Corning Presentation from the Supply Chain Insights Global Summit 2018
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Presentation by Laura Bissmeyer and Deana Denton of Corning at the Supply Chain Insights Global Summit 2018 on digital procurement.
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Corning Presentation from the Supply Chain Insights Global Summit 2018
- 1. S2P Transformation thru Digitalization Laura Bissmeyer & Deana Denton
- 2. 2Global Supply Management © 2018 Corning Incorporated 2014-15 Understand where we were 2016-17 Get to where others are 2018- 19 Envision and plan the future What we are going to share with you today Corning S2P Transformation Results thus far Digitalization enablement
- 3. 3Global Supply Management © 2018 Corning Incorporated 2012 Ultra-Slim Flexible Glass 2000 Low-Density LCD Glass 2013 All-Optical Converged Cellular & Wi-Fi Solution Antimicrobial Glass 2016 High-Transmission Light-Guide Plate for LCD Displays Advanced Glass for Wearables Gasoline Particulate Filters 2017 Damage-Resistant Pharmaceutical Glass Packaging Ultra-Bendable Optical Fiber 2007 Tough, Thin Cover Glass for Mobile Devices 2015 Light, Tough Automotive Glass 2006 High Throughput Cell Culture Solutions 1982 Liquid Crystal Display Glass 1877 Signal Lenses 1879 Glass Bulb for Edison’s Electric Light 1912 Railroad Lanterns 1915 Heat-Resistant PYREX®Glass 1935 Hale Telescope Mirror 1947 Television Picture Tube Processes 1952 Glass-Ceramics 1964 Fusion Overflow Process 1970 Low-Loss Optical Fiber 1972 Ceramic Substrates for Catalytic Convertors 1932 High-Purity Fused Silica 1934 Silicones 1961 Spacecraft Window Glass A Track Record of Innovation
- 4. 4Global Supply Management © 2018 Corning Incorporated Specialty Materials Environmental Technologies Optical Communications Life SciencesDisplay Technologies Business Segments That Lead Growth Industries
- 5. 5Global Supply Management © 2018 Corning Incorporated Phase I: Understand where we are Technology: Non-integrated tools Process: Completely decentralized processes People: Hundreds of partial FTEs (no SMEs) What we learned • VSMs & self reported time studies • Involve the people • Do not underestimate the energy • Establish a mantra • Help organization let go of controlling low $
- 6. 6Global Supply Management © 2018 Corning Incorporated Phase II: Get to what is possible What we learned • Don’t worry about picking the perfect tool (there isn’t one) • Enable a small team with extensive matrix influence • Keep the budget thin • There are fewer exceptions to be global than you might think • Requires significant coordination across multiple tasks • Hiring good people is easier than moving the work • Technology: Integration of the tools Process: Balance between centralized and center led People: Develop appropriate organization to efficiently support
- 7. 7Global Supply Management © 2018 Corning Incorporated Phase III: Envision the future and create it What we are learning • Finding the technology capable isn’t the most difficult part • Understanding your data and its current state is important • This is fun stuff • Leverage tools already in play • Keep the faith Technology: Automated non-touch enabled transactions Process: Rule based AI decision making People: Organization focused on more value add strategic activities
- 8. 8Global Supply Management © 2018 Corning Incorporated Digital Supply Chain can reduce procurement costs for all purchases of goods and services by 20%...reduce supply chain process costs by 50%... And increase revenue by 10%. (Frontside Flip: Digital Supply Chain Institute) Why do we care about digitalization?
- 9. 9Global Supply Management © 2018 Corning Incorporated End-to-End Visibility Integrated Planning & Execution Digital Capability The model we are using to guide us Supply Management Services Company (SMSC) Data Platform Next Generation Services Predictive Analytics Smart Supply Chain Enablers (e.g. Block chain) ERP Business Planning 3D Printing Digital Procurement Smart Warehousing Autonomous & B2C Logistics End-to-EndSupplyChainArchitecture LIVE LIVE LIVE LIV E With several exciting implementations in 2018 ... E2E Supply Chain Logistics LIVE LIVE
- 10. 10Global Supply Management © 2018 Corning Incorporated What we are learning: Keep the digital thread Look at e2e processes Leverage your millennials Educate your organization Have fun It is hard work Digitalization enablement is not intuitive for everyone No one really knows how fast is fast enough
- 11. 11Global Supply Management © 2018 Corning Incorporated We did learn a lot So what? Show me the money!
- 12. 12Global Supply Management © 2018 Corning Incorporated The results 420% Increase 45% Decrease
- 13. 13Global Supply Management © 2018 Corning Incorporated The results continue 38% Increase Tracked hours vs FTEs
- 14. 14Global Supply Management © 2018 Corning Incorporated The 1st Money Slide 2012 2013 2014 2015 2016 2017 2018 YTD Annual Cumulative GSM 2012 - 2018 Cumulative COM Savings
- 15. 15Global Supply Management © 2018 Corning Incorporated The 2nd Money Slide Spend 2015 Baseline Business Growth Efficiency Gains Labor Cost Reduction 2018 BU growth incremental POs Total transactions S2P program transaction reductions SWB gains moving to low cost countries Enabling the organization to focus on more strategic value add initiatives
Editor's Notes
- Our businesses and products have changed many times during our long history in response to changing markets. But we always participate in industries that are tied to significant growth trends. Today, Corning has five major business segments. Our Display Technologies business produces the world’s highest-quality glass substrates for LCD and other advanced displays that are used in TVs, monitors, tablets, and mobile devices. Our Optical Communications segment provides a comprehensive range of connectivity solutions to provide fast, reliable broadband connections linking businesses, data centers, homes, and people. Our Environmental Technologies provides emissions-control products for cars, trucks, and off-road equipment to help meet stricter regulations going into effect around the globe. Our Life Sciences business has been a trusted supplier to healthcare and pharmaceutical industries since we introduced PYREX® glass in 1915. Today, we provide a broad portfolio of products from labware to cell-culture products to genomics equipment. Our Specialty Materials segment serves diverse industries from consumer electronics to semiconductors to aerospace. Products include Corning® Gorilla® Glass, laser technologies, and biomedical imaging equipment.
- One way to accomplish this is through supply chain digitalization…the use of digital technology to improve supply chain operations, including software, intelligent devices, big data and analytics. The focus of this journey is on the seven “pillars” of digitalization. Supply Management Service Companies are well established, including 12 GSM services and 3 lower cost Regional Operating Centers. For 2018, the focus will be on improving service efficiency through the use of Robotic Process Automation and leveraging these services to optimize supply chain networks. Core platforms have been established for business planning and execution, including the SAP S/4Hana ERP platform, which has been deployed for the Corning Glass Microsystems business and will focus on CPT, AGS and EIG in 2018, as well as the SAP Integrated Business Planning module which has been deployed for CET and will be expanded with CLS in 2018. A data platform is also being established, including structured and unstructured data lake repositories which can be mined with powerful new analytics tools, including Power BI, to convert this data into useful information and insight. In 2018, the goal is to leverage the Amazon Web Services platform to enhance this further. There has been a strong focus on end-to-end visibility, including the global deployment of GT Nexus for logistics and the deployment of Elementum for supply chain visibility, starting with an OCS pilot. In 2018, the Elementum platform will be expanded to include more capability and more businesses, including CGT, CLS for resins and CET. In 2018, there will be an increased focus on Next Generation Services, starting with the deployment of the Acquire Front-End Buying platform to create a more streamlined and user-friendly buying experience, and the establishment of a Warehouse Management System platform to enable Smart Warehousing. With the strong visibility and data platforms established, there will be an emphasis on establishing predictive analytics, including the development Economic Optimization tools to optimize the value resulting from market commodity and currency shifts by helping those who are responsible for buying to make better decisions when the market is changing. Lastly, smart supply chain enablers will be explored in 2018, starting with block chains and how they can be leveraged to enable “smart contracting” So now let’s take a closer look at several exciting areas of focus in 2018…