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Supply Chain Project Management
This document focuses on supply chain project management (SCPM) and its importance in ensuring the efficient flow of materials and goods to meet customer demands. It highlights the need for effective project management strategies, including planning, building, automating, and monitoring processes, illustrated by a case study from Sainsbury's that recovered £3 million through SCM improvements. The text emphasizes collaboration, communication, and leveraging technology to enhance supply chain performance.
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Supply Chain Project Management
- 1. Supply Chain Project Management Daniel Newman INTERNATIONAL PROJECT MANAGER
- 2. Prelude Daniel Newman International Project Manager „Supply Chain Management - the process of managing the flow of materials and goods. Every project or programme contains at least one or more customers, suppliers, and goods – hence the need for Supply Chain Project Management (SCPM) . Our job is to get the right goods (product or service) to the right place at the right time for the right cost - but remain flexible to match demand.‟ Source:1999 - Daniel Newman, J. Sainsbury’s Plc INTERNATIONAL PROJECT MANAGEMENT
- 3. Agenda Daniel Newman International Project Manager Objective Introduction Supply Chain Management (SCM) SC Project Management (SCPM) Case Study Conclusion References INTERNATIONAL PROJECT MANAGEMENT
- 4. Objective Daniel Newman International Project Manager To enhance your existing project management flexibility capabilities to an international "hands-on" practitioner level. This 2nd seminar of 5, provides a brief insight into supply chain management (SCM). You will learn about four areas concerning supply chain project management (SCPM) : (1) Plan (2) Build (3) Automate (4) Monitor We will conclude with a case study on how SCPM was successfully used in one area of Sainsbury's to recover a loss of over £3million GBP. INTERNATIONAL PROJECT MANAGEMENT
- 5. Introduction Daniel Newman International Project Manager Pop-Quiz: supplier customer Goods, Services and information supplier customer Reverse logistics customer supplier Supply Chain Supply Chain Management Which one should we be more concerned with and why? INTERNATIONAL PROJECT MANAGEMENT
- 6. Supply Chain Management Daniel Newman International Project Manager …is thousands of years old, (aproximately 4,579 years old) Height : 139 meters (456ft) 2570 BC INTERNATIONAL PROJECT MANAGEMENT
- 7. Supply Chain Management Daniel Newman International Project Manager Project Management is also many thousands of years old. INTERNATIONAL PROJECT MANAGEMENT
- 8. Supply Chain Management Daniel Newman International Project Manager … contains several interdependent processes Strategic part of SCM, it must manage ALL resources to meet customer demands. Businesses choose suppliers to deliver goods and services needed to create products Production, testing, packaging and delivery preparation activities scheduled A.K.A. Logistics - coordinate; received orders, storage, transport, and invoicing The problematic part, support customers with defective and excess products INTERNATIONAL PROJECT MANAGEMENT
- 9. Supply Chain Management Daniel Newman International Project Manager … historically and currently problematic Vipnet, 1999 GSM portal Boeing, 1997 writes off launch delayed 1 year due $2.6 billion, due to supplier to supplier issues parts shortages Volcanic eruptions Legal Culture Manufacturing War Strike Management Processes Airbus's A380 Technology super-jumbo 2006 Sainsbury’s delayed delivery to Sony's 2006, PlayStation 3 store openings, cost them customers, almost 2 years delay gives opportunity to rivals £millions in lost revenue late (Microsoft's Xbox 360 and Nintendo's Wii) INTERNATIONAL PROJECT MANAGEMENT
- 10. Supply Chain Management Daniel Newman International Project Manager … some problems can be explained Poorly managed supply chains cause instabilities (i.e. poorly forecasted consumer demands). These instabilities create these bullwhip effect swings. Tell-tale signs include; non-collaboration, communication, and misreading market conditions. What should we as IPMs be doing about it? INTERNATIONAL PROJECT MANAGEMENT
- 11. SC Project Management Daniel Newman International Project Manager The answer is Everything! Nothing is outside the project management scope. Supply Chain Management is everyone’s job. INTERNATIONAL PROJECT MANAGEMENT
- 12. SC Project Management Daniel Newman International Project Manager Risks Operations Supplier(s) Invoicing Schedule Resources Finance Sizing Lead times Audit CRITICAL Marketing Lead times RESEARCH PLAN CRITICAL Internal Focus External Focus Analyse Functional Focus Strategy Logistics Demand, Supply and Environment Communication Purchasing Process, Risk and Governance Procurement CRITICAL INTERNATIONAL PROJECT MANAGEMENT
- 13. SC Project Management Daniel Newman International Project Manager Solutions Technical Non - Technical E-Procurement system Quality Customer Service Web SCM system Forecasting demand Coordination Common BUILD Process Platform CRM Procurement Custom Communication s Tax Collaboration Partnership Suppliers Extended ERP Enterprise Resource Planning Alliance Distributors Oracle, PeopleSoft, SAP OEM Product Development INTERNATIONAL PROJECT MANAGEMENT
- 14. SC Project Management Daniel Newman International Project Manager SCM Quality Management Reverse logistics Alerts Inventory Process Deliver AUTOMATE Replenishment Customer returns Procurement Workflow Tracking Reporting Warehouse Mobile solution Call Centre Increasing web technologies, and calls for effective integration. INTERNATIONAL PROJECT MANAGEMENT
- 15. SC Project Management Daniel Newman International Project Manager At Sainbury’s we improved delivery performance through better response times, and visibility. New technology (RFID) Build PIR Costs Post Implementation - Review Improvements MONITOR Networks Benchmarking Plan Risks Solutions Bad management Product Inventory - visibility Up-2-date Lifecycle status INTERNATIONAL PROJECT MANAGEMENT
- 16. Case Study Daniel Newman International Project Manager We found the lost £3million, and this is how we did it. NCR Sainsburys - Improvements - New Tech (RFID) PLAN - Networks - Solutions - PIR - Audit - Cost - Analyse - Communication - Sizing - Schedule MONITOR BUILD - Partnerships AUTOMATE - Processes - Solutions - Processes - Common platforms - Supply Chain Quality Management - Inventory INTERNATIONAL PROJECT MANAGEMENT
- 17. Conclusion Daniel Newman International Project Manager - SCM is everyone’s job (i.e. Data management) - Time spent on plan management is key to success - Motivate your clients and their suppliers for change - Build better collaborative partnership models - Work smarter, learn from mistakes (PIR) INTERNATIONAL PROJECT MANAGEMENT
- 18. Conclusion Daniel Newman International Project Manager … Intelligence SCPM Toolkit USES Cross-functional … … Experience … Skills INTERNATIONAL PROJECT MANAGEMENT
- 19. Conclusion Daniel Newman International Project Manager Supply Chain Management has a game … Businesses can play in partnership with their Customers and Suppliers. We can facilitate this! INTERNATIONAL PROJECT MANAGEMENT
- 20. References Daniel Newman International Project Manager AGRESSO: http://www.agressona.com/ - accessed April 14, 2010 AIRBUS: http://www.airbus.com/en/airbusfor/suppliers/ - accessed April 19, 2010 AMADEUS: http://amadeus.software.informer.com/ - accessed April 19, 2010 BOEING: http://www.boeing.com/companyoffices/financial/finreports/annual/98proxy1/part16.htm - accessed April 15, 2010 Cox, A. 2001. Managing with power: Strategies for improving value appropriation from supply relationships. The Journal of Supply Chain Management, Spring, 42–47 Croxton, K.L., S.J. Garcia-Dastugue, D.M. Lambert and D.L. Rogers. “The Supply Chain Management Process,” The International Journal of Logistics Management, (12:2), 2001, pp. 13-36 Ellram, L.M., Tate, W.L. and Billington, C. (2004) Understanding and managing the services supply chain, Journal of Supply Chain Management: A Global Review of Purchasing and Supply, 40(4), pp.17–32 Forrester, J. W. 1958. Industrial Dynamics: A Major Breakthrough for Decision Makers. Harvard Business Review 36(4):37-66 IBM: http://www-900.ibm.com/cn/industry/distribution/news/pdf/caac/gds_solutions.pdf - accessed April 15, 2010 Lee, Hau, P. Padmanabhan, and S. Whang. 1997. Information Distortion in a Supply Chain: The Bullwhip Effect SAINSBURYS:http://www.information-age.com/article-archive/292891/sainsburys-dogged-by-supply-chain- problems.thtml - accessed April 14, 2010 Supply-Chain Council, Inc. “Supply-Chain Operations Reference Model: Overview of SCOR Version 5.0,” www. supply-chain.org, - accessed April 14, 2010 INTERNATIONAL PROJECT MANAGEMENT
- 21. Daniel Newman International Project Manager Thank you fr.linkedin.com/in/danielnewman Email: daniel@psicoremedia.com Blog: ipm3000.wordpress.com/introduction/ INTERNATIONAL PROJECT MANAGEMENT
- 22. Clients ABC News Amadeus GSK HMV IBM Interactive1 J Sainsbury’s Plc Knight Frank LBNL Mobilkom Austria– Vipnet National Westminster Bank PwC The British Council /Crown Agents /ODA The European Society of Cardiology Daniel Newman INTERNATIONAL PROJECT MANAGER