1. Page 1 CM International VERITE Kick Off Meeting Specifications for Main Activities Supply Chain Management Workshop VERITE Kick Off Meeting, 29 November 2001 Sophie Mavor CM International

2. Page 2 CM International VERITE Kick Off Meeting Supply Chains and Clusters… a perspective on development processes…

3. Page 3 CM International VERITE Kick Off Meeting Clusters ? Supply chain ? Networks ? Trade Associations Sector networks Cluster Partnership Joint marketing Inter-relationships Number of companies Supply chains

4. Page 4 CM International VERITE Kick Off Meeting Characteristics of Supply Chains  Structured  Self-defining  Operate “globally” more than locally  Focused on commercial achievements  Led by the customer dynamics  Contain competitive firms

5. Page 5 CM International VERITE Kick Off Meeting Understanding Supply Chains: Resource Flows Supply Tier 2 Supply Tier 1End Customer Information & product developmentComponents and services

6. Page 6 CM International VERITE Kick Off Meeting Supply Chain Development  Joined up solutions  Partnership with other players  Planning-based approach  Targeted and prioritised  Real added value  Value for money service  Starts learning processes  Companies learn best from each other  It works! Benefits

7. Page 7 CM International VERITE Kick Off Meeting Key Supply Chain Problems Generally…  Shared common problems- No agreement what they are  Mistrust between companies  Misunderstanding between sector & public sector  “But we have special problems”- Can you express them?  Lack of leadership- Who goes first? Who can we talk to?  Where does my cluster end?- Merging technologies  Who else does my industry rely on?(That I don’t know about)

8. Page 8 CM International VERITE Kick Off Meeting Approach to Supply Chains  Method to understand industry supply chain  Identify sector needs and map available support  Plan the way forward, building partnership, trust and delivering benefits

9. Page 9 CM International VERITE Kick Off Meeting Company Analysis  Analyse total production process and associated activities  Outline interactions with other companies and organisations Desig n Raw Materials ManufactureFinishingDispatch EducationProduction Services Business SupportInfrastructure Company A Environment of Firm External Inputs

10. Page 10 CM International VERITE Kick Off Meeting Identifying Supply Chain Needs External environment Production capabilities Visibility in the market place Level of Technology Management Internal Organisation

11. Page 11 CM International VERITE Kick Off Meeting Planning the Way Forward Business Needs  People  Technology  Market  Infrastructur e Public Sector – Support and Infrastructure Articulate needs 3-5 year Plan ImplementationImplementation

12. Page 12 CM International VERITE Kick Off Meeting Using Supply Chains: Source Wales Model Customer OEM SME Info. on specs and a supply opportunity Collaboration to supply Meets spec. & supplies direct Supply development intervention

13. Page 13 CM International VERITE Kick Off Meeting Using Supply Chains: Key Tasks  Identify target sectors, supply chains and OEMs  Identify capability gaps – generic and specific  Obtain supply chain commitment  Roll-out supply chain champions and support programme Obtain OEM co-operation Understand OEM specifications and requirements Analyse and map the supply chain Install supply chain champions Structure learning packages for company & management development Provide sourcing opportunities

14. Page 14 CM International VERITE Kick Off Meeting Creative Content Residential EducationGovernment Business End Users Interfacing Creating Aggregating Hosting Connecting Computer animation Software Programmers Artists Content hosting Transaction Services Community builders Publishers Advertising Referencers Digital TVs Personal computers Telephones CD-ROMs Authors Merchants Video IP Transport Long haul Local access Core Industry Activities Professional Services Networking Technologies Hosting Technologies Device and User Interface Technologies Authoring and Content Management Technologies Enabling Technologies and Services Environmental Enablers Financial capital Standards organisations Security and Payment Infrastructure Logistics Legal/Regulatory

15. Page 15 CM International VERITE Kick Off Meeting Electronic Sector: Vertical Integration Original Equipment Manufacturer Manufactured Product R&D Manufactured Product Manufactured Product Technology or Product Acquisition Manufactured Product Company BCompany A + = Demands = Possible areas for intervention

16. Page 16 CM International VERITE Kick Off Meeting Electronics Sector: Horizontal Model Branded Equipment & System Company Product Development Design Manufacture Logistics Final Consumers Specifications Demand = Possible areas for intervention

17. Page 17 CM International VERITE Kick Off Meeting Good Practice Examples  Speaker from the Lean Enterprise Research Centre Professor Peter Hines or Professor Dan Jones  Source Wales Industrial speaker, project manager speaker  Södermanlands Län – automotive supply chain & other clusters Hans Rainer  “Autochain” Transregional Innovation Project Example of transnational supply chain project