Specifications for Main Activities
Supply Chain Management
Workshop
VERITE Kick Off Meeting, 29 November 2001
Sophie Mavor
CM International
CM International
Page 1
VERITE Kick Off Meeting
Supply Chains and Clusters…
a perspective on development processes…
CM International
Page 2
VERITE Kick Off Meeting
Clusters ? Supply chain ? Networks ?
Number of companies
Trade
Associations
Sector
networks
Joint marketing
Supply
chains
Cluster
Partnership
Inter-relationships
CM International
Page 3
VERITE Kick Off Meeting
Characteristics of Supply Chains
 Structured
 Self-defining
 Operate “globally” more than locally
 Focused on commercial achievements
 Led by the customer dynamics
 Contain competitive firms
CM International
Page 4
VERITE Kick Off Meeting
Understanding Supply Chains: Resource
Flows
Supply Tier 2
Components and services
CM International
Page 5
Supply Tier 1
End
Customer
Information & product development
VERITE Kick Off Meeting
Supply Chain Development
Benefits
Joined up solutions
 Partnership with other players
Planning-based approach  Targeted and prioritised
Real added value
 Value for money service
Starts learning processes  Companies learn best from each
other
It works!
CM International
Page 6
VERITE Kick Off Meeting
Key Supply Chain Problems
Generally…
Shared common problems
- No agreement what they are
Mistrust between companies
Misunderstanding between sector & public sector
“But we have special problems” - Can you express them?
Lack of leadership
- Who goes first? Who can we talk to?
Where does my cluster end?
- Merging
technologies
Who else does my industry rely on? (That I don’t know about)
CM International
Page 7
VERITE Kick Off Meeting
Approach to Supply Chains
1. Method to understand industry supply chain
2. Identify sector needs and map available support
3. Plan the way forward, building partnership, trust and
delivering benefits
CM International
Page 8
VERITE Kick Off Meeting
Company Analysis
 Analyse total production process and associated activities
 Outline interactions with other companies and organisations
Company A
Environment of Firm
Desig
n
External
Inputs
Raw
Materials
Education
CM International
Page 9
Manufacture
Production
Services
Finishing
Dispatch
Business Support Infrastructure
VERITE Kick Off Meeting
Identifying Supply Chain Needs
External
environment
Internal
Organisation
Visibility in
the market place
CM International
Page 10
Production
capabilities
Management
Level of
Technology
VERITE Kick Off Meeting
Planning the Way Forward
Business Needs
 People
 Technology
 Market
Articulate
needs
3-5 year
Plan
 Infrastructur
e
Public Sector – Support and Infrastructure
CM International
Page 11
VERITE Kick Off Meeting
I
m
p
l
e
m
e
n
t
a
t
i
o
n
Using Supply Chains: Source Wales Model
Meets spec. & supplies
direct
Info. on specs
and a supply
opportunity
SME
SME
Supply development
intervention
SME
SME
CM International
Page 12
Customer OEM
SME
Collaboration to
supply
Supply development
intervention
VERITE Kick Off Meeting
Using Supply Chains: Key Tasks
 Identify target sectors, supply chains and OEMs
Obtain OEM co-operation
Understand OEM specifications and requirements
Analyse and map the supply chain
 Identify capability gaps – generic and specific
Obtain supply chain commitment
Install supply chain champions
Structure learning packages for company & management
development
Provide sourcing opportunities
 Roll-out supply chain champions and support programme
CM International
Page 13
VERITE Kick Off Meeting
Creative Content
Core Industry Activities
Interfacing
Telephones
Personal
computers
CD-ROMs
Enabling Technologies and
Services
Digital TVs
Computer
animation
Connecting
Creating
Merchants
Software
Programmers
Video
Residential
Business
Local access
IP Transport
End Users
Authors
Education
Government
Artists
Environmental Enablers
Community
builders
Financial capital
Standards organisations
Security and Payment Infrastructure
Logistics
Legal/Regulatory
CM International
Page 14
Professional Services
Networking Technologies
Hosting Technologies
Device and User
Interface Technologies
Authoring and Content
Management Technologies
Advertising
Content hosting
Referencers
Hosting
Aggregating
Publishers
Long haul
Transaction
Services
VERITE Kick Off Meeting
Electronic Sector: Vertical Integration
Demands
Manufactured
Product
R&D
Manufactured
Product
Technology or
Product
Acquisition
Manufactured
Product
Company + Company B
A
=
=
Equipment
Manufacturer
Manufactured
Product
Possible areas for intervention
CM International
Page 15
Original
VERITE Kick Off Meeting
Electronics Sector: Horizontal Model
Demand
Branded
Equipment
Product
Development
Design
& System
Company
Specifications
Manufacture
Logistics
=
Possible areas for intervention
CM International
Page 16
Final
Consumers
VERITE Kick Off Meeting
Good Practice Examples
 Speaker from the Lean Enterprise Research Centre
Professor Peter Hines or Professor Dan Jones
 Source Wales
Industrial speaker, project manager speaker
 Södermanlands Län – automotive supply chain & other
clusters
Hans Rainer
 “Autochain” Transregional Innovation Project
Example of transnational supply chain project
CM International
Page 17
VERITE Kick Off Meeting