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Supply ChainsFast Forward – Marine Cluster Meeting         6th November 2012
A look at an anonymous off road vehicle               company.. Pre-2008: –   Engineering led decision making & purchasing...
Then the World changed in 2008– Vehicle production volumes dropped dramatically– Many smaller suppliers ceased to trade– O...
What did they do?           Strategic Partnerships– Suppliers chosen not purely on price but on stability,  reliability, t...
This Company’s Conclusions– Aggressive purchasing led relationships can be counter  productive– Stable relationships requi...
Any parallels with the Marine Sector?Issues raised to BMF:   –  Security of supply/dual sourcing   –  Increase in overseas...
Instigated BMF Supply Chain Initiative “To Encourage and Support Closer Collaboration     and More Effective Business Rela...
Supply Chain Conference        Widespread industry and stakeholder support for        the initiative and the conference:  ...
Potential Government Funding• The Advanced Manufacturing Supply Chain  Initiative (AMSCI)• £125m to support / improve the ...
The IdeaIndustry Supply Chain Standards:• British Aerospace Industry• British Automotive Industry                         ...
The BMF AMSCI ProposalMarine Supply Chain Performance Development                   Project• Significant bid submitted Sep...
The ProposalIndustry wide Capability & Gap AnalysisDesign Marine Industry Specific PerformanceDevelopment SchemeImplement ...
What’s next?• AMSCI decision expected later this month• 2nd BMF Supply Chain Conference, 5-6 March  2013• Investigate othe...
Thank you      David Elsondelson@britishmarine.co.uk
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Fast forward BMF supply chain

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Presenter - David Elson from the British Marine Federation (BMF) will present an overview of the Benefits and Challenges for SMEs and larger marine firms in raising the performance of marine supply chains. The BMF represents a wide range of businesses in the leisure, superyacht and small commercial marine industry.

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Fast forward BMF supply chain

  1. 1. Supply ChainsFast Forward – Marine Cluster Meeting 6th November 2012
  2. 2. A look at an anonymous off road vehicle company.. Pre-2008: – Engineering led decision making & purchasing – Customer is king, suppliers easily replaced – Prices forced down – Stocks removed – Increased payment terms Result for suppliers: – Quality and supply became an issue – Smaller local suppliers struggle to meet demand – Reduced margins – Erratic cash flow – Reduced capability to innovate
  3. 3. Then the World changed in 2008– Vehicle production volumes dropped dramatically– Many smaller suppliers ceased to trade– OEM difficulties in completing the few remaining orders due to supply chain issues– Resulting in increased lead times, quality issues and ultimately loss of orders
  4. 4. What did they do? Strategic Partnerships– Suppliers chosen not purely on price but on stability, reliability, technical innovation and added value– Seek complete system suppliers– Long term agreements, agreed pricing structures and payment terms– Joint marketing and sales approach– Stock holding agreements
  5. 5. This Company’s Conclusions– Aggressive purchasing led relationships can be counter productive– Stable relationships required to allow suppliers to grow and invest– Product is only as good as the sum of its parts so supply chain investment crucial– Supply framework agreements allow new technologies to be utilised at earliest opportunity
  6. 6. Any parallels with the Marine Sector?Issues raised to BMF: – Security of supply/dual sourcing – Increase in overseas sourcing – Lead times, especially on optional parts – Payment Terms – Relationships – Investment in Innovation/R&D – Raw material costs – Lack of finance – Intellectual Property – Skills – Quality, Cost, Delivery the list goes on........
  7. 7. Instigated BMF Supply Chain Initiative “To Encourage and Support Closer Collaboration and More Effective Business Relationships between UK Boatbuilders, Equipment Manufacturers and Suppliers”• Initiative launched at 2011 PSP Southampton Boat Show• Industry Working Group established to provide direction to the initiative• March 2012 – 1st Supply Chain Conference• Sept 2012 - Bid for Government Funding
  8. 8. Supply Chain Conference Widespread industry and stakeholder support for the initiative and the conference: “An excellent opportunity for creating new innovation opportunities within the UK marine industry.” Stephen Hart, Technology Strategy Board “The Meet the Buyer element of the event has provided a time and cost effective way of progressing issues with our existing suppliers and exploring new opportunities with other companies.” Grant Hooper, Princess Yachts“This has been a highly successful event, very well organised andmost useful for ZF. It’s been money extremely well spent and thebest networking forum we have attended for many years.”Peter Nelmes, ZF Services UK Ltd
  9. 9. Potential Government Funding• The Advanced Manufacturing Supply Chain Initiative (AMSCI)• £125m to support / improve the global competitiveness of manufacturing supply chains in the UK• Focus on projects that deliver economic growth and generate or safeguard jobs
  10. 10. The IdeaIndustry Supply Chain Standards:• British Aerospace Industry• British Automotive Industry ISO/TS 16949• British Marine Industry ???????
  11. 11. The BMF AMSCI ProposalMarine Supply Chain Performance Development Project• Significant bid submitted September 2012 with industry support• Operating across leisure marine, superyacht and small commercial marine industry• The project is made up of a number of workstreams• Delivered over five years
  12. 12. The ProposalIndustry wide Capability & Gap AnalysisDesign Marine Industry Specific PerformanceDevelopment SchemeImplement and expand the schemeFunding support to target technology gaps identified inanalysis
  13. 13. What’s next?• AMSCI decision expected later this month• 2nd BMF Supply Chain Conference, 5-6 March 2013• Investigate other potential Government finance initiatives
  14. 14. Thank you David Elsondelson@britishmarine.co.uk

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