Supply Chain CycleThe individual links that make up the Global Supply Chain
3 things you need to know1. Is our SUPPLY CHAIN efficient?2. What does SUPPLY CHAIN really cost our business?3. Where can we improve our SUPPLY CHAIN?
The Supply Chain TODAYUncoordinated, disintegrated, and chaotic
Strategic ThemesFlawless Supply Chain Execution - Supplier Risk Management and Execution - Delivery and Assurance of Inventory - Sustainable Cost Reduction- Talent Management and Organizational Development
Key Focus Areas1 1. Category Management Teams - the members collaborate with other subject matter experts that work across the corporation on the same categories of expanded supplier management
Key Focus Areas2 1. Supplier Collaboration and Development to see the detailed composition of multi-tiered supply chain to see the visibility to the complete supply chain with the details of each assembly to move forward and gain greater part of the business.
Key ChallengesTransform current supply chain to be much SMARTERA Supply Chain needs to be:Collaborate and work closely with customers, suppliers, logistics providers and other constituents in the supply chain
Key Challenges Automate supply chain to monitor businesses and keep morepeople involve with exception management, executive decision making, and strategies
Key ChallengesBeing intelligent in everything that business do using models, simulation, advanced algorithms
Key ChallengesDelight shoppers and consumers using the shared information tomake quality products and services that are delivered in seamless multi-channels
New Parameters The future supply chain must be designed for newparameters like CO2 emissions reduction, reduced energy consumption, better traceability and reduced traffic congestion.
Starting PointSeven key innovation areas were identified: In-Store Logistics Collaborative Physical Logistics Reverse Logistics Demand Fluctuation Management Identification and Labeling Efficient Assets Joint Scorecard and Business PlanThe starting point to build the future supply chain is to identify solution areas thatcover existing problems and those anticipated for the coming decade.
Additional ComponentsAdditional components of the future supply chain include existing leading practices,applications to example supply chains and new ways to calculate the impact on thesupply chain.
Integrating Improvement Solutions The solutions will bring new efficiency and cost reduction to the industry.A big impact on the parameters can be madewhen the following concepts are merged andimplemented:1. Information sharing – driving the collaborative supply chain2. Collaborative warehousing3. Collaborative city distribution (including home delivery and pick-up)4. Collaborative non-urban distribution (including home delivery and pick- up)
Initial Next StepsThe realization of the collaborative concepts that comprise the 2016 future supply chain architecture will require a number of initial next steps, driven by industry leaders.These steps are as follows:a. Establish buy-in on the vision by a group of key stakeholders(such as leading retailers and manufacturers, mayors of bigcities).b. Check the concept’s business case with the involvement ofall key stakeholders.c. Pilot the concept (or possibly leverage and enhance existingpilots).d. Evaluate the implementation and share learnings.
The Impact The potential total impact of supply chain redesign is significant, including reduction intransport costs per pallet, reduction of handling costs per pallet, reduction of lead time, lower CO2 emissions per pallet, improved on-shelf availability, and increase customer value.
The Supply Chain of the FutureThe flow of goods – from plant to store – are channel in a SMART and INTEGRATED SUPPLY CHAIN
SourcesSupply Chain Cycle -http://www.youtube.com/watch?v=DXxCPgJ75QY&feature=relatedThe Smarter Supply Chain of the Futurehttp://www.youtube.com/watch?v=FY6tgqEc1qo&NR=1Global ValueChain,http://www.youtube.com/watch?NR=1&v=y3NbdwnKWIMWhat is Supply Chain about - 3 Key Things to Knowhttp://www.youtube.com/watch?feature=endscreen&NR=1&v=OaxJ4oEuBO8Future of Supply Chain 2016 – www.futuresupplychain.com