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The Line Of Business Challenge:  Mastering Lean Supply - The Unipart Way

The Line Of Business Challenge: Mastering Lean Supply - The Unipart Way



Mastering Lean Supply - The Unipart Way ...

Mastering Lean Supply - The Unipart Way

Nick Rayner – Managing Director, Global Supply Chain, Unipart
Ian Ashley – Practice Lead, Supply Chain, Unipart

The Line of Business Challenge - Exceeding Internal Demand



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    The Line Of Business Challenge:  Mastering Lean Supply - The Unipart Way The Line Of Business Challenge: Mastering Lean Supply - The Unipart Way Presentation Transcript

    • SAP World Tour, London 2011Mastering Lean Supply –The Unipart Way Nick Rayner – Managing Director, Global Supply Chain Ian Ashley – Practice Lead, Supply Chain
    • In this session… • We will introduce Unipart to you • We will discuss our philosophy „The Unipart Way‟ • We will describe how Unipart supports its Jaguar Aftermarket supply chain by using SAP • We will explain how we realize the benefits of SAP implementation through continuous improvement
    • The Unipart Group Majority 10,000 £1.1b owned by people turnover employees Operating in We take 6 divisions 100 countries a long term worldwide view
    • The six Unipart divisions
    • A Selection of Our Clients
    • A philosophy ofworking, underpinnedby a set of tools andtechniques that:• Form part of our knowledge management systems• We continuously improve based upon our experience• Enable us to improve faster than the best alternative available to our existing and potential customers
    • At the heart of this philosophy isthe creation ofemployee engagement
    • Communication Cells
    • The Jaguar Relationship
    • We have a significant global footprint forJaguar and Land Rover
    • Scale of the Jaguar Parts Business• 7 million customer order lines processed annually• 128,000 part numbers and growing• Ship to 64 countries• Supply direct to around 850 Jaguar Dealers worldwide• Operate from 12 worldwide locations
    • Services to Jaguar Cars – World Wide TRADTIONAL 3PL New Model Global Distribution Distribution Distribution Dealer Systems Programmes Inventory Centres Centres (Order/Enquiry + Planning Automatic Replenishment) Deployment (11 globally) (9 globally) Technical Services (inc. ownership) Customer Order (inc. service condition decision) Freight Freight Supplier Management Processing Management Receiving Management Cataloguing (electronic, web-based) Supply Call Centres Cross-docking Compliance (multi-market) Expediting (C-TPAT accredited) Master Data Marketing Packaging Storage Tracking Inventory (inc. spec.& design) Planning Pricing Forecasting Packing RFID Purchasing Stock Control / PI Reverse Logistics SQD Warranty Pick Pack Ship INBOUND OUTBOUND CUSTOMER FINANCE - IT - HUMAN RESOURCES
    • Jaguar Cars - Global Supply Chain Implementation Business Issues – Systems constraining ability to continuously improve operation – Cost savings required whilst adding additional value – Complete end-to-end supply chain visibility and transparency required (Customer to supplier) – Multi language operation What We Did – Redesigned world-class global supply chain – Educated work force in new operation – Implemented SAP to underpin new way of working (including WM into 6 warehouses) Results – SAP successfully implemented “big bang” – Substantial IT cost savings and operational benefits
    • Unipart Logistics System proven in managingend to end supply chain Sales and Distribution - Customer ordering, shipping, billing and returns Warehouse Management - Management of highly complex warehouse structures in real time Materials Management - Inventory management, Customer purchasing, planning and physical inventory Financial Accounting - RDCs Accounts payable & receivable Warehouse 1st Tier Suppliers
    • Successfully deployed a Standard Global Template 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
    • End to End Supply Chain Visibility & Control The Jaguar Global Control Centre Forecasting Suppliers Packers Central DC Pipelines Regional DC Dealer / Scheduling
    • How did weachieve success ?
    • Research told us to expect surprises inimplementing SAP 1. Your KPIs plummet & need to be rescued 2. It gets worse before it gets better – 9 months of “anarchy” ! 3. Software expectations are not fully met 4. You are now an ERP hostage 5. People are angry, confused & highly irritable 6. You discover that discipline is king 7. You think you know who owns the benefits … you don‟t 8. You have “re-engineered” whether you planned to or not 9. People immediately forget everything they learned in training 10. Your entire project team is resigning en masse Michael Hammer
    • Through a deep understanding of the needfor integration PEOPLE Executing and managing work in a standard manner, embracing continuous improvement and focussed on appropriate KPI‟s DATA TECHNOLOGY PROCESS Error free, driving Processes designed from Appropriate to support decision making the perspective of the end delivery of the customer rather than the functional customer requirements needs of organisations within -on time in full the value chain -to agreed quality levels ….the effective integration of people, processes and system strategies drives business benefits in performance, efficiency and productivity.
    • Lean in an SAP Implementation Standard Operating Procedures Providing a foundation on which Continuous Improvement can be built Linking job roles with physical activity and SAP processes. Visual Control Creating transparency of the operational management of work Business Metrics Development of appropriate KPI‟s using the “Quality, Cost, Delivery” framework, aligned to process outcomes Behavioural Development Leadership development focussed on process working rather than functional silos Organisational Design Appropriate organisational structures to support Lean working.
    • Implementation Methodology Accelerated SAP (ASAP) Used in various shapes and forms by the Systems Integrators and Consultancy Practices across the world. Unipart give stronger emphasis to : - process design - de-risking implementation through Prince2 project management - business readiness and use of simulation environment - physical warehouse and supply chain design - enhanced benefits realisation through continuous improvement
    • “Go See” enabled in a live test environmentUnipart Advanced Logistics Centre “ The best example of a 3D process laboratory I have seen. Sir Nick Scheele “ CEO Ford Motor Co
    • Questions?Nick Rayner Nick.Rayner@Unipart.co.ukIan Ashley Ian.Ashley@Unipart.co.uk