Case Study:
Supply Chain Network Design – Create a model for flexibility and
responsiveness whilst reducing cost
Supply Network Design & Re-design
A Continuous Journey To Keep The Engine Running
Mr. Walaa Maher
Regional Supply Chain Director with >15 years In two of world largest
FMCG companies ( Procter & Gamble and Kimberly-Clark ). Work through
simple SC redesigns and Improvement Kaizen Projects , Helped >50
entities through I-EMEA in both Private & Public Sectors to develop SC
Capability. Proudly my work on the Supply Chain Education & Talent
Development systems is used internationally for more than 18,000 supply
Chain practitioners.
What is GCC
Those to blame !!!
Since 1993, Chris has been
developing original games on the PC,
the first of which was Transport
Tycoon, released through
Microprose in 1994. A 'World Editor'
version of Transport Tycoon
followed in mid-1995, followed by
Transport Tycoon Deluxe at the end
of that year.
Those to blame !!!
So before memorizing my first M. Jackson song , I
Memorized this Simple/Complicated process for
the material flow till it reaches Customers..
Case Study:
Supply Chain Network Design & Re-design
Simple Steps ….but not easy
What is Marathon all about ?
• $$ Requirements
• Innovation Pipeline
•Consumer
Proposition
Business
Strategy
•Industry/Technology
Trends
•Business Strategy
Strategy
Engagement •Gap Analysis / KPIS
• High Level Mapping
•Options Analysis
Strategic
Design
•Sourcing Strategies
•Distribution
Strategies
•Outsourcing Options
Structural
Design •S&OP
•Inventory Polices
•PDCA Setup
•Document & Monitor
Operational
Design
Steps to Re-Design your SN
Simple Steps ….but not easy
• $$ Requirements
• Innovation Pipeline
•Consumer
Proposition
Business
Strategy
•Industry/Technology
Trends
•Business Strategy
Strategy
Engagement •Gap Analysis / KPIS
• High Level Mapping
•Options Analysis
Strategic
Design
•Sourcing Strategies
•Distribution
Strategies
•Outsourcing Options
Structural
Design •S&OP
•Inventory Polices
•PDCA Setup
•Document & Monitor
Operational
Design
Simple Steps ….but not easy
This is How I Recommend to Do it ?Not our Case Study ..
Your SC Cost & Your Working
Capital are High ..solve it!!!
Issue Statement
Regrets … I’ve had a few.
But then again , too few to
mention…
Other person to thank
All what I have been doing in SC all over
the years was mainly driven by 2 People
Step 1 : All Start with People
Asses your Organization
1. Are those team that you want in your organization
5 Years from now ?
2. Do they have this values :
1. Winning attitude
2. Change Agents
3. Process AND Result Oriented
Make the tough decision NOW !!!
Step 2 : All Start with People
Re-Map Your Resources
1. What is your
organization design ?
– Take a minute and See
where you are ….
2. Create “What-if” model
for each one..
NO Solution fits all Companies !!!
Step 3 : The Correct KPIs
Matrices that Matter 
1. Design End to End KPIs
2. Do not Re-invent the
wheel
3. Is your KPIs will Help the
ROI or Not ?
OP Vs CCC .. Is not that simple
Step 4 : S&OP
Grab every Chance
1. Revisit Your S&OP
2. Take the pragmatic approach
S&OP should be for
“ Winning the Extra Case”
Jake Barr
CEO and Principal of Blue
World Consulting
Step 5 : Supply Network Structure
Supplier Sourcing
Purchasing Strategy
Driven by Manufacturing Siting
Manufacturing Siting
Watch out from the 5 Sins
•Lack of Capability
•Lack of SC Strategy/Plan
•Aggressive Volume assumptions
•Long Project Life
•Emotional Decisions
Distribution Network Design
How many inventory stocking
points?
Where should they be located?
What products do they stock,
and approximately how much?
Where do they get product
from?
What other service (You, 3rd
Party, Customer)
Distribution Modeling :
• Do “Only” Modeling for your Site
• Model from plants to customer DC level
• Yearly Demand
• Product Aggregation
• Customer Aggregation
DC network analysis
• Your Actual freight cost to DC + Actual DC freight cost
• Actual DC inventory cost
• Estimated DC cost (fixed + handling)
• Estimated Customers demands (by geographic district)
• Lead time constraints :
• Legal ( truck allowance in certain time )
• Need to reach max. point after 4 hrs from DC ( >150 km )
• Truck Fill Rates
• Inbound: 100%
• Outbound: 85%
Step 6 : Ensure Sustainability
Create PDCA Cycle
Questions ?

Return to Basics: Supply Chain Re-design ..'Isc' turkey 2015

  • 1.
    Case Study: Supply ChainNetwork Design – Create a model for flexibility and responsiveness whilst reducing cost Supply Network Design & Re-design A Continuous Journey To Keep The Engine Running
  • 2.
    Mr. Walaa Maher RegionalSupply Chain Director with >15 years In two of world largest FMCG companies ( Procter & Gamble and Kimberly-Clark ). Work through simple SC redesigns and Improvement Kaizen Projects , Helped >50 entities through I-EMEA in both Private & Public Sectors to develop SC Capability. Proudly my work on the Supply Chain Education & Talent Development systems is used internationally for more than 18,000 supply Chain practitioners.
  • 3.
  • 4.
    Those to blame!!! Since 1993, Chris has been developing original games on the PC, the first of which was Transport Tycoon, released through Microprose in 1994. A 'World Editor' version of Transport Tycoon followed in mid-1995, followed by Transport Tycoon Deluxe at the end of that year.
  • 5.
    Those to blame!!! So before memorizing my first M. Jackson song , I Memorized this Simple/Complicated process for the material flow till it reaches Customers..
  • 6.
    Case Study: Supply ChainNetwork Design & Re-design
  • 7.
    Simple Steps ….butnot easy What is Marathon all about ?
  • 8.
    • $$ Requirements •Innovation Pipeline •Consumer Proposition Business Strategy •Industry/Technology Trends •Business Strategy Strategy Engagement •Gap Analysis / KPIS • High Level Mapping •Options Analysis Strategic Design •Sourcing Strategies •Distribution Strategies •Outsourcing Options Structural Design •S&OP •Inventory Polices •PDCA Setup •Document & Monitor Operational Design Steps to Re-Design your SN Simple Steps ….but not easy
  • 9.
    • $$ Requirements •Innovation Pipeline •Consumer Proposition Business Strategy •Industry/Technology Trends •Business Strategy Strategy Engagement •Gap Analysis / KPIS • High Level Mapping •Options Analysis Strategic Design •Sourcing Strategies •Distribution Strategies •Outsourcing Options Structural Design •S&OP •Inventory Polices •PDCA Setup •Document & Monitor Operational Design Simple Steps ….but not easy This is How I Recommend to Do it ?Not our Case Study ..
  • 10.
    Your SC Cost& Your Working Capital are High ..solve it!!! Issue Statement Regrets … I’ve had a few. But then again , too few to mention…
  • 11.
    Other person tothank All what I have been doing in SC all over the years was mainly driven by 2 People
  • 12.
    Step 1 :All Start with People Asses your Organization 1. Are those team that you want in your organization 5 Years from now ? 2. Do they have this values : 1. Winning attitude 2. Change Agents 3. Process AND Result Oriented Make the tough decision NOW !!!
  • 13.
    Step 2 :All Start with People Re-Map Your Resources 1. What is your organization design ? – Take a minute and See where you are …. 2. Create “What-if” model for each one.. NO Solution fits all Companies !!!
  • 14.
    Step 3 :The Correct KPIs Matrices that Matter  1. Design End to End KPIs 2. Do not Re-invent the wheel 3. Is your KPIs will Help the ROI or Not ? OP Vs CCC .. Is not that simple
  • 15.
    Step 4 :S&OP Grab every Chance 1. Revisit Your S&OP 2. Take the pragmatic approach S&OP should be for “ Winning the Extra Case” Jake Barr CEO and Principal of Blue World Consulting
  • 16.
    Step 5 :Supply Network Structure Supplier Sourcing Purchasing Strategy Driven by Manufacturing Siting Manufacturing Siting Watch out from the 5 Sins •Lack of Capability •Lack of SC Strategy/Plan •Aggressive Volume assumptions •Long Project Life •Emotional Decisions Distribution Network Design How many inventory stocking points? Where should they be located? What products do they stock, and approximately how much? Where do they get product from? What other service (You, 3rd Party, Customer)
  • 17.
    Distribution Modeling : •Do “Only” Modeling for your Site • Model from plants to customer DC level • Yearly Demand • Product Aggregation • Customer Aggregation DC network analysis • Your Actual freight cost to DC + Actual DC freight cost • Actual DC inventory cost • Estimated DC cost (fixed + handling) • Estimated Customers demands (by geographic district) • Lead time constraints : • Legal ( truck allowance in certain time ) • Need to reach max. point after 4 hrs from DC ( >150 km ) • Truck Fill Rates • Inbound: 100% • Outbound: 85%
  • 18.
    Step 6 :Ensure Sustainability Create PDCA Cycle
  • 19.