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Towards an integrated supply network

Brainport Industries

John Blankendaal

Managing Director Brainport Industries

2Industrie 1.0…

3Industrie 2.0…

4Industrie 3.0…

5Industry 4.0…?

Volume

Complexity

CD players

Mobile phones

Cars

Trucks

Hightech Equipment

Airplanes

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This high-tech world is changing …

• World wide competition

• Increasing complexity

• Flexibility and agility demanded

• Shorter product life cycles

• Upfront investment for new product development grows

• Pool of technical talent shrinks

• Cost price pressure

• Higher quality levels required

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Market share US:2009: 50%, 2013: 2%

Global market share:2007: 50%, 2013: 3%

7The answer is to be found in the supply chain

• 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

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Classic way of outsourcing

1. Research & Development

3. Prototyping & Industrialization

4. Component production

5. System integration

6. Sales & Service

2. Design & Engineering

1980: OEM VALUE CHAIN • Subcontracting of component production only with different

suppliers

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Recent development in outsourcing

1. Research & Development

4. Component production

6. Sales & Service

2. Design & Engineering

3. Prototyping & Industrialization

5. System integration

Process Development

Sub-AssembliesComponents

Supply Chain Management

Sourcing & Life Cycle Mngt.

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

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The near future of outsourcing

1st Tier

1. Research & Development

3. Prototyping & Industrialization

4. Component production

5. System integration

6. Sales & Service

Sub-Assemblies

Components

Systems

2nd Tier

3rd Tier

2. Design & Engineering

Process Development

Project Management & Staffing

Quality Assurance

Business Model Development, Financing & Funding

Sourcing & Life Cycle Management

Supply Chain Management

2020: OPEN SUPPLY CHAIN • OEM transform to lean companies

11Suppliers 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.

1293 Members (turnover € 2 billion, 9000 fte)

13Market focus of Brainport Industries

PHOTO VOLTAICPRINTINGANALYTICALMEDICALSEMICON

High mix, low volume, high complexity

14Brainport Industries

15Charles Darwin

Proudly stolen from the Origin of Species, 1859

It is not the strongest nor the most intelligent of the species that survives but the one that is the most adaptable to change.

16Smart 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

17Addlab (shared metal print facility)

• KMWE• NTS Group• Frencken Europe• Machinefabriek De Valk• FMI• MTA• Philips Innovation

Services• De Lage Landen

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Thank you for your attention