Dermot O’Doherty Senior Policy Adviser InterTradeIreland Supply Chain Conference 20 Feb 2003 PRESENTATION •InterTradeIreland – an ‘inter-regional’ model •An ITI Role in Supply Chain Development/Management •Supply Network Shannon – a regional/sub-regional initiative •Importance of Knowledge & Awareness – role of NITL •IT/Software Applications •Supply Chains to Networks & Clusters •InterTradeIreland’s Future Work Programme Supply Chain Conference 20 Feb 2003 Night Sky in Ireland Supply Chain Conference 20 Feb 2003 Concentration of Development ORIGINS of INTERTRADEIRELAND The Belfast Agreement, 1998. “A Body to exchange information and co-ordinate work on trade, business development and related matters, in areas where the two administrations specifically agree it would be in their mutual interest.” Supply Chain Conference 20 Feb 2003 GOVERNANCE NI Assembly North/South Ministerial Council Irish Government InterTradeIreland Enterprise Trade & Investment Enterprise Trade & Employment Supply Chain Conference 20 Feb 2003 ROLE Co-operation on business development opportunities, North and South Devising new approaches to business development in areas such as research, training, marketing and quality improvement Supporting business by making recommendations to increase enterprise competitiveness in a north-south context in areas such as skills availability, telecommunications, IT and electronic commerce Promotion of north-south trade and supply chains - including through business linkages and partnerships Promoting cross-border trade events and marketing initiatives Supply Chain Conference 20 Feb 2003 Supply Chain Conference 20 Feb 2003 Supply Chain Logistics and Transportation on the Island of Ireland - An Integrated Study ‘Supply chain management offers significant opportunities for companies located in Ireland to compete in global markets. InterTradeIreland should ensure it is on the agenda in the Boardroom of every company in Ireland’ ‘The development and implementation of integrated information systems is a fundamental aspect of supply chain management’ ‘InterTrade Ireland should encourage appropriate Government bodies, trade associations etc to act as ‘honest brokers’ in encouraging the development of collaborative efforts between companies in areas such as strategic sourcing and effective procurement of materials and servicing common customer bases’ Supply Chain Conference 20 Feb 2003 Supply Chain Development/Management Legislative imperative for InterTradeIreland:“Promotion of north-south trade and supply chains, including through business linkages and partnerships ” Strategic imperative:All Island trade opportunities SCM involves - company relationships, flows of information, logistics, manufacturing process and management techniques ITI’s corporate plan 2002-2004 highlights a priority area for the organisation, within the knowledge channel domain of its strategy, as being: ‘to maximise the potential of supply chain management on the island’ Supply Chain Conference 20 Feb 2003 Programme Principles arising from CMI Report For InterTradeIreland InterTradeIreland must produce ‘added value’ Be SME focused Demonstrate a need to build capacity Demonstrate a need for broad solutions Be all Ireland in scope From research and consultation – Has to be of value to industry Has to build on what is already in place Must not duplicate Has to be flexible enough to allow different companies, sectors and themes to be incorporated Has to be sustainable Supply Chain Conference 20 Feb 2003 The Need – An all-Island supply chain programme Improve competitiveness Generate innovation Help ‘oil’ cross border trade opportunities Bridge * Differences in programme provision across the Island * Differences in capacity to support * ..and share differences in company practice North/South programme provision versus boundary-less business – business is borderless, programme provision is not Apposite timing Supply Chain Conference 20 Feb 2003 The SCM Forum/Network The Problem - How to get companies, institutions and partners, to share best practice and work together cross-border where possible to apply SCM tools and techniques to raise SME competitiveness The Solution - The creation of a facilitated all-Island forum/network to: •Promote an awareness of supply chain issues and their importance to competitiveness •Close gaps in capacity to support SME’s in tackling supply chain issues •Bridge differences in programme provision •Share best practice •Generate and build on innovative programmes that utilise supply chain techniques •Raise the competitiveness of SME’s •Generate all-island trade opportunities Supply Chain Conference 20 Feb 2003 The Programme: Stage 1 - SCM Capacity Network Public agencies Companies All Ireland Supply Chain capacity Network Centres Expertise Educators Supply Chain Conference 20 Feb 2003 SCM Network – the advantages Clearly cross border and strategic Gives focus on pertinent all-Island topics Introduces new participants to a networking programme Share of best practice Reduces costs of access to tools and techniques (by group purchasing) and costs of development of new ones Review programme development and achievements Tackle barriers to implementation Address themes e.g. client procurement, particularly in the public sector - can be tackled Supply Chain Conference 20 Feb 2003 IRELAND (South) 3,600,000 70,882 Population Area (km2) Galway Shannon Limerick Tralee Cork Supply Chain Conference 20 Feb 2003 SHANNON REGION 403,000 10,232 Partner Organisation - Supply Network Shannon An Industry-led initiative aimed at Representing, Promoting, Developing and Connecting Sub-Supply companies in the Shannon Region SNS works with and for all Engineering and Electronics Sub-Supply companies in the Shannon Region and helps to reinforce the Region’s position as a World Class source of Sub-Supply Products and Services Supply Chain Conference 20 Feb 2003 Benefits of Membership Collective Marketing - Promoting the Sectoral Capabilities Web-Site - Fully Active Site for Promoting the Network, with Member Links Technical Seminars - On Issues of Relevance to Sub-Supply Companies Benchmarking - Sectoral Surveys of Company Performance Social Events - Golf Outings etc. eMail Forum - For Speedy Communication with Industry Peers Networking - Through Informal Meetings with Fellow Members Company Visits - To Buyer and Supplier Sites Exhibition Participation - Profiling the Network Nationally & Internationally Member Profiling - Use of Slogan; ‘Member of Supply Network Shannon’ Specific Issues - Formation of Special Interest Groups Supply Chain Conference 20 Feb 2003 ‘Supply Network News’ Upcoming SNS Events Plant TourTakumi Precision Engineering & BarbecueRaheen Industrial Estate, October 18th 2.30 p.m Supply Chain and what it means to you – Your Opinions are Needed ! Supply Chain Conference 20 Feb 2003 SNS Cross-Border Supply Chain Initiative Pilot Project Buy-in from firms, North & South •AAppointment of Key Personnel over 2 Year Programme •PPilot Contracts & incorporation of New Company •IIn-company Diagnostics •TTraining & Upskilling •IInvestment/Financing Supply Chain Conference 20 Feb 2003 Partner Organisation - NITL National Institute of Transport & Logistics "Centre of Management Excellence" for Supply Chain NITL's mission is to promote the development of supply chain expertise in Irish business, both private and public NITL provides Training and Education, Consultancy & Research in Supply Chain Management Supply Chain Conference 20 Feb 2003 Who does the NITL work for? Companies of all sizes, from small to medium-sized firms to large multinational companies including •MManufacturing/Assembly •PProcess & Service Industries •RRetail Industries •AAgriculture and Food Industries •RRecycling and Waste Management Supply Chain Conference 20 Feb 2003 Who does the NITL work for? •TTransport Providers •VValue-Added Logistics Providers and Integrators •FFerry and Sea Shipping Companies •AAirlines (both Passenger and Cargo) •AAirports/Ports Public Services (Rail and Road) Supply Chain Conference 20 Feb 2003 NATIONAL ROAD SHOW Who should attend? - Senior decision makers - Middle management, responsible for implementing decisions - Junior staff or students, interested in both understanding SCM and a SCM career -Policy makers in organisations, both public and private The Road Show is a professional, flexible multimedia presentation, approx. 30 minutes Supply Chain Conference 20 Feb 2003 ICT/E.BUSINESS & SCM - ISSUES •Awareness – firms not using latest solutions •Systems not integrated across company or supply chain •Need creative IT strategies •Lack of ‘Software Product’ Information •Lack of Infrastructure?? Supply Chain Conference 20 Feb 2003 SUPPLY CHAIN SYSTEM Supply Chain Conference 20 Feb 2003 SUPPLY CHAIN SOFTWARE DIRECTORY - NITL An annual directory, providing a range of solutions from ‘point’ solutions (applicable to a particular task or business function such as transport management or warehouse management) to ‘enterprise’ solutions through to applications for the management of the total supply chain Supply Chain Conference 20 Feb 2003 SUPPLY CHAINS TO CLUSTERS & NETWORKS CLUSTERS •Have established over time a relatively high degree of collaboration •Usually based on local / historical / sectoral agglomerations and supply linkages •Traditional sectoral specialisation in a relatively restricted geographical area •The Italian industrial districts, e.g. the Emilia region, are good examples of cluster development Supply Chain Conference 20 Feb 2003 NETWORKS: Collaboration is more ad-hoc and less structural Firms collaborate to satisfy specific needs (R&D, market information etc.) Networks of firms are less bound by close communication Clusters usually involve networking/Specialised networks of firms may evolve into clusters Supply Chain Conference 20 Feb 2003 NETWORKS & CLUSTERS TO ‘VIRTUAL ORGANISATIONS’ •Between Firms - Adaptive, non-hierarchical forms of networks •Within Firms - Set of organisational principles replacing hierarchical firm •Increasing relevance of specialisation and expertise •Globalisation •Technological Discontinuities Supply Chain Conference 20 Feb 2003 Company Champions project Support the training of “company champions” in specifier companies Company champions orchestrate, with programme support, supplier development programmes Specifier company Supplier A Supplier B Supplier C N Ireland Supply Chain Conference 20 Feb 2003 S Ireland Supplier D