------------------ 21
PRODUCTION DECISIONS ------------------------------------------------------------------- 22
INVENTORY DECISIONS ---------------------------------------------------------------------- 23
PRODUCT AND PROCESS INNOVATION----------------------------------------------------- 24
CREATING CUSTOMER VALUE BY ALIGNED PACKAGING SUPPLY CHAIN OPERATIONS------- 24
PACKAGING SUPPLY CHAIN BENEFITS---------------------------------------------------- 25
SOURCING TRANSPORTING AND PRICING PRODUCTS------------------------------------ 26
LOCATION DECISIONS ----------------------------------------------------------------------- 26
TRANSPORTATION DECISIONS-------------------------------------------------------------- 27
INFORMATION TECHNOLOGY AND SUPPLY CHAIN---------------------------------------- 27
ELECTRONIC DATA INTERCHANGE--------------------------------------------------------- 27
MASTER DATA MESSAGES------------------------------------------------------------------ 28
COMMERCIAL TRANSACTIONS MESSAGES----------------------------------------------- 28
REPORT AND PLANNING MESSAGES------------------------------------------------------ 29
BENEFITS OF ICI SYSTEM APPLICATION-------------------------------------------------- 29
E-BUSINESS AND SUPPLY CHAIN BUSINESS PROCESS REENGINEERING------------- ----------30
E-BUSINESS IMPLEMENTATION------------------------------------------------------------- 30
BUSINESS PROCESS AUTOMATION-------------------------------------------------------- 31
STANDARDIZATION--------------------------------------------------------------------------- 31
KEY BENEFITS OF ICI SYSTEM APPLICATION-------------------------------------------- 32
FORWARD-LOOKING STATEMENTS--------------------------------------------------------- 33
BIBLIOGRAPHY--------------------------------------------------------------------------------
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ICI’S VISION
• To become the leader in formulation science.

• Outstanding customer and consumer understanding.
• Leading edge technology platforms.
• Products that provide superior performance.
ICI GROUP IN BRIEF
ICI Pakistan Limited (Imperial Chemical Industries) is located in Karachi,

Pakistan. The company was subsidiary of ICI Plc United Kingdom but with
worldwide takeover of ICI PLC by AKZO NOBEL now AKZO NOBEL is 75.81% stake
holder of ICI PAKISTAN. It was set up as a public limited company in Pakistan in
1952. ICI’s presence in this part of the world, however, predates the formation of
the public limited company and indeed, Pakistan itself. The Khewra Soda Ash
Company, a predecessor of ICI Pakistan Limited, set up a soda ash
manufacturing facility in Khewra in 1944 with a capacity of 18,000 tonnes per
annum. This facility was sited next to the salt range as rock salt and limestone;
two key raw materials for manufacturing Soda ash were available here in
abundance.
AkzoNobel is the largest global paints and coatings company and a major
producer of specialty chemicals. It is a Fortune 500 company, and is listed on the
Euronext Amsterdam stock exchange as well as being included on the
FTSE4Good Index, and is also a leading company in the Chemicals Industry
sector on the Dow Jones Sustainability Indexes.
AkzoNobel is a dynamic, forward-looking company that strives to deliver only the

best of products and solutions to its customers and that is driven by a set of
values geared toward challenging the future, thinking with courage, and
delivering tomorrow’s answers today, all to benefit the customer by maintaining
competitiveness and anticipating future needs before they arise.
ICI Pakistan today : -Looking ahead to

tomorrow
We now operate as an independent business unit within AkzoNobel and as a part
of its specialty chemicals portfolio, known as Chemicals Pakistan. Legally we
remain ICI Pakistan Limited until such time as the transition phase is completed.

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• We are one of the largest quoted companies on the Karachi, Lahore and
Islamabad Stock Exchanges
• We have a paid up share capital of Rs 1.39 billion.
• Our turnover in 2008 was Rs 31.92 billion and profit before tax crossed Rs
3.13 billion.
• Our company employs around 1300 permanent staff members.
Our five businesses, Polyester, Soda Ash, Paints, Chemicals and Life
Sciences, manufacture and sell a wide range of industrial and consumer
products. These include:
A bit of history
ICI Pakistan Limited was set up as a public limited company in Pakistan in 1952.
However, ICI was an active presence in this part of the world well before the
formation of the public limited company and indeed, even before Pakistan itself
was created.
1944
The Khewra Soda Ash Company, a predecessor of ICI Pakistan Limited, set up a
soda ash manufacturing facility in Khewra with a capacity of 18,000 tonnes per
annum. This facility was sited next to the salt range as rock salt and limestone,
two key raw materials needed for manufacturing soda ash, were available here
in abundance.
1953
The Khewra Soda Ash company was incorporated as a public limited company.
1966
The Khewra Soda Ash Company changed its name to ICI Pakistan Manufacturers
Limited.
Over the next few decades, major changes took place in the company as our
Specialty Chemicals and Polyester plants were commissioned, and Imperial
Chemical Industries (Pakistan) Private Limited and Paintex Limited both merged
into ICI Pakistan Manufacturers Limited.
1987
We changed our name to ICI Pakistan Limited

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We launch our Seeds business as well as the Dulux range of coatings.
We also established ICI Pakistan PowerGen and set up the ICI Pakistan
Foundation as a charitable trust.
1995
We set up a USD 490 million PTA manufacturing facility at Port Qasim, near
Karachi.
1998
PTA manufacturing facility commissioned.
2000
The business was de-merged to form Pakistan PTA Limited, which was at the
time a subsidiary of ICI Plc UK.
2007
We completed 50 years of continuous listing on the Karachi Stock Exchange.
2008
We formally became part of the AkzoNobel Group, bringing us under the banner
of one of the largest coatings and chemicals companies in the world
Businesses & Products

Diversity at every step
One of the most unique things about ICI Pakistan is the wide spectrum of
products we offer and the varied industries that we service through our five
diverse businesses.

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From home and auto paints to essential pharmaceuticals and agricultural

products, to chemicals for use in every major industry, and polyester for the
textile sector to soda ash for glass and detergents we have something to offer
everyone.
Our five businesses are:
About Polyester
Weaving our way forward
We manufacture and market Polyester Staple Fibre (PSF) , a man made fibre and
a key substitute and complement for cotton. In a textile intensive country like
Pakistan, it is a highly critical raw material that is spun into yarn, which is then
woven or knitted into fabric used to make shirts, shalwar kameez, bed sheets
etc. that each one of us uses.
It is hard to comprehend thus that this fibre, which so closely resembles cotton
in its applications, is not grown in the fields but is a part of the petrochemicals
chain, and the shirt that you wear has actually been derived from crude oil!
We introduced this wonderful product to this country as far back as the early
80’s. As pioneers of the polyester staple fibre technology in Pakistan, we
enabled the cotton rich textile industry to diversify their products and be more
competitive in the international arena where the growth of man made fibres has
been phenomenal.
About Paints
Coloring Pakistan for 44 years
We know from years of experience that our customers expect nothing short of
the best from us. Delivering results is a part of our DNA; it’s how we do business.
And so, we launch innovative products, train our teams, continuously improve
our processes, and invest in research to make sure our customers have access
to a wide range of high quality products, paint solutions and services.
In Pakistan, the latest surveys indicate that 97 out of 100 people know who we
are! Our huge distribution setup across the country makes sure our products are
available to all these potential customers.

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Of course, we now have an added advantage; the world’s largest decorative and
performance coatings company is backing us. With AkzoNobel and its global
reach and expertise, we have lots of exciting opportunities for growth and to
enter new fields.
We realize that a sustainable business needs to be responsible. While we provide

leading innovation and services, we also make sure that our premium quality
paint doesn’t harm our consumer or damage the environment. Additionally, we
help our communities through volunteer programs and development initiatives.
Put together, all of this makes us the leading paints company in Pakistan.
About Soda Ash

Delivering reliability for decades
Did you know that every time you pick up a glass, read a newspaper or do your
laundry, you experience the use of soda ash?
We are market leaders for this key ingredient in the manufacture of glass, paper
and detergents. Soda ash is an essential commodity and we’re proud to be the
largest producers of it in the country.
Our Soda Ash Plant in Khewra was established in the 1940s, even before the
creation of Pakistan! Since then, we have seen tremendous growth; we currently
have an annual production of 350,000 tons. Our plant is the largest of its kind in
Pakistan.
We use indigenous raw materials to ensure substantial foreign exchange savings

through input substitution. Over the years we have also done our bit for the
locality of Khewra; we provide employment to a large number of residents of this
relatively impoverished area, and we run community welfare and development
initiatives to benefit the people.
About Life Sciences

Committed to improving lives

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We’re in the business of improving quality of life. We have a strong portfolio of

well-researched leading brands, and we keep diversifying our product range so
that whether you need advanced pharmaceuticals for your healthcare needs, or
superior seeds to improve the quality of essential crops, we can ensure that you
get the best.
Our business is diverse and we are proud of the important role we play in
helping to enhance lives; for example, we market some of the leading
pharmaceutical brands today such as drugs to fight life-threatening diseases like
cancer.
Because of this, we are even more committed to innovation and keeping ahead
of the curve with products and services that draw on the newest research and
latest advances. We want to make sure our customers trust in us remains solid
and that our brands remain synonymous with quality and consumer confidence.
About Chemicals
Turning the wheels of industry
We’re not stretching the truth when we say we service practically every industry
in the country! Our products are essential in all kinds of manufacturing
processes and in products from adhesives to paint, and from insulation for
housing and refrigeration to textile auxiliaries that determine the finish of fabrics
we use.
We enjoy the benefit of global insights, and knowledge amassed from a long
history of serving our customers’ needs. We don’t just manufacture and market
essential ingredients for today’s demanding industrial world, we also offer
technical solutions, and we’ve begun exporting into the region.
Where chemicals are involved, we know we have to be extra careful about our
impact on people and the world around us. Our strong emphasis on health,
safety, and environment means we incorporate the best practices from around
the world, providing full safety information to customers, a safe workplace for
employees, and care for the environment through many of our projects focusing
on sustainability
OUR BRANDS: -

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Dulux
Dulux is a renowned brand the world over, and here in Pakistan it’s no
exception.
Wherever you travel in the country, you are likely to see our premium paint
brand at work beautifying and protecting people’s homes and workplaces.
As a brand Dulux has been known and trusted for generations. We are proud of
that, and work hard to ensure not only that we give our consumers the same top
quality products they have grown to rely on, but also that we keep innovating to
create new products for the ever-evolving paint market.
Whatever your paint needs, we’re sure you will find something in our Dulux
range to give you the results you want.
ICI Soda Ash

ICI Soda Ash is widely used in several industries
Soda ash is an essential ingredient in the manufacture of glass, paper and

detergents. We produce and market two different varieties of soda ash under
the ICI brand name:
• Dense Soda Ash

• Light Soda Ash
International
International Paint is part of AkzoNobel, the world’s largest coatings supplier.
Our unrivalled investment in product development leads us to provide you with
high quality protective coating products.
When uncoated carbon steel structures come into contact with the environment,
the usual result is corrosion. Protective coatings are essentially designed to help
prevent and seriously slow down the corrosion process. In addition, protective
coatings can also be used to provide passive fire protection for structural steel.
We provide protective solutions to several markets including chemical,

infrastructure, mining and metals, oil and gas, power, port machinery, and rail.
Our sub business units include Protective Coatings, Marine and Yacht
businesses.
Our technical sales representatives are always available to provide technical

support, and recommend coating systems best suited to each customer’s
individual needs

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Paintex
We all want the best quality but we also want it at a reasonable price.
Paintex, our mid-tier paint brand, provides you with an opportunity to enjoy the
finer things in life while still spending your money sensibly. Paintex gives you a
complete range of exciting color and high quality finishes for all your
requirements, at an affordable price that lets you enjoy color without worrying
about costs.
Our Paintex range includes the following products:
• Paintex Emulsion
• Paintex Hi-Gloss
• Paintex Putty
Sikkens
Sikkens, a world-reknowned brand, is now available across Pakistan.
At Sikkens it all starts with ideas. We use innovative R&D to produce our range
of professional coating systems. Then we make them to the highest standards.
And if customers have something specific in mind, they can always call on our
experts for personal support.
High performance, low maintenance; our products will do everything you need
them to. Plus they’re long-lasting and easy to maintain.
We now supply premium Sikkens refinish products for the automobile industry
to the best dealerships and garages across Pakistan.
Terylene
Weaving our way ahead with Terylene, our synthetic Polyester Staple
Fiber (PSF) brand.
We manufacture and market Terylene Polyester Staple Fibre (PSF) on a large

scale. Terylene is a key substitute and complement for cotton and is used widely
in the textile sector where it is spun into yarn, which is then woven or knitted
into fabric.
COMPETIVE AND SUPPLY CHAIN

STRATEGIES

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Nationa Quest Uniqema Paints

l starch
Top 10 customers c. 7.5% c. 33% c. 25% c. 30%
as a % of sales of
division
Major customers General General Akzo Nobel B&Q
(alphabetical) mills mills
Kimberly PepsiCo BP Castrol Crown Cork
-Clark
P&G P&G Henkel Focus
Unichar Sara lee Sygenta home base
m
Unilever Unilever Unilever Home
depot
Major competitors A.E Firmenich BASF Akzo nobel
(alphabetical) staley
Air Givaudan Cognis BASF
products
Fuller IFF Croda PPG
Hekel Symrise Degussa Sheriwin
Williams
Rohm & Takasago Olean Valspar
hass
AN INTRODUCTION TO SUPPLY CHAIN MANAGEMENT

Traditionally, marketing, distribution, planning, manufacturing, and the
purchasing organizations along the supply chain operated independently.
These organizations have their own objectives and these are often
conflicting. Marketing's objective of high customer service and maximum
sales dollars conflict with manufacturing and distribution goals. Many
manufacturing operations are designed to maximize throughput and lower
costs with little consideration for the impact on inventory levels and
distribution capabilities. Purchasing contracts are often negotiated with
very little information beyond historical buying patterns. The result of
these factors is that there is not a single, integrated plan for the
organization---there were as many plans as businesses. Clearly, there is a
need for a mechanism through which these different functions can be

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integrated together. Supply chain management is a strategy through

which such an integration can be achieved.
DIRVERS AND SUPPLY CHAIN

PERFORMANCE
FACILITIES
ICI uses facilities decision s to be more responsiveness to their
customers. ICI has an end goal of opening manufacturing facilities in every
major market that they enter. While there are other benefits to opening
local facilities such as protection from currency fluctuation and trade
barriers, the increase in responsiveness plays a large role in ICI’s decision
to locate in their local market.
INVENTORIES
ICI’s competitive targets upper-end customers with high
responsiveness requirements. These customers are willing to pay a
premium to have the products they want when they want them. To
support this competitive strategy. ICI uses inventory the industry stocks a
large variety and quantity of products to ensure a high level of availability.
In fact ICI stocks a significantly larger amount of inventory. It incurs higher
costs because of their large inventory but they gain extra margin fro their
customers.
TRANSPORTATION
IDENTIFICATION OF LOCATIONS
Locations are identified by ICI Global Location Numbers (GLN).
Location numbers are a key concept in supply chain management. A
location number is a numeric code that identifies any legal, functional or
physical entity within a business or organization. Each location is allocated
a unique number. The identification of locations is required to enable an
efficient flow of goods and information between partners through EDI
messages to identify the parties involved in a transaction (e.g. buyer,
supplier, place of delivery, place of departure).

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• Combined with EDI, the SSCC provides a link between the information flow
and the physical flow of goods
To date, it has developed 47 standard messages in its standard. They

cover the transmission of master data, commercial transactions, report
and planning, transport, financial and general messages.
MODE OF TRANSPORTATION
There are six ways to move products produce by: air, truck, rail, ship,
pipeline and electronic transportation. The farm or market location largely
determines which modes of transportation are available. The buyer usually
selects the type of transportation and pays for it directly. In some cases,
you might pay the transportation cost and include it in the final product
selling price.
AIR
Airlines are used exclusively to ship a few high-value and extremely
perishable products to domestic and export markets. Air freight accounts

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for no more than 10 percent of all chemical shipped from the Pacific
Northwest. It is the most expensive mode of transportation.
Produce is loaded in containers for placement in the aircraft. Precooling

the product and the container helps ensure lower arrival temperatures and
lengthens the product's shelf life. Using disposable insulation and dry ice
inside the container also can help maintain lower transit temperatures. Be
sure to check with the airline for regulations on the use of dry ice.
Permanently insulated containers also are available for produce shipping.
TRUCK
The most widely used means of transporting paints is truck trailer. This
method has grown in importance as the national highway system has
expanded. Products can be shipped by truck from any growing area to any
market in the costal areas around the world.Transportation by truck
usually is more expensive than by rail or ship but less expensive than by
air.
RAIL
Five percent or less of all produce shipments are by rail. Rail service is
used primarily. Destinations usually are major eastern cities.
Full carloads almost always are necessary. Product groups move large
volumes into large markets on a steady basis. Trailer-on-flat-car service is
increasing, while straight railcar service is declining.The shipper or the
buyer books directly with the originating railroad company. The railroad
assigns a nearby loading facility and handles the billing.
SHIP
Total worldwide shipments by sea account for 50 percent or greater of
the chemical transported. Refrigerated containers and each unit has its
own electric refrigeration unit powered by the ship's engines. Some
containers can use modified atmosphere to protect produce better. Dry
containers often are used for long-lived.
ELECTRONIC TRANSPORTATION
All the orders are received by fax, telephone and on the internet and
payments are received from banks of the world within the industry.
PIPELINE

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ICI uses unique kind of pipes to transport the chemical in the

industry which are in the form of liquid like petroleum and other
dangerous chemicals which effect the environment and transported with
the help of pipes.
INFORMATION
ICI is a major manufacturing of chemical worldwide and invested in
an information system that enables them to rapidly get customized
products to the market. This system allows distribution and customers to
actually design windows to custom-fit their needs. Users can place the
order and can get price quotes and automatically sends the order to the
factory if the customers decide to buy.
SUPPLY CHAIN DECISIONS

We classify the decisions for supply chain management into two
broad categories -- strategic and operational. As the term implies,
strategic decisions are made typically over a longer time horizon. These
are closely linked to the corporate strategy (they sometimes {\it are} the
corporate strategy), and guide supply chain policies from a design
perspective. On the other hand, operational decisions are short term, and
focus on activities over a day-to-day basis. The effort in these type of
decisions is to effectively and efficiently manage the product flow in the
"strategically" planned supply chain.
DESIGNING DISTRIBUTION NETWORK IN A SUPPLY CHAIN
NETWORK
NETWORK DESIGN METHODS

As the very name suggests, these methods determine the location of
production, stocking, and sourcing facilities, and paths the product(s) take
through them. Such methods tend to be large scale, and used generally at
the inception of the supply chain. The earliest work in this area, although
the term "supply chain”. They introduce a multicommodity logistics
network design model for optimizing annualized finished product flows
from plants to the DC's to the final customers. later give a review of the
evolution of distribution strategies over the past twenty years, describing
how the descendants of the above model can accommodate more
echelons and cross commodity detail.

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It attempt to provide a framework for a comprehensive model of a

production-distribution system, "PLANETS", that is used to decide what
products to produce, where and how to produce it, which markets to
pursue and what resources to use. Parts of this ambitious project were
successfully implemented at General Motors. It develop a conceptual
framework for manufacturing strategy analysis, where they describe a
series of stochastic sub- models, that considers annualized product flows
from raw material vendors via intermediate plants and distribution
echelons to the final customers. They use heuristic methods to link and
optimize these sub- models. They later give an integrated and readable
exposition of their models and methods.
It present a normative model for resource deployment in a global

manufacturing and distribution network. Global after-tax profit (profit-local
taxes) is maximized through the design of facility network and control of
material flows within the network. The cost structure consists of variable
and fixed costs for material procurement, production, distribution and
transportation. They validate the model by applying it to analyze the
global manufacturing strategies of a personal computer manufacturer.
It provide the most comprehensive deterministic model for supply

chain management. The objective function minimizes a combination of
cost and time elements. Examples of cost elements include purchasing,
manufacturing, pipeline inventory, transportation costs between various
sites, duties, and taxes. Time elements include manufacturing lead times
and transit times. Unique to this model was the explicit consideration of
duty and their recovery as the product flowed through different countries.
Implementation of this model at the Digital Equipment Corporation has
produced spectacular results --- savings in the order of $100 million
dollars.
Clearly, these network-design based methods add value to the firm

in that they lay down the manufacturing and distribution strategies far into
the future. It is imperative that firms at one time or another make such
integrated decisions, encompassing production, location, inventory, and
transportation, and such models are therefore indispensable. Although the
above review shows considerable potential for these models as strategic
determinants in the future, they are not without their shortcomings. Their
very nature forces these problems to be of a very large scale. They are
often difficult to solve to optimality. Furthermore, most of the models in
this category are largely deterministic and static in nature. Additionally,
those that consider stochastic elements are very restrictive in nature. In
sum, there does not seem to yet be a comprehensive model that is
representative of the true nature of material flows in the supply chain.

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SUPPLY CHAIN MODELING APPROACHES
Clearly, each of the above two levels of decisions require a different

perspective. The strategic decisions are, for the most part, global or "all
encompassing" in that they try to integrate various aspects of the supply
chain. Consequently, the models that describe these decisions are huge,
and require a considerable amount of data. Often due to the enormity of
data requirements, and the broad scope of decisions, these models
provide approximate solutions to the decisions they describe. The
operational decisions, meanwhile, address the day to day operation of the
supply chain. Therefore the models that describe them are often very
specific in nature. Due to their narrow perspective, these models often
consider great detail and provide very good, if not optimal, solutions to
the operational decisions.
To facilitate a concise review of the literature, and at the same time

attempting to accommodate the above polarity in modeling, we divide the
modeling approaches into three areas --- Network Design, ``Rough Cut"
methods, and simulation based methods. The network design methods, for
the most part, provide normative models for the more strategic decisions.
These models typically cover the four major decision areas described
earlier, and focus more on the design aspect of the supply chain; the
establishment of the network and the associated flows on them. "Rough
cut" methods, on the other hand, give guiding policies for the operational
decisions. These models typically assume a "single site" (i.e., ignore the
network) and add supply chain characteristics to it, such as explicitly
considering the site's relation to the others in the network. Simulation
methods are a method by which a comprehensive supply chain model can
be analyzed, considering both strategic and operational elements.
However, as with all simulation models, one can only evaluate the
effectiveness of a pre-specified policy rather than develop new ones. It is
the traditional question of "What If?" versus "What's Best?".
CREATING VALUE BY ALIGNING SUPPLY CHAIN

STRATEGY WITH BUSINESS STRATEGY
Supply chain strategy has evolved from integrating logistics and
lowering costs to working together with customers and suppliers to fulfill
consumers’ wishes better, faster and at less cost. The need to reduce
supply chain assets and costs, while at the same time increase customer
service and company growth is driving the application and development of
common standards. Recognizing the strategic importance of the supply
chain, companies across the world have implemented ICI standards. The

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ICI System enables efficient supply chain management and international

trade by providing standard tools that allow all supply chain participants
to communicate in one global language of business. Because supply chain
capabilities are related to financial performance, aligning supply chain
strategy with business strategy has become a top priority for many
companies. By uniting corporate and supply chain objectives, they can
boost profitability and growth, and therefore increase shareholder value.
EFFICIENT CONSUMER RESPONSE (ECR)

Implementing strategic initiatives, such as ECR, could result in total
supply chain cost reductions as high as a 6.5% reduction in consumer
prices. Even when taking the average 5.7% figure (consisting of a
reduction in operating costs of 4.8% and reduction in inventory costs of
0.9%), this translates into over $ 33bn worth of savings across the entire
industry. Manufacturers, with or without ECR programmes, do not ignore
the role of packaging suppliers since they account for 30% to 50% of total
costs and frequently dictate downstream service levels. Under these
strategic alliances, ECR places a high priority on joint efforts that address
replenishment concepts, which compress cycle times and improve
demand visibility. Research undertaken by Andersen Consulting for a
consumer goods manufacturer shows that reducing the selling price by 1%
requires a 5% cut in supply costs to avoid a profit shortfall, which usually
has a further negative impact on customer service. This is having an
enormous effect on the packaging industry and is considered one of the
drivers behind its consolidation. Relating to packaging materials.
Nonetheless, given that the manufacturers spend the largest amount of
their costs on ingredients and packaging (46.4% of all their external
costs), and that they represent a substantial portion of the consumer
price, packaging material buyers cannot ignore them. Many
manufacturers’ first reaction is to eliminate high inventories due to poor
communication of actual consumer demand. When this process is taken to
its logical extreme, it will result in synchronization of production to retail
sales.
MANFATURER SOURCS OF COST – EXPRESSED

AS % OF CONSUMER PRICE
Advertisement 13.9%
Consumer promotion funds 11.3%
Ingredients and packaging 46.4%
Introduce products 2.6%
Merchandise products 2.7%
Promote product 1.8%

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Replenish products 21.3%
There is no doubt that the synchronization of production to retail

sales will have a profound impact on packaging companies. They will have
to be highly efficient to remain in business. However, efficiency alone will
not be a sustainable source of competitive advantage. Not only to
facilitate and satisfy their customers with additional levels of service and
supply chain integration, but also to stimulate and inspire demand for
their own products and services. Ultimately, packaging companies will
evolve from measuring performance in terms of market and category
share, to measuring performance in terms of overall consumer spending.
• Cost Reduction - Total Supply Chain
PLANNING DEMAND AND SUPPLY IN SUPPLY CHAIN
SYNCHRONIZATION OF PRODUCTION TO CONSUMER DEMAND

Retailers and consumer goods manufacturers, were first to increase
shareholder value by improving inventory and logistics management by
means of ICI standards. Daily deliveries from regional distribution centers
to points of sale eliminated the need for most of the backroom stock. In-
store inventories were even further reduced by electronic point of sale
data capture, combined with automated store level, sales-based ordering.
Just-in-time supplier delivery and optimized order sizes kept distribution
centre stock to a minimum. The future source of inventory reduction and
supply chain optimization is the synchronization of production to
consumer demand. Packaging suppliers are increasingly asked by their
customers to apply leading edge management methods and available
technologies to reduce costs and response times. According to the study,

21
raw materials and packaging suppliers receive on average 32.8% of the

consumer price in revenue from the manufacturers. Since the study did
not closely examine suppliers, we do not have a detailed cost structure
• The Key Enabler of Efficient Supply Chain Management Is the

Establishment of International Business Standards
DEMAND AND SUPPLY CHAIN SYNCHRONIZATION:

Companies that wish to achieve state-of-the-art supply chain
management should look for a holistic strategy and a supply chain model
that not only accounts for both supply and demand management, but also
supports the shift from supply chain integration towards synchronization.
While the demand chain includes processes, such as product
development, marketing, sales and category management, the supply
chain flow covers purchasing, manufacturing, warehousing and
Distribution. Each of these processes consists of numerous sub-processes,
which all provide opportunities to improve efficiency and effectiveness of
packaging supply chain operations. Traditional supply chain management
has focused on improvements in the supply-side processes. However, the
relationship between supply and demand is one of interdependency.
Companies need to understand customer demand in order to manage it,
create future demand, and meet the level of desired customer
satisfaction. Demand defines the supply chain-target. The supply side
capabilities support, shape and sustain demand. ICI standards play a
crucial role in these processes. The overall financial success of a company
is determined by how it responds to its customers. Demand flow strategy
defines the linkage between a company’s customers and sources of
products and services it provides. In order to understand the demand-side
processes, packaging companies increasingly focus on coordinated
improvements in two spheres of activity - movement of information and
movement of goods and services. This translates into:

22
• “Demand flow management”, which involves communicating demand

from the point of sale, back-up the supply chain;
• “Supply flow management”, which involves shortening the time it takes
to produce and deliver a product from the point at which the demand is
communicated to until it reaches the end-user.
DEMAND FLOW MANAGEMENT
Most companies forecast future demand based on historical

customer order patterns. However, actual consumer demand is often very
different from the stream of orders. Each member of the supply chain
observes the demand patterns of its customers and in turn produces a set
of demands for its suppliers. The further a company is upstream in the
supply chain, or in other words further from the consumer, the more
distorted is the order stream relative to consumer demand. Forecasts are
inevitably more accurate when they are based on actual
consumerdemand, such as point of sale data. The supply chain begins
with the end-customer.
• Linking Point of Sale Data with the Ordering Process by

Means of ICI System Tools
SUPPLY FLOW MANAGEMENT
Supply flow management is centered on the delivery of products

through the supply chain to the end-customer. Inventory planning was
traditionally confined to the downstream end of the supply chain.
Nowadays, retailers have started to push inventory-planning

23
responsibilities back to manufacturers of finished products. Increasingly,

packaging companies are expected to perform logistics functions for their
customers (the manufacturers). Some packaging suppliers are doing this
before customers ask, while others are being forced along by their
customers’ requirements. Understanding the principles of inventory
planning and the ICI standards used in it is valuable for all partners in the
supply chain, packaging companies and their own suppliers included. Point
of sale scanning of goods identified by ICI numbers and bar codes allows
retailers to track exactly what is being sold and operate computerized
perpetual inventory systems.
• Examples of ICI Messages Used in “Demand Flow”

Management
• ICI System Tools Used in “Supply Flow” Management
It is the critical link between the chain’s supply and demand sides:
• From the demand side, the distribution centre must meet all customer
specific requirements with maximum responsiveness;
• From the supplier’s viewpoint, it focuses on efficient handling, inventory
management, product flow, transportation and delivery.

24
• Example of ICI Messages used in "Supply flow" Management
Linking orders with inventories and inventories with purchasing and

production provides a leap forward in improving customer responsiveness
and efficient replenishment. ICI System tools enable the distribution
centre to efficiently perform its four basic functions: receiving,
replenishment, picking and shipping.
• ICI Standards drive the Warehouse Management System
The WMS responds to relayed data by information triggering the next

task. ICI numbers and bar codes and ICI messages drive the WMS. They
replace manual processes, inclusive of confirmation and validation of all
product movement.

25
AGGREGATE PLANNING IN SUPPLY CHAIN

DELIVERING SIGNIFICANT AND SUSTAINED PERFORMANCE IMPROVEMENT
• Four year Group targets announced in October 2003

• Substantial bottom line improvement from greater emphasis on:
- Differentiated resource allocation
- Cost and capital effectiveness
- Effective execution facilitated by new organization model
• Stronger cash generation over time:
- Refocusing ICI’s businesses
- Reducing legacy cash flows
• Improved balance sheet flexibility
ICI’S STRATEGY:
DIFFERENTIATED RESOURCE ALLOCATION
• Basic strategies will differ in each segment

• Resources for top line growth will be allocated preferentially to
businesses in the” grow aggressive” quadrant
• In some cases divestment will be considered for “maintain selectively”
businesses where value- adding
Strategic stance
 Paint N America  Fragrances

SelectiveAggressive
 Pan – Atlantic (European  Flavors

and North American  Electronic materials
Adhesives)  Starch Asia
 Pan – Atlantic Starch  Adhesives Asia
 Paints Asia
 Packaging coatings  Paints Europe

 Base oleo chemicals  Paints L America
 Base surfactants
Maintain
Grow
Strategic Approach

26
PLANNING AND MANAGING INVENTORIES
MANUFACTURER
Automated store ordering relies on the ICI System to record product
movement (inventory) and automatically generate a store order. The
order is sent electronically to the distribution centre. A similar ordering
process is repeated between the product manufacturer and his supplier of
packaging materials, and between the packaging company and its own
suppliers. The companies that have adopted this best practice benefit
through lower inventories and higher product availability allowing for more
accurate synchronized production forecasting, planning and execution.
The ICI System enables suppliers of packaging materials and their
customers to share information that allows both to exercise judgment on
the quantities and timing of deliveries and production. Responsibility for
the management and ownership of inventory is agreed upon between
trading partners. “Vendor managed inventory” requires more knowledge
and total control over the logistical processes involved. It enables
suppliers to make better decisions on how to replenish customers’
warehouses with the input of necessary product movement information
from their customers. The concept of self-billing is also enabled by ICI
standards. In essence, it allows the customer to pay for the actual goods
received. The price, delivery and payment terms are previously agreed on
between the trading partners. Self billing is often applied in tandem with
vendor managed inventory.
The reason for using these concepts is to ensure that materials are
Total variable costs
RAW MATERIALS
Petrochemical ~40%
E,g vinyl acetate monomer
Ethylene oxide
Acrylic monomers
Resins/solves
Renewable resources ~30%

e.g. Com/tapica/potato
~70 citrus derivation
% vegetable oils
tallow
Other ~30%
Thousands of products as varied as T1O2
and China clay

27
PRODUCTION DECISIONS
The strategic decisions include what products to produce, and which
plants to produce them in, allocation of suppliers to plants, plants to DC's,
and DC's to customer markets. As before, these decisions have a big
impact on the revenues, costs and customer service levels of the firm.
These decisions assume the existence of the facilities, but determine the
exact path(s) through which a product flows to and from these facilities.
Another critical issue is the capacity of the manufacturing facilities--and
this largely depends the degree of vertical integration within the firm.
Operational decisions focus on detailed production scheduling. These
decisions include the construction of the master production schedules,
scheduling production on machines, and equipment maintenance. Other
considerations include workload balancing, and quality control measures
at a production facility.
INVENTORY DECISIONS
These refer to means by which inventories are managed. Inventories

exist at every stage of the supply chain as either raw materials, semi-
finished or finished goods. They can also be in-process between locations.
Their primary purpose to buffer against any uncertainty that might exist in
the supply chain. Since holding of inventories can cost anywhere between
20 to 40 percent of their value, their efficient management is critical in
supply chain operations. It is strategic in the sense that top management
sets goals. However, most researchers have approached the management
of inventory from an operational perspective. These include deployment
strategies (push versus pull), control policies --- the determination of the
optimal levels of order quantities and reorder points, and setting safety
stock levels, at each stocking location. These levels are critical, since they
are primary determinants of customer service levels.
PRODUCT STEWARDSHIP
Commitment to product stewardship is one of the core elements of
ICI’s Responsible Care Management System. This encompasses protecting
our customers and the public by the assessment and management of
potential risk from our products throughout their life cycle: research and
development, raw material sourcing, manufacture, storage, distribution,

28
Applications, reasonably foreseeable uses, including the proper handling

by customers, distributors and other companies. Our product stewardship
system applies five global standards: design and development; product
management; distribution and use; suppliers and other purchased
services; material hazards; and resource conservation. We have made
good progress in the coverage of product stewardship assessments, with
improving performance in the majority of businesses. In one business the
compliance levels are below expectations: there is a focused drive to
improve understanding and performance. There has been a significant
reduction in distribution incidents, mainly due to improved performance in
our Paints business. Our procurement and safety, health and environment
professionals have carried out in excess of 300 assessments of priority
suppliers using our integrated assessment process: of these, 69 have
included a verification visit to discuss the assessment results and
improvement plans. The assessments have helped us to identify areas
where we can work together to improve performance.
PRODUCT AND PROCESS INNOVATION
We made progress in strengthening the way we integrate

sustainability issues into the innovation processes used across the
company. Both Uniqema and National Starch have carried out a full review
of their stage-gate processes and formalised their use across the business.
Processes are developed to reduce the impact of both operations and
products. These improvements include reduced use of energy, water and
raw materials; reduced waste; and raw material substitutions. Our
scientists and engineers are also developing products and
services that give social and environmental benefits in use.
CREATING CUSTOMER VALUE

BY ALIGNED PACKAGING SUPPLY CHAIN
OPERATIONS
Different customers have different product flows through a variety of

downstream supply chain channels. All these supply chain flows require
tailored logistic responses. Proprietary item numbering structures and bar
code symbologies, and proliferation of different pallet labels, were set to

29
meet the needs of packaging material suppliers’ operations and not the
needs of their customers. The key to building cost-effective tailored
logistics services is to satisfy different customer requirements by applying
the same global multi-industry standards. For these packaging companies,
which do not use global business standards, providing customized services
could result in additional cost to serve their customers. Any company
could easily end-up investing in several different bar coding and
information systems in an effort to satisfy various identification and
communication requirements by its customers.
• Applying EAN•UCC Standards Is the Key to Building Cost Effective Tailored
For most customers the additional cost cannot be recovered from the
margins associated with them. Aligning internal logistics operations with
customer logistics by means of ICI standards enables packaging
companies to satisfy the variability in services their customers require. As
well as their own internal needs, such as to improve the return on assets
and funds employed on logistic activities. By deciding to implement ICI
standards, companies are able to cost-effectively develop logistics
operations that are aligned to their customer requirements. This provides
a new competitive advantage for packaging companies that are able to
convert their logistics strategy from complexity reduction and cost-
efficiencies to revenue and margin enhancement. Preferred supplier status
and increased margins are the rewards that await suppliers of packaging
materials that master the alignment of the supply chain.
PACKAGING SUPPLY CHAIN BENEFITS

30
The benefits for suppliers of packaging materials are obvious. They

are now able to follow their products by scanning them and save on
administration costs by automating the link between the physical flow of
goods and the information flow. Furthermore, they can safely invest in
new procedures and equipment in the knowledge that they now use a
global business standard instead of bilateral solutions forced by one
trading partner on another. Their customers benefit because warehouse
and inventory administration is now done simply by scanning the pallet
and their orders are automatically fulfilled. Both parties benefit by
communicating by means of ICI standards - the global language of
business, thus providing an optimal control of the flow of goods, services
and information. The application of internationally standardized
automated data capture technology provides a solid basis for further
automation by introducing EDI-based ordering and invoicing. Smurfit
Stone Container Corporation is the world leader for packing cardboard. It
is the number one for corrugated paper and cardboard, collapsible boxes,
paper bags and recuperation of used paper. Globally, Smurfit makes 10%
of all cardboard boxes. With 564 company sites, Smurfit is present in 33
countries.
SOURCING TRANSPORTING AND PRICING PRODUCTS
LOCATION DECISIONS
The geographic placement of production facilities, stocking points,
and sourcing points is the natural first step in creating a supply chain. The
location of facilities involves a commitment of resources to a long-term
plan. Once the size, number, and location of these are determined, so are
the possible paths by which the product flows through to the final
customer. These decisions are of great significance to a firm since they
represent the basic strategy for accessing customer markets, and will
have a considerable impact on revenue, cost, and level of service. These

31
decisions should be determined by an optimization routine that considers

production costs, taxes, duties and duty drawback, tariffs, local content,
distribution costs, production limitations, etc. (See Arntzen, Brown,
Harrison and Trafton [1995] for a thorough discussion of these aspects.)
Although location decisions are primarily strategic, they also have
implications on an operational level.
TRANSPORTATION DECISIONS
The mode choice aspect of these decisions is the more strategic
ones. These are closely linked to the inventory decisions, since the best
choice of mode is often found by trading-off the cost of using the
particular mode of transport with the indirect cost of inventory associated
with that mode. While air shipments may be fast, reliable, and warrant
lesser safety stocks, they are expensive. Meanwhile shipping by sea or rail
may be much cheaper, but they necessitate holding relatively large
amounts of inventory to buffer against the inherent uncertainty associated
with them. Therefore customer service levels and geographic location play
vital roles in such decisions. Since transportation is more than 30 percent
of the logistics costs, operating efficiently makes good economic sense.
Shipment sizes (consolidated bulk shipments versus Lot-for-Lot), routing
and scheduling of equipment are key in effective management of the
firm's transport strategy.
INFORMATION TECHNOLOGY AND SUPPLY CHAIN

ELECTRONIC DATA INTERCHANGE
ICI messages are used for EDI communications. EDI is the
communication of standardized information between organizations by way
of information technology. In other words, communication between
computer applications. The idea behind EDI is to minimise human
intervention in this exchange and allow employees to focus on business
processes rather than administrative functions.

32
• Standard messages are divided into four categories
MASTER DATA MESSAGES

These contain data that rarely changes (product measurements,
names and addresses,etc.):
• The Party Information message is used to identify all the locations
(Global location numbers: name, address, contact persons, financial
accounts, etc.) associated to subsequent commercial transactions and
their related operational information.
• The Product Information messages provide parties with information
containing the descriptive, logistical and financial details of a product or
• Data Alignment
COMMERCIAL TRANSACTIONS MESSAGES

These messages cover the general trading cycle from quotation
request to remittance advice.

33
REPORT AND PLANNING MESSAGES

These messages provide valuable and up-to-date reports and
forecasts concerning delivery, sales and inventory, thus enabling the
partners involved to plan their activities and marketing strategies.
BENEFITS OF ICI SYSTEM APPLICATION
The application of state-of-the-art packaging supply chain

management supported by ICI System-tools, enables more economic
capacity planning, more flexibility in production (faster reaction) and
optimization of articles to be produced, less production runs (reduction of
capacity downtime and set up wastage), and improved quality.
Improvements were made in raw material disposition and availability, as
well as logistics. Working capital was reduced by more efficient stock
control, and so was the administration. In concrete terms, the new e-
business process resulted in overall savings between 7 and 8%. Production
and delivery forecasts, inventory reports, dispatch and remittance advices
are exchanged with the suppliers of packaging materials. Administrative
savings from a streamlined procurement process and self-billing, reduction
of inventory, out-of-stock and write-offs are the key benefits achieved by
ICI. In tangible terms, its supply chain security level now stands at 99%.
Packaging material costs are reduced by 5-10%, and so are the packaging
material stocks, by nearly 30%. In view of the positive results will extend
the application of the reengineered business process and ICI standards to
all of its suppliers of raw and packaging materials, while it will extend
them to other customers. Over the years Kappa Packaging has grown to
become one of largest producers of recycled paper, graphic and specialty
boards, and “performance packaging” solutions. Today, it is the largest
producer of recycled paper and solid board based on waste paper. With
some 8,000 employees at 50 paper, board, and packaging companies in
12 countries, it provides its customers with a mix of opportunities in
corrugated and solid board. The company’s vision is to supply its
customers with cost effective, highly protective packaging with a
maximum of service. Knowing that packaging plays an important role in
logistical processes, it has acquired expertise not only in packaging,
transport, unpacking and recycling, but also in customer service. it
includes as many aspects as possible of the total logistical process in its
packaging solutions. This creates extra advantages at many stages of this
process, both with regard to the sender and the recipient.

34
E-BUSINESS AND SUPPLY CHAIN BUSINESS PROCESS

REENGINEERING
The two trading partners decided to optimize their entire business
process by abandoning the classic procurement process. It relied on the
customer, first specifying its packaging material requirements, searching
for suppliers and receiving their offers, identifying the best, and only then
proceeding to order the materials. Once they were received, would then
verify their quality and the invoice before proceeding to pay it. The main
weakness of this process was that it had too many steps that did not add
value (e.g. supplier selection and price negotiation per each item,
checking of quality of incoming goods and invoices) and encouraged
safety stocks along the supply chain. The changing business environment
rendered this procurement practice obsolete. During the last decade,
product life got shorter while flexibility requirements increased prompting
frequent packaging design changes. The cost of buffer stocks became
unsustainable, and at the same time, sales and production forecasts
continued to fluctuate. In response, a new optimized business process was
developed and enabled by e-tools based on ICI standards.
E-BUSINESS IMPLEMENTATION
ICI decided to form strategic business alliances for long term
contractual co-operation with its packaging suppliers. It demanded
delivery of quality materials from controlled (ISO certified) production
processes, switched price agreements to product lines and embarked on a
partner selection based on quality, reliability, flexibility, and cost criteria.It
would communicate to them its production requirements, such as the
quality, quantity and timing of deliveries of packaging materials. This was
translated into delivery, production, and information windows, as
illustrated in table below. The selected packaging suppliers had to be
ready to progress to e-business by being ICI System competent. The
chosen communication technology was EDI - because of the speed and
security of communication, as well as allowing for a standard interface
between IT applications by means of ICI messages. Another requirement
was the ability to provide accurate and timely product movement data
and implement the concept of self-billing. Therefore, trade item
numbering and bar coding was another pre-requisite.
BUSINESS PROCESS AUTOMATION

35
The main purpose of the application was to record packed production

and to indicate when orders were complete and ready for dispatch. The
finished goods warehouse at a corrugated factory is essentially a holding
area where the pallets making up an order are assembled, immediately
prior to dispatch. The norm for Packaging is for goods to be manufactured
to meet specific orders rather than being manufactured for future dispatch
from stock.
STANDARDIZATION
Once this system was operational, a number of customers requested
the addition of further bar coded information to the pallet labels on loads
delivered to their factories, so that they could record the pallets
automatically into their computerized warehouse stock control systems.
Each of these customers required different information to be added to
their labels and used a variety of bar code symbologies. Because the label
printing system was written in-house, including the control of the printers,
it was possible to accommodate these disparate requirements, but it did
complicate the software involved. To cater for the requirement an area of
the label was reserved for this information. Because of the potential
nightmare scenario where every customer would eventually request a
special unique label and the benefits of using a standard packaging label
became quite clear. Packaging saw that the ICI Logistics Label, apart
from being a global standard, provided a number of other advantages. The
use of bar code increased the readability of the label in less friendly
environments. The use of a range of ICI Application Identifiers provided
the flexibility needed to cater for variability in customer requirements
without necessarily prejudicing the standard. The Serial Shipping
Container Code (SSCC) provided a facility for the automatic traceability of
loads.
KEY BENEFITS OF ICI SYSTEM APPLICATION

A first analysis of the process has produced three key benefits:
• This partnership allows both companies to know and understand each
other's constraints;
• This system speeds up the process;
•Cutting non-value-adding activities has reduced costs. For Smurfit, the
key benefits are mainly qualitative.
The entire staff responded to the goals, the factory planning and
manufacturing improved and the safety stocks disappeared. ICI standards
application helped everyone in the logistics operations to become more
precise. Now, only full pallets are delivered. For the benefits are more

36
quantitative.Before, the average delivery time was two weeks. So,

customers had to order three weeks in advance, generating three weeks
of stocks. Now, with the application of SMI, decisively supported by ICI
standards, the delivery is always done in one week. Furthermore, Smurfit’s
service rate is now increased to 99%. Benefits. The other qualitative
benefits and changes in working methods are summarized below.
• Supplier Managed Inventory: Major changes in working

methods
Because SMI has proved to be efficient, the two companies now plan to set
up the same kind of collaboration with other trading partners. Migration to
the daily flow is their other objective. It will surely be the year of SMI roll-
out throughout our factories and with strategic suppliers.
FORWARD-LOOKING STATEMENTS
This document contains statements concerning the Group’s

business, financial condition, results of operations and certain of the
Group’s plans, assumptions, or expectations with respect to these items.
These statements are intended as forward-looking statements within the
meaning of the US Private Securities Litigation Reform Act of 1995. These
statements include, without limitation, those concerning: the Group’s
strategy and its ability to achieve it, the benefits of the Group’s
restructuring programmes, the Group’s disposals plans, the
implementation of new systems, the Group’s possible or assumed future
results of operations, trends in raw material costs, the Group’s views on
improvements in markets and trading conditions and those preceded by,
followed by, or that include the words ‘‘believe’’, ‘‘expect’’,
‘‘intend’’,‘‘plan’’, ‘‘anticipate’’ or similar expressions. Actual results may

37
differ from those expressed in such statements, depending on a variety of

factors including, among other things, the impact of competitive products
and pricing, adverse macro economic factors, changes in the price of raw
materials, the occurrence of major operational problems, the loss of major
customers, limitations imposed by the Company’s indebtedness and
leverage, a credit rating downgrade by the rating agencies, contingent
liabilities, including those arising in connection with recently disposed
businesses, risks associated with the Company’s international operations,
risks of litigation, and other factors described in the Company’s filings with
the Securities and Exchange Commission.
You should read the Company’s Annual Report and Accounts and Form 20-
F, which is available without charge at the internet site of the Securities
and Exchange Commission for more information regarding factors that
could cause actual results and developments to differ from those
expressed or implied by the forward-looking statements in this document.
You should also read the Company’s related quarterly results press
release that is included in these presentation materials and is also located
at the Internet site of the Securities and Exchange Commission.

38
BIBLIOGRAPHY
BOOKS:
SUPPLY CHAIN MANGEMENT
By:
BURT, DOBLER, STARLING
SUPPLY CHAIN MANGEMENT

By:
SUNIL CHUPRA, PETER MEINDL
WEBSITES:
http://en.wikipedia.org/wiki/ICI_Pakistan
http://www.akzonobel.com/pk


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1

Imperial Chemical Industries PLC

SUBMITTED TO:- RANA MUHAMMAD IDREES

COURSE: - SUPPLY CHAIN MANAGEMENT

Supply Chain Management Report

Our all acknowledgments and regards to MERCIFUL ALLAH, Who

Supply Chain Management Report

Supply Chain Management Report

• To become the leader in formulation science.

ICI GROUP IN BRIEF

ICI Pakistan Limited (Imperial Chemical Industries) is located in Karachi,

AkzoNobel is a dynamic, forward-looking company that strives to deliver only the

ICI Pakistan today : -Looking ahead to

Supply Chain Management Report

Supply Chain Management Report

We launch our Seeds business as well as the Dulux range of coatings.

Businesses & Products

Supply Chain Management Report

From home and auto paints to essential pharmaceuticals and agricultural

Our five businesses are:

Supply Chain Management Report

We realize that a sustainable business needs to be responsible. While we provide

About Soda Ash

We use indigenous raw materials to ensure substantial foreign exchange savings

About Life Sciences

Supply Chain Management Report

We’re in the business of improving quality of life. We have a strong portfolio of

Supply Chain Management Report

ICI Soda Ash

Soda ash is an essential ingredient in the manufacture of glass, paper and

• Dense Soda Ash

We provide protective solutions to several markets including chemical,

Our technical sales representatives are always available to provide technical

Supply Chain Management Report

Our Paintex range includes the following products:

We manufacture and market Terylene Polyester Staple Fibre (PSF) on a large

COMPETIVE AND SUPPLY CHAIN

Supply Chain Management Report

Nationa Quest Uniqema Paints

AN INTRODUCTION TO SUPPLY CHAIN MANAGEMENT

Supply Chain Management Report

integrated together. Supply chain management is a strategy through

DIRVERS AND SUPPLY CHAIN

Supply Chain Management Report

To date, it has developed 47 standard messages in its standard. They

Supply Chain Management Report

Produce is loaded in containers for placement in the aircraft. Precooling

Supply Chain Management Report

ICI uses unique kind of pipes to transport the chemical in the

SUPPLY CHAIN DECISIONS

NETWORK DESIGN METHODS

Supply Chain Management Report

It attempt to provide a framework for a comprehensive model of a

It present a normative model for resource deployment in a global

It provide the most comprehensive deterministic model for supply

Clearly, these network-design based methods add value to the firm

Supply Chain Management Report

SUPPLY CHAIN MODELING APPROACHES

Clearly, each of the above two levels of decisions require a different

To facilitate a concise review of the literature, and at the same time

CREATING VALUE BY ALIGNING SUPPLY CHAIN

Supply Chain Management Report

ICI System enables efficient supply chain management and international

EFFICIENT CONSUMER RESPONSE (ECR)