The Global Supply Chain of the Future: Smarter and Integrated

Riah Elcullada-EncarnacionDoctor of Information Technology

St. Paul University Philippines

It is all about the CUSTOMER

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

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?

The Supply Chain TODAY

Uncoordinated, disintegrated, and chaotic

Flawless Supply Chain Execution - Supplier Risk Management and Execution - Delivery and Assurance of Inventory - Sustainable Cost Reduction - Talent Management and Organizational

Development

Strategic Themes

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

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

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

Key Challenges

Automate supply chain to monitor businesses and keep more people involve with exception

management, executive decision making, and strategies

INSTRUMENTED

Key Challenges

Being intelligent in everything that business do using models, simulation, advanced algorithms

INTELLIGENT

Key Challenges

Delight shoppers and consumers using the shared information to make quality products and services that

are delivered in seamless multi-channels

INNOVATIVE

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

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

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.

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)

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.

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.

The Supply Chain of the Future

The flow of goods – from plant to store – are channel in a

SMART and INTEGRATED SUPPLY CHAIN

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