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SCOR Bahasa Book Launch in Indonesia by iCognitive Supply Chain
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SCOR Bahasa Book Launch in Indonesia by iCognitive Supply Chain

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Summary of the presentation made by Prof. John Paul during the ceremony launch in Jakarta, 28 Feb. 2014: ...

Summary of the presentation made by Prof. John Paul during the ceremony launch in Jakarta, 28 Feb. 2014:

PRESENTATION AND TALKS AGENDA:
=> GETTING TO KNOW THE SUPPLY CHAIN OPERATIONS REFERENCE SCOR® MODEL
=> HOW LEADING ORGANIZATIONS GET GREAT BENEFITS THROUGH SCOR® MODEL
=> STEPS AND ROADMAP TO IMPLEMENT SCOR® PROJECT IN YOUR ORGANIZATION
=> PANEL DISCUSSION ON SCOR® MODEL IMPLEMENTATION

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SCOR Bahasa Book Launch in Indonesia by iCognitive Supply Chain SCOR Bahasa Book Launch in Indonesia by iCognitive Supply Chain Presentation Transcript

  • SCOR® Bahasa Book Launch Ceremony Indonesia Supply Chain Transformation with SCOR® Model: © 2014 Copyright iCognitive Pte. Ltd. All rights reserved 15 years practical application cross-industries PPM Management Jakarta – January 28th, 2014 John Paul Managing Director of iCognitive Professor of Bordeaux School of Management (France) - KEDGE Certified Qualified SCOR® Instructor by Supply Chain Council PLAN SOURCE MAKE DELIVER RETURN
  • Agenda Supply Chain Transformation with SCOR® Model 15 years practical application cross-industries The context: iCognitive an Expert in Supply Chain Management • Getting to know Supply Chain Operations Reference (SCOR®) Model • © 2014 Copyright iCognitive Pte. Ltd. All rights reserved • How leading organization get a great benefits through SCOR® Model • Steps and Roadmap to implement SCOR® Project in your organization • SCOR® Best Practice: Case study on SC Improvement through Planning (by FuturMaster) 2
  • © 2014 Copyright iCognitive Pte. Ltd. All rights reserved The Context By iCognitive 3
  • The Unique Bahasa Book about SCOR® Model : Supply Chain Transformation with SCOR® Model: © 2014 Copyright iCognitive Pte. Ltd. All rights reserved 15 years practical application cross-industries 4
  • iCognitive: A Leading Supply Chain Expert About iCognitive © 2014 Copyright iCognitive Pte. Ltd. All rights reserved SCM experts Added high values Latest track record • John Paul created in 1993 the Research Center of Supply Chain at Gintic Institute of Manufacturing Technology( now SIMTech The Singapore Institute of Manufacturing Technology • Founded in Singapore in 2002, iCognitive is a leading consulting company specializing in Supply Chain Management and Research. • We are the authority in Asia on the Supply Chain Operations Referencemodel (SCOR) and its application to benchmark your supply chain with others. • Over 70 projects in Supply Chain Management worldwide • Highly experienced professionals in Supply Chain Management graduated from the world’s best institutions (NUS, ISLI, Bordeaux school of management) and Master certified SCOR instructor • Multi-national teams working on international scale projects (Asia, Europe, Middle East, Africa) • Provides tailored services in various levels with SCOR methodology based on customer requirements • Supported by cutting edge approach (strategic benchmarking, business intelligence, public benchmarking, etc…) • Recognized as a leading SCOR expert by the Supply Chain Council (www.supplychain.org) • AMR Institute ranks iCognitive among 6 worldwide leading benchmarkers in supply chain management • In cooperation with our client British American Tobacco (BAT) winner of the 2005 Supply Operational Excellence award and the Global SCOR award 2005 by the Supply Chain council.
  • An international team • Thinking Globally and Acting Locally • Multicultural and experienced team • Experienced consultants in Asia-Pacific and Europe • iCognitive Europe Paris La Défense iCognitive China France Hangzhou China © 2014 Copyright iCognitive Pte. Ltd. All rights reserved FRANCE iCognitive Africa CHINA Coming Soon MALAYSIA SINGAPORE iCognitive Malaysia Kuala Lumpur Malaysia iCognitive Singapore HQ - Singapore Consulting Benchmark Training & Workshop Technology Research 6
  • An integrated service offering BENCHMARKING © 2014 Copyright iCognitive Pte. Ltd. All rights reserved CONSULTING RESEARCH IN SUPPLY CHAIN TRAINING OUTSOURCING BUREAU SOLUTIONS TECHNOLOGY 7
  • © 2014 Copyright iCognitive Pte. Ltd. All rights reserved Getting to know SCOR® Model By iCognitive 8
  • Indonesia Supply Chain: Challenges and Opportunities Indonesia today.. • © 2014 Copyright iCognitive Pte. Ltd. All rights reserved • • • • Indonesia’s Population (2010, Biro Pusat Statistik) (2013, UN Estimate) Indonesia GDP (2013, estimate) : 237,641,326 : 249,866,000 : $1.285 trillion • • World’s fourth most populous country Largest archipelago in ASEAN, (over 17,500 islands, with over ½ population residing on Java) 16th largest economy 53% of population in cities producing 74% GDP Major sea-lanes linking key regional and worldwide markets Rich of natural resources Economic growth of 6 % in 20102012 Source: Various
  • Definitions of Supply Chain Management Supply Chain Management is: – ‘simply the process of optimizing the delivery of goods, services and information from supplier to customer, balancing supply and demand.’ © 2014 Copyright iCognitive Pte. Ltd. All rights reserved – Gartner Group, 1999 – ‘The management of all customer interactions (order entry through paid invoice), all physical material transactions (supplier’s supplier to customer’s customer, including equipment, supplies, spare parts, bulk product, software, etc.) and all market interactions (from the understanding of aggregate demand to the fulfillment of each order).’ – Supply Chain Council, 2004 – ‘Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities including coordination and collaboration with channel partners.’ – Council of Logistics Management, 2004 10
  • Definitions of Supply Chain Management Supply Chain Management is: ‘Supply chain is a dynamic community of © 2014 Copyright iCognitive Pte. Ltd. All rights reserved companies working together to fulfill customer requirements and obtain a certain profit.’ ‒ Prof. John Paul 11
  • Change of mindset Porter • Functional view of operations SCOR® • Process view of operations Suppliers Source Make Deliver Return Enable Customers © 2014 Copyright iCognitive Pte. Ltd. All rights reserved Plan Return Your organization 12
  • © 2014 Copyright iCognitive Pte. Ltd. All rights reserved SCOR® Model Version 11.0 By iCognitive 13
  • Supply-Chain Council Overview • • • © 2014 Copyright iCognitive Pte. Ltd. All rights reserved • • • • The SCC is an independent, not-for-profit, trade association Membership open to all companies and organizations Focus is on research, application and advancement and advancing state-of-the-art supply chain management systems and practices Developer and endorser of the Supply Chain Operations Reference (SCOR®) as a crossindustry standard for supply chain management Offers Training, Certification, Benchmarking, Research, Team Development, Coaching, and Cross-standard Integration focused on the SCOR® framework Founded in 1996 Chapters in North America, Europe, Japan, South Africa, Latin America, Australia/New Zealand, South East Asia and Greater China, with developing Chapters India and Middle East Driving value through the use of SCOR® 14
  • What is a process reference model? Process reference model integrates the well-known concepts of business process reengineering, benchmarking, process measurement, and organizational design into a cross-functional framework © 2014 Copyright iCognitive Pte. Ltd. All rights reserved Business Process Re-engineering Performance Benchmarking Capture the ‘as-is’ business activity and design the future ‘to-be’ state Quantify relative performance of similar supply chains and establish internal targets Best Practices Analysis Organizational Design Identify the practices and software solutions that result in significantly better performance Assess skills and performance needs and align staff and staffing needs to internal targets Process Reference Framework Processes Performance (metrics) Practices People (skills) 15
  • SCOR® & SIX distinct management processes SCOR® (Supply Chain Operations Reference model) is a comprehensive methodology to manage and improve a company’s supply chain operations. Plan Plan Plan Deliver © 2014 Copyright iCognitive Pte. Ltd. All rights reserved Return Suppliers’ supplier Source Make Return Deliver Return Supplier Source Make Deliver Return Enable Return Source Make Return Deliver Return Source Return Internal or External Customer Customers’ Internal or External Your organization customers Building Block Approach Processes Metrics Practices People Technology 16
  • SCOR® contains three levels of details SCOR® contains 3 major level of details: Top Level, Configuration Level and Process Element Level. LEVEL Supply Chain Operations Reference Model © 2014 Copyright iCognitive Pte. Ltd. All rights reserved Description Top level (process types) Schematic PLAN SOURCE MAKE RETURN ENABLE DELIVER RETURN Comments Level 1 defines the scope and content for the Supply Chain Operations Reference model. Here, basis of performance targets are set. (developed in Metrics) Configuration Level A company’s supply chain can be “configured-toorder” at Level 2, from approximately 30 core “process categories.” (process categories) Companies implement their operations strategy through their unique supply chain configuration. Process Element Level (process decomposition) Level 3 defines a company’s ability to compete successfully in its chosen markets and consists of: Process element definitions • Process element information inputs and outputs • Process performance metrics • Best practices, where applicable • System capabilities required to support best practices 17
  • Supply Chain Operations Reference model SCOR® V11.0 – Processes Plan P2 Plan Source P6 Plan Enable P1 Plan Supply Chain P3 Plan Make Source P4 Plan Deliver Make Suppliers M1 Make-to-Stock S2 Source MTO Products M2 Make-to-Order S3 Source ETO Products Deliver D1 Deliver Stocked Products M3 Engineer-to-Order D2 Deliver MTO Products D3 Deliver ETO Products D4 Deliver Retail Products SR1 Source Return Defective Product DR1 Deliver Return Defective Product SR2 Source Return MRO Product DR2 Deliver Return MRO Product SR3 Source Return Excess Product Customers S1 Source Stocked Products © 2014 Copyright iCognitive Pte. Ltd. All rights reserved P5 Plan Returns DR3 Deliver Return Excess Product Enable E1, E2, E3, E4, E5, E6, E7, E8, E9, E10 18
  • SCOR® Model Measuring Performance (Metrics) © 2014 Copyright iCognitive Pte. Ltd. All rights reserved • Measuring how well the supply chain performs is as essential as understanding how it operates – Measurements must link to business objectives – Measurements must be repeatable – Measurements must provide insights into how to manage the supply chain more effectively – Measurements must be appropriate for the process activity they are measuring • Same level 19
  • SCORcard: Level 1 Metrics & Performance Attributes Performance Attributes Level 1 Strategic Metrics External -Facing Reliability Perfect Order Fulfillment (RL.1.1) Order Fulfillment Cycle Time (RS.1.1) Responsiveness Internal-Facing Agility Assets √ √ Upside Supply Chain Flexibility (AG.1.1) © 2014 Copyright iCognitive Pte. Ltd. All rights reserved Costs √ Upside Supply Chain Adaptability (AG.1.2) √ Downside Supply Chain Adaptability (AG.1.3) √ Supply Chain Value-At-Risk (AG.1.4) √ Total cost-to-serve (CO.1.1) √ Cash-to-Cash Cycle Time (AM.1.1) √ Return on Supply Chain Fixed Assets (AM.1.2) √ Return on Working Capital (AM.1.3) √ 20
  • Supply Chain SCORcard & Gap Analysis Performance Vs. Competitive Population Perfect Order Fulfillment (RL.1.1) Responsiveness Actual Median Advance BIC Order Fulfillment Cycle Time (RS.1.1) Upside Supply Chain Flexibility (AG.1.1) Supply Chain Agility Upside Supply Chain Adaptability (AG.1.2) Downside Supply Chain Adaptability (AG.1.3) Supply Chain Value-At-Risk (AG.1.4) Internal © 2014 Copyright iCognitive Pte. Ltd. All rights reserved Level1 SCOR Metrics Reliability External Attribute Supply Chain Costs Total cost-to-serve (CO.1.1) Cash-to-Cash Cycle Time (AM.1.1) Asset Management Return on Supply Chain Fixed Assets (AM.1.2) Return on Working Capital (AM.1.3) 21
  • © 2014 Copyright iCognitive Pte. Ltd. All rights reserved How leading organizations obtain great benefits through SCOR® Model Case Studies 22
  • Top Line Benefits of SCOR® © 2014 Copyright iCognitive Pte. Ltd. All rights reserved – from one implemented company • Provide Common Language across the organization • Provide Common Metrics for the Supply Chain • Detailed Process Mapping for continuous review & improvement • Provide a Platform for the Supply Chain to act faster and cheaper • Total Savings $$ Million • Total Cash release $$ Million • Positive Impact on SCORcard 23
  • [Case Study] Preparing for Growth: Coca Cola China, FMCG sector • Company: © 2014 Copyright iCognitive Pte. Ltd. All rights reserved – World's leading manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups. – Long-term strategies to localize production and building infrastructure through partnerships with the Chinese government and domestic companies. • Challenge: – Bring up the level of understanding on the Supply Chain Management within and outside of the company, thus to build a more integrated Supply Chain with its suppliers and customers. 24
  • [Case Study] Preparing for Growth: Coca Cola China, FMCG sector • Solution: – Using SCOR® to assess the current supply chain (As-Is) and design target To-Be, with in-depth and continuous support for implementation and managing sustainability of SCOR® culture © 2014 Copyright iCognitive Pte. Ltd. All rights reserved • Results: – – – – – – – Reduction of inventory by 35% Reduction of COGS by 4% of revenue Two digit consistent revenue growth Improved order fulfillment results A more balanced level of Cash-to-cash Cycle Time Break department silo, cross-functional supply chain process view Common supply chain language and platform for process integration, SCOR® culture throughout whole Coca Cola China iCognitive was invited to ensure SCOR® sustainability through 5 years collaboration 25
  • SCOR® Journey A 5 years collaboration between SCMC and iCognitive © 2014 Copyright iCognitive Pte. Ltd. All rights reserved Extended SCOR® Training SCOR® Project • As-Is • To-Be SCOR® Implementation 2006 When SCOR® starts.. SCOR® for sustainability 2010 2009 2008 2007 • 11 Micro Projects • Training SCOR® Extended • Training & Education • Spare part projects SCOR® Micro Projects Corporate Education Spare part projects 26
  • [Case Study] Redesign the Supply Chain to bring efficiency: THALES, Aerospace Sector • Company: © 2014 Copyright iCognitive Pte. Ltd. All rights reserved – Thales Aerospace Services Worldwide Asia Pacific, is part of the Aerospace division which provides equipment for civil and military aircraft, mission electronics for combat aircraft, and airborne surveillance and mission systems for armed forces and civil security authorities. • Challenge: – To cope with the increasing volume of activity resulted from a booming new business line, In-Flight Entertainment (IFE) activity, as well as an opportunity to reach quickly the same level of maturity as the Avionics’ business, Thales Asia Pacific decided to conduct a major Supply Chain Improvement program. 27
  • [Case Study] Redesign the Supply Chain to bring efficiency: THALES, Aerospace Sector • Solution: – SCOR® model - iCognitive’s 3-phase approach was used to: assess the current IFE Supply Chains (As-Is), identify strategic improvement opportunities (To-Be), and implement of the selected initiatives © 2014 Copyright iCognitive Pte. Ltd. All rights reserved • Result: – The ROI (19.2) attained within 12 months, through the implementation of 21 initiatives (12 Quick Wins and 9 projects), including:       Increase the Data Accuracy and Sales & Operations planning Increase the Supplier performance Optimization of the Repair process Set up of a Performance Measurement Reduction of the Inventory Optimize Assets utilization, … 28
  • © 2014 Copyright iCognitive Pte. Ltd. All rights reserved Steps and Roadmap to Implement SCOR® Project in Your Organization 29
  • iCognitive SCOR® Project Roadmap © 2014 Copyright iCognitive Pte. Ltd. All rights reserved As-Is Education To-Be Build SCORcard As-Is Education and set Modeling basis for competition Design To-Be Model Implementation Develop Prototype Education Verify Implement Re-configuration 30
  • iCognitive SCOR® Project Roadmap As-Is © 2014 Copyright iCognitive Pte. Ltd. All rights reserved Education •Project kick-off •SCOR workshop •SCOR executive briefing To-Be Build SCORcard As-Is Education and set Modeling basis for competition •Geo-mapping •Process Lev14 Mapping •Financial Flow •Cycle Time •Best practice Analysis •SC Organogram •Supplier & Customer Profile •IT System Overview •Build Scorecard •Benchmark •Gap analysis •Set basis of competition •SCOR To-Be Design workshop •SCM impact on Finance workshop Design To-Be Model Brainstorm for potential improvement Approach: •Disconnect •Opportunity •Assumption •Business case Implementation Develop Prototype Develop a business case for each of the selected To-Be projects Confidential Education Project management workshop Verify •Fine tune the business case •Verify it Implement •Build project team •Initiate project •External monitor •SystemSCIPO •Performa nce analysis service 31
  • SCOR® Implementation Framework integrates organization change before embarking in the implementation © 2014 Copyright iCognitive Pte. Ltd. All rights reserved As-Is Education As-Is Modeling To-Be Build SCORcard and set basis for competition Education Design ToBe Model Implementation Develop Prototype Verify Implement Finalize organization change 32
  • Supply Chain Excellence Award • With support of iCognitive, British American Tobacco Pakistan SCOR implementation project won two awards from Supply Chain Council: – Supply Chain Operational Excellence Award 2005 – Global Award for Supply Chain Excellence 2005 © 2014 Copyright iCognitive Pte. Ltd. All rights reserved • Return On Investment of this project is more than 10 times 33
  • 34 © 2014 Copyright iCognitive Pte. Ltd. All rights reserved
  • Training: Nurturing the Future – Public workshops: Share your experience with other supply chain professionals and the trainer © 2014 Copyright iCognitive Pte. Ltd. All rights reserved – In-House workshops: Customized workshops to meet your particular needs – Training plus Coaching: Master the real execution through knowledge sharing and hands-on support from experienced subject expert – E-learning courses: Allow your staff to learn in a more individualized and flexible learning pace Supply Chain Training 35
  • © 2014 Copyright iCognitive Pte. Ltd. All rights reserved iCognitive Publication First SCOR® Book published in Bahasa, Chinese and French French version French Version, 2nd Edition Chinese version Chinese Version 2nd Edition Coming soon Bahasa Version Launched Jan. 2014 On sale on: http://www.icognitive.com/estore/ 36
  • © 2014 Copyright iCognitive Pte. Ltd. All rights reserved iCognitive Europe 7C, place du Dôme Immeuble Elysées La Défense Paris La Défense 92056 France Tel:+33 (0)1 72 75 72 30 Fax:+33 (0)1 72 75 72 99 iCognitive HQ & APAC 13 Ann Siang Road #02-01 Singapore 069693 Phone +65 63252810 Fax +65 62200690 www.icognitive.com info@icognitive.com iCognitive Malaysia 10th Floor, Wisma Havela Thakardas No.1, Jalan Tiong Nam, Off Jalan Raja Laut Kuala Lumpur 50350 Malaysia Phone: +65 6325 2810 Fax:+65 6220 0690 www.icognitive.com iCognitive China Room 101- 201, A unit, 3rd building No.4028 Nan Huan Road Hangzhou 310053 China (PRC) Phone: 86 - 571 2689 2730
  • © 2014 Copyright iCognitive Pte. Ltd. All rights reserved Thank you www.icognitive.com