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Operations & Supply Chain Management - Experience Evening
1.
OPERATIONS & SUPPLY
CHAIN MANAGEMENT EXPERIENCE EVENING 17 SEPTEMBER 2013
2.
© Vlerick Business
School PROGRAMME OF THE EVENING WELCOME! 06.30 pm – 07.00 pm: Welcome drink 07.00 pm – 08.30 pm: I. About Vlerick II. Our expertise III. Q&A 08.30 pm – 10.00 pm: Networking & advice 2
3.
I. ABOUT VLERICK
4.
© Vlerick Business
School THE VLERICK MILESTONES 4
5.
© Vlerick Business
School VLERICK ANNO 2013 5
6.
© Vlerick Business
School VLERICK ANNO 2013 6
7.
II. OUR EXPERTISE
8.
SUPPLY CHAIN MANAGEMENT FROM
OPERATIONAL TO STRATEGIC RELEVANCE PROFESSOR ANN VEREECKE
9.
© Vlerick Business
School AGENDA 9 Why change? Challenges for the future supply chain Opportunities for improvement 6 trends in operations & supply chain management
10.
© Vlerick Business
School THE (SUPPLY CHAIN) WORLD IS CHANGING September 2012 Hau Lee, Kevin O'Marah & Geraint John www.scmworld.com 60% believe that the supply chain function now has equal status with sales and marketing, and R&D/product development within their organisations. 75% expect digital demand to force changes to their manufacturing strategies and their distribution networks, as customer demands for customised products and experiences increase. 10
11.
© Vlerick Business
School A SOURCE OF INSPIRATION: 11
12.
© Vlerick Business
School GARTNER TOP 25 SUPPLY CHAIN 2013 12 1. Apple 2-5. McDonald's, Amazon, Unilever, Intel 6-10. P&G, Cisco Systems, Samsung, Coca-Cola Company, Colgate-Palmolive 11-15. Dell, Inditex, Wal-Mart, Nike, Starbucks 16-25. Pepsico, H&M, Caterpillar, 3M, Lenovo, Nestle, Ford Motor, Cummins, Qualcomm, Johnson & Johnson 12
13.
© Vlerick Business
School TODAY’S SUPPLY CHAIN PRACTICES 13
14.
© Vlerick Business
School 6 OPERATIONS & SUPPLY CHAIN TRENDS Operational excellence Agility Resilience Sustainability Innovative supply chain design Talent development nr 7 ??? 14
15.
© Vlerick Business
School WHAT IS DRIVING THE CHANGE? Supply chains are complex, vulnerable, and subject to lots of uncertainty 15
16.
© Vlerick Business
School SC’S ARE VULNERABLE AND COMPLEX VULNERABILITY Disruptions do happen September 11 (2001) Hurricane Katrina (2005), Volcano cloud (2010) Tsunami & earth quake (2011), … COMPLEXITY Do we know our sources of supply? 1st tier: OK 2nd tier: OK? 3rd tier: OK?? 16 € € € € The (financial) impact of supply chain disruptions can be substantial
17.
© Vlerick Business
School DO WE KNOW OUR SOURCES OF SUPPLY? By Hans Greimel | AUTOMOTIVE NEWS Posted March 28, 2011 TOKYO (March 28, 12:15 p.m. ET) -- Diodes, microprocessors, circuit boards, voltage regulators, copper foil -- the bottleneck in parts slamming Japan’s auto industry stretches far down the earthquake-rattled supply chain. Indeed, many of the parts so badly needed aren’t even immediately recognizable as auto parts. Ford Motor Co. has suspended orders for certain black and red vehicles because a Tier 2 supplier in Japan no longer can make a metallic paint pigment called Xirallic. 17
18.
© Vlerick Business
School DO WE KNOW OUR SOURCES OF SUPPLY? “Once it was ready to admit that some of the now dead workers might've been making its clothes, Benetton admitted that its supply chain — a labyrinth of contractors and subcontractors that includes 700 manufacturers across 120 countries — was so complex that the company didn't really know where its clothes were coming from” (www.theatlanticwire.co m, May 8 2013) 18
19.
© Vlerick Business
School MORE UNCERTAINTY THAN EVER BEFORE Changes in the global landscape North Africa, a new emerging economy? China, Bangladesh: labor forces coming on the streets Political instability 19 www.nytimes.com/2010/06/11/business/global/11strike.htmlwww.afdb.org/en/news-and-events/article/
20.
© Vlerick Business
School MORE UNCERTAINTY THAN EVER BEFORE Economic instability Spain, Greece, Ireland, Italy, Portugal, …. The first dip in industrial production was deep Double dip? Triple dip? 20
21.
© Vlerick Business
School WHAT IS DRIVING THE CHANGE? Supply chains are complex, vulnerable, and subject to lots of uncertainty But also plenty of opportunities for supply chain improvement and supply chain re- design 21
22.
© Vlerick Business
School OPPORTUNITIES FOR SC IMPROVEMENT - DATA More data is available than ever before On-line real-time data Delivery information Service information Consumption patterns Location-based data Geo-tagging, geo-fencing, ... Social networking,… Traffic reports Weather forecasts 22
23.
© Vlerick Business
School “BIG DATA IS SEXY, SMALL DATA BEAUTIFUL” 23 Google Trends
24.
© Vlerick Business
School “If 3D printing becomes a common feature of large-scale manufacturing operations, the technology will have a huge impact on all phases of supply chain management.” OPPORTUNITIES FOR SC IMPROVEMENT - TECHNOLOGY 24
25.
© Vlerick Business
School OPERATIONS & SC TRENDS Operational excellence Agility Resilience Sustainability Innovative supply chain design Talent development ??? 25
26.
1. OPERATIONAL EXCELLENCE
27.
© Vlerick Business
School A CALL FOR OPERATIONAL EXCELLENCE 27 Source: www.conference-board.org/ilcprogram
28.
© Vlerick Business
School A CALL FOR OPERATIONAL EXCELLENCE Source: Clermonts and Ploos van Amstel, 2012 Logistics is inefficient 24% of all vehicle-km of heavy road transport in the EU is empty A truck is loaded on average for 57% in the EU A truck driver is on the road during 60% of his time It takes on average more than 4 hrs to load or unload a truck Moreover Logistic resources are scarce In the next 10 years, 20% of truck drivers in the EU will retire It adds to the CO2 emission 28
29.
© Vlerick Business
School Source: Supply Chain Decarbonization, World Economic Forum 2009 THE DARK SIDE OF LOGISTICS 2.500 Mega Tonnes CO2 in Logistics 29
30.
© Vlerick Business
School OPERATIONAL EXCELLENCE How and where it all started 30
31.
© Vlerick Business
School THE KEY MESSAGE Eliminate waste or “muda” Continuous improvement or “kaizen” 31
32.
© Vlerick Business
School TODAY, MANY COMPANIES HAVE THEIR “XPS” Volvo Production System or “VPS” Bosch Production System or “BPS” Caterpillar Production System or “CPS” 32
33.
© Vlerick Business
School CAT LOGISTICS (NEOVIA) IN LUMMEN 33
34.
2. SUPPLY CHAIN AGILITY
35.
© Vlerick Business
School SUPPLY CHAIN AGILITY Bridging the gap: “design for supply” 35 A typical customer visits Zara … 17 times a year Zara introduces approximately … 11.000 new items a year (Gap and H&M: 2.000 to 4.000) From design to delivery, Zara needs … 4 weeks; 2 weeks for new versions of existing models (average retailer: 6 to 12 months)
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School AGILITY AND MASS CUSTOMISATION Modular design assembly-to-order offers variety in an efficient way Open innovation customer preferences lead to product innovations 36
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School TECHNOLOGY IS DRIVING CUSTOMISATION Digital printing has changed the publishing supply chain Print-on-demand books, manuals, leaflets, catalogues, T- shorts, cups, m&m’s… 37
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School TECHNOLOGY IS DRIVING CUSTOMISATION 3D-printing is changing supply chain logic Manufacturing close to point of consumption Distributed, flexible, small-scale manufacturing (at 3PL’s?) Small batches of highly customised products at low cost 38 Made in China Made at home
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School 3D-PRINTING IN MEDICAL APPLICATIONS 39 Vlerick SC Conference 2012 – W. Vancraen
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School 3D-PRINTING IN MEDICAL APPLICATIONS 40 Vlerick SC Conference 2012 – W. Vancraen
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3. SUPPLY CHAIN RESILIENCE
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School RESILIENCE Supply chain risk management Containment of supply chain disruptions and prompt recovery from it 42
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School TOYOTA GETS READY FOR THE NEXT EARTHQUAKE 43 www.reuters.com/article 6 Sept 2011
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School SUPPLY CHAIN RESILIENCE Toyota aiming for quake-proof supply chain BMW’s real-time risk assessment Supplier plants and locations are tagged and matched to geographical and surveillance data 44
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4. SUSTAINABILITY
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School BALANCING THE 3 P’S “no Supply Chain can survive if it’s not sustainable”, COO food company “most companies have so far devoted relatively little effort to the idea of sustainable supply chain, largely because their customers seem unwilling to pay for it. But the importance is now rising sharply.” PWC report, 2013 46
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School THE 3 P’S: PRESERVING THE PLANET Preserving the planet Use of material Product design, new materials Recycling, re-using, remanufacturing Use of energy Energy-efficient transportation Avoiding pollution Clean factories CO2 neutral factories Short supply chains 47
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School THE 3 P’S: RESPECTING THE PEOPLE Working conditions at Apple factories in China A selection of recent press articles You are NOT allowed to commit suicide: Workers in Chinese iPad factories forced to sign pledges (www.dailymail.co.uk; 1 May 2011) In one factory it had found 42 children working on the production line and has now terminated its contract. (www.telegraph.co.uk; 15 Feb 2011) Two people died in an explosion at the Chinese factory which produces the iPad 2. (www.telegraph.co.uk; 21 May 2011) 48
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School THE 3 P’S: RESPECTING THE PEOPLE Working conditions at H&M factories in Asia A selection of recent press articles 21 workers die in fire at H&M factory (www.independent.co.uk 2 March 2010) What’s poisoning workers in H&M factory Cambodia? Mass faint in factory (businessnewscambodia. com; Sept 2011) 49
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School THE 3 P’S: RESPECTING THE PEOPLE Rana Plaza – Bangladesh, April 27 2013 (www.huffingtonpost.com) 50
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School CLOSER TO HOME 51 Amazon accused of abusing Christmas staff (www.thelocal.de, Febr 15 2013) Amazon 'used neo-Nazi guards to keep immigrant workforce under control' in Germany (www.independent.co.uk) Amazon unpacked; The online giant is creating thousands of UK jobs, so why are some employees less than happy? (Financial Times, February 8, 2013)
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School THE 3 P’S: RESPECTING THE PEOPLE Respecting the people in the supply chain Safety & health regulation Education & training Fair remuneration Fair trade Supplier selection and auditing 52
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School SUSTAINABILITY AT STARBUCKS Starbucks’ priorities Purchase 100% responsibly grown and ethically traded coffee by 2015 Provided $14.6m in 2010 to organisations that make loans to coffee farmers Forest carbon programmes in Chiapas, Mexico and Sumatra, Indonesia through partnerships with Conservation International Make 100% of the electricity used in global company-owned stores renewable energy equivalent by 2015 53
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5. INNOVATIVE SUPPLY CHAIN
DESIGN
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School INNOVATIVE SUPPLY CHAIN DESIGN Multi-channel distribution & e-logistics 55
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School SOLUTION PROVIDERS Product providers become solution providers Supermarket becomes systems provider Yihaodian launches opens supply chain platform SBY (Service By Yihaodian) Car producer becomes supplier of mobility Products and technology are converging 56
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School PROSUMERS When consumers become producers 57 “Prosumption” of electricity “Prosumption” of information
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School ORCHESTRATORS 58
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School CAR-POOLING FOR CARGO March 2011: first shared shipment of UCB and Baxter Initially from Belgium to Romania Then to Bulgaria, Slovakia, Slovenia, Hungary & Czech Republic Plans to expand to other countries Plans to add 3rd and 4th partner Realised benefits (UCB annual report 2011) 10% cost savings shipment 30% CO² reduction 59
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6. SUPPLY CHAIN TALENT
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School SKILLS OF THE SC MANAGER “YESTERDAY” 1 2 3 4 5 Knowledge on environmental issues Knowledge of laws, regulations Technical skills related to product and processes ICT skills Knowledge of process analysis techniques Knowledge of international business practices Planning and inventory management skills Logistics expertise (e.g. cost analysis and… Negotiation skills Analytical skills Coordination and cooperation skills People management/leadership skills Decision making skills Communication skills very importantnot important 1. “soft” skills !! 2. functional expertise 3. knowledge of the business context Vlerick research in 2008 (n = 743) 61
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School SKILLS OF THE SC MANAGER “TODAY” 0,00 0,10 0,20 0,30 0,40 0,50 0,60 0,70 Analytical skills Communication skills Planning and inventory management skills Decision making skills Coordination and cooperation skills Knowledge of process analysis techniques People management/leadership skills Logistics expertise (e.g. cost analysis and budgeting) Technical skills related to product and processes Negotiation skills ICT skills Knowledge of international business practices Knowledge of laws, regulations Knowledge on environmental issues large increaseno increase n = 743 Vlerick research in 2008 (n = 743) 62
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School RESPONSIBILITIES OF THE SC ORGANISATION TO WHAT EXTENT IS YOUR SC ORGANISATION INVOLVED IN ACTIVITIES WITH OTHER BUSINESS PROCESSES? •No role 1 •Informed (after decisions, during actions)2 • Consulted (prior to decisions/ actions)3 •Responsible for action 4 •Ultimately accountable (individual or in team) 5 Vlerick research in 2012 63
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School INTERFACES WITH PARTNERS IN THE CHAIN Vlerick research in 2012 64
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School INTERFACES WITH PARTNERS IN THE CHAIN Vlerick research in 2012 65
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7? TO CONCLUDE
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School 7 SUPPLY CHAIN TRENDS Operational excellence •Eliminating waste; continuously improving Agility •Speed of innovation; Mass customisation Resilience •Assessing and managing risk Sustainability •Balancing the 3 P’s Innovative supply chain design •Multi-channel, solution providers, prosumers, orchestrators Talent development •From experts to innovative networkers ??? 67
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School SOME SOURCES OF INFORMATION POMS conference, Denver, May 2013 PWC, “Next-generation supply chains”, 2013 SCM World, “The chief supply chain officer report”, 2012 CAPS research Harvard Business Review, “3-D printing will change the world”, March 2013 MIT CTL, “Transforming the future of supply chains through disruptive innovation”, spring 2011 International Labour Organization, “Global employment trends for youth”, 2013 Gartner Top 25 Supply Chain 2010, 2011 & 2012 68
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School TOOLS & TECHNIQUES ENTERPRISE MANAGEMENT HANDS-ON MANAGERIAL 69 OUR VLERICK PROGRAMMES COMBINE
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School INTERNATIONAL COLLABORATIONS & ENDORSING PARTNERS 70
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Operations & Supply Chain Management Operational Excellence Executive Master
Class in SCM Purchasing Management Supply Chain Finance
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School OPERATIONAL EXCELLENCE SHORT-FOCUSED PROGRAMME Module 1: Essence of Operational Excellence Strategic Importance of Operational Excellence Mapping the value stream Lean thinking and lean toolbox Lean planning & scheduling Lean maturity Company visit: putting theory into practice Module 2: Success Factors in Operational Excellence Bottleneck management - theory of constraints - factory physics Capacity management and variability analysis Quality management Lean supply chains Change management Lean Competency Accreditation (optional) An optional exam will allow participants to obtain the certificate ‘Lean Competency’, an international accreditation by the Lean Enterprise Research Centre of Cardiff University. 72 www.vlerick.com/opex
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School INTENSIVE PROGRAMME – STRUCTURE 73
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School EXECUTIVE MASTER CLASS IN SCM INTENSIVE PROGRAMME 74 www.vlerick.com/emcscm
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School OTHER PROGRAMMES SPECIALISED: Purchasing Management www.vlerick.com/purchasing Supply Chain Finance www.vlerick.com/scf GENERAL MANAGEMENT: Project Management www.vlerick.com/projectmanagement Executive Development Programmes for Young, Middle & Advanced managers www.vlerick.com/edp 75
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III. Q&A
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