1. OPERATIONS & SUPPLY CHAIN MANAGEMENT
EXPERIENCE EVENING
17 SEPTEMBER 2013

2. © Vlerick Business School
PROGRAMME OF THE EVENING
WELCOME!
 06.30 pm – 07.00 pm: Welcome drink
 07.00 pm – 08.30 pm: I. About Vlerick
II. Our expertise
III. Q&A
 08.30 pm – 10.00 pm: Networking & advice
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3. I. ABOUT VLERICK

4. © Vlerick Business School
THE VLERICK MILESTONES
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5. © Vlerick Business School
VLERICK ANNO 2013
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6. © Vlerick Business School
VLERICK ANNO 2013
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7. II. OUR EXPERTISE

8. SUPPLY CHAIN MANAGEMENT
FROM OPERATIONAL TO STRATEGIC RELEVANCE
PROFESSOR ANN VEREECKE

9. © Vlerick Business School
AGENDA
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Why change?
Challenges for the future supply chain
Opportunities for improvement
6 trends in operations & supply chain
management

10. © Vlerick Business School
THE (SUPPLY CHAIN) WORLD IS CHANGING
September 2012
Hau Lee, Kevin O'Marah & Geraint John
www.scmworld.com
60% believe that the supply
chain function now has equal
status with sales and
marketing, and R&D/product
development within their
organisations.
75% expect digital demand to
force changes to their
manufacturing strategies and
their distribution networks,
as customer demands for
customised products and
experiences increase.
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A SOURCE OF INSPIRATION:
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GARTNER TOP 25 SUPPLY CHAIN 2013
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1. Apple
2-5. McDonald's, Amazon, Unilever, Intel
6-10. P&G, Cisco Systems, Samsung, Coca-Cola
Company, Colgate-Palmolive
11-15. Dell, Inditex, Wal-Mart, Nike, Starbucks
16-25. Pepsico, H&M, Caterpillar, 3M, Lenovo, Nestle,
Ford Motor, Cummins, Qualcomm, Johnson & Johnson
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TODAY’S SUPPLY CHAIN PRACTICES
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6 OPERATIONS & SUPPLY CHAIN TRENDS
Operational excellence
Agility
Resilience
Sustainability
Innovative supply chain design
Talent development
nr 7 ???
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WHAT IS DRIVING THE CHANGE?
Supply chains
are complex,
vulnerable,
and subject to lots of
uncertainty
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SC’S ARE VULNERABLE AND COMPLEX
VULNERABILITY
Disruptions do happen
September 11 (2001)
Hurricane Katrina (2005),
Volcano cloud (2010)
Tsunami & earth quake
(2011),
…
COMPLEXITY
Do we know our sources
of supply?
1st tier: OK
2nd tier: OK?
3rd tier: OK??
16
€ € € €
The (financial) impact of supply chain disruptions
can be substantial

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DO WE KNOW OUR SOURCES OF SUPPLY?
By Hans Greimel | AUTOMOTIVE NEWS
Posted March 28, 2011
TOKYO (March 28, 12:15 p.m. ET) -- Diodes,
microprocessors, circuit boards, voltage regulators,
copper foil -- the bottleneck in parts slamming
Japan’s auto industry stretches far down the
earthquake-rattled supply chain.
Indeed, many of the parts so badly needed aren’t
even immediately recognizable as auto parts.
Ford Motor Co. has suspended orders for
certain black and red vehicles because a
Tier 2 supplier in Japan no longer can
make a metallic paint pigment called
Xirallic.
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DO WE KNOW OUR SOURCES OF SUPPLY?
“Once it was ready to
admit that some of the
now dead workers
might've been making
its clothes, Benetton
admitted that its supply
chain — a labyrinth of
contractors and
subcontractors that
includes 700
manufacturers across
120 countries — was so
complex that the
company didn't really
know where its clothes
were coming from”
(www.theatlanticwire.co
m, May 8 2013)
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19. © Vlerick Business School
MORE UNCERTAINTY THAN EVER BEFORE
Changes in the global landscape
North Africa, a new emerging economy?
China, Bangladesh: labor forces coming on the streets
Political instability
19
www.nytimes.com/2010/06/11/business/global/11strike.htmlwww.afdb.org/en/news-and-events/article/

20. © Vlerick Business School
MORE UNCERTAINTY THAN EVER BEFORE
Economic instability
Spain, Greece, Ireland,
Italy, Portugal, ….
The first dip in
industrial
production was
deep
Double dip?
Triple dip?
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21. © Vlerick Business School
WHAT IS DRIVING THE CHANGE?
Supply chains
are complex,
vulnerable,
and subject to lots of
uncertainty
But also
plenty of
opportunities
for supply chain
improvement
and supply chain re-
design
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22. © Vlerick Business School
OPPORTUNITIES FOR SC IMPROVEMENT - DATA
More data is available than
ever before
On-line real-time data
Delivery information
Service information
Consumption patterns
Location-based data
Geo-tagging, geo-fencing, ...
Social networking,…
Traffic reports
Weather forecasts
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“BIG DATA IS SEXY, SMALL DATA BEAUTIFUL”
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Google Trends

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“If 3D printing becomes a common
feature of large-scale manufacturing
operations, the technology will have a
huge impact on all phases of supply
chain management.”
OPPORTUNITIES FOR SC IMPROVEMENT -
TECHNOLOGY
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25. © Vlerick Business School
OPERATIONS & SC TRENDS
Operational excellence
Agility
Resilience
Sustainability
Innovative supply chain design
Talent development
???
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26. 1.
OPERATIONAL EXCELLENCE

27. © Vlerick Business School
A CALL FOR OPERATIONAL EXCELLENCE
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Source: www.conference-board.org/ilcprogram

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A CALL FOR OPERATIONAL EXCELLENCE
Source: Clermonts and Ploos van Amstel, 2012
Logistics is inefficient
24% of all vehicle-km of heavy road
transport in the EU is empty
A truck is loaded on average for
57% in the EU
A truck driver is on the road during
60% of his time
It takes on average more than 4 hrs
to load or unload a truck
Moreover
Logistic resources are scarce
In the next 10 years, 20% of truck
drivers in the EU will retire
It adds to the CO2 emission
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Source: Supply Chain Decarbonization, World Economic Forum 2009
THE DARK SIDE OF LOGISTICS
2.500 Mega Tonnes CO2 in Logistics
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OPERATIONAL EXCELLENCE
How and where it all started
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THE KEY MESSAGE
Eliminate waste or “muda”
Continuous improvement or “kaizen”
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TODAY, MANY COMPANIES HAVE THEIR “XPS”
Volvo Production System
or “VPS”
Bosch Production System
or “BPS”
Caterpillar Production System
or “CPS”
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CAT LOGISTICS (NEOVIA) IN LUMMEN
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34. 2.
SUPPLY CHAIN AGILITY

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SUPPLY CHAIN AGILITY
Bridging the gap:
“design for supply”
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A typical customer visits Zara …
17 times a year
Zara introduces approximately …
11.000 new items a year
(Gap and H&M: 2.000 to 4.000)
From design to delivery, Zara
needs …
4 weeks; 2 weeks for new
versions of existing models
(average retailer: 6 to 12 months)

36. © Vlerick Business School
AGILITY AND MASS CUSTOMISATION
Modular design
assembly-to-order
offers variety in an
efficient way
Open innovation
customer preferences
lead to product
innovations
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TECHNOLOGY IS DRIVING CUSTOMISATION
Digital printing has changed the publishing supply
chain
Print-on-demand books, manuals, leaflets, catalogues, T-
shorts, cups, m&m’s…
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38. © Vlerick Business School
TECHNOLOGY IS DRIVING CUSTOMISATION
3D-printing is changing supply chain logic
Manufacturing close to point of consumption
Distributed, flexible, small-scale manufacturing (at 3PL’s?)
Small batches of highly customised products at low cost
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Made in China Made at home

39. © Vlerick Business School
3D-PRINTING IN MEDICAL APPLICATIONS
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Vlerick SC Conference 2012 – W. Vancraen

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3D-PRINTING IN MEDICAL APPLICATIONS
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Vlerick SC Conference 2012 – W. Vancraen

41. 3.
SUPPLY CHAIN RESILIENCE

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RESILIENCE
Supply chain risk management
Containment of supply chain disruptions
and prompt recovery from it
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TOYOTA GETS READY FOR THE NEXT EARTHQUAKE
43 www.reuters.com/article 6 Sept 2011

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SUPPLY CHAIN RESILIENCE
Toyota aiming for quake-proof supply chain
BMW’s real-time risk assessment
Supplier plants and locations are tagged and
matched to geographical and surveillance data
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45. 4.
SUSTAINABILITY

46. © Vlerick Business School
BALANCING THE 3 P’S
“no Supply Chain can survive if it’s
not sustainable”, COO food company
“most companies have so far
devoted relatively little effort to
the idea of sustainable supply
chain, largely because their
customers seem unwilling to pay
for it.
But the importance is now rising
sharply.” PWC report, 2013
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THE 3 P’S: PRESERVING THE PLANET
Preserving the planet
Use of material
Product design, new materials
Recycling, re-using, remanufacturing
Use of energy
Energy-efficient transportation
Avoiding pollution
Clean factories
CO2 neutral factories
Short supply chains
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48. © Vlerick Business School
THE 3 P’S: RESPECTING THE PEOPLE
Working conditions at Apple
factories in China
A selection of recent press
articles
You are NOT allowed to
commit suicide: Workers in
Chinese iPad factories forced
to sign pledges
(www.dailymail.co.uk; 1 May
2011)
In one factory it had found
42 children working on the
production line and has now
terminated its contract.
(www.telegraph.co.uk; 15
Feb 2011)
Two people died in an
explosion at the Chinese
factory which produces the
iPad 2.
(www.telegraph.co.uk; 21
May 2011)
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49. © Vlerick Business School
THE 3 P’S: RESPECTING THE PEOPLE
Working conditions at
H&M factories in Asia
A selection of recent
press articles
21 workers die in fire at
H&M factory
(www.independent.co.uk
2 March 2010)
What’s poisoning
workers in H&M factory
Cambodia? Mass faint in
factory
(businessnewscambodia.
com; Sept 2011)
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50. © Vlerick Business School
THE 3 P’S: RESPECTING THE PEOPLE
Rana Plaza –
Bangladesh, April 27
2013
(www.huffingtonpost.com)
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CLOSER TO HOME
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Amazon accused of
abusing Christmas staff
(www.thelocal.de, Febr 15
2013)
Amazon 'used neo-Nazi
guards to keep immigrant
workforce under control'
in Germany
(www.independent.co.uk)
Amazon unpacked; The
online giant is creating
thousands of UK jobs, so
why are some employees
less than happy? (Financial
Times, February 8, 2013)

52. © Vlerick Business School
THE 3 P’S: RESPECTING THE PEOPLE
Respecting the people in the supply chain
Safety & health regulation
Education & training
Fair remuneration
Fair trade
Supplier selection and auditing
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53. © Vlerick Business School
SUSTAINABILITY AT STARBUCKS
Starbucks’ priorities
Purchase 100% responsibly grown and ethically
traded coffee by 2015
Provided $14.6m in 2010 to organisations that
make loans to coffee farmers
Forest carbon programmes in Chiapas, Mexico
and Sumatra, Indonesia through partnerships
with Conservation International
Make 100% of the electricity used in global
company-owned stores renewable energy
equivalent by 2015
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54. 5.
INNOVATIVE SUPPLY CHAIN DESIGN

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INNOVATIVE SUPPLY CHAIN DESIGN
Multi-channel distribution & e-logistics
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SOLUTION PROVIDERS
Product providers become solution providers
Supermarket becomes systems provider
Yihaodian launches opens supply chain platform SBY
(Service By Yihaodian)
Car producer becomes supplier of mobility
Products and technology are converging
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PROSUMERS
When consumers become producers
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“Prosumption” of electricity “Prosumption” of information

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ORCHESTRATORS
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CAR-POOLING FOR CARGO
March 2011: first shared shipment of UCB and Baxter
Initially from Belgium to Romania
Then to Bulgaria, Slovakia, Slovenia, Hungary & Czech Republic
Plans to expand to other countries
Plans to add 3rd and 4th partner
Realised benefits (UCB annual report 2011)
10% cost savings shipment
30% CO² reduction
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60. 6.
SUPPLY CHAIN TALENT

61. © Vlerick Business School
SKILLS OF THE SC MANAGER “YESTERDAY”
1 2 3 4 5
Knowledge on environmental issues
Knowledge of laws, regulations
Technical skills related to product and processes
ICT skills
Knowledge of process analysis techniques
Knowledge of international business practices
Planning and inventory management skills
Logistics expertise (e.g. cost analysis and…
Negotiation skills
Analytical skills
Coordination and cooperation skills
People management/leadership skills
Decision making skills
Communication skills
very importantnot important
1. “soft” skills !!
2. functional expertise
3. knowledge of the business context
Vlerick research in 2008 (n = 743)
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62. © Vlerick Business School
SKILLS OF THE SC MANAGER “TODAY”
0,00 0,10 0,20 0,30 0,40 0,50 0,60 0,70
Analytical skills
Communication skills
Planning and inventory management skills
Decision making skills
Coordination and cooperation skills
Knowledge of process analysis techniques
People management/leadership skills
Logistics expertise (e.g. cost analysis and budgeting)
Technical skills related to product and processes
Negotiation skills
ICT skills
Knowledge of international business practices
Knowledge of laws, regulations
Knowledge on environmental issues
large increaseno increase
n = 743
Vlerick research in 2008 (n = 743)
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63. © Vlerick Business School
RESPONSIBILITIES OF THE SC ORGANISATION
TO WHAT EXTENT IS YOUR SC
ORGANISATION INVOLVED IN
ACTIVITIES WITH OTHER BUSINESS
PROCESSES?
•No role
1
•Informed (after decisions,
during actions)2
• Consulted (prior to
decisions/ actions)3
•Responsible for action
4
•Ultimately accountable
(individual or in team)
5
Vlerick research in 2012
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INTERFACES WITH PARTNERS IN THE CHAIN
Vlerick research in 2012
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65. © Vlerick Business School
INTERFACES WITH PARTNERS IN THE CHAIN
Vlerick research in 2012
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66. 7?
TO CONCLUDE

67. © Vlerick Business School
7 SUPPLY CHAIN TRENDS
Operational excellence
•Eliminating waste; continuously improving
Agility
•Speed of innovation; Mass customisation
Resilience
•Assessing and managing risk
Sustainability
•Balancing the 3 P’s
Innovative supply chain design
•Multi-channel, solution providers, prosumers, orchestrators
Talent development
•From experts to innovative networkers
???
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68. © Vlerick Business School
SOME SOURCES OF INFORMATION
POMS conference, Denver, May 2013
PWC, “Next-generation supply chains”, 2013
SCM World, “The chief supply chain officer report”, 2012
CAPS research
Harvard Business Review, “3-D printing will change the world”, March
2013
MIT CTL, “Transforming the future of supply chains through
disruptive innovation”, spring 2011
International Labour Organization, “Global employment trends for
youth”, 2013
Gartner Top 25 Supply Chain 2010, 2011 & 2012
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69. © Vlerick Business School
TOOLS & TECHNIQUES
ENTERPRISE
MANAGEMENT
HANDS-ON MANAGERIAL
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OUR VLERICK PROGRAMMES COMBINE

70. © Vlerick Business School
INTERNATIONAL COLLABORATIONS &
ENDORSING PARTNERS
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71. Operations &
Supply Chain
Management
Operational
Excellence
Executive
Master Class
in SCM
Purchasing
Management
Supply Chain
Finance

72. © Vlerick Business School
OPERATIONAL EXCELLENCE
SHORT-FOCUSED PROGRAMME
Module 1: Essence of Operational Excellence
 Strategic Importance of Operational Excellence
 Mapping the value stream
 Lean thinking and lean toolbox
 Lean planning & scheduling
 Lean maturity
 Company visit: putting theory into practice
Module 2: Success Factors in Operational Excellence
 Bottleneck management - theory of constraints - factory physics
 Capacity management and variability analysis
 Quality management
 Lean supply chains
 Change management
Lean Competency Accreditation (optional)
 An optional exam will allow participants to obtain the certificate ‘Lean Competency’, an
international accreditation by the Lean Enterprise Research Centre of Cardiff University.
72 www.vlerick.com/opex

73. © Vlerick Business School
INTENSIVE PROGRAMME – STRUCTURE
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74. © Vlerick Business School
EXECUTIVE MASTER CLASS IN SCM
INTENSIVE PROGRAMME
74 www.vlerick.com/emcscm

75. © Vlerick Business School
OTHER PROGRAMMES
SPECIALISED:
 Purchasing Management www.vlerick.com/purchasing
 Supply Chain Finance www.vlerick.com/scf
GENERAL MANAGEMENT:
 Project Management www.vlerick.com/projectmanagement
 Executive Development Programmes for
Young, Middle & Advanced managers
www.vlerick.com/edp
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76. III. Q&A