Tata Motors acquired Jaguar Land Rover from Ford in 2008 for $2.3 billion. Ford was losing money from Jaguar and wanted to reduce costs, while JLR's profits were driven by Land Rover sales growth. Tata was interested because it could utilize India's resources to lower JLR's production costs. The deal was financed through loans, including a $3 billion bridge loan later refinanced through debt issuances and borrowings. While the acquisition timing was poor due to the financial crisis, JLR eventually became profitable for Tata and its revenues grew substantially in subsequent years.
General Motors is analyzing whether to finance a new $1 million building. Key calculations were made, including GM's cost of debt of 5.01%, cost of preferred shares of 9%, and weighted average cost of capital of 8.33%. While the gross profit margin of 3.3% was too low, the internal rate of return was calculated to be 11.98%, higher than the WACC. Therefore, the analysis supports GM borrowing $1 million for the new building as the project will provide an acceptable return.
The document outlines the steps for launching a successful cost takeout program to achieve operational excellence. It discusses the main drivers for cost reduction efforts including rising commodity prices and the importance of cost consciousness. The presentation recommends conducting a spend analysis, assessing addressable spending, drafting savings estimates and strategies. It emphasizes establishing clear governance, tracking progress regularly, and defining key performance indicators. The document provides advice on change management and ensuring cost reductions are sustainable over the long run.
The current economic turmoil has hit harder and is biting deeper than any downturn in recent memory. The pressure to reduce costs quickly is inexorable in many sectors.
Towers Perrin\'s Human Capital Group has developed a thorough process to identify, prioritise and implement cost cutting measures in compensation, benefits, and the HR function itself. Our approach is to partner with clients, and can include working on the basis of mutually agreed success fees rather than the traditional time and expenses method.
This offering is proving very popular, and I thought you would be interested in knowing more about it.
Supply Chain Risk Management (guest lecture Tilburg University March 2010)Robbert Janssen
The document discusses supply chain risk management. It outlines key concepts like supply chain risk, disruption, and vulnerability. Supply chains are increasingly at risk due to trends like globalization and outsourcing. Risk management aims to reduce the likelihood and impact of disruptions through steps like risk identification, assessment, and response planning. The document uses examples like the 2000 Philips semiconductor plant fire to illustrate how risks can be mitigated or amplified depending on a company's preparedness and response.
This document provides an overview of data mining in the telecommunications industry. It discusses how telecom companies generate tremendous amounts of data and can use data mining tools to extract hidden knowledge and insights from large datasets. Specifically, data mining allows telecom companies to better understand customers through segmentation and profiling, detect fraud, analyze network performance, and identify factors that influence customer call patterns to improve profitability. The document also covers types of telecom data, data preparation techniques like clustering, and applications of data mining such as marketing, fraud detection, and network fault isolation.
This document discusses various use cases and analyses for a telecom company, including subscription activation and termination, CRM and billing, revenue segmentation by service and customer, customer churn analysis and reasons for churn, customer profiling, calculating average revenue per user (ARPU) and the shift to average revenue per account (ARPA), segmentation of postpaid and prepaid customers, analyzing tariff plan changes, and how customer segmentation can benefit operators by maximizing revenue and retention.
With a relatively poor economy, many companies are now looking to enhance their bottom line through cost cutting. Often, the finance function is one part of G&A subject to this cost cutting exercise. This presentatio shares with you how companies are looking at finance and evaluating where and how much to cut.
Tata Motors acquired Jaguar Land Rover from Ford in 2008 for $2.3 billion. Ford was losing money from Jaguar and wanted to reduce costs, while JLR's profits were driven by Land Rover sales growth. Tata was interested because it could utilize India's resources to lower JLR's production costs. The deal was financed through loans, including a $3 billion bridge loan later refinanced through debt issuances and borrowings. While the acquisition timing was poor due to the financial crisis, JLR eventually became profitable for Tata and its revenues grew substantially in subsequent years.
General Motors is analyzing whether to finance a new $1 million building. Key calculations were made, including GM's cost of debt of 5.01%, cost of preferred shares of 9%, and weighted average cost of capital of 8.33%. While the gross profit margin of 3.3% was too low, the internal rate of return was calculated to be 11.98%, higher than the WACC. Therefore, the analysis supports GM borrowing $1 million for the new building as the project will provide an acceptable return.
The document outlines the steps for launching a successful cost takeout program to achieve operational excellence. It discusses the main drivers for cost reduction efforts including rising commodity prices and the importance of cost consciousness. The presentation recommends conducting a spend analysis, assessing addressable spending, drafting savings estimates and strategies. It emphasizes establishing clear governance, tracking progress regularly, and defining key performance indicators. The document provides advice on change management and ensuring cost reductions are sustainable over the long run.
The current economic turmoil has hit harder and is biting deeper than any downturn in recent memory. The pressure to reduce costs quickly is inexorable in many sectors.
Towers Perrin\'s Human Capital Group has developed a thorough process to identify, prioritise and implement cost cutting measures in compensation, benefits, and the HR function itself. Our approach is to partner with clients, and can include working on the basis of mutually agreed success fees rather than the traditional time and expenses method.
This offering is proving very popular, and I thought you would be interested in knowing more about it.
Supply Chain Risk Management (guest lecture Tilburg University March 2010)Robbert Janssen
The document discusses supply chain risk management. It outlines key concepts like supply chain risk, disruption, and vulnerability. Supply chains are increasingly at risk due to trends like globalization and outsourcing. Risk management aims to reduce the likelihood and impact of disruptions through steps like risk identification, assessment, and response planning. The document uses examples like the 2000 Philips semiconductor plant fire to illustrate how risks can be mitigated or amplified depending on a company's preparedness and response.
This document provides an overview of data mining in the telecommunications industry. It discusses how telecom companies generate tremendous amounts of data and can use data mining tools to extract hidden knowledge and insights from large datasets. Specifically, data mining allows telecom companies to better understand customers through segmentation and profiling, detect fraud, analyze network performance, and identify factors that influence customer call patterns to improve profitability. The document also covers types of telecom data, data preparation techniques like clustering, and applications of data mining such as marketing, fraud detection, and network fault isolation.
This document discusses various use cases and analyses for a telecom company, including subscription activation and termination, CRM and billing, revenue segmentation by service and customer, customer churn analysis and reasons for churn, customer profiling, calculating average revenue per user (ARPU) and the shift to average revenue per account (ARPA), segmentation of postpaid and prepaid customers, analyzing tariff plan changes, and how customer segmentation can benefit operators by maximizing revenue and retention.
With a relatively poor economy, many companies are now looking to enhance their bottom line through cost cutting. Often, the finance function is one part of G&A subject to this cost cutting exercise. This presentatio shares with you how companies are looking at finance and evaluating where and how much to cut.
The document discusses supply chain risk. It defines supply chain risk and identifies various types of risks including supply risks, demand risks, and environmental risks. It also discusses strategies for managing supply chain risk such as avoidance, postponement, hedging, control, and risk transfer. Effective supply chain risk management involves understanding risk sources and drivers, identifying critical parts of the supply chain, establishing contingency plans, and working collaboratively with suppliers and customers.
Phil Coman is a real estate photographer with over 26 years of experience who can provide effective marketing for property listings. He uses sophisticated lighting techniques to create striking images that attract home buyers. Coman also designs brochures and feature sheets to provide visual information for open houses. By having professionally shot, high quality photos and materials online and in print, listings get double exposure through Coman's highly ranked real estate website.
Creëer het succes met e invoicing - ICreativeICreative
Creëer het succes met E-invoicing
Leveranciers bezitten samen met CFO's de sleutel om het ware succes van E-invoicing te realiseren. In 2013 zetten steeds meer bedrijven E-invoicing om de kosten te drukken. Wat zijn de voordelen? Hoeveel procent van de markt maakt al gebruik van digitaal factureren?
Lees er meer over in deze infographic
Sierra Francesca Dyer was born in 1985 in upstate New York. She had a close relationship with her parents and brothers growing up, though money was tight. She played basketball in high school and college. Dyer has always had a passion for fashion and began working at age 12 to support it. Her parents raised her to be independent, which she credits for being able to build her own brand. Dyer was diagnosed with obsessive compulsive disorder at age 15 and continues to manage it. She earned a bachelor's degree from Mercy College and is now pursuing a master's degree, being the first in her family to do so.
The document discusses test shots. It does not provide any other context or details about the subject of the test shots. In just one sentence, it states "Test shots", but gives no additional information about what is being tested, the purpose of the tests, results, or other pertinent details.
This document discusses the three physical states of matter: solid, liquid, and gas. It explains that the state depends on particle arrangement and motion. Solids have fixed shapes from tightly packed particles that vibrate in place. Liquids have changing shapes from particles that can move past each other while remaining attracted. Gases have changing volumes and shapes from particles that spread out and exert pressure. Temperature affects gas properties, with increased heat speeding particles and expanding volume while decreased heat has the opposite effect. Examples of state changes in water are provided.
This document summarizes survey results from students in the MSEd Information Technology program at a university. It provides details about the demographic breakdown of current students, how they heard about the program, why they were attracted to it, and their career aspirations. It also discusses strategies for improving marketing and outreach to attract more students to the program, current enrollment numbers, course offerings, instructors, and considerations around program growth.
Transforming good experiences into great & engaging user experiencesFrank Garofalo
Frank Garofalo gave a presentation at the 2013 Esri International User Conference about transforming good user experiences into great and engaging experiences. The presentation covered four chapters: establishing good foundational experiences with minimal confusion and frustration; creating great experiences through personalization, emotion, excitement and loyalty; leveraging new technologies to inspire new experiences; and emphasizing continual improvement through learning from successes and failures. The goal was to provide techniques for designing exceptional user experiences.
The document summarizes a presentation by Jacqualine Price Osafo and Erik Schonher on membership marketing strategies. It discusses acquiring new members through awareness, recruitment, and engagement tactics. It also covers renewing and retaining existing members through effective communication, onboarding processes, and multiple renewal contact attempts. Data from the Membership Marketing Benchmarking Report is presented comparing membership trends and effective practices across different association types.
Factuurverwerking is 'appeltje-eitje' geworden voor VCK Logistics met de implementatie van Basware en modules van ICreative.
VCK Logistics is in een eeuw ontwikkeld tot een toonaangevende logistieke dienstverlener ter land, ter zee en in de lucht. Met 60.000 inkoopfacturen was de afdeling Financial Administration vroeger veel tijd kwijt. “Als de inkoper zijn werk netjes heeft gedaan, is de klus tegenwoordig zo geklaard. Gescande factuur, matchen, goedkeuren en betalen: appeltje-eitje” aldus Cleon Oud.
2010 PLS Career Summit: Tom Kosel, Director of Government Relations, Globe Un...Pearson North America
The document discusses potential regulations around gainful employment and their impact on for-profit career colleges. It notes that student loan debt is increasing across higher education but is highest on average for students at for-profit institutions. For-profit schools have not consistently tracked outcomes data to demonstrate the value they provide students. The potential regulations would require schools to report more detailed employment and earnings data for graduates to show their career training programs are eligible and provide access to gainful employment. The regulations would take effect on July 1, 2012.
This document discusses using neural networks for product prediction in industries like IT and pharmaceuticals. It offers neural network algorithms, proof of concepts and products developed for the pharmaceutical industry. The contact provided has expertise and experience developing these neural network solutions for predicting biochemical pathways.
This presentation discusses effective strategies for regional leaders to promote membership in their associations on a volunteer basis. It emphasizes that personal stories about the benefits of membership, such as networking opportunities, are more persuasive than features alone. Regional leaders may feel uncomfortable with sales but can focus on sharing how membership enriched their own experience in a fun, casual way. The goal is to help others become more aware of the value membership provides.
This document discusses how to incorporate project based learning to effectively engage students. It defines project based learning as an instructional approach that uses driving questions to motivate students to conduct research, collaborate, and produce creative work over an extended period of time. The document provides examples of projects done by students, such as creating a film guide for Edward Scissorhands and a public service announcement. It also outlines the discover, create, share model used in project based learning, with examples of tools and resources used in each stage, like using iBooks and online texts for discovery, iMovie and GarageBand for creation, and blogs and Twitter for sharing. The goal is to encourage critical thinking, collaboration, and creativity through project based learning.
The International Council on Systems Engineering (INCOSE) is an international professional society for systems engineers with over 5,000 members across 54 chapters worldwide. Its mission is to foster the definition, understanding, and practice of systems engineering in industry, academia, and government. INCOSE provides resources like its newsletter INSIGHT and the Journal of Systems Engineering to disseminate knowledge, promotes collaboration in education and research, and works to establish professional standards and guidelines for systems engineering.
Open access and the South Australian Red Cross Information Bureau: A case stu...Katie Hannan
A presentation for the University Libraries of South Australia Staff Development Working Group. 24 June, 2014.
What is the role of libraries in creating open access for public research, education and/or community information?
The global automotive industry is facing severe challenges due to the financial crisis. Consumer demand for cars has dropped sharply around the world. Automakers like GM, Ford, Chrysler, and Toyota have posted major losses. However, the crisis also provides an opportunity for innovation and collaboration. Automakers need to shift from competition to cooperation through partnerships and alliances to share costs of R&D, production facilities, and regulatory approval. Financial restructuring and lean manufacturing will also be needed to reduce business risks and costs. Governments are assisting the struggling industry to prevent economic damage.
The document discusses supply chain risk. It defines supply chain risk and identifies various types of risks including supply risks, demand risks, and environmental risks. It also discusses strategies for managing supply chain risk such as avoidance, postponement, hedging, control, and risk transfer. Effective supply chain risk management involves understanding risk sources and drivers, identifying critical parts of the supply chain, establishing contingency plans, and working collaboratively with suppliers and customers.
Phil Coman is a real estate photographer with over 26 years of experience who can provide effective marketing for property listings. He uses sophisticated lighting techniques to create striking images that attract home buyers. Coman also designs brochures and feature sheets to provide visual information for open houses. By having professionally shot, high quality photos and materials online and in print, listings get double exposure through Coman's highly ranked real estate website.
Creëer het succes met e invoicing - ICreativeICreative
Creëer het succes met E-invoicing
Leveranciers bezitten samen met CFO's de sleutel om het ware succes van E-invoicing te realiseren. In 2013 zetten steeds meer bedrijven E-invoicing om de kosten te drukken. Wat zijn de voordelen? Hoeveel procent van de markt maakt al gebruik van digitaal factureren?
Lees er meer over in deze infographic
Sierra Francesca Dyer was born in 1985 in upstate New York. She had a close relationship with her parents and brothers growing up, though money was tight. She played basketball in high school and college. Dyer has always had a passion for fashion and began working at age 12 to support it. Her parents raised her to be independent, which she credits for being able to build her own brand. Dyer was diagnosed with obsessive compulsive disorder at age 15 and continues to manage it. She earned a bachelor's degree from Mercy College and is now pursuing a master's degree, being the first in her family to do so.
The document discusses test shots. It does not provide any other context or details about the subject of the test shots. In just one sentence, it states "Test shots", but gives no additional information about what is being tested, the purpose of the tests, results, or other pertinent details.
This document discusses the three physical states of matter: solid, liquid, and gas. It explains that the state depends on particle arrangement and motion. Solids have fixed shapes from tightly packed particles that vibrate in place. Liquids have changing shapes from particles that can move past each other while remaining attracted. Gases have changing volumes and shapes from particles that spread out and exert pressure. Temperature affects gas properties, with increased heat speeding particles and expanding volume while decreased heat has the opposite effect. Examples of state changes in water are provided.
This document summarizes survey results from students in the MSEd Information Technology program at a university. It provides details about the demographic breakdown of current students, how they heard about the program, why they were attracted to it, and their career aspirations. It also discusses strategies for improving marketing and outreach to attract more students to the program, current enrollment numbers, course offerings, instructors, and considerations around program growth.
Transforming good experiences into great & engaging user experiencesFrank Garofalo
Frank Garofalo gave a presentation at the 2013 Esri International User Conference about transforming good user experiences into great and engaging experiences. The presentation covered four chapters: establishing good foundational experiences with minimal confusion and frustration; creating great experiences through personalization, emotion, excitement and loyalty; leveraging new technologies to inspire new experiences; and emphasizing continual improvement through learning from successes and failures. The goal was to provide techniques for designing exceptional user experiences.
The document summarizes a presentation by Jacqualine Price Osafo and Erik Schonher on membership marketing strategies. It discusses acquiring new members through awareness, recruitment, and engagement tactics. It also covers renewing and retaining existing members through effective communication, onboarding processes, and multiple renewal contact attempts. Data from the Membership Marketing Benchmarking Report is presented comparing membership trends and effective practices across different association types.
Factuurverwerking is 'appeltje-eitje' geworden voor VCK Logistics met de implementatie van Basware en modules van ICreative.
VCK Logistics is in een eeuw ontwikkeld tot een toonaangevende logistieke dienstverlener ter land, ter zee en in de lucht. Met 60.000 inkoopfacturen was de afdeling Financial Administration vroeger veel tijd kwijt. “Als de inkoper zijn werk netjes heeft gedaan, is de klus tegenwoordig zo geklaard. Gescande factuur, matchen, goedkeuren en betalen: appeltje-eitje” aldus Cleon Oud.
2010 PLS Career Summit: Tom Kosel, Director of Government Relations, Globe Un...Pearson North America
The document discusses potential regulations around gainful employment and their impact on for-profit career colleges. It notes that student loan debt is increasing across higher education but is highest on average for students at for-profit institutions. For-profit schools have not consistently tracked outcomes data to demonstrate the value they provide students. The potential regulations would require schools to report more detailed employment and earnings data for graduates to show their career training programs are eligible and provide access to gainful employment. The regulations would take effect on July 1, 2012.
This document discusses using neural networks for product prediction in industries like IT and pharmaceuticals. It offers neural network algorithms, proof of concepts and products developed for the pharmaceutical industry. The contact provided has expertise and experience developing these neural network solutions for predicting biochemical pathways.
This presentation discusses effective strategies for regional leaders to promote membership in their associations on a volunteer basis. It emphasizes that personal stories about the benefits of membership, such as networking opportunities, are more persuasive than features alone. Regional leaders may feel uncomfortable with sales but can focus on sharing how membership enriched their own experience in a fun, casual way. The goal is to help others become more aware of the value membership provides.
This document discusses how to incorporate project based learning to effectively engage students. It defines project based learning as an instructional approach that uses driving questions to motivate students to conduct research, collaborate, and produce creative work over an extended period of time. The document provides examples of projects done by students, such as creating a film guide for Edward Scissorhands and a public service announcement. It also outlines the discover, create, share model used in project based learning, with examples of tools and resources used in each stage, like using iBooks and online texts for discovery, iMovie and GarageBand for creation, and blogs and Twitter for sharing. The goal is to encourage critical thinking, collaboration, and creativity through project based learning.
The International Council on Systems Engineering (INCOSE) is an international professional society for systems engineers with over 5,000 members across 54 chapters worldwide. Its mission is to foster the definition, understanding, and practice of systems engineering in industry, academia, and government. INCOSE provides resources like its newsletter INSIGHT and the Journal of Systems Engineering to disseminate knowledge, promotes collaboration in education and research, and works to establish professional standards and guidelines for systems engineering.
Open access and the South Australian Red Cross Information Bureau: A case stu...Katie Hannan
A presentation for the University Libraries of South Australia Staff Development Working Group. 24 June, 2014.
What is the role of libraries in creating open access for public research, education and/or community information?
The global automotive industry is facing severe challenges due to the financial crisis. Consumer demand for cars has dropped sharply around the world. Automakers like GM, Ford, Chrysler, and Toyota have posted major losses. However, the crisis also provides an opportunity for innovation and collaboration. Automakers need to shift from competition to cooperation through partnerships and alliances to share costs of R&D, production facilities, and regulatory approval. Financial restructuring and lean manufacturing will also be needed to reduce business risks and costs. Governments are assisting the struggling industry to prevent economic damage.
Tata Acquired Jaguar Land Rover A Strategic Decision towards Liquidity, Cost ...ijtsrd
Mergers and acquisitions are being considered as one of the most important parts of any internationalisation strategies practised by any multinational company. When any organisation is involved in mergers and acquisitions, they generally used it to accelerate growth and to have access to various valuable assets of other company such as human capital and also to reduce competition in the marketplace to gain absolute competitive advantage in the market. Furthermore there are multiple empirical evidences proved that many mergers and acquisitions fail and being a reason to loss of market shares and exit of key top management personnel from the company. Different examples of failed mergers and acquisitions are found in almost all industries in different contexts. Many failure cases show us genuine discrepancy between the expectations, motivating acquisitions and the difficulty encountered to realise the expected value in the market and a complete miscalculations by the company and without knowing the ground reality they opted for or the acquisition. In June 2008 India based Tata Motors Limited had announced that it had completed the acquisition of the two extremely glamorous and iconic British brands Jaguar and Land Rover from the US based food Motors for 2.3 billion USD. There are many experts who had shared their comments and it was mentioned that such acquisition would eventually help the parent company in several ways especially to attract the global audience, to get an international footprint and it will also help the parent company to enter the high end premium segment of the global automobile market and with the help of that the company would able to strengthen their presence in premium segment. Pritam Chattopadhyay "Tata Acquired Jaguar Land Rover: A Strategic Decision towards Liquidity, Cost Control and New Product" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42361.pdf Paper URL: https://www.ijtsrd.commanagement/business-policies-and-strategies/42361/tata-acquired-jaguar-land-rover-a-strategic-decision-towards-liquidity-cost-control-and-new-product/pritam-chattopadhyay
Mr. Katada effectively transformed Komatsu's vision and mission in the late 1980s-early 1990s. He recognized that relying only on past strategies would not allow Komatsu to succeed globally. Katada's new vision was to make Komatsu "The Earth Company, Unlimited" through Project G, focusing on growth, becoming global, and groupwide cooperation. However, Komatsu faced risks implementing Project G given declines in the construction industry. The core problem was how to mitigate risk while growing globally. Secondary issues included sustaining internal excitement, focusing on an overriding theme, and integrating international subsidiaries. Constraints included limited resources, foreign exchange risk, and environmental/political threats. Alternative solutions proposed focusing on sustainability, diversification into
Automotive: Innovative Frugal Engineering Holds The KeyAchal Raghavan
The document discusses opportunities for innovation in the global automotive industry given its current difficulties. It suggests that Indian "frugal engineering" could show the way forward through approaches like making cars upgradeable with replaceable fuel-efficient modules rather than requiring new cars, and downsizing cars without losing interior space like the Tata Nano. This could help address excess industry capacity and make transportation more sustainable and affordable.
Toyota faced significant challenges during the global recession as vehicle sales declined sharply. However, Toyota has since recovered as the global economy improved. While Toyota remains the largest automaker, it faces challenges like maintaining brand reputation after recalls and managing rising input costs. Opportunities for Toyota include targeting emerging markets with growing demand and investing in fuel efficient technologies.
The global automobile industry has grown significantly since the late 19th century, emerging as a leader in manufacturing. Production reached over 64 million vehicles in 2005. While the US historically dominated, Japanese automakers like Toyota gained prominence starting in the 1970s by implementing lean production techniques. More recently, China and India have attracted global automakers seeking lower production costs. In response to environmental concerns, automakers are investing in more fuel-efficient and alternative fuel vehicles, though views on regulations like the Kyoto Protocol remain divided. The future outlook points to growing demand in emerging markets and a shift toward more customized vehicle offerings.
The document discusses the collapse of MG Rover and analyzes the stakeholders involved and their responsibilities. It examines MG Rover's actions in terms of corporate social responsibility and determines that while it upheld some economic responsibilities, it failed to properly consider its ethical responsibilities to employees. It assesses the relative power of actors like MG Rover, the UK government, and foreign companies. Finally, it debates who should be responsible for preserving jobs after MG Rover's collapse and whether unemployment was an inevitable consequence of industrial restructuring.
Techquisition - Don't Be Disrupted. Be Disruption.Paul Cuatrecasas
The document discusses how technological disruption is affecting all industries, forcing even traditional companies to become "technology companies" through acquisitions. It provides numerous examples of large, non-tech companies acquiring technology startups and software companies across many industries in order to gain new capabilities, defend against disruption, and drive growth. The pace of technology M&A is accelerating as digital transformation becomes mission critical for survival in today's business environment.
Packaging Machinery Market Size Worth US$ 76.9 Bn by 2026NikitaGodse1
The document summarizes key points about the packaging machinery market from 2019 to 2026. It states that the global packaging machinery market is projected to expand at a CAGR of around 6% during this period due to factors like increased consumption of packaged food and beverages. The market is fragmented with over 100 players globally, though major manufacturers are based in Germany, Italy, China, the US, and Japan. Automation and integration of systems is creating new opportunities in the market. The food and beverage industry is a major driver of demand for packaging machinery.
3M is an American conglomerate founded in 1902 that produces over 60,000 products for industries like healthcare, consumer goods, and worker safety. It has annual revenues of over $30 billion and nearly 100,000 employees worldwide. 3M saw increased demand for N95 masks during the COVID-19 pandemic, which boosted its profits despite declines in other business segments. The company operates through five business segments and competes against companies like Staples, Office Depot, Avery Dennison, and General Electric.
2. Steel shortage forces Nissan to halt production. Sept
2004
• An output loss of 10-15,000 units
could dent profits by 6 billion yen
($58.46 million). The suspension at
three of its four domestic plants on
November 29 and 30 and December
6-8 was expected to result in lost
production of about 25,000 vehicles
to be made up early next year, the
company had said.
• 20% Cost reduction program, supply
base reduction… punishment?
• Keiretsu vs. Contract Managed
Relationship.
3. Toyota to Resume Production Tuesday
Despite Riken rings shortage, Japan’s auto-industry managers cling to JIT.
One week after July earthquakes played havoc with its engine piston-ring facilities, Riken Corp. (Tokyo, Japan)
managed to resume operations to turn out the key parts for the Japanese automotive industry, where it holds tremendous market share. This made
it possible for 11 of Japan’s 12 vehicle manufacturers to start running their factories again at about the same time, except for Honda Motor’s two
engine factories for subcompacts The
suspension resulted from both the natural disaster and the
fact that the vehicle makers use unique piston rings, which Riken’s and the clients’ engineers
jointly design.
As for the Just-in-Time system, Toyota Motors president Katsuaki Watanabe defended it, saying, "We shouldn’t be afraid of stopping production lines. We made the
best use of the lessons we learned in the past." He appeared to have been referring to the great Kobe quake of 1995 and the fire in 1997 at Aisin Seiki Co.
(Kariya, Aichi Prefecture), a major supplier to Toyota. None of the members at the Japan Automobile Manufacturers Assn. (JAMA; Tokyo) intends to amend their
JIT procedures, as Fujio Cho, Toyota chairman, told the Japanese media at the trade group, where he concurrently serves as its chairman. JAMA, however, would
sound out parts makers to see if they could diversify production sites for important products with high market shares.
The ring problem affected the industry to the tune of some 124,000 units, including 55,000 cars at Toyota alone. It plans to make up for the lost
production by the year’s end, with its employees asked to work over weekends. Other automakers are likely to follow suit.
The so-called "Riken shock" caused piston-ring users in other industries like off-road and marine diesel to worry. But their fears turned out to have been largely unwarranted because
of their refusal to adopt the JIT in favor of maintaining larger ring inventory volumes in their warehouses. Only Kubota Corp. (Osaka) seems to have been forced to suspend
producing, with about 1,500 tractors, fewer than 300 construction machines, and some 9,000 engines affected.
Unique Design…
Like Kubota, Yanmar Co. (Osaka) is a diversified machine maker based traditionally on agricultural hardware. It counted on sizable parts inventories. Its emergency plans, which did
not have to be implemented, called for temporarily amending the sequences of its engine-assembling steps. Similarly, Komatsu Ltd. (Tokyo), the world-class construction-machine
Sole Suppliers…
builder, and Mitsubishi Heavy Industries Ltd. (MHI; Tokyo), a leading shipbuilder, avoided plant shutdowns. MHI revealed its diesel-engine piston rings stock can withstand one-month
of suspension at Riken or its subsidiary.
Posted: Aug 6th, 2007 Natural Disasters…
Lot of Revenue Loss!!!
3
6. P&G is Spending
more on Transport
and Storage than on
running its factories
Oil Prices
and
Logistic
Costs
Risk!
R.Muscetta
6
7. Palm Pre Shortage: Supply Chain
Slip-Up or Retail Fairy Tale?
By Renay San Miguel
E-Commerce Times
Part of the ECT News Network
05/22/09 12:57 PM PT
Sprint has publicly stated it anticipates shortages for the
Pre, Palm's new smartphone set to go on sale June 6. If
Palm is in such dire need of a hit, why did it go to market
with a shortage rather than delay release? Or is talk of a
shortage just a ruse to try and stir up buzz in what looks
to be an extremely competitive summer for the
smartphone sector?
7
8. Still Work to Do… and this is why we are
here…!
Latest news
Supplier risk ‘not getting sufficient attention’
21 April 2009 www.cpoagenda.com
Procurement organizations are paying insufficient attention to the issue of supplier risk despite
the threat of key partners going out of business, a global study suggests.
A survey of purchasing functions in large organizations from the UK, US, Italy, Spain and France, commissioned by Bravo Solution, a supply management technology
just 31 per cent had evaluated financial and fulfillment risk in
provider, found that
the past six months.
This failure was common across the countries surveyed, ranging from 35 per cent of US businesses to 27 per cent of UK and French companies.
“Perhaps distracted by the need for immediate cost savings, resources are being diverted elsewhere,” the report said. “Analyzing risk without
sufficient spend visibility or supplier transparency is a very difficult and often inaccurate exercise. However, these challenges should not excuse this absence of risk
evaluation and accountability.”
Of those organizations that have evaluated the threats they face, 72 per cent had either introduced changes as a result or were intending to do so in the near future.
“With such a high level of change resulting from risk evaluation, the implication is that those businesses yet to undertake risk evaluation are moving further away from an
appropriate response to supplier and process instability,” the report said.
Separate data released this month by the Hackett Group, a benchmarking and advisory firm, found that two-thirds of world-class performers managed supply risk as a
consistent, enterprise-wide process. The figure for other companies was just 13 per cent, and almost half had not implemented it at all. The most important objective
cited in the BravoSolution research over the next 12 months was identifying new areas of cost savings, with 77 per cent of all organizations saying this was the priority.
Those in the US and Spain (both 87 per cent) gave this the most emphasis, while 65 per cent of French organizations agreed.
The research also suggested the economic recession is enabling procurement departments to strengthen their internal standing. Forty-four per cent of those surveyed
reported a wider mandate to control costs than they had 12 months ago, with 38 per cent experiencing a greater strategic input. Purchasing now enjoys a closer working
relationship with other business units in 37 per cent of cases, the survey found, while 28 per cent reported greater board exposure.
“Undoubtedly, purchasing professionals are enjoying greater responsibility, control and visibility than before but with this also comes significant risk,” the report said.
“Purchasing objectives are becoming more extensive and challenging while pressure from the organization to find new areas of cost saving show no signs of abating.”
UK organisations have been the main beneficiaries of the greater status, the research suggested, with 55 per cent seeing a greater input on company strategy and
experiencing a closer working relationship with other functions and 37 per cent gaining greater board exposure. This compared to 39 per cent, 32 per cent and 28 per
cent respectively for US companies.
8
10. The World is Flat 3.0
In the book, Friedman recounts a journey to THE WORLD IS
Bangalore, India, when he realized globalization has changed
RISK
FLAT
core economic concepts. He suggests the world is "flat" in the
sense that globalization has leveled the competitive
playing fields between industrial and emerging market
countries.
Globalization 1.0, which ran from 1492 until 1800 and was driven by
countries …
Globalization 2.0, in which "the key agent of change, the dynamic force
driving global integration, was multinational companies" driven to look abroad
for markets and labor, spurred by industrial-age "breakthroughs in hardware"
such as steamships, trains, phones and computers.
That epoch ended around 2000, replaced by one in which individuals are the
main agents doing the globalizing, pushed by "not horsepower, and not
hardware, but software" and a "global fiber-optic network that has made us all
next-door neighbors." Globalization 3.0
10
11. Global Sourcing
• Many companies have either made or are in the process
of making the transition from a:
• Build and Sell: Global
local Business • Sell-Anywhere,
Model
• Build-Anywhere
• Source-
Anywhere
Local
• The transition includes both new global sources of supply
and new global sources of demand.
11
12. Reaping the Benefits
• Outsourcing has allowed companies to split service and manufacturing
activities into components which can be subcontracted and performed
Outsourcing in the most efficient, cost-effective way.
• The internal relocation of a company's manufacturing or other processes to
Offshoring & a foreign land in order to take advantage of less costly operations there.
BCS/LCC China's entrance in the WTO allowed for greater competition in the playing
field. More entrants: Malaysia, Thailand, Vietnam, Brazil, etc
• Companies using technology to streamline item sales, distribution, and
Supply- shipping.
chaining
• UPS as a prime example for insourcing, in which the company's
employees perform services--beyond shipping--for another company.
Insourcing For example, UPS repairs Toshiba computers on behalf of Toshiba. The
work is done at the UPS hub, by UPS employees.
12
13. Driving Value with Global Sourcing
Global sourcing is unavoidable in today's flat
world, but it's a highly complex undertaking.
THE WORLD IS
RISK
FLAT
Many companies with successful global sourcing
objectives have not only lowered their overall supply
costs, but also pioneered innovative supply partnerships
enabling value-driven transformation
Strategic sourcing demands that companies align what the
customer wants, what's best for the business, and what's
needed to get the supply. And they need to do this while
dealing with the inherent intricacy of navigating global
suppliers, inventory, cultural differences, currency, time
zones, connectivity, language, and supply chain
requirements.
13
15. EnablerS
THE WORLD
RISK
IS FLAT
EnablerS
900
800
700
600
500
400
300
200
100
0
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50
15
16. Few Words about Risk
Risk is characterize by both the probability
of an event and its severity given that an
even occurs.
Impact
RISK
Probability
16
18. Supply Chain Risk
Is a function of sum or probabilities of disruption
at critical nodes in the network, multiply by the
revenue impact of a disruption in revenue dollars on
the end customer.
Function of Global Nodes and Constrained
(Amplifiers) = Dependencies
-
% Pr (D)
Function of SC Planning and SC Redesign
(Risk Reducers) = and Visibility Effectiveness
x Function of Excess Resources and Visibility
$ Risk (Revenue Loss) = effectiveness
$ I (D) +
Function of SC Redesign and excess
$ I (D): Impact of Disruption
(Cost to Stabilize) = Resources
% Pr (D): Probability of disruption
18
19. Supply Chain Risk Management Process
I II III
Map the SC and Identify Risk a. Excess Resources
Measure the Reduction b. SC Collaboration &
Planning
Risk of Critical Mechanism for c. Invest in visibility
Nodes in the High Risk systems
Network Nodes d. Major SC redesign
19
21. Environmental
Shipping Political Riskv Wage
Employment LevelsPort of Entry
Route and
Weather and Transportation
Disaster Risk Methodology
Rate
Routes
Weather and Transportation Routes
Earthquake Risk Tornado Risk
Hurricane Risk
Within 60 miles of coast -5
60-100 miles of coast - 4
22. A Risk Assessment System in Use
The primary reporting review: Risk Index Index
next reporting review: Risk Probability Matrix
Distribution
A set of disruption predicators based on
experience and research.
• The Diagnostic • The Analytical or Risk • Is constructed by
• Reflects the event mode plotting the revenue at
comparative level of • The events are risk (Rev Impact) with
risk in the supply assigned a probability a supplier vs. the
chain. of occurrence. average Risk
• The center of the • This is a relative Probability Index (RPI)
circle is the Risk Index measure used to rank- of that supplier.
of the demographic order the suppliers • It is used to view all
(supplier, sub- according to the suppliers within a
category, commodity, e potential of a supply commodity group
tc). chain disruption according to their Risk
and potential impact to
your company.
Risk
Risk Probability
Risk Index Distribution
Index
Matrix
22
23. Risk Index at Glance
Bargain Power with RM Suppliers
Forecast Frequency with Suppliers
Employee Turnover Supplier Performance Review Freq
Senior Staff Turnover Supplier SC Disruption Likelihood
Labor Unionization / Pay Position Risk Management Approach
Sole Sourced Material
Accreditations
Engineering Support VI. Human I. Supply Chain
Capacity Utilization Resources
Capacity Changes Disruption Profitability of Business Unit
Upside Flexibility Customer Satisfaction of BU
Manufacturing II. Financial
Issues
V. Performance
Employees Response to Technical RI Health
Supplier Risk Report
Performance of Business Unit
Performance vs Competition
Time Since Last Supplier Audit A/R vs A/P Cycle Time
Supplier Audit Results
Delivery Results III. Business
Quality Results
IV. Relationship
Environment
Corrective Action
Industry Focus
Market Dynamics
Customer Leverage
Merger and Acquisitions
Reputation
Regulatory Issues
Critical Info Sharing
Disasters
Transportation Disruption
23
24. Risk Probability Index at Glance
Supplier Locked
Union Strike
Rapid technology changes
Tier-2 Supplier Stoppage Material
Tier-2 Supplier Stoppage Business
Supplier Ownership changes Tier-2 Supplier Shutdown
VI. Human I. Supply Chain
Resources Disruption
II. Financial
Quality Problem
Delivery Problem
Service Problem
V. Performance
RPI Health
Supplier Bankruptcy
IV. Relationship III. Disasters
Misalignment of Interest
Delivery Problems due to Environment
Service Problem due to Environment
Force Majeure
Location Risk
24
25. SC: a complex network consisting of supplier-
customers-suppliers relationships..
25
26. Supply Disruption Risk Analysis
Risk Impact and Risk Probability Index
Supplier Risk Assessment Questionnaire
Risk
Index
Risk
Probability
Index
26
27. Supply Disruption Risk Analysis
Risk Index (Diagnostic) and Risk Probability Index (Analytical)
Risk Index
Risk Probability Index
27
28. Risk Distribution Matrix
• Used to view all
suppliers within
a commodity S3
group plotted
according to
their risk and S2
potential impact
on your S1
company
28
29. Supply Disruption Risk Analysis
Strategy Impact on Risk Mitigation
Supplier Risk Index Supply
Chain Disruption
Environ- Financial
mental Health
HR Relation-
ship
S3
Performance
S2
Supplier Supplier
Locked
Risk Probability
Index Tier-2 Disruption
S1
Supplier
Supply Bankruptcy
Chain Disruption
Disasters
Environ- Financial
mental Health
HR Relation-
ship
Misalignment
of Interest
Ownership
Change
Performance
Service Quality S1
Problem Problem
S2
Delivery
Problem
S3
29
31. Double Sourcing the Panacea
Risk Probability Index (RPI)
900
• Lowering the spend.
800
700
600
Revenue Impact
• Logistics bottleneck
S2
500
400
• Communication
S3
300
S4
200
problems 100
0
S1
• Planning and
0.00 0.10 0.20 0.30 0.40 0.50
Risk Index (RI)
forecasting 5
4
3
3.06
• Union trends and
2 2.97
2.22 2.06
1
0
issues
Aaseby Kima Rojax Saivs
S2 S2 S3 S4
• Etc…
31
32. Supply Chain Risk Management Process
I II III
Map the SC and Identify Risk a. Excess Resources
Measure the Reduction b. SC Collaboration &
Planning
Risk of Critical Mechanism for c. Invest in visibility
Nodes in the High Risk systems
Network Nodes d. Major SC redesign
32
33. Risk Mitigation Mechanisms
Disruption Discovery Visibility
Strategically Positioned Excess
Supply Chain Planning and
Systems
Supply Chain Redesign
• Risk monitoring systems • Network redesign
Resources
Collaboration
• Expediting • Supplier qual/ assessment tools
• Safety Stock
• Inventory visibility systems • Relationship management and
• Product or process
joint planning
redesign
• Event management
• Demand/Supply forecast reviews
systems across entire SC
• Deploy RFID at strategic • Daily status meetings
nodes in supply chain • Defined communications network
• Predictive analysis protocols and mechanism
modeling tools • Defined contingency plan
responsibilities with decision‐
• Task forces to analyze end‐ making authority for critical
to‐end supply chain events at all nodes
operations
33
35. BEFORE..
Concerns
High Cost
Higher CO2
footprint.
High dependency on
internal capability
High volume been
transported
intercontinental
High transport risk
YOUR Plant
Global Supplier
LCC Supplier
Inter‐Regional Supply
Intra‐Regional (JIT) Supply
35
36. … and AFTER
Benefits
Increasing Low Cost
Country
manufacturing
capability
25-55% immediate
saving through
reduced
transportation and
duty charges
Reduce lead times
through avoidance of
Intercontinental
transport
Improved
communication
YOUR Plant through local supply
Global Supplier
LCC Supplier
Inter‐Regional Supply
Intra‐Regional (JIT) Supply
36
37. Conclusions
Global Sourcing will continue to be a
driver of value creation while adding
complexity to the Supply Chain.
Assessing and managing Risk will be a
“must-have” in all SCM/CPO/Procurement
professionals
Using objective, multidimensional and
visible tools will drive better and founded
decisions to mitigate, reduce or avoid risk.
37