Supply Chain VALUE
CO-CREATION
Wrap up day 2
Bill Davidson
STRATEGY
• Foundation setting by exploring Emerging
market and maturity of these market
Plan
• What is my company position in key
markets? And where are the gaps?
INNOVATION
Deliver
Make
Source
Deliver
Return
Return
Suppliers’
Supplier
Return
Supplier
Source
• Increasing complexity in supply chain
urge us to collaborate with experts but
keep control of total supply chain
• Co-opetition: Collaboration and
competition = Value creation based on
Trust
• What are the next emerging markets? ->
Indonesia / Turkey / Eastern Europe
Plan
Martin Christopher
Make
Return
Deliver
Return
Your Company
EXECUTION
Plan
Source
Return
David Hunt
COLLABORATION
Make Deliver Source
Return
Customer
Return
Customers’
Customer
• Strategy:
1.Emerging markets: China and Brazil
2. Travel-retail
3. Direct connection with consumers:
Focus on key markets and being in city of
consumption
Key take aways Client Panel
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Emerging markets
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Everyone is active in the BRICS countries
Turkey 16 largest world economy, in general to be in the
emerging market
Success factors range from type of business> start with
distributors vs. own affiliate
Assessment on long-term emerging markets (ie. Vietnam,
Indonesia( only starting)
Emerging markets can vary, i.e. manufacturing vs.
consumption
•
Both Innovation and collaboration are key element in a
very volatile environment
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Successful key elements of last years
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Innovation: transfer from manual to automated workload in progress
Collaboration: Outsourcing to 3rd parties and consolidate (even with
competition)
Collaboration mostly focused on supplier & logistics partner
•
Co-opetition is more of a challenge than anticipated<
mostly due to legal constraints. Openness varies by
industry (ie tyres and C&R are open to this)
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IT technology
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Agility in Supply chain
One standard integrated system
Enabler for SC control and pre- requisite to collaboration
STRATEGY
Martin
Christopher
Bill
Plan
Davidson
Bill
Davidson
Rob den Heijer
Plan
INNOVATION
Deliver
Make
Source
Deliver
Return
Return
Suppliers’
Supplier
Return
Supplier
Source
Make
Return
Deliver
Return
Your Company
Gene Ochi
Rod Stout
Plan
Source
Return
COLLABORATION
Make Deliver Source
Return
Customer
David Hunt
EXECUTION
Return
Customers’
Customer
Key take away of Rob den Heijer – INCO terms
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No it is red!
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Is that a green shirt?
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INCO terms could make or brake
collaboration through the supply
chain (green = green)
Be careful on the risk of loading the
truck
The buyer will always pay all costs
involved in transport + Insurance ->
avoid double payment
Tips:
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When EXW or FCA sellers premises is
used: do not sign CMR or other transport
document, because you will become part
of transport agreement
In case of FOB: demand a copy of B/L
and make sure you are not mentioned as
shipper, otherwise you become liable for
transport
If your company has an “umbrella
insurance” then incoming flows are likely
to fall under this agreement. Choosing
CPT as Incoterm could avoid paying
double insurance premium
Key take away of Rod Stout – technology enabled supply chain
collaboration
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Intra-entreprise collaboration (S&OP)
Integrated Community Network
Transformational Logistics
Technology is the bridge between third
and first world.
Key elements for Future
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Technology designed for the next step not
adapting existing technology designed around the
old paradigm
Communication – lots of it
External facilitation can make a huge difference
Like minded people
Mutual gain
Find ways around the CAPEX barrier
A compelling event really helps
Visionary leadership that will ‘take a risk’
Key take away of Gene Ochi
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First of all we learned all about toilets
3 strategy positions
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Paradox of flexibility and control over time
Trade off on outsourcing or do it yourself
(optimization and fulfillment versus cost)
Open business model for open innovation:
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Client intimacy
Operational excellence
Product innovation
Indispensable dialogue
Trust
Goodwill
Create value
5 things to focus in future
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Network design
Optimization (from static (forecasting) to dynamic (agility))
Compliance
Data to knowledge (integrated)
Relationship
The UTi Charitable Foundation - Delivering Better Lives.
Our Space : Health ,Education and
Community Infrastructure
Our Model : No Grants, total control
Our Approach : Project based – we do it
,we control it ,we know where it is spent.
Zero Cost Base – every cent received goes
on a project.
Engagement and Ownership
Target : Deliver 100,000 better lives every
year
www.deliveringbetterlives.org
Choosing your innovative engines by Bill Davidson
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IBM’s Client-centric Solution model where collaboration and conduct
is essential
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Volvo -> 1 business model and departed from consumer automotive
business :
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Perform or Transform
Apple strategy innovations
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Inventory turn  (X-docking)
Innovation starts with starting a new cycle
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Integrated value chain
single supply chain structure
Align design, SC and production
Can we share/collaborate with close competitors
Wal-Mart’s Strategy diamond
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Decentralized independent groups
Virtual integration / Ecosystem/Part to profits cycle/KISS/Black Hole sector
strategy
Netting it Out
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Numerous Opportunities for Innovation
Supply Chain is particularly fertile ground
Customer Facing process Innovation delivers strong, sustainable results
Business Model Innovation is most powerful and most demanding
Collaboration is critical inside and out
Nothing focuses the mind like a crisis