Sc mba in 3 days - ICT & Logistiek Utrecht - supply chain triangle 20171129
•
2 likes•360 views
presentation on the supply chain triangle as given at the ICT & logistiek fair in Utrecht on 29/11/2017, discusses the need to balance service cost and cash, the need for benchmarking in multiple dimensions, and how strategy affects key financial and supply chain KPIs
Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Sc mba in 3 days - ICT & Logistiek Utrecht - supply chain triangle 20171129
Similar to Sc mba in 3 days - ICT & Logistiek Utrecht - supply chain triangle 20171129 (20)
More from Bram Desmet
More from Bram Desmet (15)
Recently uploaded
Recently uploaded (20)
Sc mba in 3 days - ICT & Logistiek Utrecht - supply chain triangle 20171129
- 1. Mini supply chain MBA in three days
- 2. Dinsdag 28 november Supply Chain Strategie BLMC Supply Chain Optimization Klant- en productsegmentatie Solventure S&OP tooling-analytics Woensdag 29 november Sales & Operations planning BLMC Supply Chain Optimization Demand Management Solventure S&OP tooling-analytics Donderdag 30 november Supply chain processen en kpi’s BLCM Supply Chain Optimization Supply chain driehoek Solventure S&OP tooling-analytics Programma
- 5. Solventure uses the power of Sales & Operations Planning to turn your supply chain into a competitive edge.
- 6. We provide a full range of S&OP solutions that are a combination of analytics, advice, tooling and implementation.
- 8. SEGMENTATION Customer-product segmentation Customer-product segmentation Service differentiation & impact analysis Service differentiation & impact analysis Upgrade/ downgrade by sales Upgrade/ downgrade by sales Performance follow-up of individual clients/ products Performance follow-up of individual clients/ products PRODUCT MANAGEMENT NPI mgmt & forecasting NPI mgmt & forecasting End-of-Life mgmt / SKU rationalization End-of-Life mgmt / SKU rationalization Promo & Event Management (incl. tenders, projects, price increases, …) Promo & Event Management (incl. tenders, projects, price increases, …) Product Portfolio Performance Management Product Portfolio Performance Management COLLABORATIVE DEMAND PLANNING & OPTIMIZATION Statistical forecasting / leading indicators Statistical forecasting / leading indicators Collaborative forecasting (intra/inter company) Collaborative forecasting (intra/inter company) Forecast performance follow-up (e.g. forecast value add) Forecast performance follow-up (e.g. forecast value add) INVENTORY PLANNING & OPTIMIZATION MTS/MTO, Stock/Non-stock, Central/Decentral MTS/MTO, Stock/Non-stock, Central/Decentral Inventory parameters (safety stocks, lot sizes, …) Inventory parameters (safety stocks, lot sizes, …) Multi-echelon inventory optimization Multi-echelon inventory optimization Inventory reporting and follow-up (e.g. slow moving) Inventory reporting and follow-up (e.g. slow moving) Rough Cut Capacity Planning & Scenario Mgmt Rough Cut Capacity Planning & Scenario Mgmt Distribution Requirements Planning & Scenario Mgmt Distribution Requirements Planning & Scenario Mgmt Master Planning & Scenario Mgmt Master Planning & Scenario Mgmt Detailed Scheduling & Scenario Mgmt Detailed Scheduling & Scenario Mgmt SUPPLY PLANNING & OPTIMIZATION EXEC S&OP What-if scenario mgmt & decision making What-if scenario mgmt & decision making Business performance review & gap analysis Business performance review & gap analysis Exec S&OP coaching Exec S&OP coaching Financial (rolling) budgeting Financial (rolling) budgeting A R K I E V A C O N N E C T O R F O R E A S Y I N T E G R A T I O N
- 9. Chemical & process Discrete & high-tech Food & CPG
- 10. WORKSHOP Supply Chain Strategie WORKSHOP Supply Chain Triangle
- 11. My name is Bram … Academic - 1998, Master in Mathematics, Gent - 2002-2004, Executive MBA, Vlerick Business School, Gent - 2006-2009, PhD in Operations Research, University Gent, “safety stock optimization in multi-echelon supply chains” - 2010-…, Adjunct Professor at the Vlerick Business School, teaching ‘statistics’, ‘decision sciences’, ‘supply chain’ in Masters and MBA courses in Belgium, Russia, China Business - 1998 - 2003: IT manager, Arcelor-Mittal, Gent (Sidmar) - 2003 - 2016: Partner Strategy – SupplyChain – Operations, MÖBIUS Consulting - 2010 - …: CEO, Solventure, S&OP software and advanced analytics - Sector experience: aftermarket, chemical/pharma, consumer goods, discrete/high- tech, metals, retail, recycling, SME's (+50 companies) Contact info - bram_desmet@solventure.eu, +32.497.58.28.60 - be.linkedin.com/pub/bram-desmet/1/788/823/ - @bram_desmet
- 12. Available May 5th, 2018 More info soon available on www.supplychaintriangle.com
- 13. How much inventory do we really need??
- 17. Company 2: strong in inventory turns but out of balance Company 3: better balanced but did not recover to pre-crisis levels Company 1: better balanced & good rebound after crisis
- 19. 3 Questions 1. Which metrics to balance? 2. How to set targets? 3. How to account for strategy?
- 21. e.g. reduce cost by sourcing in far East
- 22. e.g. increase market share by extending product portfolio
- 23. e.g. reduce inventory by lowering safety stocks
- 24. Focus/incentives in a typical production company …
- 25. Resulting pressure in the triangle
- 26. Aligning the triangle is about maximizing ROCE Top-line EBIT ROCE
- 27. 3 Questions 1. Which metrics to balance? - service, cost, cash - in 2 dimensions, this leads to • Y-axis: margin metrics like EBIT • X-axis: cash metrics like inventory turns 2. How to set targets? 3. How to account for strategy?
- 28. (Max) Bang-for-the-buck line (for company 2) (combinations of EBIT% and inventory turns leading to the same bang-for-the-buck)
- 29. (Max) Bang-for-the-buck line (for company 2) (combinations of EBIT% and inventory turns leading to the same bang-for-the-buck) (Median) Bang-for-the-buck line (for company 2) (Min) Bang-for-the-buck line (for company 2)
- 30. Notice the dropback in performance for Company 2 in 2014 How to set targets for 2015?
- 31. Take the max line as the reference for setting targets. Which one of the two options would you choose?
- 32. 3 Questions 1. Which metrics to balance? 2. How to set targets? - Use the ‘max’ line of your company (or the best-in-class of your industry) - Connect your AS IS to the ‘max’ line to define ‘balanced targets’ 3. How to account for strategy?
- 33. Market leaders are ‘extremely disciplined and focused’ on 1 of 3 strategic options Treacy & Wiersema, 1995 Operational Excellence Product Leadership Customer Intimacy • ‘Best price’ and/or • ‘Best access’ (‘fast, easy, painless’) • ‘Best product’ • ‘Best service’ and/or • ‘Best connectivity’ (‘relationship orientation’) • Efficiency through process thinking • Zero-defect service • Best product through continuous product innovation • Clear innovation strategy: where to place the bets? • Understanding the broader problem • Having expertise about the customer’s business • Customers carefully selected • The operations department drives the company • Attention is paid to process speed and quality • R&D is key: idea management • Marketing is also key: educate people with a missionary zeal • Get engineers, designers, and marketers systematically together • Demonstrate expertise and experience • Strengthen the relationship • Build loyalty: focus on customer retention
- 34. Product Leadership highest cost in R&D, marketing, supply chain Customer intimacy the extra mile comes at an extra cost Operational Excellence cost leader in every fibre of the organization service inventory cost Higher turns Lower cost Higher service
- 35. Product Leadership highest complexity, highest risk Customer intimacy controlled complexity Operational Excellence simplicity drives efficiency service inventory cost Higher turns Lower cost Higher service
- 36. Product Leadership emotion beyond functional service Customer intimacy an extra mile for a premium Operational Excellence excel in the basics service inventory cost Higher turns Lower cost Higher service
- 37. Product Leadership highest risk with highest potential payoff Customer intimacy an extra mile at an extra cost and premium Operational Excellence excel in cost and the service basics service inventory cost Higher turns Lower cost Higher service EBIT Remember ROCE principle: lower turns require a higher EBIT! EBIT of product leader should be the highest!!
- 44. 3 Questions 1. Which metrics to balance? 2. How to set targets? 3. How to account for strategy? - The strategy defines the position on the Max or best practice curve!
- 45. Key Takeways • Never benchmark in only 1 dimension • Make sure to balance Service, Cost and Cash: the Supply Chain Triangle • Different strategies lead to different targets • Remember ROCE principle: lower turns should be compensated by a higher EBIT!
- 46. WORKSHOP Supply Chain Strategie Questions? Supply Chain Triangle