Redesign of the international shipments in the Dow supply chains
Being a worldwide operating company with production facilities and sales in many parts of the world, international shipment and transportation is a major activity in many of Dow’s supply chains.
In the Industrial Engineering design project, a tool was designed that enables Dow to determine for each of its supply chains the best so called ‘transfer country’, under the constraint that the transfer country is either the origin or the destination of the materials in a supply chain.
This redesign aims at minimizing transportation costs and decreasing control complexity with a given delivery performance.
Application of the tool to the Dow supply chains revealed cost effective alternative shipment structures which would affect about 30% of the yearly volume.