SCL HUB January 2019

1. Synchronise for
Success
How to digitalise your supply chain effectively.
January 2019

2. S U P P L Y V U E B Y C O N C E N T R A
2
Introductions
Christine McNeill
Supply Chain Professional with 25 years
experience across a range of industries
including Industrial Gases, Oil & Gas, Hi-
tech, Retail and Consumer Goods.
With both industry and consulting
experience, Christine has worked in
regional and global roles to drive
improvements across all areas of the
supply chain.
Head of Client Engagement
25 years of experience as a Supply Chain
Manager and change agent in Hi-tech and
FMCG sectors. Proven track record of
driving and delivering strategic and
operational improvement in global
organisations.
Previous roles include UK/I Supply Chain
Director at Philips Lighting and Global
Supply Chain Manager at P&G.
Kim Lloyd
EMEA Director, SupplyVue

3. 3S U P P L Y V U E B Y C O N C E N T R A
Demand profiles,
channels, markets are
being disrupted
Need visibility and agile
decision making
capability
Industry 1.0
The mechanical weaving loom,
water and steam power.
Industry 2.0
First production line.
Mass production using electrical
energy.
Industry 3.0
First programmable logic
controller (PLC).
Use of electronics and IT for
further automation.
Industry 4.0
Lights out factories and
warehouses, autonomous self
driving vehicles, AI based,
planning and scheduling and
business decision making.
1784
1870
1969
Today
Industry is evolving

4. 4S U P P L Y V U E B Y C O N C E N T R A
Functional emphasis often creates tension between driving down cost
and improving product flow and service
Quicker
response Greater
varietyShorter
lead-times
More
channels
Fresher
products
Better
service
levels
Reduce costs
Typically a 5% reduction in supply chain
expenses will increase net profit by between
25 to 50%
Companies that are service leaders
can drive revenue growth.
They win in the market place.
Tension and
inertia – nothing
gets done at
speed
How can you become a service leader with high velocity product flow
AND also be highly efficient?

5. 5S U P P L Y V U E B Y C O N C E N T R A
Businesses need to be dynamic, aligned
and acting as one in our fast paced digital world

6. 6S U P P L Y V U E B Y C O N C E N T R A
So it’s time to change how we run our businesses
That’s why it is time to embrace a data driven connected supply chain
It’s time…
…that supply chain leaders didn’t have to fly blind and make decisions based on imperfect information…
…that businesses didn’t carry the cost of excessive stock buffers to compensate for that poor information…
…that the huge investment in information systems paid off...
…that those leading the supply chain are able to take advantage of the full potential of the digital revolution,
making data-driven decisions.

7. 7S U P P L Y V U E B Y C O N C E N T R A
Model
Simulate “what if”
the why is fixed.
Visualise
You can’t change
“What” you can’t see
Synchronise
Move from
“responding” to
demand to
“governing” demand
Optimise
Drive new levels
of efficiency and
effectiveness
Diagnose
Identify “why”
current issues exist.
Four steps to navigate the digital revolution
Automate
Remove all “non
value added”
manual work.
2. ALIGN 3. SYNCHRONISE 4. OPTIMISE1. VISUALISE

8. 8S U P P L Y V U E B Y C O N C E N T R A
Consolidate and use the data you have
Visualise – You can’t change what you can’t see
• Its not about generating more data, its using what exists
• Data exists somewhere as it is transactional data
◦ (Purchase orders, Production records, Inventory records etc)
• Gauge performance levels E2E
◦ Supply chains invariably have data within silos but not across the silos
• Data must be generated timely and from an aligned, reliable source
Without understanding the detail the organisation will struggle to align on
“what” the issues are.

9. 9S U P P L Y V U E B Y C O N C E N T R A
Drive greater operational and strategic alignment across the company
Align – Link supply chain management to business strategy
• Diagnose problems vs best in class supply chain thinking
− Understand issues down to product level
− Poor/ no segmentation
− Poor adherence to policy
• Holistically model and perform what-if analysis
• Align current activities with business strategy
− Focus in on what’s important
Without understanding the real cause and “what if” analysis the
organisation will struggle to maximise business objectives & drive
competitiveness.

10. 10S U P P L Y V U E B Y C O N C E N T R A
Set parameters on timing and order quantity to optimise flow
Synchronise - Move from responding to demand to governing demand
• Fix a synchronised and repeating pattern of demand
• Create a stable platform for Lean principles
• Simplify the scheduling process
• Make operations less wasteful and more reliable
• Improve efficiency
• Reduce lead times
• Eliminate fire-fighting
The latest technologies allow businesses to determine the best patterns for
synchronising orders and crucially visualisation tools make the governing
rules of the supply chain more transparent

11. 11S U P P L Y V U E B Y C O N C E N T R A
Differentiate ‘base’ from ‘surge’
Synchronise - Move from responding to demand to governing demand
Source: Janel Godsell, University of Warwick
As a second step, begin analysing the peaks and troughs of demand and
segmenting the constant ‘base’ levels from the variable ‘surge’ levels and
manage each, differently.
Governing ‘base’ demand is relatively straightforward because it is
predictable, regular and repeating – it’s the ideal profile for any business.
So long as the rate of supply syncs with the rate of sales, Operations
can run at lowest cost, often in far-flung locations with longer lead times
and inventory that just cycles through the supply chain. The result: both
high service and high efficiency targets are met.
Where demand is unpredictable and prone to ‘surge’, then synchronising
production as described above is imperative so operations can respond
effectively and efficiently. The decision to near-shore supply and incur
more costs in favour of agile service would be determined by the overall
business strategy and aligning the supply chain strategy to suit.

12. 12S U P P L Y V U E B Y C O N C E N T R A
Synchronising production wheels
Synchronise - Move from responding to demand to governing demand
Imagine each product manufactured by a particular factory is assigned
its own colour. Over a two-week period, the factory expects to
manufacture all its products at least once. Each time a production line
changes product, the colour of the new product is drawn on a calendar.
A standard ‘inside-out’ approach sees operations managers constantly
chopping and changing their production schedule in response to
demand.
As such, the resulting calendar is likely to emerge as a disordered
jumble of colours. In contrast, an ‘outside-in’ approach sets clear rules
on how and when orders are produced. The result is a discernible and
predictable colour pattern because products follow one another in a set
sequence along the factory’s production line. Ideally, the space
between colours shortens too as the factory gets increasingly used to
the production cycle and goes through it quicker and quicker.
Inside out: respond to demand Outside in: govern the demand

13. 13S U P P L Y V U E B Y C O N C E N T R A
Use the digital technologies to support you supply chain
Optimise – Drive new levels of efficiency & effectiveness
• Take an holistic view of the supply chain
• Assess weaknesses in your system
• Identify the largest opportunities for improvement
• Take out non value added work and automate eg
◦ Demand baseline forecasting
• Align demand and supply.
A smooth running supply chain will always be driven by the right processes
first and supported by technology second – never the other way around

14. 14S U P P L Y V U E B Y C O N C E N T R A
Seize the potential of new data focussed technologies
The time is now
• Only 33% of firms rate themselves as digitally advanced
• 70% of firms aspire to be digitally savvy by 2020
• The digital supply chain will be characterised by
− Higher flow
− Better customer service
− Lower costs
• The tools are available now
The digital supply chain is not only feasible; its fundamental