"Supply chain simplification" presentation for Digital 2013 conference

www.principalityconsulting.com
Supply Chain Simplification
DIGITAL 2013

Introductions
• Ivor Lewis• Martin Seymour
Operations Focus Technology Focus

Background
Simplifying Supply Chain Management
“As supply chains become more complex, so information technology systems have
developed to enable the management of this complexity. The success of these
systems has in turn led to more complexity in the supply chain, and the need for real
time solutions to allow 24x7 management and control. The Internet is helping deliver,
and the rapid development of web technologies is bringing new and exciting
opportunities to supply chain and logistics managers”.
(Chair Chartered Institute of Logistics and Transport. UK)

Content
• Simplification Opportunities
– Demand
– Process
– Technology.
• Case Study – protein Supplements
• Enterprise Resources Planning Systems
• Emerging technologies
• Summary

Supply Chain Activities
Based on Porters model

Sources of Complexity
• Network nodes and links
• Processes internal & external
• Range of products/services
• Product design
• Customer characteristics
• Supplier base
• Organisational
• Information

Customer Expectations
• Next day delivery or local collection
• Click and collect
• Real time information on line
• Lowest Cost & discounts
• No delivery charge
• Free returns
• On-going service support

Contributing to complexity
• Unpredictable demand.
• Number of Stock Keeping Units (SKU’s)
• Multiple price lists
• Need for batch control
• Sell by dates
• Traceability

Cost reduction opportunity.
80% Sales from 20% of customers/services
0
10
20
30
40
50
60
70
80
90
100
0 20 40 60 80 100
Services and Customers %
CumulativeSales%
(40-60%of overhead
costs in tail)

Thoughts from the floor.
• What are your SCM issues?
• How do you plan to address the issues?
• View of ERP system market?
• Are you aware of the support available?

SIMPLIFICATION OPPORTUNITIES

Simplifying Supply Chains
• The best practice approach to supply chain
management (SCM) should be seen more as a way
to add value than a way to cut costs.
• The leaders in SCM are demand-driven, meaning
that they sense demand, shape it and orchestrate for
a profitable response.
• Companies need to move towards a model where
demand is not just a given but something you
manage and negotiate, creating and orchestrating a
demand and responding to it."

Opportunities for simplification
• Proactively manage demand
– Analytics, customer relationship management and
partnerships
• Manage supply chain processes & bottle necks
– Category, capacity and inventory management.
• Enabling technology
– Enterprise Resource Planning, e-commerce platforms,
data exchange, convergence, physical control

Demand Simplification
• Proactive marketing & sales
– Rationing+Promotions+Release dates = Pre ordering
• Process
– Delivery slots+wish lists+bundling (BOGOF) = Pre ordering
• Analytical
– Demand Patterns (Seasonal, Geographical, Impact)
– Loyalty Cards
Order makers not order takers

Process Simplification
• Change from functional to process organisation
• Implement/Improve Sales & Operations planning
• Target single data entry
• Automate/ minimise transactions
• Automate/minimise authorisations
• Transparency of demand
• Identify and manage bottlenecks

Enabling technology
• Integrated Systems
• Customer relationship front end
• Available to promise
• Back to back ordering
• Web and EDI integration
• Integrated communications
• Mobile technology
• User report and form writer
• Document management

Case Study – Protein Supplements
Manufacturing Inbound Operations Outbound
Pallets
Web Orders
Shop Direct
Telesales
Free Issue
Promotional
Warehouses
Batch control
Sell by Date
Pick & Pack
Assembly
Dispatch
Quarantine
Sales
Marketing
Finance
Products
Packaging
Promotional
Collections
Carriers
Health & Fitness Sector – Food grade products
Raw Materials
Issued Materials
Batch Control
Sequencing
New Products
Capacity

System requirements – Protein Supplements
• Systems to support business development
• Decouple cost and growth
• Integrated EDI & Web site
• Provide Batch, Sell by date & Traceability
• Customer Relationship Management
• Manufacturing Requirements Planning (MRP11)
• Warehouse Management System
• Available to promise & back to back procurement
• User reports & forms writer

www.principalityconsulting.comwww.principalityconsulting.com

Case Study – Protein Supplements
• Existing
– Sage Line 50
– Snap Fulfil (SaaS)
– Red TradeIT
• e-commerce platform
– Bespoke connector
• Shop Direct orders
• Solution
– SAP Business One ( ERP)
– Accellos (WMS)
– Cindercone (EDI)
– Sboe-Connect (Web)
– Boyum (Usability)
– iBolt (Integration)
– Spindle (Documents)

ENTERPRISE RESOURCE
PLANNING SOLUTIONS

ERP Suppliers

Gartner Magic Quadrant -ERP
• 2012 • Leaders in 2012
– SAP All in One
– Microsoft Dynamics
AX
– Epicor 9

What is ERP?

SCM TECHNOLOGIES

SCM Technologies
Current
• Security & Data protection
• Innovation
• Workflow & notifications
• Cloud Computing
• Communications Convergence
• Real World Web
• Multiple Platforms
• Bar codes / RFiD
• Picking & Put away systems
Developing
• Big Data
• NFC
• Touch & Pay
• Information & Analytics
• Borderless Business
• Reshaping the data centre
• Consumerisation of IT
• Digital Native
• Green IT
• Transformation through IT
Horizon
• AI
• Robotics
• Backshoring
• Industrialisation of delivery
• Pool of talent/gender balance

SUMMARY

Summary
• Demand is driving complexity
• Technology enables simplification
• Orchestrating demand is the challenge
• SAAS /Cloud is the emerging solution.
• Data analytics enables customer retention, cross
selling and demand management.

• Activity Based Management analysis
• Business Operations Analysis
• Business Systems Review
• Feasibility studies
• Information Communications Technology
• Management Information Systems
• Marketing and Information Management
• Marketing/Sales Strategy and Systems
• Performance Management
• Profit Improvement
• Strategic reviews and evaluation
Your expert partner in:
STRATEGY | SYSTEMS | PROCESS |
PERFORMANCE
Principality Consulting Limited
The Innovation Centre
Festival Drive
Victoria Business Park
Ebbw Vale
NP23 8XA
Tel. + 44 (0)1495 356711
Email.
info@principalityconsulting.com
Fax. + 44 (0)1495 356716
Company Registration number.
4819056
VAT number. 821 2225 76

"Supply chain simplification" presentation for Digital 2013 conference

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