webinar-translating business drivers into technology requirements
TRANSCRIPT
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8/7/2019 Webinar-Translating Business Drivers into Technology Requirements
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Dr. Hau LeeThoma Professor of Operations Information
and Technology
Stanford Graduate School of Business
David SmoleySenior Vice President and
Chief Information Officer
Flextronics International
John SicardExecutive Vice President Marketing,
Development and Service Operations
Kinaxis
Moderated by:Oliver Sloane, Managing Director, RaptureWorld Ltd.
Presented by:
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8/7/2019 Webinar-Translating Business Drivers into Technology Requirements
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Supply Chain Environment
Demand &
supply
uncertainties
Fast-moving fashion
Strong competitive forces
Increasing product variety
Potential of external disruptions
Introduction of product innovations
New emerging supply sources & channels
Frequent product transitions
Manufacturing cost pressures
Outsourced manufacturing partners
Outsourced design partners
New channel partners
Other associated product providers
Short product
& technology
cycles
Multiple
supply chain
partners
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Intelligent S&OP and SCM
Stages
Visibility
Coordination
Integration
Elements
Information sharing andunderstanding (within and
between organizations)
Collaborations on jointplans, coordinated withmultiple inputs
Integrated decisions andcontrol, tightly coupledsense and response
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Visibility Across the Chain
Downstream
demand
visibility
Forward
demand
information
Uncertainty
reduction
Responsive
planning
Improved
performance
Improvedperformance
Responsiveplanning &
reaction
Uncertaintyreduction
Forwardsupply
information
Upstreamsupply
visibility
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Six Sigma
Supply Chains
Identify
Analyze
Act
Measure
1. Track and measure
2. Identification & alerts
3. Root cause diagnosis
4. Action analysis5. Action execution
6. Feedback & updates
Sense
Respond
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6Design. Build. Ship. Service.
Design. Build. Ship. Service.
Design. Build. Ship. Service.
Using Technology to Accelerate Supply Chain Collaboration
David SmoleySVP & CIO
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Flextronics
Design. Build. Ship. Service.
$30 Billion Revenue
200,000 employees
130 Locations
30 Countries
27 million manufacturing sq ft
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Product Sectors
Integrated Manufacturer/Direct Ship
No/Low Touch/Low Value Add
Value Add/ CTO
High Value/Solutions
Services
MfgSupply Value-Add Logistics Service Replenishment
Direct/Online
Enterprise
Go to MarketStrategiesCompany
Strategy
Business Models
Operations Strategy
Value Chain Strategy
There is no Single Best Supply Chain Strategy
but there is the best strategy given a companys
Business Strategy
Note/Net Books
Servers
Printers Energy/Solar
Power Supplies
Glucose Meters
Routers
LCD TVs
Meters & Controls
PCB/Flex Circuits
Camera Modules
LCD Displays
Cables
Machining
Plastics
Metal Fabrication
SMT Assembly
http://www.google.com/imgres?imgurl=http://dealcetera.com/wp-content/uploads/2009/12/best-buy-logo.jpg&imgrefurl=http://dealcetera.com/best-buy-canada-boxing-dayweek-flyers/&h=551&w=800&sz=65&tbnid=BdWDO6myfBhSRM:&tbnh=98&tbnw=143&prev=/images?q=bestbuy+logo&zoom=1&q=bestbuy+logo&usg=__azAYpwEaUk70LQph5wtODMwjE2M=&sa=X&ei=1FjYTIObH4HEsAPek-SNCw&ved=0CBcQ9QEwAAhttp://www.google.com/imgres?imgurl=http://dealcetera.com/wp-content/uploads/2009/12/best-buy-logo.jpg&imgrefurl=http://dealcetera.com/best-buy-canada-boxing-dayweek-flyers/&h=551&w=800&sz=65&tbnid=BdWDO6myfBhSRM:&tbnh=98&tbnw=143&prev=/images?q=bestbuy+logo&zoom=1&q=bestbuy+logo&usg=__azAYpwEaUk70LQph5wtODMwjE2M=&sa=X&ei=1FjYTIObH4HEsAPek-SNCw&ved=0CBcQ9QEwAAhttp://www.google.com/imgres?imgurl=http://charlesdaoud.com/blog/wp-content/uploads/2008/10/bestbuy_logo.jpg&imgrefurl=http://charlesdaoud.com/blog/?p=153&h=297&w=434&sz=31&tbnid=cK8AyTVjCohOjM:&tbnh=86&tbnw=126&prev=/images?q=bestbuy+logo&zoom=1&q=bestbuy+logo&usg=__RywL2QH2EMR9Vu8pVF45Tww2PUM=&sa=X&ei=1FjYTIObH4HEsAPek-SNCw&ved=0CBkQ9QEwAQhttp://www.google.com/imgres?imgurl=http://charlesdaoud.com/blog/wp-content/uploads/2008/10/bestbuy_logo.jpg&imgrefurl=http://charlesdaoud.com/blog/?p=153&h=297&w=434&sz=31&tbnid=cK8AyTVjCohOjM:&tbnh=86&tbnw=126&prev=/images?q=bestbuy+logo&zoom=1&q=bestbuy+logo&usg=__RywL2QH2EMR9Vu8pVF45Tww2PUM=&sa=X&ei=1FjYTIObH4HEsAPek-SNCw&ved=0CBkQ9QEwAQhttp://images.google.com/imgres?imgurl=63.136.85.207/people.jpg&imgrefurl=http://63.136.85.207/contact.htm&h=178&w=212&prev=/images?q=people&svnum=10&hl=en&lr=&ie=UTF-8&oe=UTF-8 -
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Value Chain Strategy Goals
Lowest End-to-End costs thatinclude raw material costs, inbound
supply chain costs, transformationcosts and outbound cost includingduties to the end delivery point.
Flexibility and agility to mitigate risks,sudden changes or unexpected events.
Highest possible servicelevels that meet or exceedcustomer requirements. Keymetrics include order cycletime, on-time delivery, orderfill rate and productavailability
Efficient use of resources,fixed assets and inventoryin the end-to-end valuechain that complimentlower costs and higherservice levels
Lower Carbon Emissions and footprint
that results in a greener value chain
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Key Enabling Elements From Data to Intelligent Response
Accelerated Decision making
Beyond just supply and demand visibility
Flexible Velocity for Delivery
More than just demand pull versus supply push
Operational Execution
Analytical Backbone
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DATA KNOWLEDGE BUSINESS INTELLIGENCE DECISION
FLEXIBILITY + VELOCITY + INNOVATION + ADAPTABILITY
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11Design. Build. Ship. Service.
Enabling Supply Chain Collaboration with Technology
1. Process and organization come first then the IT tools enable,
Partnership & alignment with the business is key,
Enabling business speed and agility is the top priority,
2. Best of breed portfolio of standard tools,
Tools should be able to be coupled/de-coupled,
Ability to span across sites, countries, regions
Rapid deployment
Easy to use, easy to learn
3. Enable collaboration across org boundaries
Desktop video, Meetingplace, Webex
Filesharing via Sharepoint
HD video conferencing
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13Design. Build. Ship. Service.
Planning Application Suite Example
Standard MRP Logic
Standard MRP Reporting
E&O, Shortage Demand Planning
Demand Fulfillment
Procurement
Customer Collaboration
Supplier Collaboration
FSP
Portals
Re-Order Point Calculation withhighly customizable algorithms
Safety Stock Calculation
Online Customer Collaboration
Customized Supply ChainReporting
Demand Planning
Rapid MRP Regeneration
MRP Simulations, alt. parts
Suggested Changes / Re-Schedule Messages
Rapid ATP
Demand Change ImpactAnalysis - E&O, Shortage
Supply Planning
Multiple tools enablingreal-time collaboration
Any device, anywhereFTPMeetingplace
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14Design. Build. Ship. Service.
Where is the future going?
Social networking tools mature/adopt Cisco, Google, SF.com, Msoft etc
Saas/cloud enablement & virtualization where appropriate
In-memory processing enhances speed/quality of decisions
Open, web-enabled b2b and a2a integration get data in/out fast, large
volumes
Control tower extending the supply chain up/down stream via technology
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15Design. Build. Ship. Service.
Thank you
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Dr. Hau LeeThoma Professor of Operations
Information and Technology
Stanford Graduate School of Business
David SmoleySenior Vice President and
Chief Information Officer
Flextronics International
John SicardExecutive Vice President Marketing,
Development and Service Operations
Kinaxis
Q&A
Please feel free to submit your questions now
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Thank you for joining us
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