Exertis presentation at University of Limerick- Supply Chain Panel workshop June- 22nd 2018.
1. UL Supply Chain Panel Workshop
Vincent McGrath - June 22nd 2018
2. A member of one of the largest and fastest growing
distribution & supply chain management businesses in Europe
In business for over 40 years
Exertis Group turnover of $4 billion per annum
More than 10,000 employees globally (DCC)
Who We Are
Part of DCC plc,
a FTSE 100 company
with combined annual
sales of
over $18 billion
Exertis Supply Chain Services (SCS) is an award-winning leader in
materials supply chain design & operation; delivering cost, capital &
complexity optimisation for our global clients
3. Exertis Trading Locations
six continentsglobal operationsWe have and spanningpartnerships
3PL Partner Locations
Global Footprint
4. How We Deliver Value
Best value materials
Reduced inventory management
overheads & materials supply
chain costs
Materials supply matched with
demand
Release of cash tied up
in stock
Consolidated supply base
Managed material sourcing,
procurement & fulfilment
Minimising Cost Optimising Capital Reducing Complexity
6. Procurement
Materials Planning
Inventory
Management
Warehousing &
Shipping
Factory Sourcing
Capacity Planning
Quality Control
Engineering
Services
Materials Supply
Chain Design
Compliance
Management
Order Management
Product Localisation
Order Fulfilment
Returns Management
E-Commerce
Inventory
Financing
Order to Cash
Services
How We Do It
Consultancy
Materials
Management
Materials
Financing
Materials
Fulfilment
Sourcing
7. Trends Impacting Supply Chain Management
SCM is moving up the “value hierarchy chain” - with an associated requirement in terms of
knowledge and skill base
Trends
• Migration of certain manufacturing to low cost locations- (off shoring)
• Raw material and customer market globalisation
• Increased visibility of price, but focus on cost management
• Complexity reduction in products and supplybase
• Outsourcing the procurement of non-strategic items
• Stress on real time response to customer requirements
• Development in ICT (information and communication technology)
enabling management of virtual supply chains
• Skills and training desired in supply management professionals
8. Cost Management
Material & Fulfilment
Costs
Freight Costs
Release Cash Tied
Up in Inventory
Reduce Inventory
Holding
Working Capital Days by Sector
Cost
Reduction
Reduce
Working
Capital
9. Vendor Consolidation
Benefits of Vendor Consolidation
Management of lower
risk items (“the tail”) so
clients can focus
resources on strategic
vendor management
Complexity Reduction
Resources Freed up to Focus on A&B Vendors
Capital Preservation
Materials Financed & Owned by a Trusted Partner
Cost Management
Reduced Cost of Labour, Materials & Internal Logistics
Certainty of Materials Supply
Client Dedicated Pools of Inventory
Reducing complexity
10. Information Flow and Data Analytics
Benefits of Data Utilisation
Analytical tools to identify
issues, measure vendor
performance & maintain
accurate MRP system lead
times
Lead Time Minimised
Just-In-Time (JIT) & On-Demand Fulfilment
Lead Time Variability Reduced
Optimised Planning & Demand Management
Minimised Inventory Holding
Advanced MRP Ensures Economic Order Quantities
Accurate Mix of Inventory
Improved Buying Decisions & Correct SKUs
Data is becoming the world’s largest commodity
11. Threats and Opportunities in SCM
• Natural disasters
• Geopolitical problems
• Environmental risks
• Volatile fuel prices
• Rising labour costs
• Currency Fluctuations
• Port delays
• Market changes
• Supplier performance
• Forecast accuracy
• Execution problems
Unknown
Known-
Unknown
Uncontrollable
Controllable
Sources of threat to SCM Mitigation for unknown / uncontrollable threat
• BCP (Business Continuity Plan)
• Dual sourcing strategy
• Regional and global supply strategy
• Contingency planning with partners and
supply base
New product
strategy
SCM
Marketing
Strategy
Integration of Key
Business Processes
The integration of key
strategic value add business
processes drive product,
brand competitiveness &
success if the supply chain is
efficient, timely and cost
effective
Opportunities
Ireland is well positioned to exploit
12. Ireland as an innovative an knowledge driven economy is well positioned
The Future Role of SCM
New Products
• Time to Market
• Supply Chain Strategy
at early NPI stage
• Customer demands
driving design of
complex supply
chains
Sales & Marketing
• Product
Competitiveness
• Brand Performance
• Cost Efficiency
• Customer Value
• New Markets
• Return on investment
SCM
• Innovation
• Cost Management
• Strategic Planning
• Distribution Design
• Information Flow
• Multiple Systems
Integration
SCM is now an integral part of the overall business strategy
13. SCM Opportunities in Ireland
SCM has assumed a more significant role for company’s winning new business
SCM
operations
and jobs need
not migrate
ICT
Investment
Location
Skill levels
• The knowledge-intensive integrated management of supply
chain activities can be decoupled from the labour-intensive
physical material movement- SCM can remain centralised
• Customer value proposition & service levels has become
increasing important for company’s to retain and develop
new business and develop into new markets
• Inward investments with centralised SCM responsibilities
• Ireland's geographical location, In global supply chains
Ireland is ideally located to deal with time zone differences
14. Skill Requirements in SCM
Core SCM Activities
Global Business Operations
Understand how global business works, the role scm plays and
the connections that make an effective supply chain
Understanding of cross-cultural / global issues
Application of Technology
Appreciation for the how technology is changing the landscape and
The link with SCM (AI, IOT, 3D printing, drone deliveries)
As concepts develop, they inevitably change the future of SCM
Data Analytics
Data and information flow required to run the business effectively
Creating pivotal roles for business analysts, Data mining experts
Data is critical to allow co’s make informed decisions
Core SCM
Activities
Global
Business
Operations
Data
Analytics
Application of
Technology
Broad range of rewarding roles exists within SCM today
Buyers/planners, category/commodity managers, fulfilment,
distribution business managers & Project managers all play key
roles within SCM
Skill base & Knowledge