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Published byShona Day Modified over 7 years ago
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
My objectives today Need for a Welsh supply chain Research outcomes Public & private sector actions
Supply Chain Strategies Product/Service Organisations Country Sourcing Strategies Logistics Strategies Total Cost of Ownership
Sourcing Entry Strategy Supplier Relationship Strategy Sourcing Decision Strategy International Analysis Withdrawal Strategy
Drive for competitiveness Instability Globalisation Product/service improvement Cost reduction Risk exposure
Global Supply Chains Uncertainty exists at every echelon Inherently complex Information flows are vital Building supplier relationships are vital Organisational systems to deal are crucial
CRITICAL FACTORS Strategic approach needed Resource demands Specification driven Power relationships Logistics & Supply Chain Management
The Business Squeeze economic disincentives - the customer supply chain cost reduction motive desire to become “e”-active technology difficulties real training/skills needed
CultureLeadershipMotivationInfrastructureTechnology PlanetPublicSector CONTINGENTVARIABLES GlobalisationIndustrySizeCompetitionCustomers SCENARIOPLANNING Supply Chain Strategies IntegrationMechanisms FACTORS AFFECTING SUPPLY CHAIN STRATEGY
RESPONSE RATE Circa 60% response rate 288 companies Statistically significant (the norm 22%) Remarkable response rate particularly from SME’s
Importance of Issues - High Leadership4.5 Strategy 4.4 Team Working 4.3 Waste Reduction4.1 Procurement 4.0 All Marked Out of Five
Importance 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
Importance of Issues - Low E-Commerce 2.5 New technology 2.5 Customer management2.5 Kaizan 2.5 Benchmarking 2.5 IIP 2.5
Those with the lowest Priority are things to do with INNOVATION!!
SMEs Perceived Priorities of their Customer’s Requirements High Quality Pricing Product Reliability Service Reliability Capability to Support Low Time to Market E- Commerce R&D Purchasing Expertise Value Analysis Value Engineering
Long Term Success The BFO Depends on successful suppliers Depends on customer satisfaction The ENTIRE supply chain must be successful.
Capturing Value A supply chain approach to developing national export development strategies
STRATEGY It’s the creation of a unique and value position involving a different set of activities
DISTINCTIVE VALUE CHAIN Strategic Positioning
THE 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 NOT have a strategy
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 equal attention to border-in and border-out supply chain support. Find a mechanism for devising appropriate policies The Issue :
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
Information Human 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 development programs Strategic supply chain alliances Improved information helps enterprises to plan ahead and be more competitive Financial and Physical Assets Planning & acquisition of physical assets Cash flow impact and financial risks in the supply chain
Strategy makers should focus on delivery performance and the supply chain structure in equal measures to market access and export promotion
A BFO Purchasers will need help to source locally SME’s will need help to break into supply chains Purchasers & SME’s need to bury their prejudices The various agencies in Wales must work together & be coherent in their approach
Supply Chain Management It’s about people, expertise and performance Not just about process.
And Finally ……….. There is a need to recognise the reality of relationships within supply chain management-it’s a RISK and a REVENUE Sharing Relationship.
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