Download
supply chain design and beyond a beer supply chain in russia n.
Skip this Video
Loading SlideShow in 5 Seconds..
Supply Chain Design and Beyond A Beer Supply Chain in Russia PowerPoint Presentation
Download Presentation
Supply Chain Design and Beyond A Beer Supply Chain in Russia

Supply Chain Design and Beyond A Beer Supply Chain in Russia

377 Views Download Presentation
Download Presentation

Supply Chain Design and Beyond A Beer Supply Chain in Russia

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. Supply Chain Design and BeyondA Beer Supply Chain in Russia Owen Keates, Global Supply Chain DirectorCompetitive Capabilities International Chairman Supply Chain Council Australia-New Zealand SCOR Trainer

  2. The Project • Assess the SAB-Miller Russian supply chain using SCOR • Benchmark the SAB-Miller supply chain using SCOR benchmarks • Analyze the Level 4 supply chain practices using TRACC • Prioritize recommendations into 3 areas of focus Note: Take cognizance of the Russian environment

  3. The Toolkit

  4. The Challenge • Very successful company • Good well documented and executed procedures • Exceptional growth, premium brands – high demand • Vast country with exceptional logistics challenges • Single brewery with vast supply chain

  5. Russia Key Facts • Population 144.9m • Population growth -0.3% • Age Distribution • 0-17 : 22% • 18-59: 59% • 60+: 19% • Biggest Cities: Moscow (10 million) St.Petersburg (4.7million) 11 cities over 1million 20 cities 0.5-1 million • Land area Biggest country in the world (1/7 of terrain) lies in 10 time zones • US$ Exchange Rate 27.5(RUB/US$, Mar 05) • GDP per capita US$: 2870 • PPP GDP per capita US$: 8090 • Real GDP growth 6.2% • Inflation 11,1%

  6. Rail North-West Murmansk 3 St-Petersburg Rail Road Arkhangelsk Moscow Center Road 1 B 2 N.Novgorod Voronezh Ural Rail Rail Rostov 4 Road/Rail Samara Yekaterinburg Road/Rail Volga Tumen’ East South Astrakhan’ Makhachkala Novosibirsk Krasnoyarsk Khabarovsk Irkutsk Russia

  7. Kaluga Brewing Company • Founded in 1998 • First brew, Zo Bo Classic, in March 1999 • Initial capacity 12.000 hl/week, at present - 90.000 hl/week, current capacity project is for 120.000hl/week • KBC packaged +3.4 million hl in 2004 • Productivity - 6.000 hl/man-year • Employs - 500 people

  8. The Learning's Performance Measurement Analyze Supply Chain Network Assess Practices Program manage Detailed analysis e.g. inventory, freight Program manage detailed process and systems improvement

  9. True Value of SCOR: • Provides a supply chain assessment methodology and framework – a program management umbrella • Ability to determine supply chain performance and practice maturity • Hierarchical decomposition process – enabling rapid focus into areas of opportunity • Enables program management of focused improvement projects

  10. Matryoshka The first Russian nesting doll (matryoshka) was born in 1890 in the workshop "Children's Education" situated in Abramtsevo estate new Moscow. The owner of Abramtsevo was Sava Mamontov - industrialist and a patron of the arts. SCOR Definition: Hierarchical decomposition methodology

  11. The Methodology • Determine the Competitive Positioning • Develop the Supply Chain Network Diagram (extension of the Geographic Map) • Develop Thread Diagram • Assess Supply Chain Practices (Level 4) • Detailed Performance Analysis (Level 4) • Identify gaps / areas of Opportunity - Prioritize • Develop Future State Supply Chain Network Diagram / Scenarios • Develop Focused Supply Chain Improvement Program

  12. Superior Advantage Parity Competitive Positioning

  13. Supply Chain Network

  14. The Process @ Level 2 Fast Slow Fast

  15. The Planning Process @ Level 3

  16. Planning Practices @ Level 3    SAB Miller SAP CRM Project Integrating Distributors SAB Miller G2 Simulation   

  17. Master Planning – Practice Assessment @ Level 4

  18. Supply Chain Alignment – Practice Assessment @ Level 4

  19. Detailed Level 4 Analysis Technology Architecture Applications, Data and Network infrastructure definition This diagram, courtesy of Paul Harmon, Founder and Executive Editor of Business Process Trends (www.bptrends.com)

  20. Detailed Level 4 Analysis

  21. Supplier DevelopmentQuality Good emphasis on quality Good reporting Good supplier audits

  22. Planning Opportunities • Good improvements in forecast accuracy • Very high achievement of weekly plan • Variance in daily plan impacts raw material supply chains (lean, JIT) • Variance in daily plan impacts distribution optimization • Opportunity for increased collaboration • Opportunity for sales and operations planning optimization

  23. Planning Opportunities • Detailed Level 4 Future State process diagrams removed disconnects between P3 and M1.1, S1.1 • Appropriate performance management measures were identified • Referencing the Best Practices in P1 led to recommendations for the development of a Supply Chain Optimization model in order to determine the optimum product mix and assist with future state scenario analysis

  24. S&OP Optimisation Trade Offs Seasonal Demand Increased Demand Constrained Supply

  25. The Deliver Process

  26. Deliver Processes @ Level 2

  27. Deliver Processes @ Level 3

  28. Vehicle Loading Efficiency (Weight)

  29. Master Planning – Practice Assessment @ Level 4

  30. Deliver Opportunities • Detailed analysis of the Supply Chain Network Diagram (an extended version of the Geographic Map) identified opportunities for an improved distribution center network. Benefits were quantified. • Detailed analysis of D1.5,D1.6,D1.7 and D1.10 identified opportunities for improved truck scheduling, rating and loading procedures. SCOR Metrics helped quantify the opportunities.

  31. The Outcome • A top performing company often setting the benchmarks was able to find opportunities • Amidst rapid growth SCOR provided a means of identifying, quantifying and prioritizing opportunities • While many of the opportunities had previously been identified and “work was in progress” SCOR provided an umbrella for program management • SCOR’s hierarchal decomposition methodology allowed SAB-Miller to focus on the appropriate opportunities

  32. Performance Practice Summary 100% Can’t go the distance World Class 70% Contenders Performance Back of the Pack Stragglers Promising 30% 3.1

  33. Learning's Revisited Level 4 Level 5

  34. Thank You Owen Keates obkeates@xtra.co.nz +64212248277