current state of global logistics and trends · pdf filecurrent state of global logistics and...

CURRENT STATE OF GLOBAL

LOGISTICS AND TRENDS IN

SUPPLY CHAIN MANAGEMENT

Chuck Connelly CFPIM, CSCP, and CPA

General Manager – Excellence in Supply Chain Management

VP of Education – APICS Houston Chapter

APICS Master Instructor

Chuck.Connelly@gmail.com

713-256-7500

Sept 2011

The global network used to deliver products and

services from raw materials to end customers

through an engineered flow of information,

physical distribution, and cash

Supply Chain Definition

Source: APICS Dictionary – 11th

Edition

Charles Connelly CFPIM, CSCP, and CPA

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Sept 2011

Supply Chain Objectives

Customer Satisfaction

Asset

Management

Profit

Charles Connelly CFPIM, CSCP, and CPA

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• Quality

• Cost

• Availability

• Flexibility

• Speed

Sept 2011

Basic Supply Chain

Tier 2 Suppliers

Tier 1 Suppliers

Mfg Customers Consumers

Supplier’s

Suppliers

Suppliers Retailers &

Wholesalers

Objectives: • Quality

• Cost

• Availability

• Flexibility

• Speed

Customer Satisfaction

Asset Mgmt Profit

Manufacturer Individual

Charles Connelly CFPIM, CSCP, and CPA

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Sept 2011

Opportunities and Threats

Terrorist Attacks Weather

Health Epidemics

Currency

Commodity

Pricing Credit Crunch

Charles Connelly CFPIM, CSCP, and CPA

5

Sept 2011

There is no order in the world around us, we

must adapt ourselves to the requirements

of chaos instead.

Kurt Vonnegut, Breakfast of Champions

Today’s World

Charles Connelly CFPIM, CSCP, and CPA

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Sept 2011

Trends & Solutions

Variety

Variability

Time

Distance/Globalization

Collaboration

Sustainability

Talent Management

Voice of the Customer

Lead Time Reduction

S&OP

Integration

Trends Solutions

Charles Connelly CFPIM, CSCP, and CPA

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Sept 2011

Solutions – Talent Management

24 X 7 X 365

Sept 2011 Charles Connelly CFPIM, CSCP, and CPA

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Solutions – Talent Management

Acquisition

Development

Retention

Reduction

Charles Connelly CFPIM, CSCP, and CPA

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Sept 2011

Solution – Voice of the Customer

Sept 2011 Charles Connelly CFPIM, CSCP, and CPA

10

How do you know what your customers wants:

Today?

Tomorrow?

Value versus Cost

Foundation of:

CRM / SRM

Lean

Six Sigma

TQM

Solution – Lead Time Reduction

Sept 2011 Charles Connelly CFPIM, CSCP, and CPA

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All lead time

Order fulfillment

Manufacturing lead time

Supplier delivery

Administrative processes can be the worst

Drives all kinds of good behaviors

Customer focus

Elimination of waste

Cost reduction

Sales and Operations Plan (S&OP, S&OIP)

Decision making process - Monthly

Integrated plan

Operational and Financial

Demand and Supply

NOT a place to “agree to disagree”

NOT Slides R Us

Benefits of an Effective S&OP

Teamwork

Meet and exceed business goals and objectives

Seize opportunities and respond to threats

Vertical and Horizontal organization alignment

Solution – S&OP

Charles Connelly CFPIM, CSCP, and CPA Sept 2011

12

Sales Plan Production

Plan

Inventory or Backlog Plan

Financial Plan

Solution - S&OP

by Family and in Total

Customer

Satisfaction

Asset

Management Profit

Charles Connelly CFPIM, CSCP, and CPA Sept 2011

13

Solution – Integration

Sept 2011 Charles Connelly CFPIM, CSCP, and CPA

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Really implement your ERP system

Clean, accurate data

Train your people

BPM

Event management

Linking Strategic Partners

ERP to ERP

Zero Latency

Visibility

Transparency

THANK YOU FOR YOUR TIME

Sept 2011

Chuck Connelly CFPIM, CSCP, and CPA

General Manager – Excellence in Supply Chain Management

VP of Education – APICS Houston Chapter

APICS Master Instructor

Chuck.Connelly@gmail.com

713-256-7500