European Chief Supply                                           Chain Officer Forum 2001                                  ...
Topics         • The importance of innovation         • How can Supply Chain help to make a differenceSTRICTLY CONFIDENTIA...
Innovation is the name of the game in many                        industries         •    The board dilema: continue to in...
The Innovation Challenge             • You cant just ask customers what they want and then try to                give that...
Increasing complexity depending on the type                        of innovation of FMCG         • Products and Packaging ...
The innovation balancing act         • Short-term return vs. long-term investment         • Risk vs. Opportunity         •...
How best collaborate with your innovation                        ColleaguesSTRICTLY CONFIDENTIAL, INTERNAL USE ONLY       ...
Wait until it is big enough!STRICTLY CONFIDENTIAL, INTERNAL USE ONLY               8
Wait until it is big enough!                         …could be difficult to handle at that timeSTRICTLY CONFIDENTIAL, INTE...
Push through the standard processes                        and organizationSTRICTLY CONFIDENTIAL, INTERNAL USE ONLY       ...
Dedicated team of supply chain                        experts, imbedded within the                        innovation organ...
Key pitfalls that can be avoided         • Attention given to innovation by the SC team running the            base busine...
SC innovation needs different KPI’s         • Base Business performance             • Innovation Support         drivers  ...
Conclusions         • Get involved from the start               • Strategic Supply Chain decisions are taken early in the ...
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Kris Van Ransbeek from Chiquita on ‘SCM as a Market Strategy Differentiator’

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Kris Van Ransbeek from Chiquita on ‘SCM as a Market Strategy Differentiator’

  1. 1. European Chief Supply Chain Officer Forum 2001 Kris Van Ransbeek Vice President Product Supply & Ingredients Business EMEASTRICTLY CONFIDENTIAL, INTERNAL USE ONLY
  2. 2. Topics • The importance of innovation • How can Supply Chain help to make a differenceSTRICTLY CONFIDENTIAL, INTERNAL USE ONLY 2
  3. 3. Innovation is the name of the game in many industries • The board dilema: continue to innovate when budget priorities lie elsewhere  Are we making the right innovation choices  Are our innovation investments closely aligned with the customers needs, while also recognizing that you can’t rely on customer input for “break- through” ideas  Are we able to measure the progress accuratelySTRICTLY CONFIDENTIAL, INTERNAL USE ONLY 3
  4. 4. The Innovation Challenge • You cant just ask customers what they want and then try to give that to them. By the time you get it built, theyll want something new. Steve JobsSTRICTLY CONFIDENTIAL, INTERNAL USE ONLY 4
  5. 5. Increasing complexity depending on the type of innovation of FMCG • Products and Packaging Increasing time to market Increasing investment Increasing complexity • Recipe optimization • A new raw material or ingredient • Changing the packaging design • New packaging shape • Machines and Processes • Installation of new equipment • Adaptation of the Production line • New factories • New production technologies (will introduce new products, new markets,…)STRICTLY CONFIDENTIAL, INTERNAL USE ONLY 5
  6. 6. The innovation balancing act • Short-term return vs. long-term investment • Risk vs. Opportunity • Creativity vs. Discipline Faster… Cheaper… More predictableSTRICTLY CONFIDENTIAL, INTERNAL USE ONLY 6
  7. 7. How best collaborate with your innovation ColleaguesSTRICTLY CONFIDENTIAL, INTERNAL USE ONLY 7
  8. 8. Wait until it is big enough!STRICTLY CONFIDENTIAL, INTERNAL USE ONLY 8
  9. 9. Wait until it is big enough! …could be difficult to handle at that timeSTRICTLY CONFIDENTIAL, INTERNAL USE ONLY 9
  10. 10. Push through the standard processes and organizationSTRICTLY CONFIDENTIAL, INTERNAL USE ONLY 10
  11. 11. Dedicated team of supply chain experts, imbedded within the innovation organizationSTRICTLY CONFIDENTIAL, INTERNAL USE ONLY 11
  12. 12. Key pitfalls that can be avoided • Attention given to innovation by the SC team running the base business • Day to day operations will take over • Cost saving gives a better and faster return then innovation • To small to bother about • Guarantee sufficient Supply Chain expertise is available during the design phase • Up to 80% of the supply chain cost is structurally defined during design • Wrong choices will only become visible during scaling and can be extremely costly and time consuming to correct during/after launch • When to integrate within base business • Avoid the emergence of a shadow organization • Missing the economies of scaleSTRICTLY CONFIDENTIAL, INTERNAL USE ONLY 12
  13. 13. SC innovation needs different KPI’s • Base Business performance • Innovation Support drivers Performance drivers • Cost • Time to Market • Customer Lead Time • Fail Cheap • • Product and Service Quality Limit upfront capital investments • Fast Scalable • Reliability and resilience • Initial technology choices • No service Glitches • Key supplier selection • SC Security • Route to market • Supporting business processes • Small batchesSTRICTLY CONFIDENTIAL, INTERNAL USE ONLY 13
  14. 14. Conclusions • Get involved from the start • Strategic Supply Chain decisions are taken early in the development phase • Create a dedicated team within your Supply Chain organization that focus on supporting innovation • Define the appropriate KPI’s Fail Cheap Scale up FastSTRICTLY CONFIDENTIAL, INTERNAL USE ONLY 14

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