adaptive scm
DESCRIPTION
TRANSCRIPT
DAY:
SESSION:
PRESENTER:
Redefining relationships in the supply chain
Wednesday
1
Dr Chris Manning
Where are we now?
ObjectivesBy the end of this session you will be able to:1. Where are we now - Compare best-of-class SCM relationship
development with your current operations to evaluate your current state.
2. Where do we want to go - Evaluate the strategic implications of future business models and how these are/will drive strategy in your SC operations.
3. What are our changing requirements - Evaluate the potential for developing a knowledge-based view of SCM to grow new competencies and mitigate risks in a rapidly changing global business environment.
Changing requirements = changing relationshipsRelationships between supply chain parties describe what is valued in the supply chain:
What SC relationships are best-in-class firms developing currently?
– How do these examples fit with your current SCM strategy and operations?
Best-in-class TrendsHarris et al. (2009) reports best-in-class
manufacturing SCM:• Focus on partnerships rather than contracts.
– To leverage economies of scale– To create new efficiencies & cost reductions– To manage complexity and focus on core business
through outsourcing relationships– To improve reliability and long-term performance
AssumedControl of
Global Sourcing & Procurement
Hidden purchaseof strategic
components directly from lower supplier manufacturers
Resells components
up the supply chain
LeverageGlobal
Buying Powerto
Reduce Costs
Reduces risk of lower order
suppliers feeling
pressured to reduce prices
Ensures distributionbased on
need
Mitigates risk to Quality
Mitigates risk fromsupplier cost
blow-outsand fluctuations
Increases SCtransparency
Ensures supplyof critical
components
Opportunity tomonitor quality& performance
Reduces suppliercosts & risks
Keeps sensitiveInformation within
The company
Reliability and long-term performance
• Solely cost-oriented competitive approaches have given way to long-term, value-driven relationships between parties.
SuppliersOpen collaboration:
Expertise & Knowledge Sharing
Improved long-termrelationships built on
trust
Shared supplychain risk
Shared responseto cost reduction
from larger cost base
ImprovedTime-to-market
Activity 1Consider HP and Bombardier Case Studies:1. Why have these companies developed
different approaches to supplier relationships?2. Give one fundamental assumption required for
success in both case studies.3. Is your business moving towards partnerships
over cost-based competitive management? Why/Why not? Share your insights.
DAY:
SESSION:
PRESENTER:
Innovation leadership in the supply chain
where are we going?
Wednesday
2
Dr Chris Manning
Industry Leadership through relentless InnovationRelentless capability to innovate is the engine of
future competitiveness: What is the basis for new competitiveness
driving collaborative networks in the supply chain?
– How will these trends impact your SCM vision and strategy?
Basis for new competitivenessPrahalad and Krishnan (2008) argue:• N=1 Customers will demand unique
personalised experiences over products or solutions.
• R = G satisfying customer demands will be resourced from a global talent pool.
N = 1 Focus on the centrality of the individual• Value based on unique, personalised
experiences
• One customer experience at a time - even if you have a 100 million customers.
R = G Focus on access to, not ownership of resources • No firm is big enough in scope and size to
satisfy experiences of one customer at a time.
• Firms will access resources from a “global ecosystem” of multiple, globally positioned, small & large suppliers.
Evidence of change
ABB enters strategic partnering agreements in
China for manufacturing and IT to focus on “ABB’s real
art.”
Phillips is teaming up with academics, industry peers
and suppliers to create momentum for future
directions.
EADS is looking for innovation and people who think differently – student competitions to design
aircraft parts, materials and systems.
Bombardier had developed a industry-leading logistics,
technical, maintenance, and field support network for its
Learjet.
TomTom collects customer innovations and feeds them
directly into the design process.
OAIC Conference 2009• Office of Australian Industry Capability• Joint venture – DMO and Boeing US• Introduce “Best of Australia’s SME Defence Industry” to Boeing’s
supply chain• 4 day conference – St Louis (Defence) and Seattle (Civil) aviation
supply chains• Meeting with Boeing supplier management and key suppliers to
develop relationships and foster new opportunities• Tour of 787, 777, 747, 737 lean production lines – Everett and
Renton
Delegates at Everett 777 assembly line
Examples of change
The basis for relationship
Expertise
CollaborativeMedia
Business Analytics
Data and Information Infrastructure
Knowledge Management
Connectivity
Open Innovation
Collaboration
Collective Intelligence
Knowledge Discovery
Data and informationManagement
LEARNING ACTION
Sense-making
EXPERIENCEIndividual
© Knowledge-n-Abler 2009
Open innovation networks
CustomerNetworks
ProfessionalNetworks
BusinessNetworks
PracticeNetworks
Process Networks© Knowledge-n-Abler 2009
Activity 2Consider N = 1 and R = G• What is SCM’s roll in this scenario? • How relevant do you feel these drivers are to your future
business?• How consistent is your strategic vision with these
emergent business drivers? Why / why not?• What personal leadership competencies would be
important in developing your SCM staff to meet these new challenges?
DAY:
SESSION:
PRESENTER:
Adaptive SCM: A learning environment for SCM
Wednesday
3
Dr Chris Manning
Change requirements
Linking intent with knowledge & expertise• N = 1 and R = G intent is fuelled by knowledge
and expertise.• Knowledge & expertise are unique corporate
assets that are the sole source of sustained advantage
• Adaptive-SCM supports knowledge-enabling processes, which are fundamental to SCM’s future success in an N=1, R=G world.
Adaptive SCM Learning Environment
Purpose, Strategy, Culture, Roles, Relationships & Regulations
On-demand task-focused information, knowledge, and expertise for decision-making
and action at the point-of-need
After-action assessmentinforms future learning
Track response& outcome
Mission/Learningobjectives
Store event
© Knowledge-n-Abler 2009
Adaptive-SCM Framework
© Knowledge-n-Abler 2009
BUSINESS CONTEXT
Ad
aptive-S
CM
G
OV
ER
NA
NC
E
DECISION SUPPORT SERVICES
SCM SITUATION
CONTENT SERVICES
TE
CH
NO
LO
GY
A
RC
HIT
EC
TU
RE
Adaptive-SCM
Adaptive-SCM Architecture
CASEREPOSITORY
MOBILEDEVICE
HANDLER
SCMKNOWLEDGEWAREHOUSE
&ANALYTICS
TRAININGCONTENT
GPSGIS
Google EarthLocalisedContent
Google RSSWikipedia NewsTwitter FlickrYoutube Avatar
FEEDS
LANGUAGETRANSLATION
TRANSACTIONSYSTEMS
PARTNERNETWORK
DATA &INFORMATION
Event sensitive channel-based message bus
Business Analytics
© Knowledge-n-Abler 2009
Wikis BlogsForums VoIP
Chat MessagingTags RSS
Podcast Videocast
SECURECOLLABORATIVE
MEDIAPARTNERNETWORK
COLLABORATIVEFEEDS
Data & Information Infrastructure
COLLABORATIVE MEDIA
COLLABORATIVEANALYTICS
Expertise
CollaborativeMedia
Business Analytics
Data and Information Infrastructure
Knowledge Management
Connectivity
Open Innovation
Collaboration
Collective Intelligence
Knowledge Discovery
Data and informationManagement
LEARNING ACTION
Sense-making
EXPERIENCEIndividual
Expertise
CollaborativeMedia
Business Analytics
Data and Information Infrastructure
Expertise
CollaborativeMedia
Business Analytics
Data and Information Infrastructure
Knowledge Management
Connectivity
Open Innovation
Collaboration
Collective Intelligence
Knowledge Discovery
Data and informationManagement
LEARNING ACTION
Sense-making
EXPERIENCEIndividual
Activity 3• The next two slides provide propositions that are
the underlying assumptions of Adaptive-SCM:– “An N=1 Supply Chain”– “An R=G Supply Chain”
• Are your SCM processes and systems suited to Adaption and Learning given these assumptions and the Adaptive-SCM model presented?
An N=1 Supply Chain• Knowledge-enabled systems focus on
providing individual experiences to LEARN and APPLY knowledge and expertise skilfully within a challenging and changing environment.
• Data, information, and knowledge feeds must be customised to the SC participant’s capability, objectives, and current operating context.
An R = G Supply Chain
• Acquiring and aligning resources successfully from a complex global environment requires a rich understanding of context
• Multiple data and information feeds describe the context.• Previous knowledge of similar contexts provides a
structure for analysis & interpretation• Expertise enables us to select and ADAPT these
interpretations to provide the BEST COURSE of ACTION• Leveraging collective intelligence and expertise via
ADAPTION is imperative to an R = G supply chain.