Presentation by Ernest Nicolas, SVP of Rockwell Automation, on transformation of the Rockwell Automation supply chain. Rockwell was a Supply Chains to Admire award winner for 2018.
2. Supply Chain Insights Global Summit 2018
at A GLANCE
OUR STRATEGY IS TO BRING THE CONNECTED ENTERPRISE TO LIFE
We integrate control and information across the enterprise to help industrial
companies and their people be more productive.
$6.3B
FISCAL 2017 SALES
80+
COUNTRIES
22,000
EMPLOYEES
ABOVE-MARKET GROWTH | PRODUCTIVITY | INTELLECTUAL CAPITAL VALUE CREATION
WORLD’S LARGEST COMPANY DEDICATED TO INDUSTRIAL AUTOMATION AND INFORMATION
4. Supply Chain Insights Global Summit 2018
P R O D U C T C O M P L E X I T Y & L E A D T I M E
CO MP O NE NT S
CO NT RO L &
V I S UA L I ZA T I O N
P L A T FO RMS
S O L UT I O NS / E T O
MANUFACTURINGSUPPLY FULFILLMENT CHANNELS CUSTOMERS
SUPPLY CHAIN
OUR
MFG Partners
20 MFG Plants
3 Distribution Centers
17 Warehouses
160+ Authorized
Distributors
Direct Customers
PartnerNetwork™
End Users
2300 Direct Material
Suppliers
OUR PRODUCTS
6. Supply Chain Insights Global Summit 2018
How We Got Here
2010 2011 2012 2013 2014 2015 2016 2017 2018
Global Deployments
SAP
FactoryTalk® Production Centre
Global Manufacturing Re-footprinting
Supply Chain Risk Program Introduction
New Product Introduction Strategic
Sourcing
Global Finished Goods
Rationalization
Preferred Availability
Preferred Utilization
Design for Supply Chain
Supply Chain Localization
to align with Manufacturing
Re-footprinting Initiatives
Renewed Supply Chain Focus on
Competencies
Total Cost of Ownership
Total Order Cycle Time
Sales & Ops. Planning
Introduction of the Connected Supply
Chain as moving beyond the Connected
Enterprise
Supplier Portal & Communication
MEIO Optimization
7. Supply Chain Insights Global Summit 2018
QUANTIFIABLEBENEFITS
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
PRODUCTIVITY – TOTAL OES
Improved Annual Productivity
CUSTOMER SERVICE
CUSTOMER SERVICE
77% to 96%
PRODUCT LEAD TIME
30 to 15 days
PAST DUE
$30m to $3m
SUPPLIER PERFORMANCE
SUPPLIER OTTP
88% to 95%
SUPPLIER LEAD TIME
26 to 17 days
SUPPLIER QUALITY
3800 to 400 ppm
SC COST AS A % OF REVENUE FLAT
Connected Supply Chain aims to build on the foundation that has been established
WORKING CAPITAL
INVENTORY DAYS
120 to 82 days
PAYMENT TERMS
30 to 77 days
CAPITAL EXPENDITURE
30% reduction
Connected Enterprise Journey
10. Supply Chain Insights Global Summit 2018
“OUR CONNECTED
ENTERPRISE”
Continue to mature and
refine our application of
The Connected
Enterprise within RA’s
operations
Plant Productivity
Quality
Connected Supply Chain Benefits
INVENTORY OPTIMZATION
Ensure the optimal allocation of
inventory across the entire supply
chain network
Inventory Reduction
TCO Reduction
Organizational Productivity
SUPPLY CHAIN
NETWORK OPTIMIZATION
Design and evolve the ideal value
chain
TCO Reduction
TOCT Reduction
SUPPLY CHAIN VISIBILITY
Aggregate and present data across the
supply chain enabling increased efficiencies
and improved decision making capabilities
TCO Reduction
Organizational Productivity
2019+ Agile Connected Supply Chain with selective “Best of Breed” Technology Solutions Providers
11. Supply Chain Insights Global Summit 2018
TRANSFORMATION
SUPPLY CHAIN
MEIO GLOBAL DEPLOYMENT
ENTERPRISE CAPACITY MANAGEMENT
PRODUCT AVAILABILITY DESIGN THINKING
TARGET OPERATING MODELS
AUTOMATED BUSINESS PROCESS DISCOVERY
2019+ Cognitive Sourcing | RPA Driven Procurement | Enhanced Visibility | Omni Channel