Analyzing Canon Inc.'s case - helps us to understand the Leagile Concept and also about SEBI + Adaptive Supply Chain Partnerships.

1. Canon Inc.’s Progress to Pinnacle in Europe
Last decade, the whole world witnessed an awe
striking phenomenon when Canon – a leading
name in the imaging industry topped the charts
of growth and performance with a very
significant boost in the Europe region. The facts
mentioned in this study acts a reliable barometer
to comprehend how theoretical knowledge is
transformed to the real world implementation
and attests Canon’s escalation in business.
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2. Canon – A Brief Introduction
 The corporate philosophy of Canon is kyosei.
 Kyosei means „Living and working together for common good‟
 A young gynecologist named Takeshi Mitarai with some technician
friends formed the first teams of Canon.
 They started developing cameras and then followed some major
inventions and applications that ranged far beyond the medical field
 By the early 1960s Canon had become the dominant Japanese producer
of middle-priced cameras.
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3. The Growth in Europe
Regional Sales Contribution 2008
Europe
Americas
Others
Japan
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4. Change in the SCM of Canon – Europe
 London, December 3rd, 2007 – Canon Europe, world leader in imaging
solutions, appointed Perry Buenen as Chief of Supply Chain
Management
 In one of the press conferences in the late 2009, Perry said that Canon
supply chain infrastructure in Europe followed a highly robust model
with strategic hubs to support the network and key growth markets.
 The creation of a new distribution hub in Dubai helped them to
radically decrease delivery times by up to 26 days, via direct shipment
from factories in Japan to Dubai.
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5. Concerns in the Old Supply Chain
Many Hand Duplication of Not Always
Overs Activities Predictable
This leads to a decrease There was a lot of Since the supply
in the sales efficiency duplication of chain was effective
which not only reduces activities throughout to just a considerate
customer count but also the supply chain as extent but not fully
affects the performance the different DCs optimized, it was
of the organization were not linked unpredictable most
properly of the times
It was very clear that if the flaws would be left neglected, then the
backwash would be impenetrable. The team then understood the
importance about eliminating these discrepancies and hence, the
modifications were implemented.
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6. The Proposed Model – A Seamless Supply Chain
Reliable &
Predictable
Cost
Process
Visibility
Transparent
Process
Alignment Seamless
Supply
Chain
Service &
Efficiency
•Minimum interference between
Supplier and Customer
Suppliers
•Eliminate process steps - company -
cost
Canon •Align required process steps
•Adoptable supply chain through
shared resources
Customers
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7. Targeted Areas of Change
Logistics Network Process & Organization
Value
Function
Consolidated Added Single Ownership Integration
Services
Inventory Costs Shared Orders Mgmt. Integration
Business Principles System & Visibility
End to End Clear End to
Measurement SLAs Transparency End
Standard Premium Legibility Internal Balance External
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8. The New Strategy
 The two paradigms i.e. Lean Thinking and Agile Manufacturing maybe
de distinctly different but they have been combined here for a
successful design and a totally operated supply chain mechanism by
Canon to stabilize their growth in the market.
 Agility means utilizing the market knowledge and a virtual corporation
to exploit profitable opportunities in a volatile market place.
 Leanness means developing a value stream to eliminate all waste
including time, and to ensure a level schedule.
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9. The New Model
Meeting Customer Requirements Customer Support
Fitness for Use Product Service
Process Integrity Product Support
Elimination of Waste X Flexibility to meet Market Changes
Continuous Improvement Flexibility to meet Customer Demand
Value =
Design Time to Market
Quality Assurance - Concept to Delivery
Distribution & Administration X - Order Entry to Delivery
Inventory Response to Market Forces
Materials Lead Time
The above model can also be
expressed as,
Value = Quality x Service
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Cost x Lead Time 1/9/2013

10. The Key Point in Leagility
Push
Plan Material Flow Pull
Pull
The Decoupling
Execution Stockholding
Point
Here, the lean paradigm is applied to the supply chain upstream of the decoupling
point. A number of value streams were used for the smooth flow of the standard
products. The agile paradigm was applied downstream from the decoupling point
as the demand was fluctuating and the product variety per value stream increased.
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11. Adaptive Supply Chain Partnerships
Information
Exchange
•Quality of Info. •Control Variables
Exchange •Mutual Adaption
•Privileged Info. •Support System
Exchange •Parallel &
Simultaneous
Backup
Cooperation &
Use of SEBIs Relationship
The use of Standard Electronic Business Interfaces refined the old model so
well that this actually led the European distribution centres to meet their demand
limits even at a point when the distribution centres used to fall short of stock.
year.
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12. Conclusion
To summarize, the following points were given much attention,
 Regional Structure
 Limited number of hubs
 Shared network for different channels
 Limited port of entries
 Pre-Installation combined in Distribution Centres
 Management & Organization
 Functional Inclusion
 Order Management
 Pre Delivery Installation
 Transparency of the whole system (visibility)
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13. Conclusion
 The two concepts of Leagility and Adaptive Supply Chain Partnership
with SEBIs helped the company to amplify the previous flaws that were
present in their supply chain and to boost their performance and business
by delivering the products on time with value of the product and services
kept in mind.
 Perry Buenen‟s vision of seeing the European sector giving out the
maximum business and customer satisfaction came true when the
company hit the charts with a thrilling 33% share of the regional
contribution in the year 2008.
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14. The famous quote from the Father of Lean Manufacturing –
W. Edwards Deming,
“Change is required. There is a process of change, just as there is a process of
manufacturing, or for growing wheat. How to change is the problem!”
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