What is Supply Chain/Network redesign basics .. ... Not saying it is the best or working 100%.. just it worked for me every time in every company... and themed with Frank Sinatra :)
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Return to Basics: Supply Chain Re-design ..'Isc' turkey 2015
1. Case Study:
Supply Chain Network Design – Create a model for flexibility and
responsiveness whilst reducing cost
Supply Network Design & Re-design
A Continuous Journey To Keep The Engine Running
2. Mr. Walaa Maher
Regional Supply Chain Director with >15 years In two of world largest
FMCG companies ( Procter & Gamble and Kimberly-Clark ). Work through
simple SC redesigns and Improvement Kaizen Projects , Helped >50
entities through I-EMEA in both Private & Public Sectors to develop SC
Capability. Proudly my work on the Supply Chain Education & Talent
Development systems is used internationally for more than 18,000 supply
Chain practitioners.
4. Those to blame !!!
Since 1993, Chris has been
developing original games on the PC,
the first of which was Transport
Tycoon, released through
Microprose in 1994. A 'World Editor'
version of Transport Tycoon
followed in mid-1995, followed by
Transport Tycoon Deluxe at the end
of that year.
5. Those to blame !!!
So before memorizing my first M. Jackson song , I
Memorized this Simple/Complicated process for
the material flow till it reaches Customers..
8. • $$ Requirements
• Innovation Pipeline
•Consumer
Proposition
Business
Strategy
•Industry/Technology
Trends
•Business Strategy
Strategy
Engagement •Gap Analysis / KPIS
• High Level Mapping
•Options Analysis
Strategic
Design
•Sourcing Strategies
•Distribution
Strategies
•Outsourcing Options
Structural
Design •S&OP
•Inventory Polices
•PDCA Setup
•Document & Monitor
Operational
Design
Steps to Re-Design your SN
Simple Steps ….but not easy
9. • $$ Requirements
• Innovation Pipeline
•Consumer
Proposition
Business
Strategy
•Industry/Technology
Trends
•Business Strategy
Strategy
Engagement •Gap Analysis / KPIS
• High Level Mapping
•Options Analysis
Strategic
Design
•Sourcing Strategies
•Distribution
Strategies
•Outsourcing Options
Structural
Design •S&OP
•Inventory Polices
•PDCA Setup
•Document & Monitor
Operational
Design
Simple Steps ….but not easy
This is How I Recommend to Do it ?Not our Case Study ..
10. Your SC Cost & Your Working
Capital are High ..solve it!!!
Issue Statement
Regrets … I’ve had a few.
But then again , too few to
mention…
11. Other person to thank
All what I have been doing in SC all over
the years was mainly driven by 2 People
12. Step 1 : All Start with People
Asses your Organization
1. Are those team that you want in your organization
5 Years from now ?
2. Do they have this values :
1. Winning attitude
2. Change Agents
3. Process AND Result Oriented
Make the tough decision NOW !!!
13. Step 2 : All Start with People
Re-Map Your Resources
1. What is your
organization design ?
– Take a minute and See
where you are ….
2. Create “What-if” model
for each one..
NO Solution fits all Companies !!!
14. Step 3 : The Correct KPIs
Matrices that Matter
1. Design End to End KPIs
2. Do not Re-invent the
wheel
3. Is your KPIs will Help the
ROI or Not ?
OP Vs CCC .. Is not that simple
15. Step 4 : S&OP
Grab every Chance
1. Revisit Your S&OP
2. Take the pragmatic approach
S&OP should be for
“ Winning the Extra Case”
Jake Barr
CEO and Principal of Blue
World Consulting
16. Step 5 : Supply Network Structure
Supplier Sourcing
Purchasing Strategy
Driven by Manufacturing Siting
Manufacturing Siting
Watch out from the 5 Sins
•Lack of Capability
•Lack of SC Strategy/Plan
•Aggressive Volume assumptions
•Long Project Life
•Emotional Decisions
Distribution Network Design
How many inventory stocking
points?
Where should they be located?
What products do they stock,
and approximately how much?
Where do they get product
from?
What other service (You, 3rd
Party, Customer)
17. Distribution Modeling :
• Do “Only” Modeling for your Site
• Model from plants to customer DC level
• Yearly Demand
• Product Aggregation
• Customer Aggregation
DC network analysis
• Your Actual freight cost to DC + Actual DC freight cost
• Actual DC inventory cost
• Estimated DC cost (fixed + handling)
• Estimated Customers demands (by geographic district)
• Lead time constraints :
• Legal ( truck allowance in certain time )
• Need to reach max. point after 4 hrs from DC ( >150 km )
• Truck Fill Rates
• Inbound: 100%
• Outbound: 85%