Leadership Challenge in Global Supply Chain … Challenge in GSCM Jan 5 05 R1 .pdfHKSTPC -...
Transcript of Leadership Challenge in Global Supply Chain … Challenge in GSCM Jan 5 05 R1 .pdfHKSTPC -...
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
Technology Exchange Forum
Logistics & Supply Chain Management Enabling Technologies
January 5, 2005 - 6/F, Room 601 Hong Kong Convention & Exhibition Centre (Old Wing)
Dr. Stephen W. K. NgPresident, The Institute of Purchasing & Supply of Hong Kong
Leadership Challenge in Global Supply Chain Management
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
What is Supply Chain Management?
SCM provides companies with a boundary -
spanning channel focus where “All the steps of a
product’s movement, regardless of corporate,
political, or geographical boundaries, from raw
material supply through final delivery to ultimate
user to satisfy a particular customer group” are
planned and supervised.
- Cooper in CTSCM
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
What it means to today’s market leaders?• SCM provides innovative competitive strategies
that enable them to leverage the capabilities of coalitions of companies to reinvest whole industries and create new competitive space for supply channels.
• SC focuses on the actual business functions, cooperative relationships, and the daily management of logistics, demand management, and financial transactions upon which a particular application of SCM is founded.
- D. F. Ross -
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
Can you please help find my parent!!! a 2 years old boy found and taken from Khao Lak Resort (from Tsunami)
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
Supply Chain Evolution….. From 1960’ of PDM
‘70’s ‘80’s ‘90’s
Warehousing Physical Distribution
倉庫及貨物之銷售
Logistics & Planning
物流計劃
Supply Chain & Change
供應之改變
Storage & Transport
Cost Focussed
Not Integrated
Product Movement
Cost Focussed
Customer Emerges
Material Planning
Technology Enabled
Business is tougher
A Passion for Service
Process Orientation
Strategic Collaboration
‘00’s
Global Supply Chain, CRM, VRM & ERM
全球供應鏈管理
Customer Focussed
SCM with SCM
CRM + ERM to win
BARCODE/EDI/XML/RFID
RELATIONSHIP
產品銷售管理到供應鏈的運作
獨立運作 整合運作
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
10X Cycle Time
1960’s 1970’s 1980’s 1990’s 2000’s
Product
Price
Quality
Quality, Speed & Service
Information, People, Technology &Integration, The GSCM
Semiconductors Industry Drivers Change Over Time
Six Sigma
PerformanceExcellence and GSCM
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
世界已經改變However, World has changed…
• It’s no longer the big beats the small,
• the new business game is that the fast eats the slow
企業不論大小 , 速度取勝
客户滿意為先
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
Global Supply Chain ManagementStock or Goods Flow
Information Flow• Enterprise
Resources Planning
• Warehouse Management
• e-Procurement• Market Research• Cash Management• Sourcing
• Enterprise Resources Planning
• Warehouse Management
• e-Procurement• Market Research• Logistics
Management
• Sales & Distribution Management
• Customer Relation Management
• Warehouse Management
• e-Procurement• Market Research• Transport
Management
• Sales & Distribution Management
• Customer Relation Management
• Category & Space Management
• EPOS scanning• Warehouse Management• e-Procurement• Market Research• Reverse Logistics
Material Supplier
Manufacturer Distributor Retailer ConsumerPKKI
HKU
Funds FlowHuman Resource or People Flow
Supported by e-Commerce and Services…
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
Survey: clear movement to process management
Source: PWC Survey 1998
0%
20%
40%
60%
80%
100%
1992 1998 2002Functional Management
Process Management
% of responses
achieving a management
style
不斷从“纵向一体化”向“横向一体化”转化
纵向
横向
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
Benefits from Global Supply Chain Management
一流的企业通过供应链管理获得了竞争优势,供应链管理总成本比一般企业少5%-6%(占销售收入的)
供应链管理总成本
销售收入%
98年最好的企业98年平均值
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
The 12 imperatives for outstanding supply chain performance
Managing at the pace of change
12 th imperative: agility and the ability to respond to change
How do we future proof and build agility into, our supply chain operations in
response to the pace of external change and ever increasing pressures from
shareholders and competitors?
The key enablers7 th imperative: business structure and organisation
8 th imperative: process and performance measures
9 th imperative: people and behaviours
10 th imperative: high performance partnerships
11 th imperative: leveraging information and technology
How do we align the who enterprise –people, processes, operations, technology, suppliers, and other business partners –
around a programme of progressive strategic change?
The strategic imperativesAdding value to the customer1 st imperative: the customer value driven supply chain
2 th imperative: differentiation through the product offeringSearching for structural advantage3 th imperative: global operations restructuring
4 th imperative: strategic sourcing and co-venturing partnershipsBusiness integration and performance drivers5 th imperative: integrating/synchronizing the supply chain network
6 th imperative: operations beyond the productivity edge
How do we deliver distinctive value and differentiated service to local customers,
while at the same time exploiting opportunities from a globalised view of
supply chain?
Source: PWC
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
Three Kinds of Companies Need To Change
In The Concept of MH’s Reengineering
1. Companies in deep trouble. They have no choice.
2. Companies not yet in trouble but have the foresight
to see trouble coming.
3. Companies that are in peak condition. No
discernable difficulties. Seek to raise the
competitive bar even higher.How about
your company??
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
“ I am convinced that if the rate of change inside the institution is less than the rate outside,
the end is in sight “ J. Welch
Supply Channel management is a change management Supply Channel management is a change management where you have to partner with more people to earn an where you have to partner with more people to earn an effective change. Procurement Leader can and should effective change. Procurement Leader can and should play a critical role for the total success of any play a critical role for the total success of any organization. organization. S. Ng S. Ng
For example:
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
The Challenge to Corporations and You as GSCM & Procurement Professionals (PP) is to …
Trigger
…Redefine andReposition
Adopt BestPractices
DoNothing
Prosper
Survive
Fail
Advantage
Decay
Parity
RIP
….. There comes a time in the history of every company where they have to change dramatically to move to the next level of performance. Miss that moment ….. and they begin to decline.
A. Consulting
SIX SIGMA
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
Bob Galvin’s Message
“People have an ability to do things that appear almost impossible - but only if they set the very highest of expectations.
These expectations may seem a little above one’s abilities, but if one reaches out to those expectations, one can very often discover how much more can be accomplished.”.
主席的座右銘
最高可以達到的目標
突破自己
The bel
ief
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
The GSCM Worldwide is to manage…
• Business Process Integration
•JIT/JIC•QR•Integrated Logistics Management•SCM•ECR•CRP / ERP•DC & RDC•Warehouse Automation•Outsourcing - 3LP•Cross Docking•VMI•CPFR•Electronic Commerce•SC Benchmarking•4th Party Logistics Provider
Emerging SCM Trends
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
More radical approach• Thinking “out-of-the-box”
• Pushing Management to think:– cross functional, – boundary spanning,– integrated supply chain, – toward virtual supply
chain– cultural issues– technology i.e. FFID
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
Business Process Model With JIT Concepts Reengineering takes a process approach in contrast to the functional way most companies approach their business and organization structure.
Functions drive the business
Functional
Underlying business processes are
acknowledged but functions still dominate
Matrixed
Process drive for JIT and reengineering
Process / JIT Focused
FINANCE
MANUFACTURING
MARKETING
PRODUCTION
ORDER FULFILLMENT
PRODUCTDEVELOPMENT
FINANCE
MANUFACTURING
MARKETING
Modified from A Consulting
HOW?
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
Commitment
Interdependent
Interactive/Aligned
Investment
Transactional
Understanding
Hostile
Connection/Culture
Synergistic
Integrate
Collaborate
Synchronized
The Journey to Synchronization
From A Consulting & QuST…
Silo
Communication
Stream
The GSCM evolution
The effect of * Globalization,* e- Commerce, & * The new economy
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
Supply Chain to e-Hub
“Parts
focused”SupplierSupplier DistributorDistributorTHE THE
COMPANYCOMPANYCustomerCustomer ConsumerConsumerSupplierSupplier’’ss
SupplierSupplier
Information Flow
Product FlowFrom
Customer support
Manufacturer (oem)
Distributor / reseller
Supplier Logistics
Advanced Supply Chain ManagementCharles Poirier
to
“Information
focused”
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
Strategic Outsourcing PartnershipStrategic Outsourcing Partnership
Insourcing:
Strategic Direction
Transportation Management
Business Processes
Distribution Operations
Traditional Outsourcing:
Distribution Operations
Strategic Direction
Transportation Management
Business Processes
Distribution Operations
Strategic Partner Outsourcing:外判戰畧伙伴
4PL Business Processes
TransportationManagement
Financial Services
Strategic Direction
(In Supply Chain Management Concept)
內判及整合
外判及整合
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
Time to Significant Benefit
Resource Investment
1/2 Year
Partners
Alliance
Collaboration
Benefit & Cost/Effort
Alliances
Relationship is "easy".
The usual “drivers” are• Technology• Market Positioning• Scale Leverage To...
• Lock-out competition• Align with world-class name• Generate growth/awareness
Collaborators
More or larger problems require high cost and resource investment. The return must be significant to justify this decision:
‘Drivers’ can be :
• Cost• Quality• Competitive Necessity • Logistics• Technology• Productivity
Partners
The high return and/or criticality of a relationship justifies the ongoing resource and cost investment.
‘Drivers’ can be:
• Cost• Technology• Ensure availability of scarce raw material, technology or process
Limited Some Considerable
1 Year
1+ YearsHIGH
LOW
Possible Relationship Spectrum
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
The GSCM Transformational LeadersConsider……
* Incremental change (i.e. TQM) isn’t enough for many companies today. They don’t need to change what is; they need to create what isn’t.
Some people see things as they are and ask why, transformational leaders see things as
they never were and ask why not……
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
SIX MUSTS FOR GLOBAL SUPPLY CHAIN LEADERSHIP
6. We must treat I.T. as an enabling tool to offer Speed & Quality.
1. There must be a strong commitment and involvement towards total supply channel development.
2. There must be strong belief in integration & linkage.
3. There must be high expectations in total services.
4. There must be trust & respect between partners.
5. There must be good communication.
HKSTPC - Leadership Challenge – Jan 5, 2005 @ QuST DR STEPHEN W.K. NG, IPSHK
The Power behind GSCM is the Leadership of Managing ….
• New economy• E-everything• Outsourcing• Value Chain• Globalization• People• Integration
For Customers
By focusing on Agility,
Adaptability and Alignment