• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Logistics » Dow Saves Millions on Transportation With S&OP

Dow Saves Millions on Transportation With S&OP

March 26, 2013
SupplyChainBrain

Dow Chemical's case study involved the application of executive sales and operations planning (ES&OP) to its logistics operation. Traditionally, says Schwenk, the company had been strong in using S&OP to forecast and make products. But it had not ventured into the area of logistics.

"There is an unspoken assumption that logistics capacity is essentially infinite," says Schwenk. "That's not the case. When we made that assumption, we ran into failure rates."

Dow came to understand that planning for its logistics requirements within a three- to 36-month window "is something that actually brings value." The S&OP mindset calls for a balancing of supply and demand in all areas in which the discipline is applied. "Either you do it proactively," says Schwenk, "or it balances you - usually with disastrous results."

Equally important is the need to collect input about logistics-related demands and compare that to available capacity. The process requires collecting unconstrained demand, looking for any gaps, then closing them through "conscious decisions" made with the help of key performance metrics.

The challenge lies in determining the level of "capable capacity." Manufacturing can draw on set capacity levels, but the task isn't so easy when it comes to logistics. Dow uses a wide variety of service providers. It needs to monitor numerous inputs related to business demand, then match them to that complex network of vendors.

Previously, Dow maintained a large supply of dedicated equipment, under the assumption that meeting customer needs should be its primary focus. While the sentiment was correct, the strategy wasn't sustainable. Dow was spending millions of dollars a year on equipment and providers to make up for a lack of transparency beyond a couple of months.

Carriers didn't like the setup, either. An S&OP process results in their realizing more value, in the form of additional turns for their limited pools of equipment. With the help of ES&OP, Dow's logistics needs became much more predictable. Its newfound clarity allowed the company to redesign supply-chain networks and save millions of dollars a year.

To view video in its entirety, click here


Keywords: supply chain, supply chain management, S&OP, sales and operations planning, inventory management, inventory control, transportation management, global logistics, logistics management, logistics & supply chain, logistics services, supply chain planning

    RELATED CONTENT

    RELATED VIDEOS

    Logistics Global Logistics LTL/Truckload Services Transportation & Distribution Technology Sales & Operations Planning Supply Chain Planning & Optimization Supply Chain Finance & Revenue Management Supply Chain Visibility Transportation Management Sourcing/Procurement/SRM Chemicals & Energy
    KEYWORDS Chemicals & Energy Global Logistics inventory control Inventory Management Logistics logistics & supply chain logistics management logistics services LTL/Truckload Services S&OP Sales & Operations Planning Sales And Operations Planning SC Finance & Revenue Management SC Planning & Optimization Sourcing/Procurement/SCM supply chain Supply Chain Management Supply Chain Planning Supply Chain Visibility Technology Transportation & Distribution Transportation Management
    • Related Articles

      Dow Saves Millions on Transportation With S&OP

      Dynamite Those Corporate Silos With S&OP

      Dynamite Those Corporate Silos With S&OP

    • Related Directories

      Kuebix

      ProcureAbility

      GLS US

    SupplyChainBrain

    Global Dual-Fuel Shipping Fleets Tops 500 Vessels

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Featured Product

    Popular Stories

    • An overhead view of a port, with stacks of containers and vehicles moving through rows

      Podcast | AI in Supply Chain Planning: Impact, Promise and Limits

      Artificial Intelligence
    • A BLUE CROSSOVER AUTOMOBILE SITS ON A GREY SHOWROOM FLOOR

      Toyota Commits to Making Cars in Canada as U.S. Rivals Downsize

      Global Supply Chain Management
    • A cartoon illustration of a man sitting at a desk in front of a laptop, surrounded by five faceless humanoid robots

      The Productivity Story Everyone is Missing

      Technology
    • A row of semi-truck cabs, with a red truck in the foreground, parked next to four white trucks, two more red ones, and three blue ones

      USDOT Announces $200M in Funding for Commercial Truck Parking

      Logistics
    • Planet earth from space showing realistic earth surface and world map as in outer space point of view

      Beyond Traditional Trade Agreements: A Proposal for Creating ‘Rules of Resilience’

      Global Supply Chain Management

    Digital Edition

    Scb q3 26 cover

    100 Great Supply Chain Partners 2026: The Secret to Supply Chain Success

    VIEW THE LATEST ISSUE

    Case Studies

    • Recycled Tagging Fasteners: Small Changes Make a Big Impact

    • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

      Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

    • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

      Moving Robots Site-to-Site

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    Visit Our Sponsors

    4flow Amazon Freight Anaplan
    Arkieva AutoStore Blue Yonder
    Canadian National Railway Company Carton Cloud CoEnterprise
    Dassault Descartes Dexory
    Duravant E2Open EPG
    General Logistics Systems GEP Hy-Tek
    iGPS Knapp Korber
    Lyngsoe Odyssey Logistics OMP
    PeakAI Procurability Quinyx
    SAP Sikick Staples
    S&P Global Mobility Systech TADA
    Tive TransImpact US Bank
    Werner WSI
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Email Preferences
      • Newsletters
    • Resources
      • Events Calendar
      • 2026 Event Coverage
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing