Towards an integrated supply network

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• Towards an integrated supply network
• Brainport Industries
• John Blankendaal
• Managing Director Brainport Industries

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Industrie 1.0
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Industrie 2.0
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Industrie 3.0
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Industry 4.0?
Mobile phones
Volume
CD players
Cars
Trucks
Airplanes
Hightech Equipment
Complexity
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This high-tech world is changing

• World wide competition
• Increasing complexity
• Flexibility and agility demanded
• Shorter product life cycles
• Upfront investment for new product development
  grows
• Pool of technical talent shrinks
• Cost price pressure
• Higher quality levels required

Market share US 2009 50, 2013 2
Global market share 2007 50, 2013 3
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The answer is to be found in the supply chain

• Value chains compete instead of individual
  companies
• Supply chain is designed to outsource non-core
  activities or functionalities
• Cooperation within high intelligent networks is
  the model for the future
• The supply chain opens itself and takes more
  responsibility

Source ASML Sustainability Report 2009
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Classic way of outsourcing

• 1980 OEM VALUE CHAIN
• Subcontracting of component production only with
  different suppliers

1. Research Development
3. Prototyping Industrialization
4. Component production
5. System integration
6. Sales Service
2. Design Engineering
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Recent development in outsourcing

• 2000 OUTSOURCING PART OF THE VALUE CHAIN
• Outsourcing core processes including Process
  Development
• Outsourcing support processes like Supply Chain
  Management, Sourcing and Life Cycle Management

Process Development

1. Research Development
4. Component production
6. Sales Service
2. Design Engineering
3. Prototyping Industrialization
5. System integration
Supply Chain Management
Sourcing Life Cycle Mngt.
Sub-Assemblies
Components
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The near future of outsourcing

• 2020 OPEN SUPPLY CHAIN
• OEM transform to lean companies

Business Model Development, Financing Funding
Quality Assurance
Project Management Staffing
Process Development

1. Research Development
3. Prototyping Industrialization
4. Component production
5. System integration
6. Sales Service
2. Design Engineering
Supply Chain Management
1st Tier
Systems
Sourcing Life Cycle Management
Sub-Assemblies
2nd Tier
Components
3rd Tier
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Suppliers teamed up to create

• Cooperative of 85 high tech suppliers working
  together to boost their competitive and
  innovative power by the development and execution
  of concrete activities on the themes people,
  business and technology, so the members can grow
  to the top of their markets.

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93 Members (turnover 2 billion, 9000 fte)
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Market focus of Brainport Industries
PHOTO VOLTAIC
PRINTING
ANALYTICAL
MEDICAL
SEMICON
High mix, low volume, high complexity
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Brainport Industries
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Charles Darwin
It is not the strongest nor the most intelligent
of the species that survives but the one that is
the most adaptable to change.
Proudly stolen from the Origin of Species, 1859
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Smart Industry

• Early supplier involvement
• Working with OEMs in joint development teams
• Sharing CAD systems
• Model based engineering
• Using PLM systems in life cycle
• Sustaining engineering during life cycle
• Full transparency in the chain
• Suppliers working together in pre competitive
  projects

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Addlab (shared metal print facility)

• KMWE
• NTS Group
• Frencken Europe
• Machinefabriek De Valk
• FMI
• MTA
• Philips Innovation Services
• De Lage Landen

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• Thank you for your attention