Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001
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Berlin Presentation, End-to-end supply chain solutions, a focus on packaging adding value in the chain

Berlin Presentation, End-to-end supply chain solutions, a focus on packaging adding value in the chain

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Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001 Presentation Transcript

  • 1. Sonoco Packaging Solutionstm -End-to-End Supply Chain Solutions –by Nando Galazzo, Supply Chain Director, Sonoco Chairman, Global Supply Chain and logistics council, Conference Board Europe Brad Weller, Director Sonoco Packaging Solutions tm October 1, 2001, Berlin, Germany c © 2001 by Sonoco
  • 2. Agenda Credentials Supply Chain thoughts Sonoco Packaging Solutions Implementation Models Get started ! SPStm case studies
  • 3. CREDENTIALSCREDENTIALS
  • 4. Sonoco Global Packaging CredentialsSupply Chain thoughts SPSImplementation Models Get Started ! Case Studies 285 operations 32 countries/5 continents 17,000 employees Customers - 85 countries Turnover - US$2.8 billion
  • 5. Sonoco Packaging Portfolio CredentialsSupply Chain thoughts SPSImplementation Models Get Started ! Case Studies Pack Center
  • 6. European operations: over 43 plants CredentialsSupply Chain thoughts Industrial Products SPSImplementation Models Consumer Products Get Started ! Paper Mills Case Studies
  • 7. Credentials “Only Perceptive, Adaptable and Innovative packagingSupply Chain companies can get closer to their customers and markets by thoughts developing extended enterprises & supply chain SPS partnerships”.Implementation Models Get Started ! All others … will just be passengers during the journey Case Studies
  • 8. Sonoco’s Traditional Value Drivers … Paper Tube Recycling Credentials Mechanics & &Supply Chain Reclamation Design thoughts SPS SonocoImplementation Models Value Drivers Get Started ! Case Studies
  • 9. Sonoco’s Traditional Value Drivers … Product Dependent Model • Defends existing position Service • Protects existing margins Service Credentials • Builds barrier to competitionSupply Chain Limitations Product thoughts • Commodity model • Value extraction is limited • Costs justified on product margin SPS • Short life time for incremental benefitsImplementation Models Get Started ! Case Studies
  • 10. Sonoco’s Traditional Value Drivers … Product Dependent Model • Defends existing position Service • Protects existing margins Service Credentials • Builds barrier to competitionSupply Chain Limitations Product thoughts • Commodity model • Value extraction is limited • Costs justified on product margin SPS • Short life time for incremental benefitsImplementation Models Supply Chain Driven Model Possibilities Get Started ! • Products are pushed or pulled • Higher point of entry (food chain) • Fully defined value • Multi-site scalability • Sustainable over time • Long-term activity Case Studies • Non-product Dependent • Diversification of income portfolio Products Sourcing W. Housing Pac Center Logistics Products Consultancy / Implementation
  • 11. Sonoco’s journey to add value … Paper Tube Recycling Credentials Mechanics & &Supply Chain Reclamation Design thoughts SPS Sonoco InventoryImplementation Models Six Sigma Value Management Drivers Systems Get Started ! Case Studies Pack Center Concepts Sonoco Proprietary
  • 12. Evolution: from products… CredentialsSupply Chain Paper Textile Film / Tape Specialty thoughts SPSImplementation Models Get Started ! Case Studies
  • 13. Evolution: …to packaging… CredentialsSupply Chain Paper Textile Film / Tape Specialty thoughts SPSImplementation Models Get Started ! Film Packaging Paper Packaging Case Studies
  • 14. Evolution: …to services… CredentialsSupply Chain Paper Textile Film / Tape Specialty thoughts SPSImplementation Models Get Started ! Film Packaging Paper Packaging Case Studies Pack Design Logistics Supply Chain Procurement Reclamation
  • 15. Sonoco’s extended enterprise … Paper Tube Recycling Credentials Mechanics & &Supply Chain Reclamation Design thoughts SPS Sonoco InventoryImplementation Models Six Sigma Value Management Drivers Systems Get Started ! Case Studies End-to-End Pack Center Supply Chain Concepts Management Sonoco Proprietary
  • 16. Sonoco’s extended enterprise … Credentials 3M Europe DuPont EuropeSupply Chain thoughts MFE Europe SPS MFE USImplementation Whirlpool Models Cryovac Get Started ! Gillette UK Case Studies Gillette US Consultancy Design / Sourcing JIT / Pack Planning W.H. Distribution Return Graphics VMI Center Scheduling Mgmnt. Recycle Refurbish = assessments = implementations
  • 17. Offering experience through partnership Credentials Supply Chain thoughts SPS • Global scale and infrastructure •• Resources & Scalability Resources & Scalability • Supply Chain Management Sonoco Consulting Methodology •• Consulting MethodologyImplementation • Packaging Solutions Packaging •• Venture Capital Venture Capital Models • Customer Relationships Solutions •• IT & B2B Integration IT & B2B Integration • Operational integration / •• Previous project Previous project Get Started ! Pack-Centre management SPS Client experience •• Client experience Case Studies
  • 18. SUPPLY CHAINTHOUGHTS
  • 19. Competitive Pressures in the Supply Chain More demanding More demanding customers Global competition Global competition Credentials customers & shareholders & industry & industry & shareholders consolidation consolidationSupply Chain thoughts Shorter product Shorter product SPS life cycles life cyclesImplementation Models Get Started ! Speed of technology Speed of technology change change Case Studies Environmental Environmental risk and issues risk and issues
  • 20. Competing through collaboration Credentials No company, on its own, has the ability toSupply Chain dominate the future … without: thoughts SPS A vision that creates growth & wealthImplementation Models Accelerating the speed of change Get Started ! Executing and sustaining improvement Case Studies New partnerships that manage complexity
  • 21. Managing for change & performance Credentials ACCESS…Supply Chain thoughts access to economies of scale SPS access to know-howImplementation Models access to technology and innovation Get Started ! access to new collaborative models Case Studies
  • 22. An evolution toward greater collaboration H CredentialsSupply Chain Collaboration thoughts Supply Chain Performance SPS CoordinationImplementation Models Transactions Get Started ! Case Studies L Partnership & Trust H
  • 23. Areas of desired collaboration CredentialsSupply Chain 1 Supply Chain Re-engineering Optimisation Synchronisation End-to-end & Packaging solutions thoughts implementation 2 SPS Co-asset and Pack Centre Inventory and ProductionImplementation Labour Management WC management planning Models management 3 Get Started ! Packaging & Smart Outsourcing & Multi-use/reuse/ Case Studies Graphics packaging design JIT Kit Delivery returnable Design 4 Information ERP systems Optimisers The emerging Packaging web Technology Market place…
  • 24. Therefore… Credentials Sonoco has developed and implementedSupply Chain thoughts end-to-end supply chain solutions for its SPS customers around the world … calledImplementation Models Get Started ! Case Studies SPS ™ SONOCO PACKAGING SOLUTIONS
  • 25. CredentialsSupply Chain SPS ™ SONOCO PACKAGING SOLUTIONS thoughts SPS  innovativeImplementation  customized Models  collaborative Get Started !  scalable Case Studies  profitable  3pl
  • 26. 3rd party 4th party logistics 3pl used to be mainly about sub-contracting warehouse and Credentials distribution services …Supply Chain thoughts SPS Tomorrow’s 4pl will sit in the middle of the value chain, drawing products or componentsImplementation Models from all parts of the network as available … Get Started ! managing product assembly or packaging … Case Studies and then handling the distribution to individual customers by the fastest and most efficient route. Financial Times October 2000
  • 27. CredentialsSupply Chain thoughts 4pl SPSImplementation with a Models difference Get Started ! Case Studies
  • 28. Credentials Supply Chain ScopeSupply Chain thoughts Extended enterprise asset management SPS sourcing & information managementImplementation Models Pack-centres / packaging operations Get Started ! Packaging materials planning & inventory management Case Studies Packaging materials sourcing, procurement, leverage Low  Sub-contracting warehousing & distribution 3pl  Transportation management - outbound / reverse logistics Intensity
  • 29. Credentials design, development, & engineering support Supply Chain ScopeSupply Chain Packaging material life-cycle management: thoughts Return,, Re-use, Recycle SPS Med.  Logistics sourcing & information managementImplementation Models  Pack-centres / packaging operations Get Started ! 4pl  Packaging materials planning & inventory management Case Studies Low  Packaging materials sourcing, procurement, leverage  Sub-contracting warehousing & distribution 3pl  Transportation management - outbound / reverse logistics Intensity
  • 30.  Enterprise asset management High Credentials  Packaging design, development, & engineering support SPS  Packaging material life-cycle management: Supply Chain ScopeSupply Chain thoughts Return, Refurbish, Re-use, Recycle SPS  Logistics sourcing & information management Med.Implementation Models  Pack-centres / packaging operations Get Started ! 4pl  Packaging materials planning & inventory management Case Studies  Packaging materials sourcing, procurement, leverage Low  Sub-contracting warehousing & distribution 3pl  Transportation management - outbound / reverse logistics Intensity
  • 31. Vision is Critical - for instance Keeping the Strategic … Outsourcing the Tactical Customer Supply Chain Finished Factory Marketing Goods Manufacturing Distribution Planning Planning Packaging Materials ProcurementOutsourced Supply Package Systems & Planning PackChain Activities to Planning Integration ProductSonoco 3rd Party Logistics Reverse Logistics
  • 32. ImplementationMODEL
  • 33. The Methodology CredentialsSupply Chain thoughts SPSImplementation Models Get Started ! Case Studies
  • 34. What is the SCOR model and framework?Supply Chain Operations Reference ModelProcess reference map that allows you to construct supply chain implementation models.Of itself it is not sufficient to describe a supply chain implementation. You cannot implementa “reference” model. You use the reference model together with business attributes (I.e. geographic,organization, product, etc.) to specify and implement a process model that can be analyzed (metrics) and executed.
  • 35. Vision of an Extended enterprise Plan COLLABORATIVE SYNCHRONIZED OPTIMIZED Deliver Source Make Deliver SOURCE MAKE DELIVER Source Make Deliver Source • Finished • Procurement Pack GoodsSuppliersSONOCO Customer’s Customers • Inbound Logistics Warehousing Customers Your • Inventory • Shipping & Management Outbound Logistics • Optimized Core & packaging Design Integrated Packaging Design & Life Cycle Management SONOCO CUSTOMER SONOCO • RETURN PROGRAMME
  • 36. Applying a Tool Framework to Support Supply Chain Modeling Drilling Down to Levels of Detail AS- IS Assessment Enterprise ProcessesLevel 1 Process Scenarios - Value Chain DiagramLevel 2Level 3 Business Processes - * Event Driven Process MapLevel 4 Activities - Event Driven Processe Map
  • 37. Objective of this work: Align Scenario Implementation with SCOR Methodology … SCOR Methodology TO - BE Employs a Top-Down Approach Implementation  Material Flow View  Identify Roles within the logical flow  Establish product responsibility  Analyze for performance to select Analyze Basis scenarios of  Business Scenario View Competition  Role-based Scenarios Configure  Collaborations/Biz Documents Supply-Chain  Encapsulation of process detail Align  Process Definition View PerformanceLevels, Practices, *  Consistent Modeling and Systems  Link to public protocol definitions  Bounding events Implement Supply-Chain Process Specification View Processes and Systems
  • 38. GET -ED!
  • 39. Think Big, Start Smart, Scale Fast ig Credentials Think B • VisionSupply Chain 1 thoughts Performance SPS • Leverage resourcesImplementation Scale Fast 3 and experience Models Get Started ! Case Studies 2 Start Smart • First Plant Implementation 2001 2002 2003 2004 Source: Accenture
  • 40. Think Big Think BIG Because…nothing short of a step-change Credentials will keep you ahead of the competitionSupply Chain thoughts ging SPSImplementation Think packa Models Get Started ! Because…packaging touches every Case Studies aspect of your supply chain
  • 41. Think Bi g Credentials PackageSupply Chain Reclamation Design/ thoughts Reuse Engineering Recycling Graphics Management SPSImplementation Packaging Models Packaging Machinery Engineering Supply Packaging Get Started ! Chain Materials Case Studies Inventory Management Package Procurement Package Filling
  • 42. Improvement Criteria & To-Be Success Metrics Internal Credentials Customer Facing FacingSupply Chain Performance Responsiveness Flexibility Assets thoughts Attribute SPS Order fullfillment SuperiorImplementation Lead Time Models Supply Chain Advantage Get Started ! Response Time Case Studies Production Advantage Flexibility Inventory Advantage Days of Supply
  • 43. Building the Treasure Map High CredentialsSupply Chain thoughts Silver Bullets Strategic Step Changes Effort / Benefit SPSImplementation Models Get Started ! Case Studies Quick Wins Low High Value Achievement
  • 44. Start Smart Start SMART Assess Performance Attributes CredentialsSupply Chain thoughts Benchmark Performance SPSImplementation Prove Scenarios Models Get Started ! Design Supply Chain Model Case Studies Optimize
  • 45. Assess Benchmark Prove Design CredentialsSupply Chain thoughts SPSImplementation Models Get Started ! Case Studies
  • 46. Project overviewOpportunitiesPre-ScreeningPrioritisation Assessment Cycle End Letter of Full Final SPS Education Pre-Assessment Intent for Supply Chain Presentation & Presentation Assessment Implementation and Contract Implementation Adjustments and Subsequent Phases Solution Design, Deployment Benefits Project Continuous Tracking Development Start-up and Planning Operation and and Validation Transition Sharing Implementation Cycle
  • 47. Project overviewOpportunitiesPre-ScreeningPrioritisation Assessment Cycle End Letter of Full Final SPS Education Pre-Assessment Intent for Supply Chain Presentation & Presentation Assessment Implementation and Contract• Define Offering and • Team of 3-4 • Resource aligned • Team of 4-6 for 1-4 weeks • Process and Financial Analysis ImplementationSPS Supply Chain • 2 days per site • Project Scope & KPI’sManagement Program • High level discovery • Steering Committee • AS-IS Mapping • Opportunity pockets • Resource ID’d • Stakeholders & Implementation Issues/barriers • Value extraction • Assess SOP’s • TO-BE Mapping (game changing) • Prepare LOI (?) • Recommendations & Implementation roadmap Adjustments and Subsequent Phases Solution Design, Deployment Benefits Project Continuous Tracking Development Start-up and Planning Operation and and Validation Transition Sharing• Milestones • Joint team formed • 2-6 months depending on scope • Daily • Assess• Timing • Duration depends on complexity site, equipment, & management of delivered value• Resources scope & complexity systems operations • Quarterly• Plan / Metrics • QA review • Change management performance review Implementation Cycle
  • 48. Fast Scale FAST To pick the fruit Credentials Leverage resources and experienceSupply Chain thoughts SPSImplementation Models Get Started ! Case Studies
  • 49. Infrastructure = reusable capabilities START SCALE 1 2 3 5 6 7 SMART Acceleration FAST 8 Nth Gillette Whirlpool Mitsubishi Mitsubishi Gillette 3M yourco yourcoN.America. N.America N.America Europe Europe Plant 1 Plant 20 Insights:  It’s not about one site, it IS about leverage and speed  It is not about a fad, it IS about improving the business  It’s not about going for change, but it IS about going dollars
  • 50. CASE STUDY
  • 51. SPS™ Europe - Global Film Manufacturer Key Bottlenecks Logistically Independent Production Units - Duplication Credentials of Logistics Activities and Costs Lack of Collaborative Planning between Manufacturing and Packaging ReplenishmentSupply Chain Inventory Accuracy and Visibility thoughts Network of Past Relationships Size of Carrier Base vs. Synergies Interfaces and Transaction Processes - use of SAP SPS SPS SolutionsImplementation Reorganised pack matl. planning & purchasing Models SAP - Inventory control Re-engineered packaging supplier base Get Started ! Return & refurbishing with on-site service provider Selected 3PL for warehousing, dispatch, Case Studies transport Reduction of Carrier Base from 40 to 6 Achieved Cost Reduction of 11% Logistics 8% Procurement 9% Warehousing 17% Return / Recycling 20% Core Cutting (JIT) 30%
  • 52. SPS Europe Implementation Example - Major Film Company PLAN Source Make Deliver CONTAINERS MILKRUN Prod LINE 4 3 12 Prod LINE 5 Third Party FIN GOODS Suppliers Warehouse Prod LINE 6 4 3 Customers Refurbishing Dispatch Operation Consignment Customer Prod 2 Warehouses Sonoco 35 Prod LINE 1 Sonoco Plants Prod LINE 2 FIN GOODS Warehouses Prod LINE 3 Customer Prod 1 Managed by Sonoco Managed by Sonoco and Outsourced to 3PL
  • 53. SPS™ Europe – Global Tape Manufacture High Credentials Cost Optimisation / Opportunity Size PackagingSupply Chain Cycle Ph. 3 thoughts Converting Outsourcing SPS Packaging Cycle Ph. 2Implementation Models Scrap Purchasing Reduction Leverage Get Started ! Kaizen Lean Ph. 2 Kaizen Lean Case Studies Ph. 1 DPOU Low High Speed of Implementation
  • 54. Conclusion. What makes SPS™ so different ? Experience & success in 4 areas Credentials Outsourcing & Supply chainSupply Chain Contract Re-engineering thoughts Management & Implementation SPS Packaging SPS ™ IT integrationImplementation Models Design & & interface Manufacturing optimization Get Started ! Ability, desire, and culture to implement & Case Studies partner – Gain sharing (accountability) – Co-asset management – Resource sharing & leveraging
  • 55. Changing the way the world seesPACKAGING Sonoco Europe s.a. Boulevard du Souverain, 100 box 3 1170 Brussels – Belgium Tel: +32 2 663 45 40 Fax: +32 2 675 02 25 www.sonoco.com