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So, here I am....... Between you and going home......!

So, here I am....... Between you and going home......!. Lessons Learnt: Supply Chain Strategies. Stephen Nuttall, MBCI Regional Manager, EMEA Hewlett-Packard Continuity Services.

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So, here I am....... Between you and going home......!

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  1. So, here I am....... Between you and going home......!

  2. Lessons Learnt: Supply Chain Strategies Stephen Nuttall, MBCIRegional Manager, EMEAHewlett-Packard Continuity Services

  3. It's a very sobering feeling to be up in space and realize that one's safety factor was determined by the lowest bidder on a government contract. Alan Shepard

  4. Hewlett-Packard – some context • Three major business areas: • Manufacturing – you may have heard of us...... • Software & Applications – Keeps us quite busy...... • Services – you may be slightly less aware of this bit...... • We are dependent on supply chains in all our business areas • We are a critical supplier for many clients • Like you, we are expected to minimise our costs as a supplier • Also like you, we want our suppliers to deliver at minimal cost

  5. Some lessons we learnt on the way(some came the hard way......!) • Outcomes are the ONLY thing which ultimately matter to your clients • Are you as important to your suppliers as they are to you? • The best procedures in the world only produce the result you planned. Have you got the right plan? • Cutting costs is easy – keeping value is hard • Don’t be frightened of challenging experts – even on their own territory - Experts often have more data than judgment • Standard processes are both great and deadly.....

  6. ITSCM Leaders Meeting Supply Chain Strategies that work: And a few of those that don’t......... 22 February 2012

  7. Let me tell you a story......About some of the things we don’t really like.....

  8. Could do better....? Eyes wide shut • What the auditor saw....... • “Tick-box” supply chain check • “Have you got BS25999?” • “Can we see your BC plans?” (Maybe not.....!) • Over-prescription of the solution • Failing to prioritise different areas of the supply chain • Not balancing risk with value. (Remember, you can have any two of these, but not all three: Cheap, Quick, Thorough) • Hugely impressive documentation which proves nothing. (Management by weight!) • OR, put another way,.... A failure to use common sense......

  9. Hp’s incoming supply chain • We have quite a few: this is an example from manufacturing • WHO owns the risk.....? • And we are paid to do what exactly....? • Identify the criticality of the supplier • Identify the impact of non-supply, (or delayed/restricted supply) • Identify options for alternates and “crank-up” times • Agree a level of audit/validation matching the criticality and risk for the supplier • Focus on desired outcomes when validating the plans • Can we share the incentives? • Can we share the pain? • How much do they want our business?

  10. Hp as part of the supply chain • This example is from our Outsourcing side • Provide a clear statement of work that demonstrates compliance to the contract • Make absolutely clear what we are agreeing to achieve (and what we aren’t agreeing to!) • Focus on the outcomes we will achieve and how we will do it • Clarify the dependencies and assumptions • Demonstrate that we can achieve exactly what we said we would • Provide an auditable trail of how we achieved it and will continue to achieve

  11. Acting as a “service integrator” A true story of IT folk....

  12. Service Integrator: say what...? • What? • Integration of all key suppliers into a single supply process with a single, shared, set of objectives • Why? • As otherwise, each supplier acts in isolation and with different assumptions & objectives • How? • A central service integration & management team sets shared goals, shared measures and shared validation • Can you show an example? • Follow me.....

  13. Service integration & management(major uk government account) • Responsible to the client for ensuring that ALL suppliers can achieve a specific set of recovery and availability objectives • Given executive authority to manage suppliers on behalf of client • Held 100% accountable for all suppliers plans and validation • Contractually bound to deliver, (carrot/stick incentives....!)

  14. What does it look like? • Single set of documented outcomes the supply chain needs to achieve • Agreed set of dependencies and shared responsibilities • Regular set of checks and audits of processes • Agreed set of measures: “Do this and you keep your job....!” • Regular rehearsals • some desk-top walk-throughs • some actual test invocations of supply-chain BC plans • Collaborative & supportive approach • External audits

  15. Summary – what have we learnt? • Supply chains aren’t always (ever?) easy • Focus on the outcomes you need to achieve • Be collaborative & supportive • Be clear to suppliers on what they must do & how they will be measured • Understand and accept the limitations and plan for them • Choose which battles you want to fight – and which can wait • Don’t be frightened of upsetting people – but don’t do it gratuitously • This is your business: never forget that your suppliers can harm it!

  16. Anything Else?

  17. Have a safe journey home......!

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