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Travel-Nature

Published on March 26, 2008

Author: Gourangi

Source: authorstream.com

IndiaChem 2002 Conference September 18-21, 2002 New Delhi :  IndiaChem 2002 Conference September 18-21, 2002 New Delhi Agribusiness: a large, global industry:  Agribusiness: a large, global industry Global market 2001: $ 40+ bn Source: Phillips McDougall, The Context Network, Syngenta High-value Commercial Seeds ($bn 11-12) Crop Protection ($bn 25.8) Ag Biotech ($bn 3) Syngenta - a leading global agribusiness:  Syngenta - a leading global agribusiness Strong worldwide market presence No. 1 in crop protection No. 3 in high-value commercial seeds Excellent complementary and leading product portfolio Four new product launches in 2000/2001 First class research and development resources Strong cash generation Excellent people Over 20,000 employees in more than 120 countries Six global competitors:  Six global competitors * Includes Rohm & Haas acquisition **Pro Forma post EU/FTC remedies Source: 2001 Philips Mc Dougall, Syngenta Significant presence Seeds platform Narrow/ alliances None Crop Protection market share Syngenta Bayer Crop Science** Monsanto BASF Dow* 0% 25% DuPont Slide5:  Non-selective Herbicides Professional Products Selective Herbicides Field Crops Insecticides Fungicides Vegetables & Flowers 11% 22% 15% 8% 8% 7% 27% Crop Protection Seeds (85%) (15%) Sales 2001 $m 6323 Product Lines 8% Slide6:  Global Supply How does Global Supply operate?:  Global product supply chain management How does Global Supply operate? Sales and operations planning The key commercial / supply interface Technology and projects Asset management Optimizing performance over time Maximizing the value from our assets Keeping innovation flowing to the market Customer Service HR Logistics Purchasing Finance IS Underpinning our performance through excellence in execution Slide8:  A robust, reliable, customer responsive, cost and asset efficient, innovative supply chain Global Supply Strategic Intent Robust, reliable Strong global processes executed regionally Service excellence Customer responsive Segmented by need and profitability Aligned functional objectives Flexible and responsive supply chain design Cost and asset efficient Lowest end-to-end net cash position Rationalized manufacturing infrastructure Best practices actively pursued Innovative Structured to support value adding complexity Innovative formulation development Teamwork Strong cross § focused culture Slide9:  Grangemouth Huddersfield Monthey Säurefabrik Schweizerhalle St.Gabriel Bayport Greens Bayou Cold Creek Goa Nantong Grimsby Münchwilen Kaisten Syngenta Active Ingredient Manufacturing Sites Slide10:  Syngenta Formulation & Packaging Sites Yalding Porto Porrino Prat St.Pierre Aigues-Vives Enofyta Izmir Roosendaal Seneffe Dielsdorf Cartagena Resende Paulinia Aysen Omaha St.Luis Potosi Agroinsumos Karachi Gummidipoondi Gunung Putri Bangpoo Bien Hoa Kunshan Iksan Shimada Chittagong Pendle Hill Abidjan Brits Slide11:  Global Purchasing How does Global Purchasing operate?:  Organisational Effectiveness How does Global Purchasing operate? Performance Metrics and Management Reporting on supply prices and volumes Digital Procurement Total Cost Reduction Global Scope and manage- ment by categories Savings & Sourcing strategies incl Asia Knowledge Mgmt, Rfx- Tool, ELEMICA Exclusive Chemicals Formulation Inerts AI Tolling & 3rd Party AI Commodi-ties Specality Chemicals Packs & Labels Categories underpinning our market driven approach and excellence in execution Supplier Management incl. HSE Assessing supplier performance What we buy for Syngenta:  What we buy for Syngenta Production items Utilities & Engineering Commercial Services Advertising & Promotion Office & Facilities Information Systems Science & Development Travel Purchase by Supply Regions:  Purchase by Supply Regions Europe North America Asia Pacific Central-South America Slide15:  Sourcing in Asia Asia Sourcing – the starting point:  Asia Sourcing – the starting point Both legacy companies had some experience of sourcing raw materials for synthesis from China and India Growing confidence in Chinese & Indian suppliers and the drive for cost reduction led to the Asia Sourcing Initiative in 2001 Primary goal are fine chemicals, commodities and active ingredients Appointment of a sourcing manager in Hong Kong Selection of a trading partner in China Chinese and Indian fine chemical industries studied Asia Sourcing – the driver:  Asia Sourcing – the driver Build a global supplier base to challenge the established European / USA suppliers in order to deliver: Lower Costs: Chinese and Indian Supply costs can be dramatically lower than in the West Speed of Change: Eastern suppliers have already demonstrated a remarkable speed of response Syngenta Material for Production Portfolio: We go East ...:  Syngenta Material for Production Portfolio: We go East ... 2000 2004 Same quality Same security of supply 30% less cost Key issues for Syngenta to achieve its Far East strategy:  Key issues for Syngenta to achieve its Far East strategy Where will the balance of purchases lie between India & China? Key deciding factors for Syngenta include: Absolute reliability of Supply Consistency of quality Respecting IP and commercial information Price HSE standards Health, Safety and Environment - HSE:  Health, Safety and Environment - HSE Suppliers have to meet and to improve a minimum set of HSE standards Standards are realistic and recognize some of the differences in operating practices – e.g. greater use of manually controlled plants We declinee business where HSE standards were poor, with no sign of improvement forthcoming Asia Sourcing – Progress to date:  Asia Sourcing – Progress to date 15 significant raw materials now purchased in China / India 57 live raw material sourcing projects 25 projects in China, 14 in India and 18 in both Overall purchases growing at >50% pa Access to Indian suppliers improved with appointment of in-country purchasing manager- TT Murali Possibilities for toll AI manufacture being explored Conclusion:  Conclusion Syngenta is making a step change in its purchases from India & China putting dedicated professionals in-place in the region projects are serious sourcing intentions- we are not here to play pricing games with Western suppliers we need to know more about your capabilities as suppliers I hope my team can have the opportunity to meet you during this event

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