This document summarizes an integrated approach to global supply chain transformation presented by two speakers. It provides background on the global manufacturing industry benchmarking study covering nearly 750 companies. It outlines benefits companies can realize from supply chain transformation including improved profitability, costs reductions, and flexibility. The challenges of complexity for companies are discussed. An implementation framework is presented covering assessing the current state, defining a target future state, and implementing changes. The presentation also provides details on Banner Pharmacaps' business transformation program, including timelines, challenges, and value drivers.
LIBOR and Conduct Risk: When and How Should You Mitigate?accenture
Learn why conduct risk is particularly relevant to the transition from LIBOR, and identify when and how to mitigate conduct risk. Visit our LIBOR Transition site: https://accntu.re/2yD2cZa
BrightPay is an award-winning payroll and automatic enrolment software that makes managing payroll easy. Using API technology, BrightPay offers full integration with AccountsIQ allowing both the payroll software and accounting software system to directly communicate with each other.
In this webinar, focusing on the Irish market, you’ll discover how you can streamline your payroll and accounting processes with our seamless integration, allowing you to save time, reduce errors and create cost efficiencies. You’ll also be able to see how you can analyse in AccountsIQ your monthly payroll by GL code and multiple BI codes.
For more information please visit: https://www.brightpay.ie/
Future of Procurement: The Technology Agenda SAP Ariba
Will technology be a game-changer for your procurement organization? Or just another tool for doing the same things, faster?
Oxford Economics surveyed more than a thousand procurement executives and non-executive practitioners around the globe for insights into what matters most to them, along with a look at the future of procurement. The result is a series of webinars and reports in key themes such as procurement collaboration, operations and measurements, technology, and human talent.
This presentation focused on The Technology Agenda, and featured Edward Cone, Deputy Director of Thought Leadership of Oxford Economics’ who reviewed the survey data. Here are some of the key topics covered in this presentation:
- Technology and it’s critical role to procurement’s progress, and which technologies have fundamentally changed the way the function operates
- New capabilities fuel internal collaboration and facilitate better partnerships with external suppliers
- Automation update and areas where automation plays a large role in core processes
- The future of automation from the executive perspective
- The value of automation for day-to-day operations from a practitioners view
- Technology powers risk management
- Strategies for measuring progress need a refresh – a new look at KPIs
- New technologies requires new skills
- Success hinges on tech capabilities
Accenture works with the leading agrochemical companies to annually benchmark supply chain and business performance. This report highlights the key findings and insights from our 2015 study, which focused on the quantitative aspects of performance within the crop protection segment.
LIBOR and Conduct Risk: When and How Should You Mitigate?accenture
Learn why conduct risk is particularly relevant to the transition from LIBOR, and identify when and how to mitigate conduct risk. Visit our LIBOR Transition site: https://accntu.re/2yD2cZa
BrightPay is an award-winning payroll and automatic enrolment software that makes managing payroll easy. Using API technology, BrightPay offers full integration with AccountsIQ allowing both the payroll software and accounting software system to directly communicate with each other.
In this webinar, focusing on the Irish market, you’ll discover how you can streamline your payroll and accounting processes with our seamless integration, allowing you to save time, reduce errors and create cost efficiencies. You’ll also be able to see how you can analyse in AccountsIQ your monthly payroll by GL code and multiple BI codes.
For more information please visit: https://www.brightpay.ie/
Future of Procurement: The Technology Agenda SAP Ariba
Will technology be a game-changer for your procurement organization? Or just another tool for doing the same things, faster?
Oxford Economics surveyed more than a thousand procurement executives and non-executive practitioners around the globe for insights into what matters most to them, along with a look at the future of procurement. The result is a series of webinars and reports in key themes such as procurement collaboration, operations and measurements, technology, and human talent.
This presentation focused on The Technology Agenda, and featured Edward Cone, Deputy Director of Thought Leadership of Oxford Economics’ who reviewed the survey data. Here are some of the key topics covered in this presentation:
- Technology and it’s critical role to procurement’s progress, and which technologies have fundamentally changed the way the function operates
- New capabilities fuel internal collaboration and facilitate better partnerships with external suppliers
- Automation update and areas where automation plays a large role in core processes
- The future of automation from the executive perspective
- The value of automation for day-to-day operations from a practitioners view
- Technology powers risk management
- Strategies for measuring progress need a refresh – a new look at KPIs
- New technologies requires new skills
- Success hinges on tech capabilities
Accenture works with the leading agrochemical companies to annually benchmark supply chain and business performance. This report highlights the key findings and insights from our 2015 study, which focused on the quantitative aspects of performance within the crop protection segment.
Digital Quality Assurance: Insights and Trends Shaping Banking and Financial ...Cognizant
In the face of surging digital disruption, banks and financial institutions need to hone a critical focus on digital quality assurance to ensure and enhance the end-user experience. We explore the testing issues relating to the cloud, mobility, big data analytics, Agile and DevOps, and suggest a quality assurance strategy.
Boston Consulting Group partners with leaders
in business and society to tackle their most
important challenges and capture their greatest
opportunities. BCG was the pioneer in business
strategy when it was founded in 1963. Today,
we work closely with clients to embrace a
transformational approach aimed at benefiting all
stakeholders—empowering organizations to grow,
build sustainable competitive advantage, and
drive positive societal impact.
Our diverse, global teams bring deep industry and
functional expertise and a range of perspectives
that question the status quo and spark change.
BCG delivers solutions through leading-edge
management consulting, technology and design,
and corporate and digital ventures. We work in a
uniquely collaborative model across the firm and
throughout all levels of the client organization,
fueled by the goal of helping our clients thrive and
enabling them to make the world a better place.
Supply Chain Management has evolved over time with frequent inputs from strategic innovations, technology changes and connectivity paradigms. It will continue to be so in coming decades when IIoT, Machine Learning , 3D Printing and Blockchain technologies mature. As the market place moves towards mass customising SCM professionals need to adopt more and more of Gray thinking rather than the conventional black or white approach.
Join us as our panel of world-class experts dives into Chief Procurement Office (CPO) Trends, what's coming and how to be ready and adapting to the C-Suite Agenda in 2020 and beyond. We will dive into:
1. What’s trending in all industries for the Chief Procurement Officer and entire Supply Team for your company.
2. Understand the leading-edge opportunities and changes coming at your C-Suite, and how Sourcing and Procurement aligns.
3. Identify emerging trend benefits and returns possible for CPOs and their team in 2020 and beyond.
4. Take away practical tips and strategies from the masters on how to capitalize on trends impacting procurement professionals in every industry.
- Understanding Demand Management Basics
- Planning a Demand Management Process
- Execution of Demand Management
- Conducting a Performance Review of your Demand Management Process (and KPIs)
Accelerating Digital Business in a Cloud-First WorldPerficient, Inc.
According to research firm IDC, by 2018 more than 50% of enterprise IT infrastructures and software investments will be cloud based. What does that mean for you in a competitive landscape? Without a cloud foundation to drive digital transformation, your ability to compete will be crippled.
Guest speaker Gard Little, an IDC analyst, and Joel Thimsen, a director of cloud and DevOps at Perficient, launched our new Cloud First, Business-Driven webinar series, designed for line of business and IT leaders, exploring how to bring corporate strategies to life with the cloud.
Our cloud experts highlighted key findings of IDC research and shared Cloud First strategies for:
-Adopting a digital business mindset and customer-centric mantra
-Achieving business optimization and intelligence goals
-Overcoming organizational velocity challenges
-Accelerating new strategies and innovation
-Creating value and increasing profitability
Steelwedge Launches Next-Generation S&OP Technology Platform with New Mobile, Analytics and Big Data Capabilities. For more Information on S&OP, visit http://www.steelwedge.com/resources/s-and-op-intro
PROCUREMENT IN 2021 & BEYOND: PEOPLE, PROCESS, AND TECHNOLOGYJon Hansen
While technology obviously has an important role to play in laying the foundation for procurement’s transformation over the next year and beyond, it is one part of a trifecta for future success that also includes the evolution of talent (people) and
operating models (process).
To explore this further, Jon Hansen caught up with seasoned procurement and supply chain experts Dr. John Gattorna and Peter Woon on Zycus’ Expert Talk Series.
We’ve taken down the best bits from their engaging discussion and created this action-packed eBook for you.
Global supply chains have been steadily growing in complexity for years – spurred by the proliferation of e-commerce and increasing consumer expectations (widely deemed the “Amazon Effect”). More recently, the COVID-19 pandemic accelerated those pre-existing dynamics and further highlighted the failings of a traditional, siloed, supply chain framework, as many companies found themselves underprepared and slow to respond to a shifting market environment. As a result, businesses have been motivated to re-evaluate their current technology and processes and are seeking solutions that emphasize visibility, adaptability, and automation across the supply chain.
At Catalyst Investors, we believe software and tech-enabled services enabling more efficient supply chain management are poised for outsized growth in the coming years. We are excited to meet and partner with growth stage companies that are driving forces behind more efficient supply chains.
Accenture 2015 Global Risk Management Study: Banking Report Key Findings and ...accenture
Accenture’s 2015 Global Risk Management Study: Banking Report provides the insights of 150 banking executives involved in the risk function. See the attached presentation for details of how the risk function in banking is repositioning itself to be a collaborative business partner. Visit www.accenture.com/riskstudy2015 to learn more.
Spotlight on Technology: Steering Clear of the IT Danger ZonesL.E.K. Consulting
In this Executive Insights' "Spotlight on Technology: Steering Clear of the Danger Zones," learn why companies are increasingly taking advantage of IT services to migrate their industry-specific services to the cloud, how customers are utilizing vendors and which vendors will win by capitalizing on these opportunities.
EYADEMA SIMPLISSE IYANOS(presenter)
This slides can help the students already in MBA and other managers who had little knowledge in ITVR and other people who want to expand their knowledge in value realization of technologies as competitive weapon today to the dot com marketplace.
Genpact helps leaders of some of the largest enterprises
transform and run their processes and operations, including
the very complex and industry-specific. We help enterprises to be more competitive by becoming more intelligent: adaptive, innovative, globally effective and connected by enabling tighter management of costs, risks, regulations, and supporting growth.
Digital Quality Assurance: Insights and Trends Shaping Banking and Financial ...Cognizant
In the face of surging digital disruption, banks and financial institutions need to hone a critical focus on digital quality assurance to ensure and enhance the end-user experience. We explore the testing issues relating to the cloud, mobility, big data analytics, Agile and DevOps, and suggest a quality assurance strategy.
Boston Consulting Group partners with leaders
in business and society to tackle their most
important challenges and capture their greatest
opportunities. BCG was the pioneer in business
strategy when it was founded in 1963. Today,
we work closely with clients to embrace a
transformational approach aimed at benefiting all
stakeholders—empowering organizations to grow,
build sustainable competitive advantage, and
drive positive societal impact.
Our diverse, global teams bring deep industry and
functional expertise and a range of perspectives
that question the status quo and spark change.
BCG delivers solutions through leading-edge
management consulting, technology and design,
and corporate and digital ventures. We work in a
uniquely collaborative model across the firm and
throughout all levels of the client organization,
fueled by the goal of helping our clients thrive and
enabling them to make the world a better place.
Supply Chain Management has evolved over time with frequent inputs from strategic innovations, technology changes and connectivity paradigms. It will continue to be so in coming decades when IIoT, Machine Learning , 3D Printing and Blockchain technologies mature. As the market place moves towards mass customising SCM professionals need to adopt more and more of Gray thinking rather than the conventional black or white approach.
Join us as our panel of world-class experts dives into Chief Procurement Office (CPO) Trends, what's coming and how to be ready and adapting to the C-Suite Agenda in 2020 and beyond. We will dive into:
1. What’s trending in all industries for the Chief Procurement Officer and entire Supply Team for your company.
2. Understand the leading-edge opportunities and changes coming at your C-Suite, and how Sourcing and Procurement aligns.
3. Identify emerging trend benefits and returns possible for CPOs and their team in 2020 and beyond.
4. Take away practical tips and strategies from the masters on how to capitalize on trends impacting procurement professionals in every industry.
- Understanding Demand Management Basics
- Planning a Demand Management Process
- Execution of Demand Management
- Conducting a Performance Review of your Demand Management Process (and KPIs)
Accelerating Digital Business in a Cloud-First WorldPerficient, Inc.
According to research firm IDC, by 2018 more than 50% of enterprise IT infrastructures and software investments will be cloud based. What does that mean for you in a competitive landscape? Without a cloud foundation to drive digital transformation, your ability to compete will be crippled.
Guest speaker Gard Little, an IDC analyst, and Joel Thimsen, a director of cloud and DevOps at Perficient, launched our new Cloud First, Business-Driven webinar series, designed for line of business and IT leaders, exploring how to bring corporate strategies to life with the cloud.
Our cloud experts highlighted key findings of IDC research and shared Cloud First strategies for:
-Adopting a digital business mindset and customer-centric mantra
-Achieving business optimization and intelligence goals
-Overcoming organizational velocity challenges
-Accelerating new strategies and innovation
-Creating value and increasing profitability
Steelwedge Launches Next-Generation S&OP Technology Platform with New Mobile, Analytics and Big Data Capabilities. For more Information on S&OP, visit http://www.steelwedge.com/resources/s-and-op-intro
PROCUREMENT IN 2021 & BEYOND: PEOPLE, PROCESS, AND TECHNOLOGYJon Hansen
While technology obviously has an important role to play in laying the foundation for procurement’s transformation over the next year and beyond, it is one part of a trifecta for future success that also includes the evolution of talent (people) and
operating models (process).
To explore this further, Jon Hansen caught up with seasoned procurement and supply chain experts Dr. John Gattorna and Peter Woon on Zycus’ Expert Talk Series.
We’ve taken down the best bits from their engaging discussion and created this action-packed eBook for you.
Global supply chains have been steadily growing in complexity for years – spurred by the proliferation of e-commerce and increasing consumer expectations (widely deemed the “Amazon Effect”). More recently, the COVID-19 pandemic accelerated those pre-existing dynamics and further highlighted the failings of a traditional, siloed, supply chain framework, as many companies found themselves underprepared and slow to respond to a shifting market environment. As a result, businesses have been motivated to re-evaluate their current technology and processes and are seeking solutions that emphasize visibility, adaptability, and automation across the supply chain.
At Catalyst Investors, we believe software and tech-enabled services enabling more efficient supply chain management are poised for outsized growth in the coming years. We are excited to meet and partner with growth stage companies that are driving forces behind more efficient supply chains.
Accenture 2015 Global Risk Management Study: Banking Report Key Findings and ...accenture
Accenture’s 2015 Global Risk Management Study: Banking Report provides the insights of 150 banking executives involved in the risk function. See the attached presentation for details of how the risk function in banking is repositioning itself to be a collaborative business partner. Visit www.accenture.com/riskstudy2015 to learn more.
Spotlight on Technology: Steering Clear of the IT Danger ZonesL.E.K. Consulting
In this Executive Insights' "Spotlight on Technology: Steering Clear of the Danger Zones," learn why companies are increasingly taking advantage of IT services to migrate their industry-specific services to the cloud, how customers are utilizing vendors and which vendors will win by capitalizing on these opportunities.
EYADEMA SIMPLISSE IYANOS(presenter)
This slides can help the students already in MBA and other managers who had little knowledge in ITVR and other people who want to expand their knowledge in value realization of technologies as competitive weapon today to the dot com marketplace.
Genpact helps leaders of some of the largest enterprises
transform and run their processes and operations, including
the very complex and industry-specific. We help enterprises to be more competitive by becoming more intelligent: adaptive, innovative, globally effective and connected by enabling tighter management of costs, risks, regulations, and supporting growth.
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Moving to the Cloud: Modernizing Data Architecture in HealthcarePerficient, Inc.
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We joined guest speaker from HIMSS Analytics, James Gaston, to discuss the impact of the cloud on data architecture in healthcare. Topics included:
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1. APICS is not responsible for statements or opinions expressed by individuals in its publications or at
its meetings.
The views expressed are solely those of the individual and are not necessarily endorsed by APICS.
An Integrated Approach to
Global Supply Chain
Transformation
Gary Kilponen, Senior Manager –
Deloitte
Mark Hardison, CPIM, CHBC,
Global Director of Supply Chain Management –
Banner Pharmacaps Inc.
2. Global Manufacturing Industry
Benchmarking Study Background
Geographic Coverage
• Nearly 750 companies and business units from
Europe, North America, and Asia/Pacific
participating as of July, 2004
Focus
• Global Manufacturing Strategies
• Operations
• Business Performance
• Metrics
Regional Profile
North America
36%
Western
Europe
46%
Asia / Pacific /
Africa
7%
Central
Europe
11%
Automotive
11%
Consumer
Products
30%
Diverse
Manufacturing
25%
High
Technology
8%
Life Sciences
7%
Process /
Chemicals
18%
Aerospace &
Defense
1%
Industry Profile
Size Profile
<$50 million
13%
$50 - 200 million
29%
$200 - 600 million
27%
$600 - 1 billion
11%
$1 - 5 billion
16%
>$5 billion
4%
3. Profiting From Complexity?
(37%)
(7%)
(7%)
$$= 73%= 73%
MOREMORE
PROFITABLEPROFITABLE
€€
$$= 19%= 19%
MOREMORE
PROFITABLEPROFITABLE
€€
$$ ==
BASEBASE
€€
(49% of Respondents)
LowGlobalValueChainComplexitylobalValueChainComplexityHigh
Low Value Chain CapabilitiesValue Chain Capabilities High
$$= 17%= 17%
MOREMORE
PROFITABLEPROFITABLE
€€ Two dimensions:
Degree of Globalization
Based on the geographic
diffusion of:
• Sourcing
• Manufacturing
• Engineering
• Marketing and Sales
Level of Value Chain
capabilities
• Based on the following areas:
• Product innovation and Time
to market
• Sourcing effectiveness
• Product quality
• Manufacturing flexibility,
productivity and lead time
• Cost effectiveness
• Logistics effectiveness
• Customer service
• Supply chain cost structure
Only 7% of the companies combine globalization with outstanding value chain
capabilities – and they are 73% more profitable than the baseline companies.
4. The Challenge:
From Complexity to Profitable Growth
CUSTOMER
PRODUCT
SUPPLY CHAIN
What is the path to
profitable growth?
LowGlobalValueChainComplexitylobalValueChainComplexityHigh
Low Value Chain CapabilitiesValue Chain Capabilities High
Cost Efficiency / Quality Gains
Time-to-Market Improvement
Service Level
Improvement
Manufacturing Productivity
Newmarkets
Newproducts
Newgeographies
The Goal:
Profitable Growth
5. Initial Findings:
The Paradoxes of Complexity
1. The Optimization Paradox
• Most Companies still are optimizing locally, not globally
2. The Customer Collaboration Paradox
• Despite customer service being the #2 supply chain priority, only a small % of
manufacturers report a strong commitment to customer collaboration
3. The Innovation Paradox
• Product innovation is the #1 factor for revenue growth, yet is the lowest of the
supply chain priorities
4. The Flexibility Paradox
• Despite being a critical capability, cost reduction focus is driving behaviors
that inversely impact flexibility
5. The Risk Paradox
• Keeping quality high is a #1 priority, yet more and more companies are
making radical supply chain changes that can increase the risk profile
These paradoxes indicated the discrepancies between what companies say is important and
what they are actually doing
6. Why Globalize?
Multi nationals are sub-optimizing
Today Tomorrow
Disparate affiliate business
processes and systems
There will be two types of processes: global and standardized local. Global
processes will be performed by members of a global organization. Standardized
local processes will be performed by employees at the plant level, but in accordance
with defined standards that facilitate global management of results.
Ineffective leveraging of global
employees and organizations
Optimally sized and structured global organizations will be put in place to drive
global processes and manage local activities.
Metrics focused on maximizing
local profits and efficiencies
resulting in conflicting metrics
between global and plant
organizations
All employees, functions and processes will be measured by key performance
metrics that clearly link to strategic objectives and financial performance.
Lack of clear accountability for
global performance
Emphasis will be placed on making fact-based decisions, globally and locally, and
using consistent data to evaluate operational and financial performance.
Performance of all plants, functions and employees will be reviewed regularly and
acted upon promptly.
No global standard for data,
names and terminology
Standard nomenclature for data, tools, processes and terminology and the
necessary processes in place to ensure ongoing compliance.
IT architecture that inhibits the
ability to collect and analyze
global data
Information systems characterized by a single software instance and centralized
technical architecture hosted in a high availability data center environment. These
systems will enable both real-time availability of global data and centralization of
regulatory validation.
7. Global Supply Chain Transformation –
A Conceptual Model
Note: Incremental benefits as
the business moves up the
spectrum.
Returnon
Investment
Resources (People, Time, Cost)
Technology
Implementation
Business
Transformation
Competitive
Advantage
New Technology
Visibility of Business
Processes & Information
Reduced IT Support
Expenditure
Customer Satisfaction
Profits
Global Integration
Operating Expenses
Inventory Costs
Direct/Indirect Material
Costs
Market Share
Supplier of Choice
Strategic Alignment
Software driven approach
with process improvement
only related to technology-
enabled processes
Process driven approach with
technology as an enabling
platform. Concentrates on
Supply Chain & infrastructural
process improvement.
Strategy driven approach
which aligns entire effort
with strategy. Assess
business direction,
competitor positioning,
etc.
8. Supply Chain Process Model
Material
Releases
Material
Releases
Enterprise
Material
Planning
Enterprise
Material
Planning
Plant Level
Material
Requirements
Planning
Plant Level
Material
Requirements
Planning
Source
Execution
Level
Scheduling
Execution
Level
Scheduling
Enterprise
Production
Planning
Enterprise
Production
Planning
Plant Level
Master
Production
Scheduling
Plant Level
Master
Production
Scheduling
Make
Inventory
Deployment
Inventory
Deployment
Enterprise
Distribution
Planning
Enterprise
Distribution
Planning
Distribution
Requirements
Planning
Distribution
Requirements
Planning
Deliver
Strategic
Operational
Tactical
ERP SYSTEM
Enterprise
Demand
Planning
Enterprise
Demand
Planning
ForecastsForecasts
Plan
OrdersOrders
Concept/
Markets
Concept/
Markets
Prototype/
Testing
Prototype/
Testing
Design
Pilot/
Launch
Pilot/
Launch
9. Supply Chain Technology
Material
Releases
Enterprise
Material
Planning
Plant Level
Material
Requirements
Planning
Source
Execution
Level
Scheduling
Enterprise
Production
Planning
Plant Level
Master
Production
Scheduling
Make
Inventory
Deployment
Enterprise
Distribution
Planning
Distribution
Requirements
Planning
Deliver
Strategic
Operational
Tactical
ERP SYSTEM
Enterprise
Demand
Planning
Forecasts
Plan
Orders
Concept/
Markets
Prototype/
Testing
Design
Pilot/
Launch
Supply Chain Network Optimization Demand
Planning
Production and Distribution Planning
Production
Scheduling
Warehouse
Management
ERP Backbone
e-Procurement
Business
Intelligence
Product
Lifecycle
Management Supply Chain Event Management
10. Global Supply Chain Transformation
Benefits
Benefit Area
Demand
Mgmt S&OP Source Lean Mfg
Demand
Pull
Move from facility to GLOBAL view X X X
Consistency of data X X
Collaboration with suppliers/customers X X X X
More accurate demand for our suppliers X X X
Improved customer response time X X X X X
Knowledge of optimal product mix X
Improved product quality X X
Focus on constraints X X X
Increased capacity X X X
Reduced lead times X X X
Reduced costs X X X X X
Improved yields X
Reduced inventory X X X X
Improved flexibility X X X X
Ability to prioritize capital expenditures X X
Tax efficient supply chain X X X X X
11. Banner Transformation Program
Background
• Business Transformation Program (BTP) –
New business strategy and objectives
• Global Transformation Scope
Complete Business Process Redesign
Standardization of Process and Data nomenclature
Organizational Change Management
ERP & APS Implementation
Approx. 420 Users
• Global Geographic Scope
Multi National “Profit Center” Business Model
• Limited internal resource availability
12. Business Strategy
Key strategic initiatives:
• Shift from a multi-national to a global business model
• Develop and market new drug delivery technologies
• Leverage these by registration of a Banner portfolio of
products and by offering superior value to branded and private
label manufacturers
• Maintain a substantial presence as a contract manufacturer by
improving quality, price competitiveness, timeliness and
reliability of the supply chain
• Align R&D, Commercial and Supply Chain functions
• Build direct-to-market capabilities where applicable
• Improve communication, training and development of the
workforce to ensure commitment, alignment and execution of
the strategies
The Business Transformation Plan was developed to support the strategic direction as
defined above.
14. BTP Vision
The framework for the BTP since inception has been based on a
holistic approach to create and sustain improved operating
performance
Global Business
Re-engineering
Nomenclature
Standardization &
Rationalization
ERP
Implementation
• Standard, global business
processes
• Leading industry and
Banner practices are
considered
• A chance to fix the
process prior to
automation
• Enterprise view of
customers,
suppliers, products,
raw materials
• Duplicate data
eliminated
• Foundational
requirement for ERP
implementation
• Foundational requirement
to support and sustain
business process changes
• Single repository of global
data
• Reduction in the number
of systems requiring
support
15. Business Transformation Framework
The approach will be integrated with the strategic plan and the “Under
One Banner” reorganization
Information Systems:
Banner Transformation Program
Business Process: Underway, BTP
Org: Global Functions
Strategy:
Business Plan
Strategy/Policy
- Key overall business
drivers
Organization
- Aligned with Strategic
Drivers
Business Process
- Processes which enable
the new strategy
Information
- Supporting Information
Systems to enable the
Processes
FieldFeedback
Dependencies
16. What is a process reference model?
Process reference models integrate the well-known concepts of business
process reengineering, benchmarking, and process measurement into a
cross-functional framework
Quantify the
operational
performance of
similar companies
and establish
internal targets
based on “best-in-
class” results
Quantify the
operational
performance of
similar companies
and establish
internal targets
based on “best-in-
class” results
Benchmarking
Characterize the
management
practices and
software solutions
that result in
“best-in-class”
performance
Characterize the
management
practices and
software solutions
that result in
“best-in-class”
performance
Best Practices
Analysis
Process Reference
Model
Capture the “as-is”
state of a process
and derive the
desired “to-be”
future state
Capture the “as-is”
state of a process
and derive the
desired “to-be”
future state
Business Process
Reengineering
Capture the “as-is” state
of a process and derive
the desired “to-be” future
state
Quantify the operational
performance of similar
companies and establish
internal targets based on
“best-in-class” results
Characterize the
management
practices and
software solutions
that result in “best-in-
class” performance
17. Supply Chain
Implementation Framework
SupplyChainOperationsReferenceModel
1
2
3
4
(Decompose
Processes)
Implementation
(Decompose
Process Elements)
Balance Production Resources with
Production Requirements
Establish Detailed
Production Plans
Identify, Prioritize, and Aggregate
Production Requirements
Identify, Assess, and Aggregate
Production Resources
P3.1
P3.3 P3.4
P3.2
Level Description Schematic Comments Tool
Plan
MakeSource Deliver
• Process element definitions
• Process element information inputs, and
outputs
• Process performance metrics
• Best practices, where applicable
• System capabilities required to support
best practices
• Systems/tools by vendor
SCOR &
SPEED
SCOR,
SPEED &
SolutionPrint
SolutionsPrint
& Applications
SupplyChainOperationsReferenceModelSolutionPrint
11
22
SupplyChainOperationsReferenceModel
11
22
33
44
As Is Assessment
Approach
Planning
(Decompose
Processes)
Implementation
(Decompose
Process Elements)
Balance Production Resources with
Production Requirements
Establish Detailed
Production Plans
Identify, Prioritize, and Aggregate
Production Requirements
Identify, Assess, and Aggregate
Production Resources
P3.1
P3.3 P3.4
P3.2
Phase Description Schematic Comments Tool
Plan
MakeSource Deliver
Plan
MakeSource Deliver
The Approach Planning phase refines the “To
Be” state to the next level of detail. This level
consists of:
• Process element definitions
• Process element information inputs, and
outputs
• Process performance metrics
• Best practices, where applicable
• System capabilities required to support
best practices
• Systems/tools by vendor
Processes enabled by technology are
implemented at this phase. Implementation
defines the tools, processes, and practices to
Enable the organization to improve its supply
chain.
Phase 1 assesses the current supply chain and
reviews the supply chain processes “As Is”
SCOR &
SPEED
SCOR,
SPEED &
SolutionPrint
SupplyChainOperationsReferenceModel
To Be
SCOR &
SPEED
SCOR &
SPEED
Phase 2 determines the “To Be” future state of
the supply chain. This phase aligns the supply
chain with the corporate strategic goals.
18. Building a World Class Supply Chain
Differentiator
Synchronized
Value Chain
Qualifier
Customer Product
Supply
Chain
Technology
Customer strategic
planning
Collaboration – new
products
Collaboration - cost
reduction
Customer / channel
profitability
Inventory
replenishment
Collaboration -
demand planning
Customer
segmentation
Customer service
levels - fulfillment
Customer
collaboration-
quality
Product Lifecycle
Management
Design for
Manufacturing
Product Data
Management
Common Parts /
Common Platform
Product profitability
Design for Quality
Cross-functional
design teams
SKU rationalization
Supplier collaboration
new materials /
new processes
Product quality
Supply Chain Network
Optimization / Tax
Structure
SCM organization
Program Management
Flexible capacity
Production Schedule
Optimization
Transportation
Optimization
Integrated Sales &
Operations Planning
Quick Changeover
Six Sigma / SPC
Demand planning
Lean Manufacturing
ISO Quality Certification
Scenario Planning
Business Intelligence
Customer / Supplier
Portal
Product Lifecycle Mgmt
Advanced Planning
Systems
Customer Relationship
Management
Transportation Mgmt
Product Data Mgmt
Warehouse Mgmt
Demand planning
EDI
Quality Mgmt
ERP
Capability
Focus of Banner Transformation Program
19. BTP Implementation Timeline
Scoping &
Planning
Visioning &
Targeting Design Construction Implementation
Scoping &
Planning
Scoping &
Planning
Visioning &
Targeting
Visioning &
Targeting DesignDesign ConstructionConstruction ImplementationImplementation
Change Leadership
FDA Validation
I nfrastructure Development
Program Management
FormalProgramLaunch-10/03
Site # 3
Site # 6
Site # 5
PLM I mplementation
Completion
Phase 3
Global S&OP (Plan) and APS I mplementation
Nomenclature Phase 1 Nomenclature Phase 2
Completion
Phase 1
Deliver, Make & H/ R
Global Model Build
Finance & Source Global Model Build
& I mplementation at all sites
Site # 1
Project Review
Q1 Y1 Q2 Y1 Q3 Y1 Q4 Y1 Q1 Y2 Q2 Y2 Q3 Y2 Q4 Y2 Q1 Y3 Q2 Y3 Q3 Y3 Q4 Y3 Q1 Y4
Global Business Transformation Plan
Site # 4
Completion
Phase 2
Site # 2
20. Challenges/Critical Success Factors
Without these critical success factors a BTP will not be successful
Organization • Complete transition to global management structure
Metrics • Define success metrics for global business and transformation program
Accountability • Tie personnel compensation metrics
Tools • Enable and sustain global process changes using technology
Enterprise Resource Planning (ERP)
Advanced Planning and Scheduling (APS)
Product Lifecycle Management (PLM)
Resources • Provide necessary resources for program execution
Ownership • The GMT must own and be held accountable for the success of the BTP
Business
Leadership
• Allow the business to drive the program utilizing IT as a support, not an
initiative
Change
Management
• Implement a Change Management plan including necessary resources
Program
Management
• Utilize a Program and Project Management Office to manage activities
through each phase of the implementation
Transformation • Transform the business focusing on translating the strategic plan into
financial results
21. BTP Value Drivers
Improve Cash Flow & ROCE
Revenue Growth Asset EfficiencyOperating Margin
Time to
Market SG&AProduct
Availability COGS
Property,
Plant &
Equipment
Inventory Receivables
Payables
FinanceGlobal Strategic
Sourcing
ValueDriversBTPRecommendations
S&OP
Manufacturing
Process
Improvement
Nomenclature
Improve production
operations
Move from inventory
push to demand pull
Improve shop floor
execution
Reduce
manufacturing costs
Reduce inventory
Increase order
visibility
Improve demand
management
capability
Improve forecasting
Reduce global
inventory
Increase leverage
through competition
Reduce # of suppliers
Adopt global
governance
Increase
consignments & VMI
Improve spend
compliance
Reduce total spend
Maintain pricing
standards
Improve accounting
process
Improve cash flow
management
Standardized
products and
processes
Build the foundation
of transactional
system
Reduce total spend
Order
Management
Increase Shareholder Value
22. Supply Chain Implementation
Framework
Plan
Improved Supply ChainImproved Supply Chain
ProcessesProcesses
Enabling Technology:
Infrastructure, Enterprise Data Model, PeopleSoft
Supplier
Internal or External
Customer Customer’s
Customer
Make DeliverSource Make DeliverMakeSourceDeliver SourceDeliver
Internal or External
SCOR Model
Source
PharmaPrint
Process Models Mapped to PeopleSoft/JDE
SPEED
Supply Chain Diagnostic Tool
SCOR
Supply Chain Strategy Reference Model
23. Banner’s Goal is to become a
Complexity Master –
Two dimensions:
1.Globalization Complexity
Based on the geographic diffusion of
• Sourcing
• Manufacturing
• Engineering
• Marketing and Sales
2. Capabilities
Based on the following areas:
• Product innovation and time to market
• Sourcing effectiveness
• Product quality
• Manufacturing flexibility, productivity and lead
time
• Cost effectiveness
• Logistics effectiveness
• Customer service
• Supply chain cost structure
Low CapabilitiesCapabilities High
LowGlobalComplexitylobalComplexityHigh
100 =
base
(49 % of
respondents)
17% more
profitable(37%)
Complexity
Masters
(7%)
73% more
profitable
(7%)
19% more
profitable
24. Closing Slide
Gary Kilponen, Senior Manager, Deloitte
gkilponen@deloitte.com
www.deloitte.com/us/manufacturing
Mark Hardison, CPIM, CHBC, Global Director of Supply
Chain Management, Banner Pharmacaps Inc.
MCHardison@Banpharm.com
www.banpharm.com
Please return your completed session survey to the room monitor
or the collection boxes near the exit.
APICS programs are noncommercial forums. Speakers have agreed to refrain from the use of brand names and
specific product endorsement whenever possible. Speakers understand that the association’s podium cannot
be used as a place for direct promotion of the presenter’s product, services, or for monetary self interest.
Please visit: www.supply-chain.org
26. Must Attend Session at APICS
Overcoming the Challenge of Innovation:
Synchronizing your Supply Chain and Improving
Product Lifecycle Management
Tuesday, October 12, 2004
11:00 a.m. – 12:15 p.m.
Session: H-10
Room 7 A&B
Speaker: Doug Engel, U.S. Manufacturing Practice
Leader, Deloitte
Editor's Notes
This template works on PowerPoint 97 SR-2 and on 2002 SP-1. It should work on most all versions in use today.
The slides printed correctly in B&W. The handouts and notes pages also print correctly.
Contact Harvey McChesney if you have questions: 610-799-0774 or at H.McChesney@att.net
&lt;number&gt;
Ok, we talked about the pressures, so let’s take a moment to talk about reality
These paradoxes were the result of our initial review of the data from the survey – what we found without looking at the complexity masters
These essentially are trade-off decisions …. Often that don’t fit nicely into a cost model or an ROI calculation
EXAMPLES HERE
UCAR example (from Stewart Witt) fits into #1
Kennametal example -- new products will account for 40% of revenue – but without changes to supply chain this was running at 10% fits into #3
For #4 and #5 – The Long beach Dock Workers strike hits home for most companies
&lt;number&gt;
Ok, we talked about the pressures, so let’s take a moment to talk about reality
These paradoxes were the result of our initial review of the data from the survey – what we found without looking at the complexity masters
These essentially are trade-off decisions …. Often that don’t fit nicely into a cost model or an ROI calculation
EXAMPLES HERE
UCAR example (from Stewart Witt) fits into #1
Kennametal example -- new products will account for 40% of revenue – but without changes to supply chain this was running at 10% fits into #3
For #4 and #5 – The Long beach Dock Workers strike hits home for most companies