Central & Eastern European Supply Chain Industrial Round table

‘Restructuring & Co-ordination’

• 1995 - Outsourcing

• 2000 - The China Factory

• 2005 - Reality Sets in

• Today - A change is on• Most amount of change will occur for the past 6/7 Years

• Wrestle with your Supply Chain, It needs to be deconstructed

‘Restructuring & Co-ordination’

The Asia Factory Challenge

Fuel Price Dynamic

Past 18 months 18% - 28 %

5/6weeks

Balance Sheet

Plane

Shipping Fresh Air

Cost Of Working Capital : Cash Conversion CycleConsumer Demands : Availability : Speed To Market

First Winner Advantage

Duty Duty

Boat

Base Unit Price = $500Cost of Money = $518Total Lead = 83 Days

$1 Cost of Money

50% CustomersTake from

Retail Outlet

Deliver to Customer2 Days

50% DeliveriesTo Customer’s Home

Cost of Money $1

Deliver to Retailer2 Days

Customs/Truck 2 Days

CountryWarehouse

Warehouse4 Weeks

$4 Cost of Money

Sea Freight6 Weeks

$500 Product

$10 Cost of Money

SupplierChina

Title of ProductPasses toRetailer

Retailer1 Week

$2 Cost of Money

Title of ProductPasses toCustomer

Today’s Typical Retailer Supply Chain Model using PC,s

Must Deconstruct Your Supply Chain- know your true costs by cost centre

A Customer Is Someone

Who Has Yet To Find Another Alternative

Integrate Your Suppliers – Their ROI

A Real Time IT Collaborated

Demand Chain

FreightDisti Centres

Suppliers

Company

Customer

Transparent DigitalEnvironment

Benefits

• Improves The Bottom Line

• Predictability

• Reduced E&O

• More Reactive

• Reduced logistic

• Everyone Is connected

• Improved Cash position

• A better Balance sheet

Watch Out For TheTrap….. Where You Know The Price of Everything & The Value of Nothing

THANK YOU