Se præsentation af Alan Waller


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  • Consumer lifestyles, their resultant expectations and needs, are changing, rapidly. Consumers are taking control and exercising choice in seeking the best combination of value, convenience and customisation on offer driving change, demanding, less tolerant, less time, fewer trips, more sceptical, buyers market, easier, cheaper, faster, meals not ingredients, solutions-based propositions - pressure on manufacturer brands as they will be “baked into” the product average food preparation time 1934 2.5hrs …… 1997 15 mins - for cash-rich, time poor consumers convenience is essential not merely desirable consumer lobby groups have become more vocal and organised - public health, food safety, animal rights, general concern for the future of the planet - public authorities taking a more regulatory & litigious (expensive) approach new rules on packaging and recycling, genetic foods, live animal transport, etc …. Invariably involve extra costs There are decreasingly "typical" consumers. Retail and FMCG businesses will have to deal with ever smaller and better defined segments of their market. The premium on customer knowledge is correspondingly huge. Many FMCG businesses are conceding "ownership" of the consumer to the retailer, as the latter have massive brand presence and are better placed to meet consumer demand for tailored solutions (through loyalty programmes, category management etc).
  • Se præsentation af Alan Waller

    1. 1. Supply Chain Management in a Changing World- The Challenges for Organisations and Managers <ul><li>Alan Waller </li></ul><ul><li>- Chairman - Institute of Logistics and Transport </li></ul><ul><li>- Vice President - Solving International </li></ul><ul><li>- Visiting Professor - Cranfield School of Management </li></ul><ul><li>Project Director - European Council on Global Supply Chain </li></ul><ul><li>Chairman - ELUPEG </li></ul>Nyborg Denmark 6 November 2003 Supply Chain Day 2003
    2. 2. AGENDA <ul><li>Understanding the business world </li></ul><ul><li>Understanding the customer </li></ul><ul><li>Understanding the organisation </li></ul><ul><li>Understanding the value chain </li></ul><ul><li>Understanding the individual manager </li></ul><ul><li>Barriers to success </li></ul><ul><li>The way ahead </li></ul>
    3. 3. AGENDA <ul><li>Understanding the business world </li></ul><ul><li>Understanding the customer </li></ul><ul><li>Understanding the organisation </li></ul><ul><li>Understanding the value chain </li></ul><ul><li>Understanding the individual manager </li></ul><ul><li>Barriers to success </li></ul><ul><li>The way ahead </li></ul>
    4. 4. Global forces are shaping a radically different competitive environment Hypercompetition + Globalisation … and the frontiers of competition are changing at an ever increasing rate Competitive Pressures in the Supply Chain Serving localised customer needs through longer, more complex supply lines Ever more demanding customers and consumers Changing market boundaries and new channels Aggressive global competition Industry consolidation and alliances Environmental and risk issues Stakeholder pressures Speed of technology change Shortening product life cycles
    5. 5. AGENDA <ul><li>Understanding the business world </li></ul><ul><li>Understanding the customer </li></ul><ul><li>Understanding the organisation </li></ul><ul><li>Understanding the value chain </li></ul><ul><li>Understanding the individual manager </li></ul><ul><li>Barriers to success </li></ul><ul><li>The way ahead </li></ul>
    6. 6. A new customer is emerging … <ul><li>Customers want buying to be </li></ul><ul><ul><li>easier </li></ul></ul><ul><ul><li>faster </li></ul></ul><ul><ul><li>cheaper </li></ul></ul><ul><ul><li>more fun </li></ul></ul><ul><ul><li>… real value </li></ul></ul>Quality Consistency Service Selection Convenience Price Time Effort Risk MORE LESS These trends are forced up through the value chain
    7. 7. Suppliers will seek solution-based offers … <ul><li>They will focus on </li></ul><ul><ul><li>providing tomorrow’s customers with solutions </li></ul></ul><ul><ul><li>shifting from commodity products to differentiated solutions </li></ul></ul><ul><ul><li>world-class products and world-class service </li></ul></ul><ul><ul><li>enthusing their customers </li></ul></ul><ul><ul><li>Reaching out to understand their customers’ customers </li></ul></ul><ul><li>Suppliers will expect their suppliers to react in the same way </li></ul>
    8. 8. AGENDA <ul><li>Understanding the business world </li></ul><ul><li>Understanding the customer </li></ul><ul><li>Understanding the organisation </li></ul><ul><li>Understanding the value chain </li></ul><ul><li>Understanding the individual manager </li></ul><ul><li>Barriers to success </li></ul><ul><li>The way ahead </li></ul>
    9. 9. “Our Focus is on markets and brands, but without an effective supply chain, we cannot even begin to compete” Chairman, Unilever
    10. 10. Business pressures in the new millennium <ul><li>The top 5 </li></ul><ul><li>Globalisation </li></ul><ul><li>Hypercompetition </li></ul><ul><li>Focus on core competence </li></ul><ul><li>Speed of change </li></ul><ul><li>Stakeholder pressures </li></ul>Doing nothing is not an option Source: European Supply Chain Directors Discussion Forum, - 2000 to 2002
    11. 11. Globalisation <ul><li>“ As the world shrinks, supply chains become </li></ul><ul><li>longer and more complex” </li></ul><ul><li>Alan Waller </li></ul>
    12. 12. Hypercompetition <ul><li>The customer demands excellence across all competitive dimensions </li></ul><ul><li>Supply chain performance will make or break the competitive offering </li></ul><ul><li>Businesses need to excel at designing and executing all key customer-facing business processes throughout the end-to-end value chain </li></ul>
    13. 13. Focus on core competence Businesses are responding by focusing on core competencies and outsourcing non-core activity creating networked organisations Source: Chatham House Forum Vertical integration Network organisation
    14. 14. Speed of change - fuelled by technology Functional Innovative Products Focused Agile Manufacturing Fast Warp Speed Speed of Change Design-make-sell Sell-design-make Process Passive Interactive Customers Organised Chaotic Planning Hierarchical Networked Organisations Guarded Available to all Information Turnover Profit Growth Focus All areas of business are challenged
    15. 15. Stakeholder pressures <ul><li>Customer pressures - attracting and retaining profitable customers </li></ul><ul><li>Shareholder pressures - competing for funds - not just sales </li></ul><ul><li>Employee pressures - competing for people - not just markets </li></ul><ul><li>External pressures - legislation / regulators / environmentalists / public opinion </li></ul>
    16. 16. AGENDA <ul><li>Understanding the business world </li></ul><ul><li>Understanding the customer </li></ul><ul><li>Understanding the organisation </li></ul><ul><li>Understanding the value chain </li></ul><ul><li>Understanding the individual manager </li></ul><ul><li>Barriers to success </li></ul><ul><li>The way ahead </li></ul>
    17. 17. Developing a strategic supply chain vision <ul><li>The globalised Supply Chain must deliver the required service at the lowest total cost ... </li></ul><ul><li>This requires: </li></ul><ul><ul><li>ensuring all supply chain players work together, by integrating </li></ul></ul><ul><ul><ul><li>across functions </li></ul></ul></ul><ul><ul><ul><li>across borders </li></ul></ul></ul><ul><ul><ul><li>across interfaces </li></ul></ul></ul><ul><ul><li>developing and implementing strategies to deploy all assets to give an optimised total value chain </li></ul></ul><ul><ul><ul><li>plants and warehouses (internal and suppliers/distributors) </li></ul></ul></ul><ul><ul><ul><li>sales offices </li></ul></ul></ul><ul><ul><ul><li>product portfolios </li></ul></ul></ul><ul><ul><ul><li>service centres </li></ul></ul></ul><ul><ul><ul><li>IT and support services </li></ul></ul></ul>... which can only be achieved through EXPLOITING eSUPPLY CHAIN OPPORTUNITIES AND SOLUTIONS IN SUSTAINABLE PARTNERSHIPS
    18. 18. Economies of scope in technology and innovation ... In automotive production resource sharing has already happened Contract Manufacturing “Co-Makership” will increase <ul><li>One people carrier </li></ul><ul><ul><li>Galaxy </li></ul></ul><ul><ul><li>Sharan </li></ul></ul><ul><li>Vehicle manufacturers’ share </li></ul><ul><ul><li>One plant </li></ul></ul><ul><ul><li>One assembly track </li></ul></ul><ul><ul><li>“ Purchased by the hour”? </li></ul></ul>“ Partner with your competitors and compete with your partners”
    19. 19. Drivers of the 21st Century Supply Chain SUPPLY CHAIN RESPONSE <ul><li>Retailers </li></ul><ul><ul><li>Global </li></ul></ul><ul><ul><li>Seek solutions </li></ul></ul><ul><ul><li>Increase range </li></ul></ul><ul><li>Manufacturers </li></ul><ul><ul><li>Focus on core </li></ul></ul><ul><ul><li>Network/outsource </li></ul></ul><ul><ul><li>Agility </li></ul></ul><ul><li>Systems </li></ul><ul><ul><li>ERP </li></ul></ul><ul><ul><li>Bolt-ons </li></ul></ul><ul><ul><li>Process driven </li></ul></ul><ul><li>Technology </li></ul><ul><ul><li>New channels </li></ul></ul><ul><ul><li>New business </li></ul></ul><ul><ul><li>Low cost </li></ul></ul><ul><ul><li>Co-makership </li></ul></ul><ul><ul><li>Mass customisation </li></ul></ul><ul><ul><li>Process driven </li></ul></ul><ul><li>Consumers </li></ul><ul><ul><li>Ever more demanding </li></ul></ul><ul><ul><li>Pro-active </li></ul></ul><ul><ul><li>Interactive </li></ul></ul>
    20. 20. <ul><li>“ How do we deliver distinctive value and differentiated service to local customers whilst at the same time exploiting opportunities from a globalised view of supply chain?” </li></ul><ul><li>How do we align the whole enterprise - people, processes,operations, technology, suppliers , other business partners - around a programme of progressive strategic change“?” </li></ul><ul><li>“ How do we futureproof, and build agility, into our supply chain operations in response to the pace of external change and ever increasing pressures from shareholders and competitors?” </li></ul>Three central themes emerge consistently on the CEO agenda Strategic Imperatives The Key Enablers Managing at the Pace of Change
    21. 21. Twelve Imperatives for Outstanding Supply Chain Performance 4 . Strategic Sourcing and Co-Venturing Partnerships Searching for Structural Advantage Adding Value to the Customer Business Integration and Performance Drivers 6 . Operations beyond the Productivity Edge 3 . Global Operations Restructuring 5 . Integrating / Synchronising the Supply Chain Network 1 . The Customer Value driven Supply Chain Managing at the Pace of Change Strategic Imperatives 2 . Differentiation through the Product Offering 12. Agility and Ability to Respond to Change 10. High Performance Partnerships 7. Process and Performance Measures 9. Business Structure and Organisation 11. Leveraging Information and Technology Key Enablers 8. People and Behaviours
    22. 22. Managing at (or beyond) the pace of change <ul><li>Some key messages which emerge…. </li></ul><ul><li>“ Board level leadership is essential for success” </li></ul><ul><li>“ Agility to respond to changing market circumstances is key for survival… and can be a competitive weapon in its own right” </li></ul><ul><li>“ Don’t get locked in by assets, partnerships, people or systems” </li></ul><ul><li>“ Strategic change must be built into the ‘everyday job’ “ </li></ul><ul><li>“ Achieving agility should be seen as an investment, and therefore may require short term sacrifices” </li></ul><ul><li>“ The old model of strategy, design and implement is dead… the future model will be vision led… with continuous implementation, continuous benefits, “proving by doing” and pro-active adaptation of strategy” </li></ul>
    23. 23. The benefits – some recent experience Client In all cases, with increased Customer Service across Europe <ul><li>FMCG Manufacturer </li></ul><ul><li>Personal Care Products </li></ul><ul><li>Computer Supplies </li></ul><ul><li>Engineering Plastics </li></ul><ul><li>Healthcare Products </li></ul><ul><li>Consumer Products </li></ul><ul><li>Wines and Spirits </li></ul><ul><li>8% reduction in total manufacturing and logistics costs </li></ul><ul><li>5% reduction in total manufacturing and logistics costs </li></ul><ul><li>15% reduction in total logistics costs, including significant inventory reductions (30-40%) </li></ul><ul><li>25% decrease in total logistics costs </li></ul><ul><li>20% inventory reduction </li></ul><ul><li>30% reduction in total logistics costs </li></ul><ul><li>60% reduction in finished goods inventories and £2-3m p.a. in operating savings </li></ul><ul><li>Focused factory sourcing and regional warehousing </li></ul><ul><li>Retail logistics restructuring, new sourcing arrangements, European DC </li></ul><ul><li>New European DC, with introduction of DRP </li></ul><ul><li>New sourcing arrangements, centralisation of slow movers, responsive transport system </li></ul><ul><li>Regional logistics structure </li></ul><ul><li>Regional logistics consolidation in heartland, with satellite warehouses </li></ul><ul><li>National network rationalisation and supply chain synchronisation </li></ul>Value Identified Strategy Focus
    24. 24. “ By 2003, around 60% of SCM functionality will be provided from outside the enterprise [80% probability]” Gartner Group
    25. 25. Outsourcing in the supply chain continues to grow reflecting focus on core competencies … and many now regard co-venturing as an alternative 0 1 2 3 4 Distribution and Transport Warehousing Information Management Production New Product Development Supply Chain Management Purchasing Now Within five years No Yes 0 In house Outsourced Overall trend Is co-venturing a viable alternative? 5
    26. 26. Supply chain outsourcing requirements in the new millennium <ul><li>The top 5 </li></ul><ul><li>help with developing strategic supply chain vision </li></ul><ul><li>help with implementing supply chain vision </li></ul><ul><li>access to economies of scale </li></ul><ul><li>access to skills and competence </li></ul><ul><li>access to technology and innovation </li></ul>eSCM capability will become golddust Source: European Supply Chain Directors Discussion Forum – 2000 to 2002
    27. 27. Drivers of Collaboration Between Supply Chain Players <ul><li>Along supply chains - </li></ul><ul><li>Strategic optimisation – end-to-end supply chain structure </li></ul><ul><li>Integration - supply chain processes across organisations </li></ul><ul><li>Synchronisation – systems spanning organisations </li></ul><ul><li>And across supply chains- </li></ul><ul><li>Economies of scope – multi-user solutions </li></ul>
    28. 28. Collaboration is … [i] “ Working with others for mutual benefit”
    29. 29. Collaboration is … [ii] “Willingly assisting the enemy”
    30. 30. Collaboration - putting technology into perspective “ A business can have all the technology in the world, but if I don’t trust my trading partners then it becomes very difficult.” “ This is not about beating a supplier into submission - it’s actually about sharing information, some of it competitive.” Gartner Group
    31. 31. “ Enterprises that employ collaborative SCM technologies to optimise business processes will thrive, whereas those that do not will lose market share.” Gartner Group
    32. 32. The Present – A Case Study Show me the network! John Doran Logistics Director (until 30/9/03) Sony Europe – EMCS (Engineering, Manufacture & Customer Service)
    33. 33. Sony Europe EMCS logistics <ul><li>Current situation </li></ul><ul><li>Direct control and influence </li></ul><ul><ul><li>Consumer electronics </li></ul></ul><ul><li>3PL / 4PL </li></ul><ul><ul><li>Games – Playstation </li></ul></ul><ul><ul><li>REE (Recording, Energy, Europe) </li></ul></ul><ul><ul><li>BPE (Broadcast & Profesional Europe) </li></ul></ul>Total logistics spend > €300 million
    34. 34. Current network locations Tilburg Cologne Prague Copenhagen 18 Country Stockholding Location 5 Hub Warehouse 5 Plants Hamms Hall Thatcham Eragny Lisbon Ribeauville Barcelona Milan Zurich Pencoed Helsinki Godollo Trnava Dublin Athens Vienna
    35. 35. Network locations 2003/2004 Tilburg Prague Copenhagen 3 Country Stockholding Location 5 Hub Warehouse Plant Thatcham Ribeauville Barcelona Milan Zurich Pencoed Helsinki Godollo Trnava Athens Closed Whs.
    36. 36. Sony Europe EMCS logistics <ul><li>Warehousing mostly internal some outside </li></ul><ul><li>Transport </li></ul><ul><ul><li>Very fragmented </li></ul></ul><ul><ul><li>125 companies </li></ul></ul><ul><ul><li>25 relationships with Deutsche Post </li></ul></ul><ul><ul><li>200+ accounts with DHL </li></ul></ul><ul><li>Project to rationalise </li></ul>Current situation
    37. 37. Who Can Satisfy Sony Requirements ? <ul><li>European One Stop Shop </li></ul><ul><ul><li>Channel </li></ul></ul><ul><ul><li>Geography </li></ul></ul><ul><ul><li>Relationship management </li></ul></ul><ul><li>Uniform standards </li></ul><ul><ul><li>Service </li></ul></ul><ul><ul><li>KPI’s </li></ul></ul><ul><ul><li>Tariffs </li></ul></ul><ul><li>Partnership </li></ul><ul><ul><li>Share risk & benefits </li></ul></ul><ul><ul><li>Build long term </li></ul></ul><ul><li>Flexibility </li></ul><ul><ul><li>Allow our business to change </li></ul></ul><ul><ul><li>Manage resource up & down </li></ul></ul><ul><ul><li>Share risk </li></ul></ul><ul><li>Innovate </li></ul><ul><ul><li>What value to do you add? </li></ul></ul><ul><ul><li>Why should I choose TNT above Versteijnen Transport? </li></ul></ul>
    38. 38. How to move forward <ul><li>Improving European Transport/Logistics – Catalysts for Change </li></ul><ul><li>Initiative Source Ranking </li></ul><ul><li>Collaboration 1 </li></ul><ul><li>Shippers 2= </li></ul><ul><li>LSPs 2= </li></ul><ul><li>E-Freight Exchanges 4 </li></ul><ul><li>E-Marketplaces 5 </li></ul><ul><li>Technology Providers 6 </li></ul><ul><li>Capital Providers 7 </li></ul><ul><li>Consultants 8 </li></ul><ul><li>Source-European Survey Alan Waller 2001-2002 </li></ul>
    39. 39. Achieving step-change in the performance of European Logistics by Collaboration ELUPEG MISSION To achieve real improvements in the performance of European Logistics by action -based collaborative projects involving users, providers and enablers whose business success depends on sound European Logistics. European Logistics Users , Providers and Enablers Group
    40. 40. <ul><li>Alan Waller and John Doran (Sony) gave a presentation on board the Oriana for the Logistics Forum 2001 to tell the story of European Logistics as they saw it - the history, the current situation and the potential future developments. </li></ul><ul><li>This was backed up by a survey which showed that the satisfaction levels of users, providers and enablers with the various aspects of European Logistics were between 40% and 60%. </li></ul><ul><li>At the request of Oriana 2001 delegates, a group was assembled to tackle the issues on a joint collaborative basis - this was the origin of ELUPEG </li></ul>Background to ELUPEG
    41. 41. <ul><li>Members engage in collaborative action-based projects to improve European Logistics. </li></ul><ul><li>Open to all users, providers and enablers of European Logistics services - but members must engage in collaborative projects, which are intended to be self-funding. </li></ul><ul><li>Representation must be at appropriate and senior level. </li></ul><ul><li>Over 200 European companies are registered to receive ELUPEG progress reports. </li></ul><ul><li>Full membership is currently approaching 100 major businesses, with users representing some 20% of the logistics spend in Europe. </li></ul><ul><li>Run by members for members, with independent chairman plus steering group of user/provider/enabler leaders and secretariat. </li></ul><ul><li>User driven but democratic. </li></ul><ul><li>Non-profit-making with modest meeting/joining fee to cover costs. </li></ul>ELUPEG Formation and Development
    42. 42. ELUPEG Progress 2003 <ul><li>High Tech/Electronics Collaborative Working Group </li></ul><ul><li>Opportunities being addressed </li></ul><ul><li>Network Integrity: Security/Track-and-Trace/e-POD </li></ul><ul><li>Asset-sharing:Combine deliveries/Warehouse use/Air Freight </li></ul><ul><li>Benchmarking </li></ul><ul><li>Customs </li></ul><ul><li>User Companies Involved Include </li></ul><ul><li>Sony </li></ul><ul><li>Samsung </li></ul><ul><li>Philips </li></ul><ul><li>Panasonic </li></ul><ul><li>EMI </li></ul><ul><li>Xerox </li></ul>
    43. 43. ELUPEG Progress – 2003 <ul><li>Automotive Collaborative Working Group </li></ul><ul><li>Opportunities being addressed </li></ul><ul><li>Common Inbound </li></ul><ul><li>Spares and Repair </li></ul><ul><li>Reverse Logistics </li></ul><ul><li>User Companies Involved Include </li></ul><ul><li>Ford/PAG </li></ul><ul><li>GM </li></ul><ul><li>Honda </li></ul><ul><li>Pirelli </li></ul><ul><li>Unipart </li></ul><ul><li>Renault-Nissan </li></ul>
    44. 44. ELUPEG Progress – 2003 <ul><li>CPG/FMCG Collaborative Working Group </li></ul><ul><li>Opportunities Being Addressed </li></ul><ul><li>Common Trunking/Delivery Lanes </li></ul><ul><li>Road Freight Cubing:Heavy on Light </li></ul><ul><li>Reverse Flows:Scandinavia/Baltic </li></ul><ul><li>User Companies Involved Include </li></ul><ul><li>Kimberly Clarke </li></ul><ul><li>Georgia Pacific </li></ul><ul><li>Rexam </li></ul><ul><li>Heinz </li></ul><ul><li>Sylvania </li></ul><ul><li>Sara Lee </li></ul>
    45. 45. ELUPEG Progress – 2003 <ul><li>Chemical/Industrial Collaborative Working Group </li></ul><ul><li>Opportunities Being Addressed </li></ul><ul><li>Return Flows </li></ul><ul><li>Tanker Pooling </li></ul><ul><li>Shared Fleet Facilities </li></ul><ul><li>IBC Consolidation </li></ul><ul><li>User Companies Involved Include </li></ul><ul><li>Du Pont </li></ul><ul><li>Wavin </li></ul><ul><li>Atlas Copco </li></ul><ul><li>Dow </li></ul>
    46. 46. Collaboration in Action-1 <ul><li>Manufacturing Consolidation Centre (NL) </li></ul><ul><li>Opportunity </li></ul><ul><li>Historically independent logistics hubs serving each manufacturer and separate delivery to retail DCs </li></ul><ul><li>Approach </li></ul><ul><li>Single Consolidation Centre serving both manufacturers with consolidated deliveries to retailer DCs </li></ul><ul><li>Start-up Feb 2003 </li></ul><ul><li>Benefits </li></ul><ul><li>Increased delivery frequency </li></ul><ul><li>Fewer truck movements </li></ul><ul><li>Increased on-time performance </li></ul><ul><li>Lower inventory </li></ul><ul><li>Fewer out-of-stock situations </li></ul><ul><li>Players </li></ul><ul><li>Lever Faberge </li></ul><ul><li>Kimberly Clarke (NL) </li></ul>
    47. 47. Collaboration in Action-2 <ul><li>Asset Pooling (UK) </li></ul><ul><li>Opportunity </li></ul><ul><li>Two Competing Breweries run own delivery using own barrels </li></ul><ul><li>Three deliveries to outlets per week for each brewery </li></ul><ul><li>Approach </li></ul><ul><li>One consolidated delivery per week-or more-using common barrels </li></ul><ul><li>Third party buys the barrels </li></ul><ul><li>RFID tags on barrels </li></ul><ul><li>Announced Sept 2003 </li></ul><ul><li>Benefits </li></ul><ul><li>Reduced Barrel investment </li></ul><ul><li>Reduced Supply Chain Inventory </li></ul><ul><li>Reduced Distribution Costs </li></ul><ul><li>Players </li></ul><ul><li>Scottish Courage </li></ul><ul><li>Carlsberg-Tetley </li></ul><ul><li>Trenstar </li></ul>
    48. 48. Collaboration in Action-3 <ul><li>Fleet Pooling (UK) </li></ul><ul><li>Opportunity </li></ul><ul><li>Two Competing Dairy Businesses collect 4.5 m litres of milk from 7,500 farms using 500 trucks in the UK </li></ul><ul><li>Approach </li></ul><ul><li>Consolidated collection using common LSPs </li></ul><ul><li>6 month project to set the strategy </li></ul><ul><li>Announced Aug 2003 to start Autumn 2003 </li></ul><ul><li>Benefits </li></ul><ul><li>Increased fleet utilisation </li></ul><ul><li>£8m pa saving </li></ul><ul><li>Players </li></ul><ul><li>First Milk </li></ul><ul><li>Dairy Farmers of Britain </li></ul><ul><li>Wincanton </li></ul><ul><li>Lloyd Fraser </li></ul><ul><li>Bibby </li></ul><ul><li>Interoute </li></ul>
    49. 49. Collaboration-Conclusions <ul><li>The most important core skill for the future will be the ability to develop and sustain effective partnerships between providers, shippers, customers, business partners and with competitors </li></ul><ul><li>This skill is probably the one shortest in supply at this point in time </li></ul><ul><li>There is now an appetite for collaboration that is essential to drive forward improvement in Supply Chain Performance </li></ul>
    50. 50. AGENDA <ul><li>Understanding the business world </li></ul><ul><li>Understanding the customer </li></ul><ul><li>Understanding the organisation </li></ul><ul><li>Understanding the value chain </li></ul><ul><li>Understanding the individual manager </li></ul><ul><li>Barriers to success </li></ul><ul><li>The way ahead </li></ul>
    51. 51. Impact on the manager in the supply chain Jobs for life Life of jobs Employment Manage the business Change the business Management Solo working Team working Ways of working Education for life Life of education Education Functional Performance Cross-functional performance KPI’s Direction Empowerment Leadership Reference books Gateway to the world Knowledge Organisational performance Supply chain performance Vision Competitive Collaborative Relationships Managers will need to be focused but flexible - for life
    52. 52. AGENDA <ul><li>Understanding the business world </li></ul><ul><li>Understanding the customer </li></ul><ul><li>Understanding the organisation </li></ul><ul><li>Understanding the value chain </li></ul><ul><li>Understanding the individual manager </li></ul><ul><li>Barriers to success </li></ul><ul><li>The way ahead </li></ul>
    53. 53. Bridging the Implementation Gap Pan-regional supply chain integration across Europe There are major challenges in translating vision into reality ‘ 86 ‘ 88 ‘ 90 ‘ 92 ‘ 94 ‘ 96 ‘ 98 ‘ 00 ‘ 02 % of Companies 0% 75% 50% 25% 100% Opportunity Awareness Effective Implementation Active Implementation Strategy Planning Source: Surveys 1992, 1994 , 1996 and 2002
    54. 54. People and information are the critical ingredients and information depends on people Management of People ( 43% ) Management of Information ( 24% ) No. 1 Unlike 2-4 years ago the systems are now available Barriers to supply chain improvement – 1998 /2000 survey Lack of appropriate IT systems 14% Lack of information availability and integrated planning 10% Quality of Management 10% Power Play 6% Company Culture 10% Organisation Structure and Performance Measures 8% Work-force Skills 4% Fear of Change 5%
    55. 55. New mindsets and management behaviours are required Management of Partnerships Switch from a Stock Push to a Demand Pull Philosophy Anticipate End Customer and Manage Demand Proactively Focus on Performance of Extended Enterprise Total Commitment to Customer Service End-to-End Supply Chain Mentality For many this is a major shift away from today’s functional ways of working Key Management Behaviours
    56. 56. Leveraging Technology – the key issues <ul><li>“ The technology is now available to do whatever we want in the supply chain ---- </li></ul><ul><li>---- the problem is that either it is not mature enough to be used or we are not mature enough to use it” </li></ul><ul><li>Source – Discussions groups Logicon Interactive 2001 , 2002 & 2003 </li></ul>
    57. 57. AGENDA <ul><li>Understanding the business world </li></ul><ul><li>Understanding the customer </li></ul><ul><li>Understanding the organisation </li></ul><ul><li>Understanding the value chain </li></ul><ul><li>Understanding the individual manager </li></ul><ul><li>Barriers to success </li></ul><ul><li>The way ahead </li></ul>
    58. 58. The Way Ahead <ul><li>Stand back and take a careful look at where you sit in your supply chain </li></ul><ul><li>Decide the critical elements of the proposition to the end customer and how the total supply chain needs to help deliver this </li></ul><ul><li>Decide what your critical focus needs to be and which other supply chain players are critical to your success </li></ul><ul><li>Decide who you are going to partner with and how you will do it </li></ul><ul><li>Get your own house in order and then reach out to your supply chain partners </li></ul><ul><li>Develop strategy, processes, and connectivity </li></ul><ul><li>Start small and use trials to “prove by doing” </li></ul><ul><li>Agree up front how to share the investment and benefits </li></ul><ul><li>Ensure that technology and systems are backed up by cross business processes, new people skills, and a partnership culture across the organisations </li></ul>
    59. 59. The Business shape of the future Business Performance Focus on core competence Supply Chain Performance - Outsourcing - Collaboration - Partnering
    60. 60. The Manager of the future Professional Depth <ul><li>Functional capability </li></ul><ul><li>Skill development </li></ul><ul><li>Professional development </li></ul>Business Breadth Supply Chain capability Team working Leadership Networking Knowledge development Professional development
    61. 61. <ul><li>The way ahead - for your organisation – and for you </li></ul><ul><li>GET T-SHAPED ! </li></ul>
    62. 62. For further information contact <ul><li>Professor Alan Waller </li></ul><ul><li>Solving International </li></ul><ul><li>email: </li></ul><ul><li>Mobile:+44(0)7802 170507 </li></ul>