1 Towards an integrated supply network Brainport Industries John Blankendaal Managing Director Brainport Industries Industrie 1.0… 2 Industrie 2.0… 3 Industrie 3.0… 4 Industry 4.0…? Volume CD players 5 Mobile phone s Cars Trucks Airplanes Hightech Equipment Complexity 6 6 This high-tech world is changing … 6 • World wide competition • Increasing complexity • Flexibility and agility demanded • Shorter product life cycles • Upfront investment for new product development grows Market share US: 2009: 50%, 2013: 2% • Pool of technical talent shrinks • Cost price pressure • Higher quality levels required Global market share: 2007: 50%, 2013: 3% The answer is to be found in the supply chain 7 • Value chains compete instead of individual companies • Supply chain is designed to outsource non-core activities or functionalities • Cooperation within high intelligent networks is the model for the future • The supply chain opens itself and takes more responsibility Source: ASML Sustainability Report 2009 8 Classic way of outsourcing 8 1980: OEM VALUE CHAIN • Subcontracting of component production only with different suppliers 1. Research & Development 2. Design & Engineering 3. Prototyping & Industrialization 4. Component production 5. System integration 6. Sales & Service 9 Recent development in outsourcing 9 2000: OUTSOURCING PART OF THE VALUE CHAIN • Outsourcing core processes including Process Development • Outsourcing support processes like Supply Chain Management, Sourcing and Life Cycle Management Process Development 1. Research & Development 2. Design & Engineering 3. Prototyping & Industrialization 4. Component production 5. System integration Supply Chain Management Sourcing & Life Cycle Mngt. Sub-Assemblies Components 6. Sales & Service 10 The near future of outsourcing 10 2020: OPEN SUPPLY CHAIN • OEM transform to lean companies Business Model Development, Financing & Funding Quality Assurance Project Management & Staffing Process Development 1. Research & Development 2. Design & Engineering 3. Prototyping & Industrialization 4. Component production 5. System integration 6. Sales & Service Supply Chain Management 1st Tier Sourcing & Life Cycle Management 2nd Tier 3rd Tier Systems Sub-Assemblies Components Suppliers teamed up to create… • Cooperative of 85 high tech suppliers working together to boost their competitive and innovative power by the development and execution of concrete activities on the themes people, business and technology, so the members can grow to the top of their markets. 11 93 Members (turnover € 2 billion, 9000 fte) 12 Market focus of Brainport Industries SEMICON MEDICAL ANALYTICAL 13 PRINTING High mix, low volume, high complexity PHOTO VOLTAIC Brainport Industries 14 Charles Darwin 15 It is not the strongest nor the most intelligent of the species that survives but the one that is the most adaptable to change. Proudly stolen from the Origin of Species, 1859 Smart Industry • Early supplier involvement • Working with OEM’s in joint development teams • Sharing CAD systems • Model based engineering • Using PLM systems in life cycle • Sustaining engineering during life cycle • Full transparency in the chain • Suppliers working together in pre competitive projects 16 Addlab (shared metal print facility) 17 • • • • • • • • KMWE NTS Group Frencken Europe Machinefabriek De Valk FMI MTA Philips Innovation Services De Lage Landen 34 18 Thank you for your attention