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SUPPLIER NETWORK MEETING 24 th October 2012. WHAT IS A SUPPLY CHAIN? The network created amongst different companies producing, handling and/or distributing.

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Presentation on theme: "SUPPLIER NETWORK MEETING 24 th October 2012. WHAT IS A SUPPLY CHAIN? The network created amongst different companies producing, handling and/or distributing."— Presentation transcript:

1 SUPPLIER NETWORK MEETING 24 th October 2012

2 WHAT IS A SUPPLY CHAIN? The network created amongst different companies producing, handling and/or distributing a specific product. Specifically, the supply chain encompasses the steps it takes to get a product/system or service from the supplier to the customer.

3 ADVANCED MANUFACTURING Advanced manufacturing describes business which use a high level of design or scientific skills to produce technologically complex products and processes. It has accounted for a fifth of economic growth, in the two years since the recession ended. Typically companies working in this area, are more export intensive than those in other sectors, with nearly 50% looking for growth in emerging markets. Almost 45% are focusing on new product development for new markets and customers. UK advanced manufacturing supply chains include aerospace, automotive and chemicals, but the UK is well placed to take a global lead in the growth areas such as energy renewables and other low carbon sectors. Two thirds of advanced manufacturers are either involved with or plan to be involved with low carbon technologies. The global transition to low and ultra-low carbon technologies and fuels provides the UK supply chain with new opportunities

4 SME REQUIREMENTS For an SME to enter and remain competitive within a recognised Supply Chain, as a minimum they need to demonstrate the following key attributes within their organisation: –Strong and committed leadership, and vision within the business –Fully understanding the needs and expectations of their customers, in order to create value. –Nurturing Creativity and Innovation (Products & Processes) –Structured and strategically aligned Processes. –Robust Performance Management System –Train and empower their people to deliver the requirements –Build strong partnerships and challenge their customers/suppliers requirements/thinking. –Accredited Quality Management System –Continuous Improvement Culture –Talk your customer’s language, and be quick to spot opportunities –Excel at what you do and build your customers capability

5 AUTOMOTIVE THE OPPORTUNITIES (Automotive Council) £3bn pa of opportunities for UK automotive suppliers, and overseas companies wanting to invest in new facilities in the UK. 7 Major Car producers and a host of other vehicle manufacturers. The government survey identifies key components that vehicle manufacturers are looking to source in the UK to support new and existing model programmes. LOCAL HEADLINES £420 million confirmed investment in Sunderland for the production of the Nissan Leaf from 2013 and for a new stand-alone facility to produce lithium-ion batteries for Renault and Nissan vehicles. A £192 million investment to design, engineer and build the new Qashqai; safeguarding 6,000 jobs, and 43% UK sourced parts. In December 2011, Nifco UK took ownership of a new £8.5 million state of the art factory based in Eaglescliffe, and MAS is currently working with TVU (Local Enterprise Partnership) to better understand the supply chain opportunities within the Tees Valley for SME’s who with further support may have the capability to diversify into or to expand their current activities.

6 AEROSPACE THE OPPORTUNITIES (BIS) The UK has world’s largest aerospace industry outside the USA with 17% share of global market, and in 2011 revenue totalled £24.2bn, representing a 4.7% increase over the previous year, which was mainly in civil projects. Directly employs around 101,000 people, supporting a total of 230,000 jobs across the UK economy. Highly-skilled workforce: 36% of all employees have University degree or equivalent. LOCAL HEADLINES MAS is already engaging with a number of local SME manufacturers in support of SC21, including Analox, Thermacore and Merlin Flexability, and is about to embark upon a number of other similar projects both in the North East, but also in North West and Cumbria.

7 RAIL THE OPPORTUNITIES (Department of Transport) Over the next four years, the government will provide £14 billion of funding to Network Rail to support capital maintenance and infrastructure investment; and £750 million for high speed rail. They will also fund the Crossrail project, the Tube upgrade programme, light rail projects in Birmingham, Tyneside, Nottingham and Sheffield; and provide additional funding to franchisees for extra rolling stock. LOCAL HEADLINES Hitachi will create more than 900 jobs and thousands more within the supply chain after securing a £4.5bn contract to supply Britain with the next generation of intercity trains. Commencing in Nov 2013, through to June 2015, register at eu.com Construction at the Newton Aycliffe site is expected to begin in 2013 and will be fully operational by The first IEP trains will enter revenue-earning service on the Great Western Main Line in 2017 and on the East Coast Main Line by 2018.

8 NUCLEAR THE OPPORTUNITIES (Source: NIA) The UK needs 60GW of new electricity generating capacity and associated infrastructure by 2025.[1] The Government has estimated that £110 billion of investment in generation infrastructure is needed over the next 10 years. Nuclear accounts for 16.5% of UK Electricity Supply and 9 of 10 plants are scheduled to close over the next 15 years. Main opportunities exist within the clean up of sites, however tendering for groundworks/civils at Hinckley Point C is at the pre-qualification stage. LOCAL HEADLINES Darchem Engineering has won a multi-million-pound contract - its first in the nuclear sector for two decades - creating 20 new jobs within a new £8Million new factory. Nuclear Institute NE branch, is a local charitable organisation who are very knowledgeable in this sector and who also run bi-monthly events for members (www.nuclearinst.com)

9 OTHER SUPPLY CHAINS There are other supply chains which have significant presence in the North East, for example: Oil & Gas Food Renewables Service

10 SUPPLY CHAIN INTERACTIVE SESSION What are the current challenges facing those who are currently engaged with a Supply Chain and those who are seeking to become part of one? –Brainstorming Session –Individually rate Top 5 Issues. –Select the Top 5 from the Session and discuss what support, advice, resource etc. manufacturers would need from the Business Support Network to address and tackle these to deliver practical solutions and tangible benefits to the business.

11 SOURCING FROM LOW COST ECONOMIES?

12 SUPPORT / APPROACHES TO ADDRESSING? IDENTIFY SUPPLIERS & CUSTOMERS BEST PRACTICE EVENTS DEVELOP NEW PRODUCTS & MARKETS GRANT FUNDING QCD IMPROVEMENT CERTIFICATION & ACCREDITATION DEVELOP A CLEAR BUSINESS STRATEGY TRAINING & SKILLS NEEDS PROCESS IMPROVEMENT RELATIONSHIP MANAGEMENT

13 SUMMARY Summary of Key points Questions & Answers


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