SCL HUB June 2016

1. How Fixing the Basics Can Drive Supply Chain
Performance
Patrick Hartless
Global Head of Planning, Customer Relations and Logistics

2. 2
Agenda
1. William Grant Background
2. Why Are We Here
3. What Do We Mean By Basics
4. What Can Be Achieved
5. What Is Next

3. 3
William Grant & Sons
1887 – The first spirit runs from the still (Glenfiddich)
1893 – The Balvenie Distillery opens
1914 – International Grant’s (selling in 30 countries)
1963 – WG&S opens the largest grain distillery in the world in Ayrshire
1974 – The first Scotch whisky company to get the Queen’s award for export
2010 – Acquisition of Tullamore D.E.W.
2014 – Acquisition of Drambuie.

4. 4
Agenda
1. William Grant Background
2. Why Are We Here
3. What Do We Mean By Basics
4. What Can Be Achieved
5. What Is Next

5. 5
Why Are We Here
To deliver benefits to shoppers & consumers in an efficient manner

6. 6
Why Are We Here
According to Wikipedia: Supply chain
management (SCM) is the management of
the flow of goods and services.[2] It includes
the movement and storage of raw
materials, work-in-process inventory, and
finished goods from point of origin to point
of consumption. Interconnected or
interlinked networks, channels and
node businesses are involved in the
provision of products and services required
by end customers in a supply
chain.[3] Supply chain management has
been defined as the "design, planning,
execution, control, and monitoring of supply
chain activities with the objective of
creating net value, building a competitive
infrastructure, leveraging worldwide
logistics, synchronizing supply with demand
and measuring performance globally."[4]
The APICS Dictionary, 13th edition, defines supply chain
management as “the design, planning, execution, control, and
monitoring of supply chain activities with the objective of
creating net value, building a competitive infrastructure,
leveraging worldwide logistics, synchronizing supply with
demand, and measuring performance globally.” This definition
of supply chain management first appeared in the 9th edition
of the APICS Dictionary in 1998.
CSCMP’s Definition of Supply Chain Management
Supply chain management encompasses the planning and
management of all activities involved in sourcing and
procurement, conversion, and all logistics management
activities. Importantly, it also includes coordination and
collaboration with channel partners, which can be suppliers,
intermediaries, third party service providers, and customers. In
essence, supply chain management integrates supply and
demand management within and across companies.

7. 7
Why Are We Here
Based on the definitions you
should feel that Supply Chain
truly adds value.

8. 8
Agenda
1. William Grant Background
2. Why Are We Here
3. What Do We Mean By Basics
4. What Can Be Achieved
5. What Is Next

9. 9
What Do We Mean By Basics
Basic
Supply
Chain

10. 10
What Do We Mean By Basics
You have to know where you
are and what are your real
Key Performance Indicators
Many competing KPIs, but it is
critical to articulate and focus
on the Key one

11. 11
What Do We Mean By Basics
Realisation, it is not
that great!
Now you need to ask
WHY?

12. 12
Some of the whys in my last three assignments:
What Do We Mean By Basics
Embedding new structures
Coping with high turnover of staff
Poor data transparency & trust in the numbers
Lack of ownership on KPIs
Quality of the forward number in the demand plan
Capabilities of SC teams to meet business requirements
Not harnessing ERP systems
Silo mentality
More than 1 demand number

13. 13
What Do We Mean By Basics
People
ProcessSystems
General approach:
• People
Create engagement
Help to clarify roles & how they add value
Ensure trained to perform role
Ensure the structure is right
• System
Correctly configure ERP systems
Ensure master-data is correct & up to date
Train in how to use & reduce reliance on Excel
• Process
With CI, ensure processes make sense
Ensure defined
Create documentation
Train people on documented processes
Support move to 1Number
Sweet spot

14. 14
Agenda
1. William Grant Background
2. Why Are We Here
3. What Do We Mean By Basics
4. What Can Be Achieved
5. What Is Next

15. 15
What Can Be Achieved
A considerable improvement within a year with NO rocket science involved
“I would like to sincerely congratulate the team, especially
Pamela, for the results achieved in February and March in the
service level delivered to LIXIR.
Regarding where we come from, it is a huge step forward.
We can already see the results towards our own customers as
LIXIR achieved in March a record 99,88% availability rate.”
Jérôme DORLEANS
Supply Chain Director
www.lixir.fr | www.atelier-cocktail.fr | www.esprit-degustation.fr
Download our cocktail app:
http://www.itunes.com/apps/ateliercocktail
44 avenue du capitaine Glarner – F-93585 Saint-Ouen Cedex France
Direct : +33 (0)1 49 45 27 61 | Fax : +33 (0)1 57 67 93 89

16. 16
How was it done:
What Can Be Achieved
In Malaysia we demonstrated
to the team that we had a Rolls
Royce in the garage - SAP
Focused on recruiting
good people and left
positions open if no
suitable candidates
We built credibility in the
function. Declared and
behaved as equal partners
Ensured within all the
companies’ SC organisations
that people knew why they
went to work
Put in Goal Alignment and created
visibility of the KPIs at an
ownership level that mattered and
bonus accordingly
Focussed on harnessing
ERP systems & cleaned-up
master-data

17. 17
Agenda
1. William Grant Background
2. Why Are We Here
3. What Do We Mean By Basics
4. What Can Be Achieved
5. What Is Next

18. 18
What Is Next
Foundations are getting in
place so we can move forward
The strategy stays the same but
we can ask for more
High customer service and
reduced cost to serve

19. 19
Questions