Understanding Supplychain Management in the Digital Age

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MANAGEMEMENT ASSOCIATON OF PAKISTAN 10th
Convention

• Understanding Supply-chain Management in the
  Digital Age

By Salvy Zakaria VP Business Development
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Creative Destruction Reinventing your
supply-chain
EVERYONE HAS A MOBILE PHONE - Madonna
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Proposed Agenda
Supply-chain in the digital age Essentials of
good supply-chain management 10 things to
remember
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Supply Chain Management extends to a myriad of
functional areas across an organization, from the
supply source to the end consumer - mastering the
supply-chain means mastering the flow of
information, finances and products.
Overview Follow the money.
Raw Materials
Production
Consumer
Suppliers
Money Flow
Information Flow
Product Flow
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Major forces are pushing supply-chain
transformation
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10 things to remember (1 to 5)
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Digitization is driving multi-platform,
multi-channel downstream supply-chain strategies
Multiple-channels strategies are increasing the
complexity of order and customer management, and
driving the need for speedy fulfillment
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Mass customization is driving an increased need
for unit level product visibility and production
flexibility
Demand driven supply-chain
Mass-customization
Emphasis on driving costs out of rather than
down the supply-chain
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The need to take costs out of, rather than down
the supply-chain is driving the need for upstream
visibility and supplier collaboration
From Supply-chain Domination
to 21st century Supply-chain Collaboration
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Proposed Agenda
Supply-chain in the digital age Essentials of
good supply-chain management 10 things to
remember
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Key requirements of an efficient supply chain
Key requirements of an Efficient Supply-chain
Major Forces
Marketing driven supply-chain
Reach the customer Anytime, Anywhere
Multi-platform, Multi-channel strategies
Quick - Short Cycle times
Mass-customization
Build to order, rather than build to stock
Responsive Flexible
Cross Company Collaboration
Emphasis on collaboration rather than domination
Transparent upstream and downstream
In order to improve overall supply-chain
performance it will be vital to increase
visibility in the supply-chain, improve the
ability to manage and control change /
variability, and shorten time to market by
increasing overall speed / Velocity.
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The 3 Vs are the essence to good supply-chain
management
Better management of variability results in an
improved, more efficient and faster supply-chain
Visibility of these flows enhances the
organizations ability to manage, control, and
affect change proactively
You cant manage what you dont see Up- and
down-stream visibility into product, information
and money flows
Visibility
Improving visibility is the first step to better
supply-chain management.
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The continued focus on technology and the surging
attention to information will force process
improvements, thus evolving the supply chain into
one highly-valued, fully-integrated model
History of supply-chain innovation
The convergence of process-, technology-, and
information-driven enhancements will form a
fully-integrated supply chain.
Internet
Process
Value to Supply Chain
VMI, Visibility
JIT, TQM
Technology
Information
EDI
1990
2000
Today
1980
Evolving Future Information Driven Enhancements
Historical Recap
Process Processes can be improved to
incorporate the technological advancements of the
1990s into day-to-day operations Technology
Technological advancements like Wireless and
integrated private exchanges will continue
playing a key role Information Availability of
real time information throughout the supply chain
will enable collaborative planning, thus leading
to higher than ever operational efficiencies for
all trading partners
In the 80s Process-driven enhancements to the
supply chain were the dominant focus In the 90s
As reengineering efforts successfully squeezed
costs out of processes and technology became more
accessible, technology-driven enhancements became
the value driver Today Internet applications
are still not completely leveraged, and processes
are idling
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Technology architecture overview

• Velocity - Improve
• Process Optimization
• Asset utilization
• Service optimization new value add services
• Operational costs

Enterprise optimisation
ERP
Supply chain optimization
Inventory Mgt systems
Transport mgt. Systems
Sales / Retail Automation

• Variability- Manage
• Diagnosis
• Scheduling
• Forecasting

Supply chain execution
Warehouse / distribution mgt. Systems
Production mgt. Systems
Vendor / Procurement Mgt Systems
Data enrollment

• Visibility - Capture
• Physical Location
• Process Location
• Condition
• Status

Data (data warehousing)
Data capture
Local Controls (PLCs, DCS)
Automatic Data Collection (AutoID, barcode, RFID,
Portable data terminals etc), sensors etc
A comprehensive technical architecture is mission
critical to achieving the 3 Vs and managing
complexity.
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Proposed Agenda
Supply-chain in the digital age Essentials of
good supply-chain management 10 things to
remember
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10 things to remember (6 to 10)
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Thank You!