Memorándum de Entendimiento (MoU) entre Codelco y SQM
Kris Van Ransbeek from Chiquita on ‘SCM as a Market Strategy Differentiator’
1. European Chief Supply
Chain Officer Forum 2001
Kris Van Ransbeek
Vice President Product Supply &
Ingredients Business EMEA
STRICTLY CONFIDENTIAL, INTERNAL USE ONLY
2. Topics
• The importance of innovation
• How can Supply Chain help to make a difference
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3. Innovation is the name of the game in many
industries
• The board dilema: continue to innovate when budget priorities
lie elsewhere
Are we making the right innovation choices
Are our innovation investments closely aligned with the customers needs,
while also recognizing that you can’t rely on customer input for “break-
through” ideas
Are we able to measure the progress accurately
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4. The Innovation Challenge
• You can't just ask customers what they want and then try to
give that to them. By the time you get it built, they'll want
something new.
Steve Jobs
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5. Increasing complexity depending on the type
of innovation of FMCG
• Products and Packaging
Increasing time to market
Increasing investment
Increasing complexity
• Recipe optimization
• A new raw material or ingredient
• Changing the packaging design
• New packaging shape
• Machines and Processes
• Installation of new equipment
• Adaptation of the Production line
• New factories
• New production technologies
(will introduce new products, new markets,…)
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6. The innovation balancing act
• Short-term return vs. long-term investment
• Risk vs. Opportunity
• Creativity vs. Discipline
Faster…
Cheaper…
More predictable
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7. How best collaborate with your innovation
Colleagues
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8. Wait until it is big enough!
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9. Wait until it is big enough!
…could be difficult to handle at that time
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10. Push through the standard processes
and organization
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11. Dedicated team of supply chain
experts, imbedded within the
innovation organization
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12. Key pitfalls that can be avoided
• Attention given to innovation by the SC team running the
base business
• Day to day operations will take over
• Cost saving gives a better and faster return then innovation
• To small to bother about
• Guarantee sufficient Supply Chain expertise is available
during the design phase
• Up to 80% of the supply chain cost is structurally defined during design
• Wrong choices will only become visible during scaling and can be
extremely costly and time consuming to correct during/after launch
• When to integrate within base business
• Avoid the emergence of a shadow organization
• Missing the economies of scale
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13. SC innovation needs different KPI’s
• Base Business performance • Innovation Support
drivers Performance drivers
• Cost • Time to Market
• Customer Lead Time • Fail Cheap
•
• Product and Service Quality Limit upfront capital investments
• Fast Scalable
• Reliability and resilience • Initial technology choices
• No service Glitches
• Key supplier selection
• SC Security • Route to market
• Supporting business processes
• Small batches
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14. Conclusions
• Get involved from the start
• Strategic Supply Chain decisions are taken early in the development
phase
• Create a dedicated team within your Supply Chain
organization that focus on supporting innovation
• Define the appropriate KPI’s
Fail Cheap
Scale up Fast
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