of these materials, up from just 20 pounds in 1960.
factories in Marl, Germany. Intense ames and thick, black smoke billowed from the cyclododecatriene (CDT) plant at the 7,000-worker chemical complex in the heavily industrialized Ruhr River valley. Roughly 130 re ghters fought the blaze for 15 hours to prevent its spread to the rest of the facility and to ultimately extinguish it. The explosion and re killed two workers and severely damaged the plant. Cyclododecatriene sounds like an obscure chemical, and the fact that it’s used to synthesize cyclododecane, dodecanoic acid, and laurolactam may mean nothing to most readers. But CDT is a key ingredient in making certain polyamides, which are high-strength plastics more commonly known as nylon. In particular, CDT goes into a high-tech type of nylon—PA-12 or nylon- 12—that is especially prized for its chemical resistance, abrasion resistance, and fatigue resistance. That makes PA-12 a favorite of the auto industry, which uses this tough plastic for fuel lines, brake lines, and plastic housings. And if that wasn’t enough, using nylon and other plastic and polymer composites makes cars quieter and more fuel-ef cient. The average light vehicle in 2021 included more than 400 pounds
In the case of strategic customers and suppliers, the relationships can extend to the executive suite. For example, in dealing with shortages of pigments, Ignacio Pala, global sourcing director for colors at AkzoNobel, noted how relationships helped to address the shortage of a certain component. “We eventually got it with the help of a dynamic cross-functional team, not to mention the support of our CEO, who kept the pressure on our suppliers to come through for us,” Pala said. Similarly, when GM faced chip shortages after the 2011 T ō hoku earthquake, CEO Dan Akerson used his position on the board of chipmaker Freescale to seek an alternative source of chips. “I picked up the phone, I called the CEO of Freescale, and I said, ‘I know you make chips of this type.’ We came up with a solution,” Akerson said. AN INDUSTRYWIDE RESPONSE The social networks implicit in supply chains can extend beyond direct supplier-customer connections, as the case of a disruption at Evonik Industries shows. On March 31, 2012, a tank lled with highly ammable butadiene exploded in one of Evonik Industries’ chemical
Nor were carmakers the only industry using these materials. PA-12 also goes into solar panels, athletic shoes, ski boots, optical bers, cable conduits, and ame- retardant insulation for copper wire. CDT is a key precursor for making many other chemicals, such as brominated ame retardants, fragrances, hot-melt adhesives, and corrosion inhibitors. The March 2012 explosion and re in Germany destroyed almost half the world’s production capacity for CDT. Worse, at the time of the explosion, CDT supplies were already tight due to its use in the booming solar panel industry. SPRINGING INTO ACTION For automotive companies, the potential impact of the Evonik re was arguably similar to the potential impact of the 2011 Japanese earthquake. Every vehicle they made depended on PA-12 for a large number of parts, and the re threatened a signi cant and prolonged disruption of car production. When TI Automotive, a maker of fuel lines and brake lines, raised the alarm about the dire implications of the Evonik re, the entire automotive industry sprang into action. The industry convened an emergency summit on
A mutually beneficial channel partnership between consumer product goods manufacturer Procter and Gamble and retailer Walmart creates inventory eªciencies through better coordinated supply chain activities.
182 Inbound Logistics • July 2023
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