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Current Priorities for Supply Chain Development. PowerPoint Presentation
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Current Priorities for Supply Chain Development.

Current Priorities for Supply Chain Development.

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Current Priorities for Supply Chain Development.

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  1. 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

  2. My objectives today • Need for a Welsh supply chain • Research outcomes • Public & private sector actions

  3. Supply Chain Strategies Product/Service Sourcing Strategies Organisations Total Cost of Ownership Country Logistics Strategies

  4. International Sourcing Decision Strategy Sourcing Entry Strategy Sourcing Decision Strategy International Analysis Supplier Relationship Strategy Withdrawal Strategy

  5. Drive for competitiveness • Instability • Globalisation • Product/service improvement • Cost reduction • Risk exposure

  6. 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

  7. CRITICAL FACTORS • Strategic approach needed • Resource demands • Specification driven • Power relationships • Logistics & Supply Chain Management

  8. The Business Squeeze • economic disincentives - the customer supply chain cost reduction motive • desire to become “e”-active • technology difficulties • real training/skills needed

  9. Planet Public Sector Culture Leadership Motivation Infrastructure Technology Globalisation Industry Size Competition Customers CONTINGENT VARIABLES SCENARIO PLANNING Supply Chain Strategies Supply Chain Integration Mechanisms FACTORS AFFECTING SUPPLY CHAIN STRATEGY

  10. Survey Scope

  11. RESPONSE RATE • Circa 60% response rate • 288 companies • Statistically significant (the norm 22%) • Remarkable response rate particularly from SME’s

  12. Importance of Issues - High • Leadership 4.5 • Strategy 4.4 • Team Working 4.3 • Waste Reduction 4.1 • Procurement 4.0 All Marked Out of Five

  13. Importance of Issues - Medium • Supply chain management 3.5 • Time to Market 3.5 • MRP 3.5 • Financial management 3.5 • Supplier development 3.5 • R & D 3.5 • JIT 3.5

  14. Importance of Issues - Low • E-Commerce 2.5 • New technology 2.5 • Customer management 2.5 • Kaizan 2.5 • Benchmarking 2.5 • IIP 2.5

  15. Those with the lowest Priority are things to do with INNOVATION!!

  16. High Quality Pricing Product Reliability Service Reliability Capability to Support Low Time to Market E- Commerce R&D Purchasing Expertise Value Analysis Value Engineering SMEs Perceived Priorities of their Customer’s Requirements

  17. Long Term Success • The BFO • Depends on successful suppliers • Depends on customer satisfaction • The ENTIRE supply chain must be successful.

  18. Capturing Value A supply chain approach to developing national export development strategies

  19. STRATEGY • It’s the creation of a unique and value position involving a different set of activities

  20. DISTINCTIVE VALUE CHAIN Strategic Positioning

  21. 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

  22. 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

  23. 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

  24. Financial and Physical Assets Human Resources Information Networks and Relation- ships • Planning & acquisition of physical assets • Cash flow impact and financial risks in the supply chain Improved information helps enterprises to plan ahead and be more competitive Enterprise • Management: • Planning • Executing • Monitoring • Securing & developing SCM expertise • Supplier development programs • Demand forecasts • Customer delivery requirements • Inputs’ supply markets • Supply chain services • Strategic supply chain alliances

  25. Strategy makers should focus on delivery performance and the supply chain structure in equal measures to market access and export promotion

  26. 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

  27. Supply Chain Management • It’s about people, expertise and performance • Not just about process.

  28. 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.