Download - Group2 Final Scm
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2010
2012Global Supply Chain Trends
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About the Survey Largest survey by PRTM
Global survey
Insight into management efforts to recover from the crisis
Online questionnaire and interviews
To capture the current trends and anticipated challenges
& opportunities
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Survey Participants Size of Companies by Revenue 2009
>$5B 36%
$1B $5B 25% $500M $1B 11%
$100M $500M 15%
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Geographic Distribution
Europe 43%
Americas 30%
Asia 28%
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Industry Affiliation
Electronics & Telecommunications 26%
Automotive, Aerospace & Industrial 23%
Consumer Goods 17%
Health Care 11%
Logistics 8%
Other 15%
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Executive Summary Supply chain for companies across globe in
2008&2009
Belief of the surveyed companies & optimism
Gross Margin Expectation of Survey Participants byRegion
Americans 5.3%
Europe 10.4%
Asia 12.9% Findings of the survey about the supply chains for
companies
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The degree to which companies can capture benefit from
an eventual upturn will depend largely on how they deal
with
five key supply chain challenges
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Trend 1
Supply Chain Volatility and
Uncertainty Have PermanentlyIncreased
Market transparency and greater price sensitivity
have led to lower customer loyalty. Product
commoditization reduces true differentiation in the
consumer and B2B environments.
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74%
33%
31%
30%
28%
24%
23%
19%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Demand volatility and/ or poor forecast accuracy
Lack of visibility to current market demand
Increasingly demanding customers
Lack of intergration between supply chain and product development
Management focus on cash flow and margin
Inability to make fast decisions in response to market changes
Poor supplier performance
Management focus on moving to a lower cost supply base
Series1
Top Challanges to Supply Chain Flexibility
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Reasons For The Volatility
Recession
Decrease in the Customer Loyality
Lack of robust forecasting and planning tools
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Steps Taken To Counter The Volatility
Improve supply chain response time and visibility among
the chain partners
Deepening collaboration with key customers
real-time planning with their key customers Develop processes for improved demand sensing
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Uptick in Globalization Increase in complexities of
Supply chain.
Decline in the complexities with regards to the # of
manufacturing facilities.
30% of decline in the suppliers.
Regionally configured supply chains will be the key tosuccess.
P&G End to End Supply Chain management.
Trend 2
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Trend 3
Market Dynamics Demand Regional, Cost-Optimized Supply
Chain Configurations.
Downturn of economy lead to reduction in cost and the gross
margin.
Concept of outsourcing.
Reduction in gross margin lead to reduction in supply chain.
Company preferred cheap suppliers
Hidden cost (quality, site visits, loss of flexibility.)
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Risk and opportunity management shouldspan the entire supply chain
Trend 4
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Companies fears:-
suppliers would be forced into default, cutting off
critical sources of components and increasing the
cost of introducing
alternative suppliers
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Companies are taking an end-to-end
approach in managing risk at each node of thesupply
Chain by:-
Demand planning
Limiting the complexity of the products
Mitigating inventory related risks
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BMW Motored, a global manufacturer
of motorcycles
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Supplier selection
strategy to optimize the supplier Portfolio
BMWs supplier risk management
approach is part of a comprehensive
supplier management strategy is fully integratedand managed through pre-determined KPIs
Result:-
significantlyimproved the quality of delivered
components by suppliers.
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Are existing supply chain
organizations truly integrated
and empowered??
Trend 5
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Lack of integration between supply
chain functions like manufacturingand product development.
Inability to make quick decisions
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EL-AJOU group (Office automation &Medical equipment)
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Lack of professionals in thedomain of supply chain
Cost cutting and budgetrestrictions
Third party logistics providers asan alternate
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All functions of the Supply chain as a
single resource under one joint
responsibility
Focus on finding and training toptalent
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Queries?