Presenter - David Elson from the British Marine Federation (BMF) will present an overview of the Benefits and Challenges for SMEs and larger marine firms in raising the performance of marine supply chains. The BMF represents a wide range of businesses in the leisure, superyacht and small commercial marine industry.

1. Supply Chains
Fast Forward – Marine Cluster Meeting
6th November 2012

2. A look at an anonymous off road vehicle
company..
Pre-2008:
– Engineering led decision making & purchasing
– Customer is king, suppliers easily replaced
– Prices forced down
– Stocks removed
– Increased payment terms
Result for suppliers:
– Quality and supply became an issue
– Smaller local suppliers struggle to meet demand
– Reduced margins
– Erratic cash flow
– Reduced capability to innovate

3. Then the World changed in 2008
– Vehicle production volumes dropped dramatically
– Many smaller suppliers ceased to trade
– OEM difficulties in completing the few remaining
orders due to supply chain issues
– Resulting in increased lead times, quality issues and
ultimately loss of orders

4. What did they do?
Strategic Partnerships
– Suppliers chosen not purely on price but on stability,
reliability, technical innovation and added value
– Seek complete system suppliers
– Long term agreements, agreed pricing structures and
payment terms
– Joint marketing and sales approach
– Stock holding agreements

5. This Company’s Conclusions
– Aggressive purchasing led relationships can be counter
productive
– Stable relationships required to allow suppliers to grow and
invest
– Product is only as good as the sum of its parts so supply
chain investment crucial
– Supply framework agreements allow new technologies to
be utilised at earliest opportunity

6. Any parallels with the Marine Sector?
Issues raised to BMF:
– Security of supply/dual sourcing
– Increase in overseas sourcing
– Lead times, especially on optional parts
– Payment Terms
– Relationships
– Investment in Innovation/R&D
– Raw material costs
– Lack of finance
– Intellectual Property
– Skills
– Quality, Cost, Delivery
the list goes on........

7. Instigated BMF Supply Chain Initiative
“To Encourage and Support Closer Collaboration
and More Effective Business Relationships
between UK Boatbuilders, Equipment
Manufacturers and Suppliers”
• Initiative launched at 2011 PSP Southampton Boat Show
• Industry Working Group established to provide direction
to the initiative
• March 2012 – 1st Supply Chain Conference
• Sept 2012 - Bid for Government Funding

8. Supply Chain Conference
Widespread industry and stakeholder support for
the initiative and the conference:
“An excellent opportunity for creating new innovation opportunities within
the UK marine industry.”
Stephen Hart, Technology Strategy Board
“The Meet the Buyer element of the
event has provided a time and cost
effective way of progressing issues
with our existing suppliers and
exploring new opportunities with
other companies.” Grant Hooper,
Princess Yachts
“This has been a highly successful event, very well organised and
most useful for ZF. It’s been money extremely well spent and the
best networking forum we have attended for many years.”
Peter Nelmes, ZF Services UK Ltd

9. Potential Government Funding
• The Advanced Manufacturing Supply Chain
Initiative (AMSCI)
• £125m to support / improve the global
competitiveness of manufacturing supply
chains in the UK
• Focus on projects that deliver economic growth
and generate or safeguard jobs

10. The Idea
Industry Supply Chain Standards:
• British Aerospace Industry
• British Automotive Industry
ISO/TS 16949
• British Marine Industry ???????

11. The BMF AMSCI Proposal
Marine Supply Chain Performance Development
Project
• Significant bid submitted September 2012 with industry support
• Operating across leisure marine, superyacht and small commercial
marine industry
• The project is made up of a number of workstreams
• Delivered over five years

12. The Proposal
Industry wide Capability & Gap Analysis
Design Marine Industry Specific Performance
Development Scheme
Implement and expand the scheme
Funding support to target technology gaps identified in
analysis

13. What’s next?
• AMSCI decision expected later this month
• 2nd BMF Supply Chain Conference, 5-6 March
2013
• Investigate other potential Government finance
initiatives

14. Thank you
David Elson
delson@britishmarine.co.uk