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Similar to Exertis SCS Presentation - UL Supply Chain Workshop Jun 22nd 2018
Exertis SCS Presentation - UL Supply Chain Workshop Jun 22nd 2018
- 1. UL Supply ChainPanel Workshop Vincent McGrath - June 22nd 2018
- 2. A member ofone 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 sixcontinentsglobal operationsWe have and spanningpartnerships 3PL Partner Locations Global Footprint
- 4. How We DeliverValue 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
- 5. Our Service Offering Engineering Design Inventory Financing LogisticsKitting& Inventory Postponement Materials Procurement Services Supplier Management Supplier Sourcing / Selection End to End Process
- 6. Procurement Materials Planning Inventory Management Warehousing & Shipping FactorySourcing 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 SupplyChain 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 ofVendor 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 andData 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 Opportunitiesin 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 aninnovative 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 inIreland 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 inSCM 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
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