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Future Supply Chain 2016
Break Out Session 2.1
Berlin 28 May 2008
GCI Projects Overview


        •    New Ways of Working Together
        •    Information Sharing
        •    The 2016 F...
Great Team – Great Work!

  • GCI has started the "Future Supply Chain" project, with
    the objective to:
          •   ...
Agenda

        • Challenges ahead
        • Need for breakthrough change !
        • Integrating innovation
        • Enh...
1. The Future Challenge
1. The Future Challenge

        • drivers of change
        • impact on the future supply chain




       This new repor...
Key trends driving the report


                                            • Increased awareness of
                     ...
Future Supply Chain 2016: As precised in 2008




Future Supply Chain 2016, Berlin · Page 8
Conclusions

        • True collaboration will be imperative.
        • Supply chain managers will need new
          capa...
2. The Past Does Not
           Reflect The Future



Future Supply Chain 2016, Berlin · Page 10
2. The Past Does Not Reflect The Future

        •    Full Truckloads?
        •    Out-Of-Stocks
        •    Complex Inf...
Future Supply Chain 2016




Future Supply Chain 2016, Berlin · Page 12
The 2016 Vision

        • Greatly reduce lead time over
          entire value chain
        • Improved mechanisms to
   ...
Set of KPI’s to evaluate potential scenarios
        within the future supply chain

        Overall KPI’s                ...
Why Should You Care?

        Well, what if you could reduce the following by
         more than 20%:

        •    Transp...
3. A Tool Kit for an
   Innovative Future
   Supply Chain
A toolkit to explore the changes that different supply chains
        can undertake to improve the complete set of KPI’s

...
Solution Areas and Leading Practices

        • In-Store Logistics
        • Collaborative Physical Logistics
        • Re...
Collaborative Physical logistics: Different combinations
   of transport and locations can be optimized
        • Collabor...
Efficient Assets will improve current
        operations as well as new collaborations
        • Alternative forms of ener...
Benefits of joint scorecards on SC
        performance and on sustainability

                 Enter data                 ...
Impact of different best practices on chosen
        parameters (1 example..)




Future Supply Chain 2016, Berlin · Page ...
Understand and Re-Invent Example Supply Chains




Future Supply Chain 2016, Berlin · Page 23
Example Supply Chains




Future Supply Chain 2016, Berlin · Page 24
New Ways To Calculate The Impact On The Supply
        Chain




Future Supply Chain 2016, Berlin · Page 25
Model shows: Less cost, less CO2 emissions



                                     Depending on the supply chain..

      ...
Based on some current example supply chains we identified
                                   the benefits of a number of m...
4. A New Model for
   Enhanced Supply
   Chain Collaboration
4 Collaboration Concepts

        • Information sharing – driving the collaborative
          supply chain
        • Colla...
Characteristics Of The Future Supply Chain 2016




Future Supply Chain 2016, Berlin · Page 30
1. Information Sharing
        • Sharing of standardised data (based on the use of
          GS1 keys and transaction mess...
2. Collaborative Warehousing
        • Revolutionary: Concepts that go far beyond the warehouse
          collaborations t...
3. Collaborative City Distribution

        • Urban areas: limit the amount of (polluting)
          trucks going into the...
4. Collaborative Non-Urban Distribution

        • as with city distribution, key will be
          consolidation of deliv...
How to prepare our people for the new world of
        collaboration
        • Incentives and Measures
        • Capabilit...
As Is Situation: The Future Supply Chain 2016




Future Supply Chain 2016, Berlin · Page 36
To-Be Situation: The Future Supply Chain 2016




Future Supply Chain 2016, Berlin · Page 37
5. Next Steps Toward
           The Future Supply
           Chain


Future Supply Chain 2016, Berlin · Page 38
www.FutureSupplyChain.com




Future Supply Chain 2016, Berlin · Page 39
Call To Action

        GCI Project Team will be established:

        • Support the Report Marketing Plan

        • Set ...
Future Supply Chain 2016, Berlin · Page 41
Contact




        www.gci-net.org
        www.capgemini.com

        www.FutureSupplyChain.com

Future Supply Chain 2016...
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ECR Europe Forum '08. Future supply chain 2016

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Future supply chain 2016: designing for new parameters

Are you ready for 2016? This session will focus on the future physical supply chain and the critical role collaboration will play. Discussion will centre on the changes that will need to take place, the toolkit for the future supply chain, the new integrated model and the next steps that must be taken to make it real.

Speakers: Ard Jan Vethman, Capgemini; Xavier Derycke, Carrefour; Roland Dachs, Crown Europe; Jochen Rackebrandt, Kraft Foods; Jos Visee, Philips Consumer Lifestyle. Facilitated by GCI.

Published in: Business, Technology
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    Thanks very much for this comment. It help me to think about my ideals.

    Tks again and pls keep posting.

    If you want to get more materials that related to this topic, you can visit: http://keyperformanceindicators.info/operations-kpi/

    Best regards.
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Transcript of "ECR Europe Forum '08. Future supply chain 2016"

  1. 1. Future Supply Chain 2016 Break Out Session 2.1 Berlin 28 May 2008
  2. 2. GCI Projects Overview • New Ways of Working Together • Information Sharing • The 2016 Future Supply Chain Future Supply Chain 2016, Berlin · Page 2
  3. 3. Great Team – Great Work! • GCI has started the "Future Supply Chain" project, with the objective to: • Model flows of the Supply Chain representing possible alternative supply chain scenarios • Create a Supply Chain Framework for collaboration in the 2016 Supply Chain • On November 14 and 15: Joint 2-day workshop in Chicago with an extended ‘Future Supply Chain’ team Future Supply Chain 2016, Berlin · Page 3
  4. 4. Agenda • Challenges ahead • Need for breakthrough change ! • Integrating innovation • Enhanced collaboration • Next steps Future Supply Chain 2016, Berlin · Page 4
  5. 5. 1. The Future Challenge
  6. 6. 1. The Future Challenge • drivers of change • impact on the future supply chain This new report focuses on the future physical supply chain and the critical role that collaboration will play moving forward. Future Supply Chain 2016, Berlin · Page 6
  7. 7. Key trends driving the report • Increased awareness of CO2 • Increased urbanisation • Regulatory restrictions • Economics of supply chain • … Future Supply Chain 2016, Berlin · Page 7
  8. 8. Future Supply Chain 2016: As precised in 2008 Future Supply Chain 2016, Berlin · Page 8
  9. 9. Conclusions • True collaboration will be imperative. • Supply chain managers will need new capabilities. Future Supply Chain 2016, Berlin · Page 9
  10. 10. 2. The Past Does Not Reflect The Future Future Supply Chain 2016, Berlin · Page 10
  11. 11. 2. The Past Does Not Reflect The Future • Full Truckloads? • Out-Of-Stocks • Complex Infrastructure • Energy Costs • City Distribution Industry must take a new approach. Future Supply Chain 2016, Berlin · Page 11
  12. 12. Future Supply Chain 2016 Future Supply Chain 2016, Berlin · Page 12
  13. 13. The 2016 Vision • Greatly reduce lead time over entire value chain • Improved mechanisms to synchronise production with demand • Real-time, flexible and standardised information sharing • Emerging home-shopping and neighbourhood distribution New measurements required! Future Supply Chain 2016, Berlin · Page 13
  14. 14. Set of KPI’s to evaluate potential scenarios within the future supply chain Overall KPI’s Sustainability KPI’s • Availability to Consumer • Energy Consumption • Cost reduction • CO2-emission (hothouse gasses) • Financial KPI’s • Traffic Congestion • ROI • Infrastructure Simplification • GMROX (e.g. M² warehousing, total • Return on brand equity transport distances) • Inventory • Water consumption Security KPI • Traceability Future Supply Chain 2016, Berlin · Page 14
  15. 15. Why Should You Care? Well, what if you could reduce the following by more than 20%: • Transport costs per pallet • Handling costs per pallet • Lead time • CO2 emissions per pallet Future Supply Chain 2016, Berlin · Page 15
  16. 16. 3. A Tool Kit for an Innovative Future Supply Chain
  17. 17. A toolkit to explore the changes that different supply chains can undertake to improve the complete set of KPI’s Future Supply Chain 2016, Berlin · Page 17
  18. 18. Solution Areas and Leading Practices • In-Store Logistics • Collaborative Physical Logistics • Reverse Logistics • Demand Fluctuation Management: joint planning, execution and monitoring • Identification and Labelling • Efficient Assets • Joint Scorecard and Business Plan Future Supply Chain 2016, Berlin · Page 18
  19. 19. Collaborative Physical logistics: Different combinations of transport and locations can be optimized • Collaboration from source to manufacturing Remote sourcing • Collaboration between Local sourcing / production different manufacturers to / production retailers • End to end joint transport. Distribution • Joint transport between retailers for the Urban final mile Non Urban Urban final mile final mile • Joint transport on the non- urban distribution Future Supply Chain 2016, Berlin · Page 19
  20. 20. Efficient Assets will improve current operations as well as new collaborations • Alternative forms of energy • Solar, fuel cells, anaerobic digestion, tidal, wind, ... • Efficient/aerodynamic vehicles, • Euro V engines, streamlined vehicles ... • Switching modes • Barge, train, new infrastructure... • Green buildings • Reducing energy consumption of buildings. Future Supply Chain 2016, Berlin · Page 20
  21. 21. Benefits of joint scorecards on SC performance and on sustainability Enter data Identify further = Measure & Monitor improvement potential Improved Increased adoption Business Results (ROI) of standards Improved Higher Business Relationships Process Efficiency Future Supply Chain 2016, Berlin · Page 21
  22. 22. Impact of different best practices on chosen parameters (1 example..) Future Supply Chain 2016, Berlin · Page 22
  23. 23. Understand and Re-Invent Example Supply Chains Future Supply Chain 2016, Berlin · Page 23
  24. 24. Example Supply Chains Future Supply Chain 2016, Berlin · Page 24
  25. 25. New Ways To Calculate The Impact On The Supply Chain Future Supply Chain 2016, Berlin · Page 25
  26. 26. Model shows: Less cost, less CO2 emissions Depending on the supply chain.. ..basic modelling shows potential cost & emission reductions by more than 20%. Future Supply Chain 2016, Berlin · Page 26
  27. 27. Based on some current example supply chains we identified the benefits of a number of major Collaboration Themes Example Solution SC’s areas Collaboration themes: -Collaborative warehousing -Collaborative transport -City replenishment -POS-data/OSA-planning -Home delivery KPI SC costs per pallet SC cost for 90 pallets Total Truck kilometers CO2 emission for 90 pallets (tonnes) Emission per pallet (kilo) Scenario As Is Plant to RDC 58 5190 7500 37,5 417 Calculation To-be Plant to RDC 46 4170 6900 34,5 383 Best Reduction Percentage 20% 20% 8% 8% 8% SC costs per pallet CO2 emission per pallet models practices 420 60 415 50 410 405 40 400 SC costs per pallet 395 Emission per pallet (kilo) 30 390 385 20 380 10 375 370 0 365 1 2 1 2 Future Supply Chain 2016, Berlin · Page 27
  28. 28. 4. A New Model for Enhanced Supply Chain Collaboration
  29. 29. 4 Collaboration Concepts • Information sharing – driving the collaborative supply chain • Collaborative warehousing • Collaborative city distribution, including home delivery and pick-up • Collaborative non-urban distribution, including home delivery and pick-up Future Supply Chain 2016, Berlin · Page 29
  30. 30. Characteristics Of The Future Supply Chain 2016 Future Supply Chain 2016, Berlin · Page 30
  31. 31. 1. Information Sharing • Sharing of standardised data (based on the use of GS1 keys and transaction message standards) is the cornerstone • Master data relating to locations such as node location and lead time between nodes • POS sales data, Internet shopping sales data and other mobile-sourced shopping data, must be shared in a standard and timely manner • Events in the supply chain, such as new product launches and promotions. • Timely information on out-of-stock (OSA) Future Supply Chain 2016, Berlin · Page 31
  32. 32. 2. Collaborative Warehousing • Revolutionary: Concepts that go far beyond the warehouse collaborations that exist today • combined shipments to distribute to one or more retailers covering different modes of transport ownership, formats and channels • repositioning of warehouses is likely to be required to improve the new supply chain KPI’s • Collaborative warehousing should improve • Improve several KPI’s: • Capacity utilisation of the total warehouse • Transport optimisation through shared delivery from the warehouse • CO2 and energy reduction through the use of the latest technologies (such as energy-efficient buildings and fuel- efficient trucks) Future Supply Chain 2016, Berlin · Page 32
  33. 33. 3. Collaborative City Distribution • Urban areas: limit the amount of (polluting) trucks going into the city. • “city hubs” with a collaborative cross-dock operation. • Solution applied differently per shipment category: • Full truckloads for store replenishment • Less-than-full truckloads for smaller-store replenishment • Parcels, including home delivery needs Future Supply Chain 2016, Berlin · Page 33
  34. 34. 4. Collaborative Non-Urban Distribution • as with city distribution, key will be consolidation of delivery streams in short term: • different products • based on different orders from different online ordering facilities, • all for the same shopper • via consolidation centres (multi picks, pooling) • Convergence between home shopping and neighbourhood distribution via pick-up points Future Supply Chain 2016, Berlin · Page 34
  35. 35. How to prepare our people for the new world of collaboration • Incentives and Measures • Capabilities • Organisational Resources and design Benefits of an integrated model • To illustrate how this could work, the different calculation models have been combined into one integrated model. Future Supply Chain 2016, Berlin · Page 35
  36. 36. As Is Situation: The Future Supply Chain 2016 Future Supply Chain 2016, Berlin · Page 36
  37. 37. To-Be Situation: The Future Supply Chain 2016 Future Supply Chain 2016, Berlin · Page 37
  38. 38. 5. Next Steps Toward The Future Supply Chain Future Supply Chain 2016, Berlin · Page 38
  39. 39. www.FutureSupplyChain.com Future Supply Chain 2016, Berlin · Page 39
  40. 40. Call To Action GCI Project Team will be established: • Support the Report Marketing Plan • Set up Implementation Issues Exchange Team • Identify established pilots • Liaise with other associations, e.g. ECR Europe to help resolve implementation issues • Measuring the progress of implementation through, e.g. the Global Scorecard. Future Supply Chain 2016, Berlin · Page 40
  41. 41. Future Supply Chain 2016, Berlin · Page 41
  42. 42. Contact www.gci-net.org www.capgemini.com www.FutureSupplyChain.com Future Supply Chain 2016, Berlin · Page 42
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