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The Global Supply Chain of the Future: Smarter and Integrated
Riah Elcullada-EncarnacionDoctor of Information Technology
St. Paul University Philippines
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It is all about the CUSTOMER
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Supply Chain Cycle
The individual links that make up the Global Supply Chain
1. MARKETING
2. PRODUCT DESIGN
3. SUPPLIERS
4. MANUFACTURING
5. LOGISTICS
6. CUSTOMER
7. REVERSE LOGISTICS
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3 things you need to know
1. Is our SUPPLY CHAIN efficient?
2. What does SUPPLY CHAIN really cost our business?
3. Where can we improve our SUPPLY CHAIN?
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The Supply Chain TODAY
Uncoordinated, disintegrated, and chaotic
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Flawless Supply Chain Execution - Supplier Risk Management and Execution - Delivery and Assurance of Inventory - Sustainable Cost Reduction - Talent Management and Organizational
Development
Strategic Themes
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Key Focus Areas
1. Category Management Teams
- the members collaborate with other subject matter experts that work across the corporation on the same categories of expanded supplier management
1
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Key Focus Areas
1. Supplier Collaboration and Development
to see the detailed composition of multi-tiered supply chain to see the visibility to the complete supply chain with the details of each assembly to move forward and gain greater part of the business.
2
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Transform current supply chain to be much SMARTERKey Challenges
A Supply Chain needs to be:
INTERCONNECTED
Collaborate and work closely with customers, suppliers, logistics providers and other constituents in
the supply chain
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Key Challenges
Automate supply chain to monitor businesses and keep more people involve with exception
management, executive decision making, and strategies
INSTRUMENTED
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Key Challenges
Being intelligent in everything that business do using models, simulation, advanced algorithms
INTELLIGENT
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Key Challenges
Delight shoppers and consumers using the shared information to make quality products and services that
are delivered in seamless multi-channels
INNOVATIVE
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The future supply chain must be designed for new parameters like CO2 emissions reduction, reduced
energy consumption, better traceability and reduced traffic congestion.
New Parameters
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Starting PointSeven key innovation areas were identified:
The starting point to build the future supply chain is to identify solution areas that cover existing problems and those anticipated for the coming decade.
In-Store Logistics
Collaborative Physical Logistics
Reverse Logistics
Demand Fluctuation Management
Identification and Labeling
Efficient Assets
Joint Scorecard and Business Plan
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Additional Components
Additional components of the future supply chain include existing leading practices, applications to example supply chains and new ways to calculate the impact on the supply chain.
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Integrating Improvement SolutionsThe solutions will bring new efficiency and cost
reduction to the industry.
A big impact on the parameters can be made when the following concepts are merged and implemented:
1. Information sharing – driving the
collaborative supply chain2. Collaborative warehousing3. Collaborative city distribution
(including home delivery and pick-up)4. Collaborative non-urban
distribution (including home delivery and pick- up)
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Initial Next StepsThe realization of the collaborative concepts that comprise the 2016 future supply chain architecture will require a number of initial
next steps, driven by industry leaders.These steps are as follows:
a. Establish buy-in on the vision by a group of key stakeholders (such as leading retailers and manufacturers, mayors of big cities).b. Check the concept’s business case with the involvement of all key stakeholders.c. Pilot the concept (or possibly leverage and enhance existing pilots).d. Evaluate the implementation and share learnings.
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The Impact
The potential total impact of supply chain redesign is significant,
including reduction in transport costs per pallet, reduction of
handling costs per pallet, reduction of lead time, lower CO2 emissions
per pallet, improved on-shelf availability, and increase customer
value.
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The Supply Chain of the Future
The flow of goods – from plant to store – are channel in a
SMART and INTEGRATED SUPPLY CHAIN
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Supply Chain Cycle - http://www.youtube.com/watch?v=DXxCPgJ75QY&feature=related
The Smarter Supply Chain of the Future http://www.youtube.com/watch?v=FY6tgqEc1qo&NR=1 Global Value Chain,http
://www.youtube.com/watch?NR=1&v=y3NbdwnKWIM What is Supply Chain about - 3 Key Things to Know http://
www.youtube.com/watch?feature=endscreen&NR=1&v=OaxJ4oEuBO8
Future of Supply Chain 2016 – www.futuresupplychain.com
Sources