new technologies and innovation in the supply chain …
TRANSCRIPT
Abteilung, Datum
NEW TECHNOLOGIES AND INNOVATION IN THE SUPPLY CHAIN OF BMW GROUP SUPPLY CHAIN INNOVATIONS 2015 LINT, ANTWERP 26.03.2015
Alexander Scholz, BMW Group
Seite 2
BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. AGENDA.
1 Overview of BMW Group and BMW’s Supply Chain
2 Challenges within BMW’s Supply Chain
3 Solutions based on New Technologies
4 Benefits for the Supply Chain: Examples
5 Success Factors & Conclusion
BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. A VERY SUCCESSFUL YEAR 2014 BEHIND US.
Page 3
1.811.719
302.183
123.495
+ 9,5%
- 0,9%
+ 7,2%
2.117.965
4.063 + 11,9%
+ 7,9%
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. WE OPERATE A GLOBAL PRODUCTION NETWORK.
LEIPZIG
REGENSBURG
SPARTANBURG
DINGOLFING MÜNCHEN
OXFORD
GOODWOOD
ROSSLYN
SHENYANG
BMW 5-,6-,7-Series
BMW 1-Series/ BMW i3/i8
BMW Local Models
BMW X-Models*
BMW 3-Series
BMW 1-,3-Series
Rolls Royce
BMW F06 M
MINI
BMW 3-Series
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. AGENDA.
1 Overview of BMW Group and BMW’s Supply Chain
2 Challenges within BMW’s Supply Chain
3 Solutions based on New Technologies
4 Benefits for the Supply Chain: Examples
5 Success Factors & Conclusion
Seite 6
BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. BMW GROUP IS FACING SOME PARTICULAR CHALLENGES.
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2
3
4
5
6
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Management of global supply chain networks.
Best cost country sourcing and natural hedging.
Flexibility vs. standardisation.
Optimisation of global inventories.
Value chain management.
New supplier structures/changing supplier structures.
Focus on emerging markets (so-called BRIKT markets).
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. MISSION STATEMENT OF THE INTEGRATED SUPPLY CHAIN FUNCTION: WE SUPPLY FOR SUCCESS!
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. RIGHT PARTS AT THE RIGHT TIME, IN THE RIGHT QUANTITY/QUALITY, AT RIGHT COST AND THE PLACE.
Strategy, management, projects
Provision
Quality management parts
Car body
Interior, E/E
Driving dynamics
Drivetrain
Investment, goods, services
Body-in-
white Paint
shop Assembly
Press
plant Production
Purchasing and Supplier Network
Engine
PURCHASING
Production material.
Indirect purchasing.
Cost engineering.
Strategy.
Complexity management.
Sustainability.
PROVISION
Material management.
Design of the value chain.
Process and structural
planning.
COMPONENT PRODUCTION
Seats, cockpit, equipment.
Bumpers, exterior scopes.
Light-metal foundry.
Innovative lightweight.
construction concepts.
QUALITY
Quality validation.
Recourse.
Warranty and goodwill.
Quality management
system .
t
F./ Fzg.
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. AGENDA.
1 Overview of BMW Group and BMW’s Supply Chain
2 Challenges within BMW’s Supply Chain
3 Solutions based on New Technologies
4 Benefits for the Supply Chain: Examples
5 Success Factors & Conclusion
Evolution of the
Internet towards
a collaborative
network.
Users do not only
consume con-
tent, they rather
contribute con-
tent and share
knowledge.
New services and
software (Blogs,
Google Earth
etc.) are as easy
to use as com-
mon desktop
software and
become increa-
singly powerful.
The ease of
access to techno-
logy and services
enables a far
greater number
of users to pub-
lish content and
provide themsel-
ves information.
Common stan-
dards are the
basis for the
exchange of
information
between users
and services (e.g.
XML, RSS etc.).
Big data
management
enables insights
into supply
chains.
BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. DEPLOYMENT OF WEB 2.0 TECHNOLOGIES TO BETTER MANAGE SUPPLY CHAIN RISK.
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Secure supply and capacities.
Implement flexibility and
reactivity within supply chain.
Guarantee access to Innovation
and state-of-the-art technology.
Optimise internal
and external collaboration.
Media Monitoring, Big Data & E-
Listening.
Geo-visualisation
with Google Earth.
Sharepoint for distribution.
Innovative tools for collaboration.
(iPads, NiCe Walls etc.).
BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. ENTERPRISE 3.0 SOLUTIONS SUPPORT THE REQUIREMENTS OF A GLOBAL SUPPLY CHAIN.
Enterprise 3.0
Information at the earliest possible point along with integration of different pieces of information allows
quicker response. The long term goal is to manage and to secure a competitive supply chain.
Mission critical requirements
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. INNOVATIVE TECHNOLOGIES SUPPORT THE SUPPLY CHAIN – FROM REACTION TO STRATEGIC SOURCING.
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E-Listening
technology scouting.
Various projects:
Knowledge sharing
with sharepoint 2010.
Verification of locations visualisation of value
chains (Tier-n) for supplier selection
highlighting of chances/risks.
Visualisation and verification of
supplier locations comparing
compliance, sustainability and risk
by location, natural disaster,
political, financial.
What can be found in the Internet?
e.g. compliance, sustainability,
financials, press releases.
Project
Strategic supplier management
Supplier selection Capacity management
Strategy Idea-to-offer (development) Production
BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. DE-RISKING THE SUPPLY CHAIN BY COMBINING DIFFERENT SOURCES OF AVAILABLE INFORMATION.
VISUALISATION FRAMEWORK
Sustainability, social
aspects, compliance
Sort (type, impact,
location)
Processing
and geo-coding
Pre-defined set-list
Private org., national stats.,
NGOs, news agencies
Natural risks
Sort risks (type,
impact, location)
Processing
and geo-coding
Pre-defined set-list
Government inst., educational inst.
NGOs
Sort activity clusters
(type, location)
Undefined set-list
Websites, journals, micro blogs…
Suppliers suppliers
(supply chain)
Suppliers’ facilities
address
Suppliers’
geo-codes
To be obtained in the
supplier contract
To be ordered in the
supplier contract
BMW production
facilities
BMW’s
geo-codes
BMW facilities
address
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Processing
and geo-coding
Activity clusters
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. E-LISTENING INDENTIFIES, COLLECTS AND STRUCTURES SUPPLY CHAIN RELEVANT DATA.
Bundles information between
BMW’s engineers/buyers and
external supplier’ engineers/sales.
All information is shared on a
common platform. Information
is used to evaluate suppliers.
System can be expanded to
incorporate suppliers in the
innovation process.
Reduce information overload and
avoid information over-exposure.
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2
3
Information sor-
ting algorithm
(Example: Google
Ad, Amazon)
Information
delivered to each
user is besboke Useful
information
Unstructered
information
Technology Innovation Suppliers
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. LAYERED COLLECTIVE INTELLIGENCE FRAMEWORK VISUALIZES DATA.
INPUTS TO THE FRAMEWORK PROCESSING FRONT END
Production
sites layer
Factory
locations of
sup-pliers.
Production
sites of
BMW.
Supply
Chain
network
routes.
Risk layer
Natural.
Economic.
Social.
Opportuni-
ties layer
Innovation.
Sustai-
nability.
Supply
chain hubs.
Activity
clusters.
Re-search
centres.
Commodi-
ties layer
Exhaust
systems
(use case).
Expansion
to other co-
mmodities
such as
semi-con-
ductor wa-
fers.
Impact
layer
Damage.
Frequency
of occur-
rence.
Probability.
Interaction
& accessi-
bility layer
User in-
teraction
and in-put.
Links with
NSI Hot to-
pics search.
Defines ac-
cess rights
and acces-
sibility.
Global
locations
layer
Map high-
lights the
locations
and regions
impac-ted.
A number of
sub-layers
for risks, in-
novations
and oppor-
tunities.
BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. SOURCE OF INFORMATION – RELIABLE AND SUPRANATIONAL.
Information Sources (examples)
Oppor-
tunities
Wage data Bureau of Labour Statistics (BLS)
Political data National Statistical Institutions
Unemployment Arbeitsmarkt Service Austria (AMS)
Political risk Crime Rate in South Africa: South African Police Service (SAPS)
Trade barriers Market Access Database (European Commission)
Technology cluster German Ministry of Research and Education
Risks Tropical storms National Oceanic and Atmospheric Administration (NOAA)
Wild fires US Wildfires Geomac (USGS)
Global Disaster and Alerting
Coordination System (GDACS)
European Commission & United Nations
Climate Climate Hot Map (CHM) Union of Concerned Scientists
(non-profit, at Massachusetts Institute of Technology)
Earthquakes U.S. Geological Survey (USGS)
Floods National Flood Hazard Layer (FEMA)
Vulcanoes U.S. Geological Survey (USGS)
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. CONCLUSION: AN INCREASINGLY COMPLEX WORLD REQUIRES NEW WAYS TO DEAL WITH.
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Complexity of products increases, volatility of markets increases.
Current information management is short-term oriented (e.g. sustainability, risk etc.).
New technologies offer tools to deal with the challenges.
Proactive information management needs to be integrated into business processes.
4 disciplines: Collection, interpretation, visualisation and distribution.
Timely access to information is key differentiator of any supply chain.
Organizational change management is a key element to successful implementation.
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. AGENDA.
1 Overview of BMW Group and BMW’s Supply Chain
2 Challenges within BMW’s Supply Chain
3 Solutions based on New Technologies
4 Benefits for the Supply Chain: Examples
5 Success Factors & Conclusion
Seite 19
BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. GEO-VISUALISATION EXAMPLE: TROPICAL STORM FORECAST.
Seite 20
BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. GEO-VISUALISATION EXAMPLE: TROPICAL STORM FORECAST .
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. GEO-VISUALISATION EXAMPLE: TROPICAL STORM FORECAST .
Tasks
Identify relevant suppliers.
Golbal Disaster und Forecast erkennen.
Early-warning for BMW supply
chainmanagers.
Early-warning ansd information for
relevant suppliers (up to tier-3).
Define counter measures.
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. GEO-VISUALISATION EXAMPLE: EARTHQUAKE IN GREECE.
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. GEO-VISUALISATION EXAMPLE: CURRENT US WILDFIRE.
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. GEO-VISUALISATION EXAMPLE: POPOCATEPETL – 50KM RADIUS.
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. GEO-VISUALISATION EXAMPLE: NORTH KOREA - 200KM MISSILE RADIUS.
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. GEO-VISUALISATION EXAMPLE: REAL-TIME TRAFFIC AND KEY SUPPLIERS.
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BMW GROUP: NEW TECHNOLOGIES UND INNOVATION. MEDIA MONITORING: TAG CLOUD BY TECHNOLOGY AND DETAILS.
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BMW GROUP: NEW TECHNOLOGIES UND INNOVATION. MEDIA MONITORING: TAG CLOUD BY TECHNOLOGY AND DETAILS.
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. AGENDA.
1 Overview of BMW Group and BMW’s Supply Chain
2 Challenges within BMW’s Supply Chain
3 Solutions based on New Technologies
4 Benefits for the Supply Chain: Examples
5 Success Factors & Conclusion
Seite 30
BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. THE ENTERPRISE 3.0 PROJECT@BMW: SEVEN SUCCESS FACTORS.
1 Start from a business perspective rather than from an IT solution view
2 Use existing structures wherever possible
3 Implementation needs to follow Agile Project Management
4 Identify relevant pilot categories and start the project step by step
5 Focus on data cleansing, e.g. supplier data
6 Top level sponsorship or top-level attention
7 Organisational change management is a key element to successful implementation
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BMW GROUP: NEW TECHNOLOGIES AND INNOVATION. Q&A.
Contact Details:
BMW Group
Alexander Scholz
Head of Project Management Supply Chain
+49 151 601-20850