locker, alwin; council of supply ... - smart business events
TRANSCRIPT
Supply Chain Organisation as prerequisite for Supply Chain Innovations
Locker, Alwin; Council of Supply Chain Management Professionals - EuropeanConference 2006; Brüssel; 19.5.2006
Laboratory for Supply Chain Innovation
Supply Chain Organisation as Prerequisite forSupply Chain Innovations
SIG Combibloc International AG
Dr. Alwin Locker
SIG Combiblocpage 2
• Net sales 2005: EUR 1,097 million
Strong No. 2
R&DEquip-ment
Sales,Service
Packaging
• Net sales 2005: EUR 125 million
Focus: Value added bottling
Value Addedbottling
SIG HoldingNeuhausen, Rhine Falls/
Switzerland
SIG Combibloc SIG Beverages
SIG Group – todaySIG Combibloc generates approx. 90% of Group Turnover
SIG Combiblocpage 3 SIG Combibloc
Worldwide Locations & Company Figures
20042003
9391,058
20022001
854
1,075 1,097
200520042003
Net sales (mill. Euro)
9391,058
20022001
854
1,075
+ 28 %
1,097
2005 20042003
3,7313,923
20022001
3,380
4,061
2005
3,943
20042003
Employees
3,7313,923
20022001
3,380
4,061
2005
3,943
+ 17 %
20042003
10,67212,122
20022001
9,465
13,079
2005
14,673
20042003
Carton sales (mill. units)
10,67212,122
20022001
9,465
13,079
+ 55 %
2005
14,673
Headquarter: Neuhausen, Switzerland
Production: 7 sites
Sales, services: 44 offices
SIG Combiblocpage 4 SIG Combibloc
„Printing Cartridge Business“
ServiceFilling lines Packages Closures
No standstillsInstalled basic
systemsAmortisation filler /
sleeves salesDifferentiation
90% of sales volume10% of salesvolume
SIG Combiblocpage 5 Speed of Innovations has increased
No choice for companies to participate or not to participate
Source: Boutellier, ETH
SIG Combiblocpage 6
Productexcellence
Process excellence
today
tomorrow
Years ofadvantage
ProductTechnology
1 3 5
ProcessTechnology
BusinessProcesses
Competitiveadvantage
Process innovations guarantee competitiveadvantagesCompetitive Advantage = Product x Process Excellence
SIG Combiblocpage 7 SIG Combibloc – SCM Strategy & Objectives
Customer Value Orientation as first Priority
Return onInvested Capital(ROIC)
Revenues
Invested Capital
Change incapital structureand composition
Cost and Value Driver
TaxesEVA
Cost of capital
Pre-tax returnOn Invested Capital
Operating costs
CustomerSatisfaction
Survey
Lead times repeatingorders
Time-to-market newdesigns
Innovative processes
Inventory
On-time production
1
2
3
4
5
Cost- & Investment Efficiency(Priority 2)
Flexibility & Process Quality(Priority 1)
SIG Combiblocpage 8
Supply Chain Management Strategy• Scope / Segments• Vision / Objectives
SCMProcesses
ITTechnology
SCM - Innovation
BusinessRules
define enables
3 Pillars of Supply Chain Management (SCM)SCM Organisation as Basis
SCM Organisation
SIG Combiblocpage 9 Scope of Supply Chain Management at SIG
CombiblocSCM covers Supply Chain from Customers to Suppliers
Supply Chain Management
Sourcing Production Distribution
SIG Combibloc Customer RetailerConsumer
Suppliers
Customer SCMSupplier SCM Internal SCM
SCM Core Process 1: Forecasting und Planning
SCM Core Process 2: Order Fulfilment – new designs
SCM Core Process 3: Order Fulfilment – repeating business
SCM
SIG Combiblocpage 10
CBEE CBUK CBAS CBAMIT CBWE
CustomerSCM
SupplierSCM
InternalSCM
CBIN
SCM Teams in Regions
allCap
SCM Project Organisation 2002-2004Use the experience of the pilot in three SCM modules
SIG Combiblocpage 11
Supply Chain Integration with Customers andSuppliersPosition of Value Offering- & Order Penetration Point
Order Penetration Point
PurchasingInventory /Distribution
Production/-Planning
OrderCenter
Sales/MaterialPlanning
Customers demand chain
OrderCenter
Inventory /Distribution
SIG supply chain
Value Offering Point
Production/-Planning
Purchasing
SIG Combiblocpage 12
Supply Chain Integration with Customers andSuppliersPosition of Value Offering- & Order Penetration Point
Supplier supply chain
PurchasingInventory /Distribution
Production/-Planning
OrderCenter
Sales/MaterialPlanning
SIG demand chain
OrderCenter
Production/-Planning
Inventory /Distribution
Purchasing
Value Offering Point
Order Penetration Point
SIG Combiblocpage 13 Customer- and Supplier SCM
New Processes in the Supply Chain – can be tested easily
TRADITIONAL
Customer
OrderOrder
Ord
er
Pro
cess
Deliv
ery
Pro
cess
OrderOrder
SIG CBSupplier
Delivery
Delivery
Production
Production
Production
NEW
Ord
er
Pro
cess
Deliv
ery
Pro
cess
Material-planning
Material-planning
ProductionPlanning
ProductionPlanning
Capacity-planning
Capacity-planning
DeliveryPlanning
DeliveryPlanning
Capacity-planning
Capacity-planning
ProductionPlanning
ProductionPlanning
DeliveryPlanning
DeliveryPlanning
Delivery Delivery
Production Production
ProductionPlanning
ProductionPlanning
Production
Fore
cast
Pro
cess
SIG Combiblocpage 14 Business Rules
Pre-requisite for the Implementation of Customer- andSupplier SCM, especially for Roll-out
Production planning
Stock planning
Forecast Delivery
New print designs
SIG Combiblocpage 15
BizTalk
Order Generation Module+ Database
Web-System
SIGCustomer
ERP
Customer SCM IT-ApplicationTwo Phases – MS Prototype & SAP Serial Product
Phase 1 –
MicrosoftPrototype
Phase 1 –
MicrosoftPrototype
SIG Combiblocpage 16 Customer SCM IT-Application
Two Phases – MS Prototype & SAP Serial Product
https
Extra-/Internet
Extra-/Internet
File
RFC
File
RFCInternet HTTPS
Format: XML/IDOC
E-Mail with Attachment
Format: Excel, ASC II, XML
X400 EDI
FTP FTP Server
Outlook
(with Add-on)
SAP Web
Application Server
X400Mailbox
EDIConverter
Form
at
Convert
er/
Mappin
g
SIG
-Sta
ndard
-Inte
rface
SA
P-S
tandard
-Work
flo
w
Phase 2 –
SAPSerial
Product
Phase 2 –
SAPSerial
Product
SIG Combiblocpage 17 SCM Process Organisation
SCM is responsible for complete Order Fulfillment Process
SCM
Sales, Service,Marketing
OrderCentre
Prod.Planning
MaterialMgt.
RM/SFstock
ProductionFG
stockShipping
PrePrint
Planning & Controlling
Sales & CRM
Forecasting
CRM = Customer Relationship ManagementRM = Raw MaterialFG = Finished GoodsSF = Semi-finished Goods
CustomerCustomer
SIG Combiblocpage 18 Development steps of SCM organisations
From Pilot Project to SCM Structure
• low invest• scarce resources• option
SCM Pilot SCM Project SCM Structure
• team• defined goal• resources
• line responsibility• strategy & objectives• ROI
Source: Boutellier, ETH
SIG Combiblocpage 19 Global SCM Organisation
Tasks of organisational layers – global, continental, local
RessourceMgt. Capacity
& Material
SCMInnovation/
Support
UK
Austria
SCMGlobal
Germany 2
Pre PrintCenter
OrderCenter
SCM Europe
SCMGermany 1
Global
Innovation &Synergy
Local
Efficiency &Speed
Continent
Customer-orientation &Complexity-management
SCM America SCM Asia
Master DataMgt.
SIG Combiblocpage 20 There is no one right organisation
Organisations have to fit certain Conditions at certain Times
TaskType
Complex
Routine
TaskCoordination
Centralisiation /Hierarchy
Decentralisation /Team
DailyBusiness /Innovation
Deployment
Crisis /Innovation
Development
„If the ship goes down,
the captain does not call a
meeting, the captain gives
an order“
P. F. Drucker
„We are what we
repeatedly do. Excellence,
then is not an act, but a
habit“
Aristotle
SIG Combiblocpage 21 Summary & Conclusions
• Concentration on core processes in supply chains enables SCMinnovations
• SCM innovations consists of three pillars• interface processes• business rules• IT
• SCM process organisation is a pre-requisite for the long-termimplementation of SCM innovations
An organising framework can never be right or wrong,
only helpful or unhelpful
John Kay, Foundations of corporate success