An Exploration of Attributes Aligning Supply Chain Strategy

An Exploration of Attributes Aligning Supply Chain Strategy & Resilience Execution A collaborative investigation with Dow Agro. Sciences into the resilience, reliability and risk management attitudes of the DAS manufacturing, operations and supply chain teams. Alexander Cope & Liqing Yuan MIT SCM Research. Fest May 22 nd, 2014

AGENDA 1. Research Question / Scope 2. Data Collection Activities 3. Survey Response Summary 4. Hypotheses & Observations 5. Key Insights / Conclusions May 22, 2014 MIT SCM Research. Fest 2

Research Question(s) 1. Does DAS’s product supply execution reflect the supply chain’s strategy? 2. How and how much do strategic employees differ from tactical employees? 3. How do people from different cultures, functions, tenure and level in the organization differ? 4. Does DAS have a resilient supply chain? 5. Do resilient employees have a “blueprint”? May 22, 2014 MIT SCM Research. Fest 3

Data Collection Activities OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY SC Professional Interviews 8 Interviews With Various Functions Informed Web Survey Design Case Analysis Detailed Disruption Analysis Web Survey Targeted SC, MFG, MGMT 5 Sections, 17 Questions, 228 Responses (60%) Segment: Geo, Level, Function, Service Region May 22, 2014 MIT SCM Research. Fest 4

Response Count / Rate - Geography 380 Invitations, 270 Surveys Started, 228 Completed (60% Response Rate) May 22, 2014 MIT SCM Research. Fest 5

Response – Tenure / Service Region May 22, 2014 MIT SCM Research. Fest 6

Response – Function / Level May 22, 2014 MIT SCM Research. Fest 7

Prevention versus Response DAS Expects to be More Proactive in ALL Regions ESPECIALLY 26% May 22, 2014 MIT SCM Research. Fest North America & Brazil 8

Prevention Response Continuum R$ P$ WHAT FITS YOUR BUSINESS? Industry? Customers? Financial Position? Strategy…?

Alignment: Strategy & Execution Attitudes Control / Influence THERE ONLYWork EXISTS A 7% DIFFERENCE IN Breakdown RESPONSES BETWEEN STRATEGIC AND Reactive / Proactive TACTICAL EMPLOYEES Communication Organizational Perceptions May 22, 2014 MIT SCM Research. Fest 10

Risk-Opinion Distribution 50% of perceived disruptions are due to raw material supplier / manufacturing quality & quantity issues. May 22, 2014 MIT SCM Research. Fest 11

The “Blueprint” of a Resilient Employee Doesn’t Exist! [in the data collected] May 22, 2014 MIT SCM Research. Fest 12

The Frequency of Supply Disruptions China / ASEAN countries experience the least number of disruptions. Are more proactive and have little difference with their prevention expectation. European countries experience the most disruptions. Are less proactive & have a large difference with their prevention expectation. May 22, 2014 MIT SCM Research. Fest 13

Key Insights… 1. Corporate culture can overcome social culture. 2. Disruptions to product supply are not always from unanticipated [negative] disasters. 3. Employees that feel valued in their roles place significantly more focus on planning ahead. May 22, 2014 MIT SCM Research. Fest 14

THANK YOU! May 22, 2014 MIT SCM Research. Fest 15