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Home > Posts > Dow Chemical's Distribution and Transportation Risk Management Program
April 12

Dow Chemical's Distribution and Transportation Risk Management Program

Keywords: Risk Management, Supply Chain Management, AutoID.

In general, large chemical and oil & gas companies tend to be far more advanced in their supply chain risk management practices than companies in other industries. Based on our coverage of this area, ARC Advisory Group believes that Dow Chemical, in particular, is one of the most advanced companies in the world when it comes to supply chain risk management. This Insight documents some of the technologies and approaches that Dow uses to achieve success in this area.

Dow's Approach to Supply Chain Risk Management
Dow Chemical has revenues of $57 billion and employs 54,000 people around the world. The company makes and ships agricultural, plastics, and chemical products to customers in 160 countries.

ARC was very fortunate to have Craig Casto, the Global Leader of the RFID, GPS, AutoID, and the Telemetry Expertise Center at Dow Chemical speak at our 2013 World Industry Forum in Orlando on the topic of supply chain risk management.

Segment Your Supply Chain
Dow has approximately 7,000 shipments globally per day and the largest privately owned rail car fleet in North America. In Dow's case, 90 percent of its shipments involve nonhazardous chemicals. All North America train cars have two RFID tags. These tags allow the Class 1 rail carriers to provide multiple updates per day on the location of the car. For nonhazardous shipments, this degree of visibility is sufficient. But, for the 10 percent of Dow's shipments that are classified as hazardous, the company requires a high degree of real-time visibility.

ARC Advisory Group clients can view the complete report at this Link.

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