The supply chain of the future


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There is growing realisation in the business community, as well as environmental groups, that the end to limitless resources has come. Commercial organisations must drive as much value out of resources as possible. Scarce commodities have to be handled with optimum efficiency. The role of the supply chain is critical. Goods are transported across increasing distances to new centres of urbanization, using fuel that is constantly rising in cost. And supply chain complexity means a growing demand for traceability. The supply chain of the future will reduce fuel consumption, allow for more accurate resource allocation, and lower costs.

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  • Long term trends e.g. globalisation, fuel costs, urbanisation, commodity costs , cost of capital all influence and impact our business and thus the supply chains of the future. We, in BT, are listening to our customers’ challenges and building our portfolio around those challenges. Customers in CPG, Manufacturing, Oil & Gas, Pharma, all say that the supply chain is one of the most important areas to focus on to enable cost reduction, resource allocation and resource conservation. The majority of costs are being incurred in the supply chain – up to 90% in some instances  Looking back, the supply chain has gone from Store Room to Board Room  Most significant challenges today are:  Labour costs – Labour arbitrage, US cost can be less than LatAM Fuel Pricing - supply chains can halt when prices get to a certain level – two years ago we almost reached that point Visibility – if you have better visibility this can mean the supply chain runs slower but is more predictable. This may mean a move from Air to Road to Sea – and a 20% reduction in the speed of a ship can result in a 40% reduction in fuel.  Regulatory & compliance – A tidal wave of R&C is hitting the supply chain of all sectors. Take Food and Drugs – they need to know the source of their ingredients – take BASF – where they may have 200M Farmers supplying seeds – authenticity through traceability is key. Looking at BT - we are not going to solve all these problems on our own!But we are looking at how our core capabilities can address some of these challenges. Key issues: a good global network, security portfolio, high compute power in the cloud, high transaction volumes across many entities and using many different user devices.Making assets Visible in the supply chain is our key focus
  • Colombia Focus Key Industries :Textiles, Food Processing, Oil, Clothing and Footwear, Beverages, Chemicals, Gold, Coal, Emeralds Key Imports: Industrial Equipment, Transportation Equipment, Consumer Goods, Chemicals, Paper Products, Fuels, ElectricityKey Exports: Petroleum, Coffee, Coal, Nickel, Bananas, Cut Flowers -Colombia produces more than 90 per cent of the world's emeralds; it is the second-largest South American producer of gold and the most important coal producer in Latin America. Coal reserves have been estimated between 12 billion and 60 billion tonnes, approximately 40 per cent of all Latin American reserves.Colombia's Advantages: Colombia is considered the centre for production, distribution, and exporting port for all North, Central, and South America. Colombia is the only South American country to have ports on both sides of the ocean (Atlantic and Pacific Ocean).  Has special agreements with the United States and other countries making it easier to trade with them.  Colombia is relatively close to the United States (mainly Miami, Fl) and is the midpoint between North and South America. This allows lower costs and shorter time in transporting goods. Colombia has signed free trade agreements (with the United States, EFTA, Chile, Canada and the ACN) and expects to sign more (Korea and Turkey, among others), and this demands preparation to handle greater cargo volumes. Thus, new challenges arise for Colombia, which must be diligently and willingly engaged with, to stimulate its foreign trade and maintain sustainable economic growth. This means that in the short term it is essential to have a modern multimodal infrastructure that ensures the greatest internal connectivity, hence increasing competitiveness and growing GDP.  Bringing the country into alignment with global and regional changes will allow it to address the needs driven by international trade by 2014, when the Panama Canal expansion will be completed and in operation. Rising effectively to global challenges will also move the country towards a knowledge-based economy directed towards globalization. This will bring increased GDP and -of course - better quality of life for Colombians. 
  • The supply chain of the future

    1. 1. Global Supply ChainsColombia Bas Burger President – Global Commerce
    2. 2. Long Term Trends for the Supply Chain2
    3. 3. Colombia and the Supply Chain