quayle pres
TRANSCRIPT
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Current Priorities for Supply
Chain Development.
Current Priorities for Supply
Chain Development.
Professor Michael Quayle Robert Bosch Chair in Purchasing & Supply
Chain Management
and Director of the University of Glamorgan
Business School
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My objectives todayMy objectives today
Need for a Welsh supply chain
Research outcomes
Public & private sector actions
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Supply Chain StrategiesSupply Chain Strategies
Product/Service
Organisations
Country
Sourcing
Strategies
Logistics
Strategies
Total Cost
of Ownership
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Sourcing Entry Strategy
Supplier
Relationship
Strategy
Sourcing
Decision
Strategy
International
Analysis
Withdrawal Strategy
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Drive for competitivenessDrive for competitiveness
Instability
Globalisation
Product/service improvement
Cost reduction Risk exposure
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Global Supply ChainsGlobal Supply Chains
Uncertainty exists at every echelon
Inherently complex
Information flows are vital
Building supplier relationships are vital Organisational systems to deal are crucial
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CRITICAL FACTORSCRITICAL FACTORS
Strategic approach needed
Resource demands
Specification driven
Power relationships Logistics & Supply Chain Management
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The Business SqueezeThe Business Squeeze economic disincentives - the customer supply
chain cost reduction motive
desire to become e-active
technology difficulties
real training/skills needed
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CultureCulture
LeadershipLeadership
MotivationMotivation
InfrastructureInfrastructure
TechnologyTechnology
PlanetPlanet
PublicPublic
SectorSector
CONTINGENTCONTINGENT
VARIABLESVARIABLES
GlobalisationGlobalisation
IndustryIndustry
SizeSize
CompetitionCompetition
CustomersCustomers
SCENARIOSCENARIO
PLANNINGPLANNING
Supply ChainSupply Chain
StrategiesStrategies
Supply ChainSupply Chain
IntegrationIntegration
MechanismsMechanisms
FACTORS AFFECTING SUPPLY CHAIN STRATEGYFACTORS AFFECTING SUPPLY CHAIN STRATEGY
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Survey ScopeSurvey ScopeSector Percentage No. of CompaniesManufacturing 32 154
High Tech 22 106
Electrical & Engineering 18 87
Packaging & Distribution 10 49
Finance associated 7 34
Service/Utility 6 28
Construction 3 14
Agriculture 1 8
Co
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RESPONSE RATERESPONSE RATE
Circa 60% response rate
288 companies
Statistically significant (the norm 22%)
Remarkable response rate particularly fromSMEs
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Importance of Issues - HighImportance of Issues - High
Leadership 4.5
Strategy 4.4
Team Working 4.3
Waste Reduction 4.1
Procurement 4.0
All r O t f i
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Importance of Issues - MediumImportance of Issues - Medium Supply chain management 3.5
Time to Market 3.5
MRP 3.5
Financial management 3.5
Supplier development 3.5
R & D 3.5
JIT 3.5
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Importance of Issues - LowImportance of Issues - Low E-Commerce 2.5
New technology 2.5
Customer management 2.5
Kaizan 2.5
Benchmarking 2.5 IIP 2.5
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Those with the lowest riorit re thi s to o with
INNOVATION!!
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SMEs Perceived Priorities of their Customers
Requirements
SMEs Perceived Priorities of their Customers
RequirementsHigh
Quality
Pricing Product Reliability
Service Reliability
Capability to Support
Low
Time to Market
E- Commerce R&D
Purchasing Expertise
Value Analysis Value Engineering
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Long Term SuccessLong Term Success
The BFO
Depends on successful suppliers
Depends on customer satisfaction The ENTIRE supply chain must be successful.
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Capturing ValueCapturing ValueCapturing ValueCapturing Value
A supply chain approach to developing nationalA supply chain approach to developing national
export development strategiesexport development strategies
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STRATEGYSTRATEGY
Its the creation of a unique and value position
involving a different set of activities
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DISTINCTIVE VALUE CHAINDISTINCTIVE VALUE CHAIN
Strategic Positioning
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THE VALUE PROPOSITIONTHE VALUE PROPOSITION Needs to be different from the competition to
create competitive advantage.
If the value proposition is not different, you are
probably simply in the business of doing things
better ie. operationally effective and do NOThave a strategy
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The value proposition for Wales.The value proposition for Wales.
Trade strategy-makers are preoccupied with export
promotion and market access
Economic development depends on export delivery
performance, fulfilment and supply chain capabilities
How to convince strategy-makers to pay equalattention to border-in and border-out supply chain
support.
Find a mechanism for devising appropriate policies
The Issue :
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Total 3,002 million
Welsh Public Sector Procurement Expenditure
LocalGovernment
1,321m
HigherEducation207m
FurtherEducation78m
NationalAssembly Wales
262 m
Assembly
SponsoredPublic Bodies
293m
Health Service841 m
(Drugs: 322mOther: 519m)
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ITC
What can government and business leaders do?
Employ a value-chain approach to trade sector trade strategy
development
Support the removal of technical obstacles and alignment of activities for
efficient export operations
Motivate business owners to value professionals and raise skills to
international working standards
Support independent professional knowledge and skills development
institutions
Encourage sharing of information about target markets consumer
standards,working, financing and legal practices
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InformationHuman
Resources
Networks
and
Relation-
ships
Management:
Planning
Executing
Monitoring
Enterprise
Demand forecasts
Customer delivery
requirements Inputs supply markets
Supply chain services
Securing & developing
SCM expertise
Supplier developmentprograms
Strategic supply chain
alliances
Improved
information helpsenterprises to plan
ahead and be more
competitive
Financial
and
PhysicalAssets
Planning & acquisition of
physical assets
Cash flow impact and financialrisks in the supply chain
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Strategy makers should focus on delivery
performance and the supply chain structure inequal measures to market access and export
promotion
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A BFOA BFO Purchasers will need help to source locally
SMEs will need help to break into supply chains
Purchasers & SMEs need to bury their
prejudices
The various agencies in Wales must work
together & be coherent in their approach
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Supply Chain ManagementSupply Chain Management
Its about people, expertise and performance
Not just about process.
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And Finally ..And Finally ..There is eed to recognise the realit of relationshi s
withinsuppl chain anagement-itsa RI K anda
R Vharing Relationship.