30 OCTOBER 2013

Successful Implementation of Supply

Chain Solutions
SUPPLY CHAIN MANAGEMENT

…is the integration of key business

processes from end user through
original suppliers, that provides
products, services, and information
that add value for customers and
other stakeholders.

Source: Martha C. Cooper, Douglas M. Lambert, and Janus D. Pagh,

“Supply Chain Management: More Than a New Name for Logistics,”
The International Journal of Logistics Management, Vol. 8, No. 1, 1997, p. 2

2
BUT WHAT IS VALUE?

• Value is dynamic, simply what our customers say it

is—even if they continue to change their minds. This
means that value is not static in nature; rather, it is
constantly evolving, driven by changing technologies,
competitive forces, and customer desires.

• Satisfying this demand for dynamic value means

seeking to understand, and even anticipate,
customers’ needs and to satisfy them by constantly
developing and rolling out new innovations—not just
when existing offerings have run their course
WHAT IS A SUPPLY CHAIN?

A supply chain consists of all parties involved,

directly or indirectly, in fulfilling a customer
request. Supply chain includes manufacturer
and suppliers, plus transporters, warehouses,
retailers, and customers themselves. Each
organization’s supply chain includes all
functions involved in receiving and filling a
customer request. These functions include
new product development, marketing,
operations, distribution, finance, and
customer service.
Chopra, Sunil and Peter Meindl. Supply Chain Management. 2 ed. Upper
Saddle River: Pearson Prentice Hall, 2004 .
WHAT IS A SUPPLY CHAIN?
• A supply chain is dynamic and involves the constant
flow of information, product, and funds between
different stages.
• Walmart & Dell examples
• Customer is integral to supply chain.
• Primary purpose from the existence of any supply
chain is to satisfy customer needs, in the process
generating profits for itself.
• Supply chain activities begin with a customer order
and end when a satisfied customer has paid for his or
her purchase. Source: Chopra, Sunil and Peter Meindl. Supply Chain Management. 2 ed. Upper
Saddle River:
• Pearson Prentice Hall, 2004.
FUTURE VALUE CHAIN TRENDS

• Increased urbanization
• Aging population
• Increasing spread of wealth
• Technology adaptation and the rise of social
media
• Consumer service demands
• Importance of health and wellbeing
• Growing consumer concerns about
sustainability
FUTURE VALUE CHAIN TRENDS

• Shifting of economic power

• Scarcity of natural resources
• Increase in regulatory pressure
• Rapid adoption of supply chain technology
capabilities
• Impact of Next-Generation Information
Technologies
• Risks, disruptions, contingencies and
continuity
SUPPLY CHAIN COMPETENCIES
TOP TEN SUPPLY CHAIN TRENDS

1. Service chains will become more important than

product chains
2. Companies will have to fully report on corporate
externalities
3. Supply chains must be designed to serve the “base
of the pyramid”
4. Knowledge work and workers will become global in
nature
5. SCM will have a standard certification process,
similar to CPA’s
TOP TEN SUPPLY CHAIN TRENDS

6. Product clock speeds will determine the number

and nature of supply chains
7. Micro segmentation will be key to success
8. Technology to support SCM will be primarily “on
tap”
9. Leaders will leverage social media in a closed loop
feedback process
10. Artificial intelligence will be imbedded in
mainstream supply chain activities
Source: Supply Chain Management Review – July/August 2013, Sumantra Sengupta p.34
RULES FOR THE NEW DECADE
RULES FOR THE NEW DECADE
RULES FOR THE NEW DECADE
RULES FOR THE NEW DECADE
RULES FOR THE NEW DECADE
PRINCIPLE 1 OF SCM

Segment customers based on the service needs of

distinct groups and adapt the supply chain to serve
these segments profitably.
PRINCIPLE 2 OF SCM

Customize the
logistics network
to the service
requirements and
profitability of
customer
segments.
PRINCIPLE 3 OF SCM

Listen to market
signals and align
demand planning
accordingly across
the supply chain,
ensuring
consistent
forecasts and
optimal resource
allocation.
PRINCIPLE 4 OF SCM

Differentiate
product closer to
the customer and
speed conversion
across the supply
chain.
PRINCIPLE 5 OF SCM

Manage sources of supply strategically to reduce the

total cost of owning materials and services.
PRINCIPLE 6 OF SCM

Develop a supply
chain-wide
technology strategy
that supports
multiple levels of
decision making and
gives a clear view of
the flow of products,
services, and
information.
PRINCIPLE 7 OF SCM

Adopt channel-
spanning
performance
measures to gauge
collective success in
reaching the end-
user effectively and
efficiently.
INTRODUCTION OF INTERNET

Source: Altimeter Group, the Collaborative Economy Report, 2013

SOCIAL MEDIA
Sharing knowledge

Source: Altimeter Group, the Collaborative Economy Report, 2013

SOCIAL MEDIA
Sharing products

Source: Altimeter Group, the Collaborative Economy Report, 2013

 SOCIAL MEDIA

But now, people can use technology to do it at a scale

without boundaries
SHIPMENT DOOR TO DOOR

door to port port to port port to door

Selected select carrier or Selected

trucking commercial airlines and trucking
companies book accordingly companies

via Export Import BPL

Shipper Panalpina or port Consignee
at port at port
warehouse warehouse
or hub facility

Critical interfaces evaluated and dedicated handling according to fixed SOPs established

BPL Supply Chain Management Process Flow

LEAD LOGISTICS PROVIDER (LSP)
Client

Lead Logistics Service Provider (LLSP)

3PL Management

Customs Brokering
Warehousing

Ocean & Air

Transport

Africa Partners
Freight

3PL logistics

Panalpina
providers

SARS
Enabling processes, methodologies & IT Infrastructure

Planning and visibility

SLA’s and KPI’s

Commercials

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BPL CROSS-TRADE SOLUTIONS
SOP / Flows
QUESTIONS?
Thank you