Quayle Pres

8/8/2019 Quayle Pres

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Current Priorities for Supply

Chain Development.

Current Priorities for Supply

Chain Development.

Professor Michael Quayle Robert Bosch Chair in Purchasing & Supply

Chain Management

and Director of the University of Glamorgan

Business School


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My objectives todayMy objectives today

Need for a Welsh supply chain

Research outcomes

Public & private sector actions


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Supply Chain StrategiesSupply Chain Strategies

Product/Service

Organisations

Country

Sourcing

Strategies

Logistics

Strategies

Total Cost

of Ownership


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Sourcing Entry Strategy

Supplier

Relationship

Strategy

Sourcing

Decision

Strategy

International

Analysis

Withdrawal Strategy


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Drive for competitivenessDrive for competitiveness

Instability

Globalisation

Product/service improvement

Cost reduction Risk exposure


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Global Supply ChainsGlobal Supply Chains

Uncertainty exists at every echelon

Inherently complex

Information flows are vital

Building supplier relationships are vital Organisational systems to deal are crucial


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CRITICAL FACTORSCRITICAL FACTORS

Strategic approach needed

Resource demands

Specification driven

Power relationships Logistics & Supply Chain Management


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The Business SqueezeThe Business Squeeze economic disincentives - the customer supply

chain cost reduction motive

desire to become e-active

technology difficulties

real training/skills needed


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CultureCulture

LeadershipLeadership

MotivationMotivation

InfrastructureInfrastructure

TechnologyTechnology

PlanetPlanet

PublicPublic

SectorSector

CONTINGENTCONTINGENT

VARIABLESVARIABLES

GlobalisationGlobalisation

IndustryIndustry

SizeSize

CompetitionCompetition

CustomersCustomers

SCENARIOSCENARIO

PLANNINGPLANNING

Supply ChainSupply Chain

StrategiesStrategies

Supply ChainSupply Chain

IntegrationIntegration

MechanismsMechanisms

FACTORS AFFECTING SUPPLY CHAIN STRATEGYFACTORS AFFECTING SUPPLY CHAIN STRATEGY


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Survey ScopeSurvey ScopeSector Percentage No. of CompaniesManufacturing 32 154

High Tech 22 106

Electrical & Engineering 18 87

Packaging & Distribution 10 49

Finance associated 7 34

Service/Utility 6 28

Construction 3 14

Agriculture 1 8

Co


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RESPONSE RATERESPONSE RATE

Circa 60% response rate

288 companies

Statistically significant (the norm 22%)

Remarkable response rate particularly fromSMEs


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Importance of Issues - HighImportance of Issues - High

Leadership 4.5

Strategy 4.4

Team Working 4.3

Waste Reduction 4.1

Procurement 4.0

All r O t f i


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Importance of Issues - MediumImportance of Issues - Medium Supply chain management 3.5

Time to Market 3.5

MRP 3.5

Financial management 3.5

Supplier development 3.5

R & D 3.5

JIT 3.5


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Importance of Issues - LowImportance of Issues - Low E-Commerce 2.5

New technology 2.5

Customer management 2.5

Kaizan 2.5

Benchmarking 2.5 IIP 2.5


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Those with the lowest riorit re thi s to o with

INNOVATION!!


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SMEs Perceived Priorities of their Customers

Requirements

SMEs Perceived Priorities of their Customers

RequirementsHigh

Quality

Pricing Product Reliability

Service Reliability

Capability to Support

Low

Time to Market

E- Commerce R&D

Purchasing Expertise

Value Analysis Value Engineering


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Long Term SuccessLong Term Success

The BFO

Depends on successful suppliers

Depends on customer satisfaction The ENTIRE supply chain must be successful.


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Capturing ValueCapturing ValueCapturing ValueCapturing Value

A supply chain approach to developing nationalA supply chain approach to developing national

export development strategiesexport development strategies


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STRATEGYSTRATEGY

Its the creation of a unique and value position

involving a different set of activities


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DISTINCTIVE VALUE CHAINDISTINCTIVE VALUE CHAIN

Strategic Positioning


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THE VALUE PROPOSITIONTHE VALUE PROPOSITION Needs to be different from the competition to

create competitive advantage.

If the value proposition is not different, you are

probably simply in the business of doing things

better ie. operationally effective and do NOThave a strategy


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The value proposition for Wales.The value proposition for Wales.

Trade strategy-makers are preoccupied with export

promotion and market access

Economic development depends on export delivery

performance, fulfilment and supply chain capabilities

How to convince strategy-makers to pay equalattention to border-in and border-out supply chain

support.

Find a mechanism for devising appropriate policies

The Issue :


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Total 3,002 million

Welsh Public Sector Procurement Expenditure

LocalGovernment

1,321m

HigherEducation207m

FurtherEducation78m

NationalAssembly Wales

262 m

Assembly

SponsoredPublic Bodies

293m

Health Service841 m

(Drugs: 322mOther: 519m)


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ITC

What can government and business leaders do?

Employ a value-chain approach to trade sector trade strategy

development

Support the removal of technical obstacles and alignment of activities for

efficient export operations

Motivate business owners to value professionals and raise skills to

international working standards

Support independent professional knowledge and skills development

institutions

Encourage sharing of information about target markets consumer

standards,working, financing and legal practices


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InformationHuman

Resources

Networks

and

Relation-

ships

Management:

Planning

Executing

Monitoring

Enterprise

Demand forecasts

Customer delivery

requirements Inputs supply markets

Supply chain services

Securing & developing

SCM expertise

Supplier developmentprograms

Strategic supply chain

alliances

Improved

information helpsenterprises to plan

ahead and be more

competitive

Financial

and

PhysicalAssets

Planning & acquisition of

physical assets

Cash flow impact and financialrisks in the supply chain


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Strategy makers should focus on delivery

performance and the supply chain structure inequal measures to market access and export

promotion


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A BFOA BFO Purchasers will need help to source locally

SMEs will need help to break into supply chains

Purchasers & SMEs need to bury their

prejudices

The various agencies in Wales must work

together & be coherent in their approach


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Supply Chain ManagementSupply Chain Management

Its about people, expertise and performance

Not just about process.


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And Finally ..And Finally ..There is eed to recognise the realit of relationshi s

withinsuppl chain anagement-itsa RI K anda

R Vharing Relationship.

Quayle Pres

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