Documente Academic
Documente Profesional
Documente Cultură
Agenda
Introduction
Case examples
Conclusions
4
Supplier
Transport
Plant
Downstream Flexibility
and Adaptability
Central
Warehouse
Transport
DC
Customers
Company 1
Implemented regional
SCP with DP in
countries by BU
Company 5
Implemented regional
SCP with DP in
countries (in one
Crossi-BU Hub)
Company 6
Implemented Regional
SCP for long term
timeframe and kept short
term SCP in countries
Operating Principles;
Improved service (through inventory and
capacity allocation rules based on genuine
market priorities)
Improved asset utilization through adequate
capacity planning (plant, DC and transport)
Improved total cost of Ownership through
adequate balancing of trade-offs between costtypes and product availability (cost of stockout)
Enablers to other Benefits;
Enable procurement savings via consolidated
requirements planning visibility
Foundation for manufacturing and distribution
network consolidation.
Downstream
Flexibility and
Adaptability
10
Downstream
Flexibility and
Adaptability
Innovation &
Time-to-Market
Effectiveness
11
Biggest challenges
in global operations
12
13
14
Industry (examples)
Know-How Clusters
Risk Hedging
15
OFF-SHORING
ON-SHORE
1
Low-Cost Country
Sourcing
3
VE
I
AT
R
ST
U
L
IL
Know-How Clusters
Supplier Clusters
6
Risk Hedging
16
86%
1%
Total cost
40%
33%
9%
14%
Quality
Delivery
reliability
16%
14%
Satisfaction
Dissatisfaction
42%
48%
Lead times
Product
innovation
17
Risk Assessment
- Country risk assessment
- Industry risk assessment
- Supplier risk assessment
Eastern Asia
Eastern
Europe
Supplier Identification
- Supply Market Intelligence
- Supplier Search
- Qualification/On-site Audits
Short list of qualified suppliers
South and
Central Asia
Supplier Development
- Assessment of capability gaps
- Quality, 6 Sigma, Lean program
- Workshops & Training
Africa and
Middle East
Middle- and South
America
Sourcing
- Differentiated Bid Strategies
- Fact based Negotiation
- Contracting
Capable Suppliers
Selected supplier/s
Fulfillment
- Optimized Logistical Solution
- Inventory locations
- Freight sourcing
Supplier Integration
- Production process qualification
- Quality & Delivery assured
- Order-to-Delivery process defined
Supplier integrated in Supply Chain
18
Where to
locate the
IPO?
Where to buy?
Success factors to
Set-Up an IPO in Low
Cost Markets
Who to hire?
Your people and operations need to be
on par (or even better) with the people
and operations in your customers
countries
Focus on high
potential private
enterprises but need
to develop them to
achieve maximum
gains
How to market?
Build awareness and credibility,
implement solid end-to-end Source to
Delivery Process and IT
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Example:
Zara
Product development cycle time is 3-4
weeks (industry average 9 months)
NPI to stores every 2-3 weeks
> 14.000 SKUs per year launched
Two different operations models
Short life cycle fashions = On-Shore
Quick Response Design-to-Supply Model
Basic products = Off- or Near-Shore low
cost suppliers
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Results
30% total savings (on landed
purchasing price)
50% potential savings on
Castings
30% potential savings on
Forgings
40% potential savings on
Non-Metallic Components
Development of Operating
Model for sourcing from LCC
suppliers
21
Example:
Nokia
World #1, 14% ROA
Frequent product introductions
Global supply chain with high flexibility
and efficiency
Global supply web
Rapid response manufacturing
Regional set-up
Quick ship logistics
22
Near-shore
(low cost)
Body
Frame
Geography
LCCS
Body
Frame
SCM
On-shore
(high cost)
Parts production
(poor inhouse
Onshore due to LT methods)
Chassis
Core R&D Manufacturing
In house
Outsourced
High
Organisation
Strategic importance
Low
High
23
19%
Multi-country
13%
Regional
19%
Multi
Regional
36%
Global
16%
Actual
Source: Internal
+5 years
24
19%
Multi-Country
13%
Regional
19%
Multi-regional
36%
10%
16%
23%
45%
Global
16%
Actual
In 5 years
25
Off shore
production
Automation
26
Conclusions
Questions or Comments
Thank you
very much!
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