Current Priorities for Supply Chain Development.
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Transcript 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
My objectives today
Need for a Welsh supply chain
Research outcomes
Public & private sector actions
Supply Chain Strategies
Product/Service
Sourcing
Strategies
Organisations
Total Cost
of Ownership
Country
Logistics
Strategies
Sourcing Entry Strategy
Supplier
Relationship
Strategy
Sourcing
Decision
Strategy
Withdrawal Strategy
International
Analysis
Drive for competitiveness
Instability
Globalisation
Product/service improvement
Cost reduction
Risk exposure
Global Supply Chains
Uncertainty exists at every echelon
Inherently complex
Information flows are vital
Building supplier relationships are vital
Organisational systems to deal are crucial
CRITICAL FACTORS
Strategic approach needed
Resource demands
Specification driven
Power relationships
Logistics & Supply Chain Management
The Business Squeeze
economic disincentives - the customer
supply chain cost reduction motive
desire to become “e”-active
technology difficulties
real training/skills needed
Planet
Public
Sector
Culture
Globalisation
Leadership
Industry
Motivation
CONTINGENT
VARIABLES
Infrastructure
Technology
SCENARIO
Size
Competition
Customers
PLANNING
Supply Chain
Strategies
Supply Chain
Integration
Mechanisms
FACTORS AFFECTING SUPPLY CHAIN STRATEGY
Survey Scope
S e c to r
Co
P e rc e n ta g e
N o . o f C o m p a n ie s
M a n u fa c tu rin g
32
154
H ig h T e c h
22
106
E le c tric a l & E n g in e e rin g
18
87
P a c k a g in g & D istrib u tio n
10
49
F in a n c e a sso c ia te d
7
34
S e rv ice / U tility
6
28
C o n stru c tio n
3
14
A g ric u ltu re
1
8
RESPONSE RATE
Circa 60% response rate
288 companies
Statistically significant (the norm 22%)
Remarkable response rate particularly from
SME’s
Importance of Issues - High
Leadership
Strategy
Team Working
Waste Reduction
Procurement
All Marked Out of Five
4.5
4.4
4.3
4.1
4.0
Importance of Issues - Medium
Supply chain management
Time to Market
MRP
Financial management
Supplier development
R & D
JIT
3.5
3.5
3.5
3.5
3.5
3.5
3.5
Importance of Issues - Low
E-Commerce
New technology
Customer management
Kaizan
Benchmarking
IIP
2.5
2.5
2.5
2.5
2.5
2.5
Those with the lowest Priority are things to do with
INNOVATION!!
SMEs Perceived Priorities of their Customer’s
Requirements
High
Quality
Pricing
Product Reliability
Service Reliability
Capability to Support
Low
Time to Market
E- Commerce
R&D
Purchasing Expertise
Value Analysis
Value Engineering
Long Term Success
The BFO
Depends on successful suppliers
Depends on customer satisfaction
The ENTIRE supply chain must be
successful.
Capturing Value
A supply chain approach to developing
national export development strategies
STRATEGY
It’s the creation of a unique and value
position involving a different set of activities
DISTINCTIVE VALUE CHAIN
Strategic Positioning
THE 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 NOT have a strategy
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
The Issue :
• How to convince strategy-makers to pay equal
attention to border-in and border-out supply chain
support.
• Find a mechanism for devising appropriate policies
W e ls h P u b lic S e c to r P ro c u re m e n t E x p e n d itu re
H e a lth S e rvic e
£ 841 m
(D rug s: £ 3 2 2 m
O th e r: £ 5 1 9 m )
Local
G o ve rnm e n t
£ 1 ,3 2 1 m
A sse m b ly
S p o n so re d
P ub lic B o d ie s
£ 293m
N a tio na l
A sse m b ly W ale s
£ 262 m
F urth e r
E d uc a tio n
£ 78m
H ig h e r
E d uc a tio n
£ 207m
T o ta l £ 3 ,0 0 2 m illio n
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
ITC
Improved
information helps
enterprises to plan
ahead and be more
competitive
Information
• Demand forecasts
• Customer delivery
requirements
• Inputs’ supply markets
• Supply chain services
Financial • Planning & acquisition of
physical assets
and
Physical • Cash flow impact and
Assets
financial risks in the supply
chain
Enterprise
Management:
• Planning
• Executing
• Monitoring
Human
Resources
• Securing & developing
SCM expertise
• Supplier development
programs
Networks
and
Relation- • Strategic supply chain
ships
alliances
Strategy makers should focus on delivery
performance and the supply chain
structure in equal measures to market
access and export promotion
A BFO
Purchasers will need help to source locally
SME’s will need help to break into supply
chains
Purchasers & SME’s need to bury their
prejudices
The various agencies in Wales must work
together & be coherent in their approach
Supply Chain Management
It’s about people, expertise and performance
Not just about process.
And Finally ………..
There is a need to recognise the reality of relationships
within supply chain management-it’s a RISK and a
REVENUE
Sharing Relationship.