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The Challenge of

Efficient Customer Collection


LOGICHEM
21 April 2010

Prepared by Vincent GAUTHIER

Copyright ©INEOS 2006


Content

 INEOS Olefins & Polymers


 Incoterms
 Pro & Cons
 Customer demand
 INEOS offer, benefits
 Conclusion

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Ineos Olefins & Polymers
 Acting in :
– C2, C3, C4, C6
– LDPE, LLDPE, HDPE, PP
• Serving 6 different Market sectors, one single face to the
customer :
– Construction & Durables : Pipe, Wire & Cable, Car Fuel Tank, …
– Food Packaging : Caps & Closures, Fresh Milk, Coating, …
– Film : Metallocene, LLD/LD PE film, BOPP, PP Heat Seal
– Advanced Packaging Applications : Solid Food Packaging, …
– Medical, Hygiene and Technical Applications : Fibres, Textiles,
Automotive
– Export & Trading

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Ineos O&P sites
Bamble
Bamble (No)
(No)

140
140 Kt/y
Kt/y LDPE
LDPE
Grangemouth
Grangemouth (UK)
(UK) 170
170 Kt/y
Kt/y PP
PP
165 Kt/y HDPE
165 Kt/y HDPE 
310
310 Kt/y
Kt/y LLDPE
LLDPE
285
285 Kt/y
Kt/y PP
PP
Köln
Köln (De)
(De)
Lillo
Lillo (Be)
(Be)  220
220 Kt/y LLDPE
Kt/y LLDPE
440
440 Kt/y HDPE
Kt/y HDPE   360 Kt/y LDPE
360 Kt/y LDPE
90
90 Kt/y PP
Kt/y PP 
Sarralbe
Sarralbe (Fr)
(Fr)
Geel
Geel (Be)
(Be) 195 Kt/y HDPE
195 Kt/y HDPE
290
290 Kt/y
Kt/y PP
PP 270
270 Kt/y
Kt/y PP
PP


Lavera
Lavera (Fr)
(Fr) 
230
230 Kt/y
Kt/y HDPE
HDPE Rosignano
Rosignano (It)
(It)
150
150 Kt/y
Kt/y PP
PP 200 Kt/y HDPE
200 Kt/y HDPE

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Process Excellence

 Culture of Process Excellence


 Core processes documented, mapped with owners
 Reviewed for efficient monitoring and improvements
 Prize is significant
– Focus, visibility, risk, agility, simpler reporting, better
decisions, people…  savings !!

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Customer Collection

 Often perceived as win deal for Customer


Is the vendor also winning ?
 Carriage is by the Buyer
 Incoterms (International Commercial Terms) specified in
Sales agreement
 Incoterms 2000 : FCA or Ex-works

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Ex-Works

VENDOR BUYER
Load & Carry

Costs

Risks

Customs
Clearance

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Incoterms : Ex-Works

 Seller must make goods available in Vendor or agreed


place, uncleared for export, unloaded
 Specify “loaded” if performed by seller
– Attention to responsibilities & costs !
 Deep Sea Export : Vendor <> Exporter
– Vendor should recover VAT
– FF should set Exporter = Vendor in customs docs
Exporter copy to Vendor
 Export in EEC :
– Require Buyer VAT nbr on Sales to recover VAT

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FCA “Location”

VENDOR BUYER
Deliver unloaded Main leg carriage

Costs
Customs
Clearance Risks

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FCA

VENDOR BUYER

Load Main leg carriage

Costs

Risks

Customs
Clearance

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Incoterms : FCA

 Seller must make goods available in agreed place,


cleared for export
 Loading :
If delivered in Vendor place,
– Then Vendor is responsible for loading
– Else Buyer must unload from Vendor’s vehicle
 Export in EEC :
– Require Buyer VAT nbr on Sales to recover VAT

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Pro & Cons of Customer Collection

PRO (1)
 Customers think can do transportation cheaper than
vendor
 Seller sometimes invoice separately at actual cost 
Customer realize how expensive  try to minimize it
 Some local hauliers can offer cheaper rates than bigger
pan-European players
 Some customers use own fleet, optimizing with
deliveries to their own customers, etc.

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Pro & Cons of Customer Collection

PRO (2)
 Customers easier & better control on delivery :
– get status immediately
– Can redirect to other destination
 Some Customers don’t want to disclose final destination
/ Customer
 Some traders can deliver directly their own customer,
avoiding warehousing, un- & re-loading, …
 Vendor’s Salesmen move delivery problems to
Customer side

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Pro & Cons of Customer Collection

CONS (1)
 Safety on site
 Communication on site : language issue
 Loading Date difficult to agree
– Buyer books on behalf of its haulier => unreliable
appointment
– Buyer sometimes buys with no customer yet  bet on direct
delivery vs. warehousing

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Pro & Cons of Customer Collection

CONS (2)
 Loading Date difficult to hold for Vendor’s haulier
– Unreliable agreement
– Little respect from haulier
– Buyer having planning issue  Storing at vendor’s expenses
 Customer buys “Collect” when carriage easy and
cheap,
else comes back to Vendor : please sort out !

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Pro & Cons of Customer Collection

Conclusion
 One big issue = communication around loading, at :
– Ordering time
– Booking time
– Loading time

 modern communication means can help

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Customer demands

 Vendor’s reference
– Clear identification of loading
– Used to call Vendor site to arrange loading
– Usually a SAP doc number
 Arrange loading at its own discretion
– Re-arrange depending of its own customer or haulier
 Quantity actually delivered
– To invoice asap their own customers

Copyright ©INEOS 2006


INEOS Offer (1)

 Standard Offer
– INEOS push informative e-Mail to customer
– Triggered automatically at Delivery document
creation in SAP
– Bears all delivery information :
• Customer reference
• INEOS reference
• Goods description
• Invitation to book a loading slot with phone number

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INEOS Standard Process

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INEOS Standard Process Benefits

 Benefits for Customers


– Delivery Reference provided to customer : ASAP and
effortless
– Saves time to call INEOS Customer Service Center
– Can immediately call INEOS plant to arrange collection
 Benefits to INEOS
– Saves time of communicating manually INEOS reference to
customer
– Saves ~7 minutes of AC / collection

Copyright ©INEOS 2006


INEOS Offer (2)

 Fork Process
– INEOS sends electronic copy of Delivery Doc to
Transwide
– Transwide forwards “Call-Off” to Customer
– From Transwide, customer books a loading slot on
behalf of its haulier, directly in INEOS schedule

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INEOS Fork Process

HAULIER
A

INEOS TRANSWIDE COLLECT HAULIER


SAP CUSTOMER B

HAULIER
C

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INEOS Fork Process Benefits
 Benefits for Customers
– Delivery Reference provided to customer : ASAP and
effortless
– Saves time to call INEOS Customer Service Center
– Saves time to call INEOS plant to arrange collection
– Booking much faster with 3 clicks in Transwide
– Visibility, can change booking until day before loading
 Benefits to INEOS
– Saves the time of communicating manually reference to
customer
– Saves time of plant to book manually a loading slot
– Total time saved = ~32 minutes / collection

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INEOS Offer (3)

 Triangle Process
– INEOS sends electronic copy of Delivery Doc to
Transwide
– Transwide forwards “Call-Off” to Customer
– From Transwide, customer forwards Call-Off to
Haulier of its choice
– Selected Haulier books loading slot directly in
INEOS schedule

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INEOS Triangle Process

COLLECT
CUSTOMER

INEOS TRANSWIDE
SAP

HAULIER
HAULIER C
HAULIER B
A

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INEOS Triangle Process Benefits
 Benefits for Customers
– Delivery Reference provided to customer : ASAP and
effortless
– Saves time to call INEOS Customer Service Center
– Saves time to call INEOS plant to arrange collection
– Saves time to order transport manually to haulier
– Delegate booking to haulier, keep visibility
 Benefits to INEOS
– Saves the time of communicating manually reference to
customer
– Saves time of plant to book manually a loading slot
– Total time saved ~32 minutes / collection

Copyright ©INEOS 2006


INEOS Offer (4)

 Shipment Notification
– INEOS push ACTUAL delivery information by e-Mail
to customer
– Triggered automatically at Dispatch
– Bears all actual delivery information, e.g. :
• Customer reference
• Container number or Trailer plate number
• Volumes dispatched (invoiced)
 allows invoicing final customer in same day
• Goods description & Batch number

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INEOS Shipment Notification

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INEOS Shipment Notification Benefits

 Benefits for Customers


– Actual Delivery information provided to customer : ASAP and
effortless
– Saves time to call INEOS Customer Service Center
– Can immediately invoice final customer with actual volume
dispatched
 Benefits to INEOS
– Saves the time of communicating manually actual delivery
information : ~7 minutes / collection

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Requirements
 Customer
– acquaintances with modern communication technology
– Shared e-Mail box
– Read and sort .pdf files
– Access to Internet and Transwide web site (Fork & Triangle)
– Respectful of policy / agreement on collection dates
 INEOS
– Robust processes and systems
– Train & coach customer’s staff
– Clear policy / agreement on collection dates

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INEOS experience
 Standard process
– Already 12 high volume customers
– Plan 25 more in 6 coming months
– Time saved = ~7 minutes / collection
 Fork Process
– Already 4 high volume customers
– Plan 3 more in 6 coming months
– Time saved = ~32 minutes / collection
 Triangle process
– Already 4 top volume customers
– Plan 1 more in 6 coming months
– Time saved = ~32 minutes / collection

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Conclusion
 Efficient Customer Collections = challenge
 Potential improvement area = communication
– High / Huge value of better sharing information
– Provide visibility to your business partners !
 Sustained by good process and accurate data,
electronic communication can save time (time = €)
 Especially when triggered automatically

 The more embedded Vendor & Customer supply chains


the more efficient Customer Collection will be

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Lessons learned
 Some customers still resist to
– Getting e-Mails notification
– Use web based application to share information
– Use generic shared mailbox for inbound notifications
 Conversion of customers :
– Takes time …
– Spam filters : Poor knowledge  mails bounced back
 Process
– No automatic cancel notification

Copyright ©INEOS 2006


Copyright ©INEOS 2006

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