Dow Taps Supply Chain Solution to Track, Account for Chemical Product Shipments

Deploys Savi's Chemical Chain of Custody offering at Calif. plant to manage metal cylinders filled with Vikane fumigant

Deploys Savi's Chemical Chain of Custody offering at Calif. plant to manage metal cylinders filled with Vikane fumigant

Sunnyvale, CA — September 29, 2005 — The Dow Chemical Company has chose a "chain of custody" solution from Savi Technology as its software platform to beef up the stewardship, security, visibility and accountability of mobile assets that transport products as they move throughout Dow's extended global supply chain.

Dow also has designated Savi's Chemical Chain of Custody Solution, which is hosted for Dow in an ASP environment, as a Most Effective Technology (MET) for multiple business units to track a wide range of mobile assets, or "shipping vessels," including totes, cylinders, trucks and railcars.

Savi provides supply chain management and security solutions using software and automatic identification and data collection (AIDC) technologies, including radio frequency identification (RFID).

Online Tracking

The Chemical Custody Supply Chain Solution includes Savi's SmartChain Asset Management System (AMS), a Web-based application with continuous online tracking, security monitoring and management of hazardous material containers and their contents from point of origin to destination.

In addition, the solution makes use of the Savi SmartChain Enterprise Platform, which aggregates and consolidates data from different nodes and integrates with current enterprise and supply chain systems, and offers flexibility to support various types of AIDC technologies to track different types of containers. SmartChain also can match the physical location of a container and its hazardous contents with shipment documents, inventory records, expected routes and destinations, and other pertinent information.

Using alerts, SmartChain detects when a product has not arrived at a specific location where it is expected, if it is in the wrong location or if it was handled by someone without the right authority.

Initial Rollout

Dow's contract with Savi followed an extensive selection process based on Six Sigma measurement standards. The Savi Chemical Chain of Custody Solution is now live at the Vikane Division of the Dow AgroSciences Business, based at a production facility in Pittsburg, Calif., where metal cylinders are filled with the Vikane product, a fumigant.

The Vikane project, utilizing hand-held scanners and bar code tracking, initially will feed and incorporate work process information for production, shipping and receiving and inventory. This serves as the initial solution model throughout Dow business units for asset management. Tens of thousands of metal cylinders used to transport products are being tracked from origin at the production fill facility through Dow's supply chain network and upon return to the production facility.

Following the initial rollout at the Vikane business unit, Dow has plans for further deployments at other business units, according to the solution provider.

Additional Benefits

Savi said that Dow, which has sales of $40 billion and serves customers in 175 countries in a wide range of markets, chose the Chemical Chain of Custody Solution to beef up its product stewardship. The solution also reduces risk associated theft, diversion, product contamination and tampering, spilling and other dangers, in keeping with compliance of all government requirements, according to Savi.

Other inherent benefits that Savi points to include improved customer focus, improved asset visibility and optimization, lower asset inventories, improved supply chain efficiencies and the ability to upgrade to leverage real-time data from automated tracking technologies such as RFID and GPS satellite systems.

"Savi's solution reflects a deep understanding of complex supply chains and its platform was built to leverage real-time data from RFID and other automatic identification technologies," said David E. Kepler, corporate vice president for shared services and chief information officer at Dow.

Additional Articles of Interest

— RFID technology has the potential to change the way supply chains are managed, but in order to be effective businesses need to take a holistic look at the deployment. Read more in the article "Time for RFID: Applying RFID in the Supply Chain."

— For a contrary view of the future of the RFID market, see the article "The O'RFID Factor: A 'No Spin' Look at Where Radio Frequency Identification Is Headed," in the October/November 2004 issue of Supply & Demand Chain Executive.

— For more information on trends relating to radio frequency identification (RFID), follow this link for an extensive listing of articles, featuring the latest research findings on the RFID, including adoption, return on investment and barriers to implementation.