supply chain project management

Daniel NewmanInternational Project

Manager

Daniel NewmanINTERNATIONAL PROJECT MANAGER

Supply ChainProject Management

INTERNATIONAL PROJECT MANAGEMENT


Manager

‘Supply Chain Management - the process of managing the flow of materials and goods.

Every project or programme contains at least one or more customers, suppliers, and goods – hence the need for Supply Chain Project Management (SCPM) .

Our job is to get the right goods (product or service) to the right place at the right time for the right cost - but remain flexible to match demand.’

Source:1999 - Daniel Newman, J. Sainsbury’s Plc

Prelude



Manager

Objective

Introduction

Supply Chain Management (SCM)

SC Project Management (SCPM)

Case Study

Conclusion

References

Agenda



Manager

To enhance your existing project management flexibility capabilities to an international "hands-on" practitioner level.

This 2nd seminar of 5, provides a brief insight into supply chain management (SCM). You will learn about four areas concerning supply chain project management (SCPM) :

(1) Plan (2) Build (3) Automate (4) Monitor

We will conclude with a case study on how SCPM was successfully used in one area of Sainsbury's to recover a loss of over £3million GBP.

Objective



Manager

Goods, Services and information

supplier customer

Reverse logistics

Supply Chain

Pop-Quiz:

Which one should we be more concerned with and why?

Information (Processes)

supplier customer

customer supplier

Supply Chain Management

Introduction



Manager

…is thousands of years old, (aproximately 4,579 years old)

Height : 139 meters (456ft)

2570 BC




Manager

Project Management is also many thousands of years old.




Manager

… contains several interdependent processes

PLANSOURCE MAKE

DELIVERRETURN

Strategic part of SCM, it must manage ALL resources to meet customer demands.

Businesses choose suppliers to deliver goods and services needed to create products

Production, testing, packaging and delivery preparation activities scheduled

A.K.A. Logistics - coordinate; received orders, storage, transport, and invoicing

The problematic part, support customers with defective and excess products




Manager

… historically and currently problematic

Outsourci

ng

TechnologySkills

People

Processes

Plan

ning

Politics

Cult

ure

Educ

atio

n

Mon

ey

War

Volcanic eruptions

Weather

Vaca

tion

ContentManagement

ManufacturingOrg

anisa

tion

Resources

Strike

energyPa

ndem

ics

Boeing, 1997 writes off $2.6 billion, due to supplier parts shortages

Vipnet, 1999 GSM portal launch delayed 1 year due to supplier issues

Sony's 2006, PlayStation 3 delay gives opportunity to rivals (Microsoft's Xbox 360 and Nintendo's Wii)

Airbus's A380 super-jumbo 2006

delivery to customers, almost 2 years late

Sainsbury’s delayed store openings, cost them £millions in lost revenue

Legal




Manager

… some problems can be explained

Poorly managed supply chains cause instabilities (i.e. poorly forecasted consumer demands). These instabilities create these bullwhip effect swings. Tell-tale signs include; non-collaboration, communication, and misreading market conditions. What should we as IPMs be doing about it?




Manager

The answer is Everything!

Nothing is outside the project management scope.

Supply Chain Management is everyone’s job.

SC Project Management



Manager

PLAN

Audit

Analyse

Communication

Sizing

ScheduleRisks Operations

Resources

Finance

Marketing

Strategy

Logistics

Purchasing

Procurement

Internal Focus

Functional Focus

External Focus

RES

EAR

CH

Supplier(s)

Invoicing

CRITICAL

Lead

tim

es

Demand, Supply and Environment

Process, Risk and Governance

Lead times

CR

ITIC

AL

CRITICAL




Manager

BUILD Process

Solutions

Partnership

CommonPlatform

ProcurementCRM

Alliance

Technical Non - Technical

Suppliers

Distributors

Quality Customer ServiceE-Procurement system

CustomsTax

Communication

Collaboration

Forecasting demand

Coo

rdin

atio

n

Web SCM system

Extended ERPEnterprise Resource Planning

Oracle, PeopleSoft, SAPOEM Product Development




Manager

AUTOMATE

Process

SCM Quality Management

Inventory

Del

iver

Replenishment

Tracking

Alerts

Procurement Workflow

Warehouse

Reverse logistics

Reporting

Call Centre

Cus

tom

er re

turn

s

Mobile solution

Increasing web technologies,and calls for effective integration.




Manager

MONITOR Networks

New technology (RFID)

Improvements

Solutions

CostsPIR

RisksPlan

Build

Product Inventory - visibility

Up-2-date Lifecycle status

Bad management

Benchmarking

Post Implementation - Review

At Sainbury’s we improved delivery performance through better response times, and visibility.




Manager

We found the lost £3million, and this is how we did it.

MONITOR BUILD

SainsburysNCR

PLAN

AUTOMATE

Update

Output Input

- Audit- Analyse- Communication - Sizing- Schedule

- Partnerships- Processes- Solutions- Common platforms

- Improvements- New Tech (RFID)- Networks- Solutions- PIR- Cost

Coordinate

- Processes- Supply Chain Quality

Management- Inventory

Case Study



Manager

- SCM is everyone’s job (i.e. Data management)

- Time spent on plan management is key to success

- Motivate your clients and their suppliers for change

- Build better collaborative partnership models

- Work smarter, learn from mistakes (PIR)

Conclusion



Manager

resource

management

Information gathering

conflict managementdecision

making

customer service

leadership

mentoring

nego

tiatin

g

teamw

orkco

mm

unic

atio

n SCPMUSES

Cross-functional …

resource

management

Information gathering

conflict managementdecision

making

customer

service

leadership

mentoring

negotiating

team

wor

k comm

unication

… Skills

… Intelligence

… Experience

ToolkitConclusion



Manager

Supply Chain Management has a

game …

Businesses can play in partnership with their Customers and Suppliers.

We can facilitate this!

Conclusion



ManagerAGRESSO: http://www.agressona.com/ - accessed April 14, 2010

AIRBUS: http://www.airbus.com/en/airbusfor/suppliers/ - accessed April 19, 2010

AMADEUS: http://amadeus.software.informer.com/ - accessed April 19, 2010

BOEING: http://www.boeing.com/companyoffices/financial/finreports/annual/98proxy1/part16.htm - accessed April 15, 2010

Cox, A. 2001. Managing with power: Strategies for improving value appropriation from supply relationships. The Journal of Supply Chain Management, Spring, 42–47

Croxton, K.L., S.J. Garcia-Dastugue, D.M. Lambert and D.L. Rogers. “The Supply Chain Management Process,” The International Journal of Logistics Management, (12:2), 2001, pp. 13-36

Ellram, L.M., Tate, W.L. and Billington, C. (2004) Understanding and managing the services supply chain, Journal of Supply Chain Management: A Global Review of Purchasing and Supply, 40(4), pp.17–32

Forrester, J. W. 1958. Industrial Dynamics: A Major Breakthrough for Decision Makers. Harvard Business Review 36(4):37-66

IBM: http://www-900.ibm.com/cn/industry/distribution/news/pdf/caac/gds_solutions.pdf - accessed April 15, 2010

Lee, Hau, P. Padmanabhan, and S. Whang. 1997. Information Distortion in a Supply Chain: The Bullwhip Effect

SAINSBURYS:http://www.information-age.com/article-archive/292891/sainsburys-dogged-by-supply-chain-problems.thtml - accessed April 14, 2010

Supply-Chain Council, Inc. “Supply-Chain Operations Reference Model: Overview of SCOR Version 5.0,” www. supply-chain.org, - accessed April 14, 2010

References



Manager

Thank you

fr.linkedin.com/in/danielnewmanEmail: [email protected]

Blog: ipm3000.wordpress.com/introduction/

http://fr.linkedin.com/in/danielnewman

http://fr.linkedin.com/in/danielnewman

mailto:[email protected]

http://ipm3000.wordpress.com/introduction/


Manager

ABC NewsAmadeusGSKHMVIBMInteractive1J Sainsbury’s Plc Knight FrankLBNL Mobilkom Austria– VipnetNational Westminster BankPwCThe British Council /Crown Agents /ODAThe European Society of Cardiology Daniel

NewmanINTERNATIONAL PROJECT MANAGER

Clients

supply chain project management

Business

main activities

sc project

international

supply chain

resource management

supply chain

conflict management

lead times