Supply Chain

1
Supply Chain

• Three key metrics becoming increasingly sensitive
  to companies
• Speed-to-market
• Speed-to-volume
• Time-to-profit
• Continuum of business change
• Integrating Supply Chain operations within the
  company
• Collaboration with suppliers customers
• Synchronisation of entire supply chain into one
  logical enterprise

2
Supply Chain

• Four areas to address along this continuum
• Product design
• e-marketplaces
• Collaborative manufacturing
• Integrated fulfilment

3
Supply Chain

• Product Design - creating collaborative
  cross-company processes to design products that
  meet the markets need and can be quickly and
  efficiently produced - reduces speed-to-market
• Customer-driven design
• Collaborative design
• RD sharing

4
Supply Chain

• Product Design
• Customer-driven design
• Customers far more integral to the design process
• Fiat Punto - 3,000 customers - on screen style
  features selection
• software tracked customer priorities
• directly influenced styling concept design
• Collaborative design
• minimise design complexities that cause supply
  chain inefficiencies
• suppliers, manufacturers contract manufacturers
  collaborate
• Adaptec uses Extricity software to connect with
  manufacturing partner in Taiwan, its assembly
  partner in Hong Kong Seiko in Japan
• modification process can be quickly iterated in
  real time

5
Supply Chain

• Product Design
• RD Exchange
• Companies now commercialising innovations through
  development portals
• TechEx.com - biomedical industry portal -
  matches research institutions, venture
  capitalists and corporate licensing professionals
  matched
• Yet2.com can be searched for relevant patents

6
Supply Chain

• E-Marketplaces - using Web-based marketplaces as
  a fast-track mechanism to a tightly synchronised
  supply base
• Started out as new way to procure product
  particularly MRO product (purely supporting
  transactions) - now widened to change how
  companies interact with their supplier base -
  mechanism for greater collaboration
  synchronisation between organisations
• Industry Vertical Marketplaces
• Private Exchanges
• Horizontal Aggregators

7
Supply Chain

• E-Marketplaces
• Industry Vertical Marketplaces
• Some industries - one major vertical
  e-marketplace - Trade-Ranger in Oil industry
• Other industries - competition between groups of
  large multinationals to be the dominant
  e-marketplace - Food Retail
• Private Exchanges
• easier to integrate a group of suppliers over
  which you have tremendous control
• Cisco - eHub - Manugistics to co-ordinate
  production plans at multiple tiers of suppliers
• Dell - Valuechain.dell.com - i2 Technologies to
  help co-ordinate the demand planning of their
  suppliers

8
Supply Chain

• E-Marketplaces
• Horizontal Aggregators
• Mostly involved in the fulfilment area
• Freight - Elogistics.com - online road freight
  procurement exchange matches shippers
  requirements with carriers or truck owners

9
Supply Chain

• Collaborative manufacturing - redistributing
  production assets and forming tight collaborative
  partnerships to achieve greater manufacturing
  flexibility - Time-to-volume
• Transactional Integration
• Collaborative Integration
• Networked Integration

10
Supply Chain

• Collaborative manufacturing
• Transactional Integration
• majority of outsourcing relationships are
  transactional in nature financial benefits are
  achieved but operationally supply chain remains
  the same
• old problems still persist - buffer stock
• Collaborative Integration
• two-way collaboration is needed - joint decision
  making - e.g. substitute component
• supply chain is so dynamic manual processes
  cannot keep pace - software is needed
• AgileAnywhere (Agile Software) - design,
  prototype and ramp to full volume

11
Supply Chain

• Collaborative manufacturing
• Networked Integration
• To allow multiple partners to participate in the
  planning and execution decisions
• still in the early stages of development
• i2 Technologies - in supply chain planning
• Ariba - in product content collaboration
• standard information structures needed such as
  RosettaNet

12
Supply Chain

• Integrated fulfilment - Taking a holistic
  approach to managing the wide variety of
  Web-based or traditional fulfilment channels now
  available
• Logistics Postponement
• Resource Exchange
• Clicks-and-Mortar model

13
Supply Chain

• Integrated fulfilment
• Logistics Postponement
• Taken up by 3rd party logistics providers
• rolling warehouse concept - long haul truck
  loaded with well defined shipment quantities for
  each of its destinations
• several days before reaching destination - demand
  change is communicated to driver - exact amount
  unloaded at each detination
• Resource Exchange
• many locations pooled into virtual resource
• or Synchronet - e-marketplace - company A swaps
  empty/full containers with company B
• Clicks-and-Mortar model
• easily accessible retail outlets - customer
  travels for pick up

14
Supply Chain

• Synchronisation -The alignment of the supply
  chain into one logical enterprise and operating
  it as a fully-linked and optimised capability
  from suppliers to customers.
• The following are key strategies to consider
• Know your best customers.
• Beware of unobtainable synergies.
• Make physical assets pull their weight.
• Use the latest collaborative tools an processes.
• Pick the right partners.

15
Supply Chain

• Synchronisation
• Know your best customers.
• 80/20 rule
• Beware of unobtainable synergies.
• Test complementary offerings
• Make physical assets pull their weight.
• Optimise inventory, warehouse transportation

16
Supply Chain

• Synchronisation
• Use the latest collaborative tools an processes.
• draw up an information-sharing plan that details
  the most valuable information needed by your
  partners
• Multi-Channel Order Flow Management - companies
  such as Yantra and Vigilance. It provides
  capability to customise availability and execute
  customer orders across myriad channels.
• Pick the right partners.
• Complex orders must be tracked and monitored as
  they move across the supply chain and metrics
  must evaluate customer-level revenue and
  profitability, not just traditional cost/service
  trade-offs