Transport in the Global Market the Drivers and Challenges

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Transport in the Global Market the Drivers and
Challenges
Ian Shellard Rolls-Royce plc
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Global Customers
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Supply Chain Requirements The Extended
Enterprise
Generic Supply Chain

• The Robust Supply Chain is
• Dependable
• Repeatable
• Visible
• Flexible
• Cost-effective

• The Supply Chain is as strong as its weakest
  link
• Physical logistics stages must be judged on the
  same criteria as material transformation stages

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Rolls-Royce Supply Chains
OEM
Services
New Product Introduction
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Supply Chain Synchronisation
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Global Sourcing
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Global Sourcing
LOGISTICS COST
PURCHASE PRICE
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Global Sourcing
LOGISTICS COST
INVENTORY COST
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The Business Environment Increasing Demands
What the Customer Wants..
Lower Prices
Better Service
More Choice
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The Business Environment Increasing Demands
The Challenges.
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Responses include

• Reduce unnecessary transport
• Expedited (part-by-part) transport
• Duplicated journeys (out and back)
• Interim locations and inventory
• Review of balance between local (duplicate) and
  global (single) sourcing
• CTPAT and AEO status
• Dollarisation

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Factors We Need To Address

• What is the true operational model?
• Real lead-times at each stage
• Cost and value added at each stage
• Constraints, bottle-necks and risks

Then we know where to hold inventory, and how
much!
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Key Requirements

• Recognition of the supply chain as an extended
  enterprise
• Mature partnerships and relationships
• Shared demand, capacity and status plans and data
  of high quality
• Good modelling and simulation tools

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Global Sourcing and Operations
Region 1
Region 2
Region 3
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Global Network

• Parts sourced in regions are consolidated in
  region
• Production parts for out-region assembly plants
  are consolidated and shipped efficiently
• Spares material is held in-region and shipped to
  point of use only when required.

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E-Manifest

• Schedule sent electronically both as demand (MRP)
  and as collection plan for next 7 days at
  part-number and quantity level
• Collection drivers share collection plan data
• Parts scanned onto trucks, checking correct part
  number and quantity
• Wont take wrong parts, early/excess parts or
  parts incorrectly labelled
• ERP system automatically updated within a few
  minutes of collection giving MRPCs notice of
  any shortages/issues and a chance to manage round
  them.
• Winner of 4 leading awards for supply chain
  innovation and partnership.

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Logistics Alliance
Benchmark
Benchmark
Transport
Audit each
Audit each
arm
arm
International
Freight Forwarding
CEVA
Packaging
???
Daher
KN
R
-
R
???
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UPS
UPS
TNT
TNT
Integrated
Logistics Centres
Aftermarket
Service Centres
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Conclusion

• The challenges of global markets and operations
  are complex and will not get any easier as time
  goes by
• Responses may be different depending on a
  companys individual business models and
  situations
• Supply chain effectiveness remains a key pillar
  of business performance
• Better understanding of the influencing factors
  and their interactions is essential to maximising
  effectiveness