Harris et al. (2009) reports best-in-class manufacturing SCM:
Focus on partnerships rather than contracts .
To leverage economies of scale
To create new efficiencies & cost reductions
To manage complexity and focus on core business through outsourcing relationships
To improve reliability and long-term performance
Assumed Control of Global Sourcing & Procurement Hidden purchase of strategic components directly from lower supplier manufacturers Resells components up the supply chain Leverage Global Buying Power to Reduce Costs Reduces risk of lower order suppliers feeling pressured to reduce prices Ensures distribution based on need Mitigates risk to Quality Mitigates risk from supplier cost blow-outs and fluctuations Increases SC transparency Ensures supply of critical components Opportunity to monitor quality & performance Reduces supplier costs & risks Keeps sensitive Information within The company
Solely cost-oriented competitive approaches have given way to long-term, value-driven relationships between parties.
Suppliers Open collaboration: Expertise & Knowledge Sharing Improved long-term relationships built on trust Shared supply chain risk Shared response to cost reduction from larger cost base Improved Time-to-market
N=1 Customers will demand unique personalised experiences over products or solutions.
R = G satisfying customer demands will be resourced from a global talent pool.
N = 1 Focus on the centrality of the individual
Value based on unique, personalised experiences
One customer experience at a time - even if you have a 100 million customers.
R = G Focus on access to, not ownership of resources
No firm is big enough in scope and size to satisfy experiences of one customer at a time.
Firms will access resources from a “global ecosystem” of multiple, globally positioned, small & large suppliers.
Evidence of change ABB enters strategic partnering agreements in China for manufacturing and IT to focus on “ABB’s real art.” Phillips is teaming up with academics, industry peers and suppliers to create momentum for future directions. EADS is looking for innovation and people who think differently – student competitions to design aircraft parts, materials and systems. Bombardier had developed a industry-leading logistics, technical, maintenance, and field support network for its Learjet. TomTom collects customer innovations and feeds them directly into the design process.
Introduce “Best of Australia’s SME Defence Industry” to Boeing’s supply chain
4 day conference – St Louis (Defence) and Seattle (Civil) aviation supply chains
Meeting with Boeing supplier management and key suppliers to develop relationships and foster new opportunities
Tour of 787, 777, 747, 737 lean production lines – Everett and Renton
Delegates at Everett 777 assembly line Examples of change
The basis for relationship Knowledge Management Connectivity Open Innovation Collaboration Collective Intelligence Knowledge Discovery Data and information Management LEARNING ACTION Sense-making EXPERIENCE Individual Expertise Collaborative Media Business Analytics Data and Information Infrastructure
Open innovation networks Customer Networks Professional Networks Business Networks Practice Networks Process Networks