Your SlideShare is downloading. ×
0
Disney Outsourced Supply Chain 2010
Disney Outsourced Supply Chain 2010
Disney Outsourced Supply Chain 2010
Disney Outsourced Supply Chain 2010
Disney Outsourced Supply Chain 2010
Disney Outsourced Supply Chain 2010
Disney Outsourced Supply Chain 2010
Disney Outsourced Supply Chain 2010
Disney Outsourced Supply Chain 2010
Disney Outsourced Supply Chain 2010
Disney Outsourced Supply Chain 2010
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Disney Outsourced Supply Chain 2010

549

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
549
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. The management of an outsourced network Supply Chain High-Tech Summit Amsterdam May 2010
  • 2. The Supply Chain for Packaged Media Creative process & authoring Critical path mngt Forecast Demand planning Customer order Invoice Supply planning Stock levels Manufacture Transport Pick/pack/ship 2
  • 3. Complicating factors • Market pressure to employ best practice and reduce costs • Concentration/consolidation of manufacturers, distribution and freight companies • Disney’s fragmented demand/supply chain structure, with 11+ distribution centers (costly and lack of standardization) • Increased pressure to fight piracy by reduced windows • Disney’s focus on content creation, rather than execution 3
  • 4. The Challenge Competitors Duties & Taxes Exchange Rates Market Demand External Revenue Growth Increase Shareholder Value* Asset Turns How do we find a robust solution that balances all objectives considering all constraints and inputs and drive the highest value? Minimize Inventory Reduce No. of Suppliers Maximize Asset Utilization at Sites Decrease Lead Times 100% Customer Satisfaction Co-Locate Capacity to Increase Responsiveness Minimize Transportation Costs Serve More Profitable Customers Better Internal Revenue Growth Operating Margin Provide Differentiated Customer Service Reduce Enterprise-wide Costs Asset Turns Increase Fixed Asset Utilization Improve Working Capital Utilization *Deloitte developed the SCM Value Map to link low-level drivers to shareholder value 4
  • 5. The Answer Automation &Automation & e-enablement Networking Shared services Networked services Benefits&degreeofchange 3 4 Standardi- 2 Real time information access Focus on core competence Access to “best- in-class” processes Free capital Fragmented operations Shared services Process and system integration Benefits&degreeofchange Consoli- dation Standardi- sation 1 Less overhead Lower facility costs Lower labor costs (location) Improved skill levels information access Increased speed of reporting Maximum reduction of costs Improved service levels Free capital resources Cross industry collaboration Best practice processes IT leverage Improved data quality Consistent global reporting 5
  • 6. Vision. New European SC Organisation, managing a sustainable*) network infrastructure Component • Despatch RetailFinal Information Flow (standardised) European Supply Chain Organisation: complete pan European responsibility Centralised planning function: demand and supply planning and control of flows Integrated supply chain systems: improved forecasting and inventory visibility, reduction of returns and stock levels Component Supply • Despatch • Direct Ship and Cross Dock Disney Warehouse Retailer DC Retail Store Final Assembly Physical FlowPhysical Flow (standardised) Increase ex factory and cross dock distribution, minimising handling and costs Rationalised warehouse structure, reducing costs Rationalised number of logistics suppliers, improving control and reducing costs Central sourcing and contract management function, to control performance “operational liaison” maintained in territories *) Customer satisfaction, operational excellence, cost saving and CO2 reductions 6
  • 7. The new Supply Chain Forecast Demand Finalize Build Plan Supply Plan Manufacture Store & Manage Inventory Order Management Credit & Collections b Upstream Supply Chain: • Manage master development Disney Technicolor and Sony DADC Distribution Scope of Management of European Operations Capacity Plan • Manage master development • Critical path management (Feasibility of Release dates) Downstream Supply Chain • Pricing • L.T. Capacity requirements • Demand Planning• b • SKU Management • Forecasting • Supply Chain management • Retail/Distribution Requirements Vengroff, Williams & Associates, Inc. b • Sales order management • Distribution – Pick, Pack & Ship • Manufacturing (BD is with Sony DADC)• b • Supply Chain Operations Execution b • Corporate Credit Management • Accounts Receivables & Collections Sony; Sonopress & Nintendo B • PSP, PS2 and PS3 • X360 and PC • Wii and NDS With each Partner focusing on their core business sustainable supply chain processes are established across Europe 7
  • 8. The Result • Increased reliability in executing and responding to changing market needs. – Component availability increased • OTIF > 99% across Europe • Reduced Working Capital by: – Increased stock turns– Increased stock turns – Increased forecast accuracy – Enabled ex-factory direct ship • Central Supply Chain Co realized Tax efficiencies • Common supply chain management systems significantly reduced individual market investments in supporting business requirements 8
  • 9. Lessons learned • The primary intent is strategic, not cost-focused. Need to be willing to give away (or share) the savings prize • Know your partner: It’s weakness and it’s strength • Move from “DIY” to measuring critical performances requires a different approach • 3PLs are not supply chain management service providers; 4PLs are not logistics service providers. • Some of the processes turned out to be more strategic than we initially thought: High risk when outsourced. 9
  • 10. Lessons learned (2) DEG USA Analyses of Supply Chain form CO New perspective of Supply Chain • Corporate responsibility • Shared responsibilities 10 form CO2 perspective: • Shared responsibilities • CO2 reductions of 13% • Cross industry cost savings
  • 11. Next steps • Responding to climate change, market demand and anticipate on product development • Standardization across the industry via Digital Entertainment Group Europe – Processes and products– Processes and products – Services • Towards sustainable services, products and supply chain – Optimized Processes and Supply Chain – Eco-efficient concepts – Disclosing and sharing of best practices 11

×