dinalog institute & campus · r&d : only open for consortia consisting of at least 1 sme...
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Dinalog Institute & CampusRealizing Supply Chain Control and CollaborationRealizing Supply Chain Control and Collaboration
CJan C. Fransoo
Professor of Operations Management & Logisticsp g gEindhoven University of Technology
Vice-President DinalogVice-President, Dinalog
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An example: A multibillion dollar chemical companyp yDozens of businesses, thousands of plannersplannersPlanners are operational decision makers in the supply chain such as:in the supply chain, such as:
Business Planners
Sales& Operations Planners
Customer Order planners
Production planners & schedulers
Transportation planners & dispatches
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Pre-1990s
Virtually all functions decentralizedVirtually all functions decentralizedBusiness planners at HQ of units, typically main manufacturing locationtypically main manufacturing locationBU HQ Dispersed manufacturing locations
Business Sales& Operations
Customer Order Production Transport Production Transport
dispatcherPlanners Operations Planners
Order planners planners planners schedulers dispatcher
s
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Situation 2000Centralization of function per region, per BUCentralization of function per region, per BU
Regional HQ
Centralized location per Regional BUDispersed
manufacturing location
BU HQBusiness Planners
Sales& Operations Planners
Customer Order
plannersProduction planners
Transport planners
Production schedulers
Transport dispatchers
location
Planners planners
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Situation 2000Centralization of function per region, per BUCentralization of function per region, per BU
Regional HQ
Centralized location per Regional BUDispersed
manufacturing location
BU HQBusiness Planners
Sales& Operations Planners
Customer Order
plannersProduction planners
Transport planners
Production schedulers
Transport dispatchers
location
Planners planners
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Situation nowCentralization of function per region, per BUCentralization of function per region, per BU
Abandoned most of the offshoring
Regional HQ
Centralized location per Regional BUDispersed manufact
uring location
BU HQBusiness Planners
Sales& Operations Planners
Customer Order
plannersProduction planners
Transport planners
Production schedulers
Transport dispatchers
location
Planners planners
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Centralized Supply Chain Planning
• Match supply and demand• Medium term
Controls S&OP process for region or world
• VMI• Order exception handling
Conducts customer-facing planning operations
Conducts factory facing • Transportation and/or productionConducts factory-facing scheduling
• Economies of scaleT t tili ti
Manages contracts for l i ti i • Transport utilizationlogistics services
• Horizontal collaboration• Vertical collaboration
Arranges collaboration with other companies
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Large corporations are increasingly centralizing their supply chain functionscentralizing their supply chain functions
Cost reduction
P f i tPerformance improvement
Attract Supply Chain Talent
Speed up innovation
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New ways of creating scaleNew ways of creating scale
Tomorrow
Individual Manufacturer Response to Fragmentation Pooling Response to Fragmentation
• Erosion of scale• Challenges in meeting unique customer
TodayTomorrow
Toda
• Challenges in meeting unique customer requirements
• Difficulty in meeting cost targets
Cross ChainCompany B
Company C
Company D
Company AS l Ch i
Today
Collaboration CenterCompany A
Supply Chain Rural Area’s
Supply Chain
Rural Area’s
4C• Maintain scale benefits when facing
various channels• Provides access to new channels
4C
• Maintains cost efficiencies when serving fragmented channels
Dinalog Ambition & Goals:
Facilitating industries to obtain benefits from centralization, collaboration, and innovation, ,
Our (historical) background …Geographical position of the Netherlands (gateway to Europe)
2 Excellent Mainports, Rotterdam and Schiphol
Excellent Hinterland Connections (roads, trains, barge, terminals, hubs, ..)
Excellent sector of Logistic Service Providers
Hi h l l f k l d l d hi i i i S iHigh level of knowledge, leadership position in Science
Legislation, legal aspects, financial aspects are OK
Current total of GDP in The Netherlands, related to logistics and
transport is approximately 42 billion (appr. 7.5 % of GDP);transport is approximately 42 billion (appr. 7.5 % of GDP);
Appr. 750,000 jobs in this sector!11
GOAL:European Market Leader in Logistic Controlp g
In 2020 the Netherlands has a position as European Market Leader controlling transnational flows of goods.The annual contribution of the “Control Part” of the Logistics and SupplyThe annual contribution of the Control Part of the Logistics and Supply Chain Sector to the gross national product will triple from 3 billion in 2007 (which is part of a total of 42 billion) to over 10 billion in 2020.By boosting development and innovation and wide implementation the y g p pwhole Dutch sector will profit.Dutch Network of Main Ports / Logistic Hub
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Dinalog Institute Dinalog CampusDinalog InstituteRuns € 62M innovationprogram
Dinalog CampusGreenfield to developoffice facilitiesp g
Develop knowledge, software and management insights to make 4C
Control Towers of largecorporations
4Cinsights to make 4C possible
> 100 companies
4Cs
Service providers (IT, consulting, development)
10 universities
Port of Rotterdam
g, p )
Based on Open Innovationprinciples
Amsterdam Airport Sharing of people, ideas and facilities
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Dinalog Institute
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Key figures Institute …. (draft)
Dinalog Institute:Dinalog Institute:
4 FTE, 4 year start up period4 FTE, 4 year start up period
€ 25.000.000,= innovation budget plus
€ 37 000 000 = co-funding€ 37.000.000,= co-funding
Need to multiply this to at least “n” times this amount (public private national international Europe )(public, private, national, international, Europe, ….)
Dinalog, themes and targets
Themes:4C (Cross Chain Control Centers)Main Ports Control functionService Logistics
P liProgram lines:Highly qualified Applied Research
I t t i H C it l ll l lInvestment in Human Capital on all levels
Knowledge dissemination and valorisation
Demonstration and experimental projects
Open innovation & wide implementationProjects:
R&D : only open for consortia consisting of at least 1 SME and 1 university or academic research instituteuniversity or academic research institute
Demonstration projects: free or depending on criteria external funding
Knowledge disseminationgCongresses, seminars, experience sharing, demonstrations,
Project valorization, incubators, executive courses, summer programs...
P t hi d l iti t kPartnerships and exploiting networks:Line organizations, SME Networks, all levels of the education system
Regional and international networks and platforms, stakeholders and g pgovernment
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1 t 2 d R&D C ll 2010 8 j t1st en 2nd R&D Call 2010: 8 projects4C
(Cross Chain Control Centers)SL
(Service Logistics)THC
(Transport Hubs in Control)( ) ( g ) ( p )
4C4More ProSeLo:Proactive Service Logistics for Advanced Capital Goods
Extended Single Window:Information gateway to Europe:New information and governance models in international trade & logistics
Cross-chain order fulfillment coordination for internet sales
ULTIMATE:Efficient Multimodal Hinterland Networks –new concepts for design and operations
Value creation by closing the loop
Da Vinc3i:Dutch Agricultural Virtualized International Network with Coordination, Consolidation, Collaboration and Information availabilityCollaboration and Information availability.
4C4D (4C for Distribution)
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1 t E i t l d l t C ll 20101st Experimental development Call 2010:4C
(Cross Chain Control Centers)SL
(Service Logistics)THC
(Transport Hubs in Control)( ) ( g ) (Transport Hubs in Control)
Logistics in building: Prefab building
Demonstration project Planning Servicesp j g
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R&D Call’s 2010: organizations in the network
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2nd R&D Call 2010: organizations in the network
t1st Demo Call 2010: organizations in the network
Dinalog governanceDinalog governanceSupervisory Board:
Karla Peijs Management:
Frank van der Duyn Schouten
2 vacaturesExecutive Board:
Will H Ch i
Wim Bens, Managing Director
Henk Zijm, Scientific DirectorStaff:
Secretary / office managementWillem Heeren, Chairman
Jan Fransoo, Vice Chairman
Enno Osinga
Wando Boevé
Secretary / office management
Project Management / Monitoring
Administration / Accountancy
Marketing / Communication / PR
Supervisory Board
Wando Boevé
Remco Overwater
Fokke van der VeerInternational Scientific Advisory
g
Reception / Hostess / Events
….Executive
Board
Committee (ISAC)Advisory Committee ExperimentalDevelopment (ACED)
Management
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Research ProgramCross Chain
Control Centers
Research ProgramMain Ports in
Control
Research ProgramService Logistics
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Supervisory Board ManagementSupervisory Board Management
Frank van der Karla Peijs, member Duyn Schouten, member supervisory board, supervisory board , Queen’s commissionarGeneral Director Netspar Zeeland
Executive Board
Wim Bens Henk ZijmManaging Director Scientific Director
Willem Heeren, Chairman
Jan Fransoo Vice Chairman Executive
Fokke van der Veer, Member Executive
Remco Overwater Member Executive
Enno Osinga, Member Executive
Wandoo Boevé Member Executive
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Executive board, Managing Director Jan de Rijk Logistics
board, Professor Eindhoven Technical University
board,Vice president Unilever Benelux
board, Managing Director Vanderlande Industries
board, Senior Vice President Cargo Amsterdam Schiphol Airport
board, Director Marketing & Sales ECT
Dinalog CampusDinalog Campus
Dinalog: National function based in Breda
Dinalog temporary office Dinalog Campus
Dinalog Campus
The place to be for innovations in logistics and supply chain managementsupply chain managementStart building as of January 2012First settlers: DHL, Jan de Rijk Logistics, 12return,, j g , ,Cass Europe, Chain Balance, Transsmart and many others….
?Where is your European control tower?.........
Ambition Dinalog Campus
Dinalog Campus:stimulates interaction between the academic world and privatestimulates interaction between the academic world and private industryattracts qualified European industry partners with their control towers and planning departmentstowers and planning departmentsattracts university innovators in research and educationprovides a hothouse for innovative companies, start-ups and new post education activitiespost education activities
‘The place where supply chains are innovated and from which several transnational supply chains are managed’several transnational supply chains are managed
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Key figures Campus
Breda: excellent geographic location13.2 hectares (33 acres)>>4,000 associates>>250,000 visitors every year 100,000 m2 (1M sq.ft.) office space and shared facilities:, ( q ) p
8,000 m² Dinalog Offices
5,000 m² Dinalog Incubator
5 000 m² Dinalog E perience5,000 m² Dinalog Experience
10,000 m² Dinalog Facilities
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Dinalog Campus premises
Central Campus construction starts in January 2012January 2012
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Campus = ECO-system
ECO-system:a community of complementary companies and institutesa community of complementary companies and institutesa knowledge intensive programshared facilities DINALOG
Innovation conceptp
DINALOGinitiatives
Dinalog CampusECO-system - open innovation
Dinalog Campus ResidentsSupply Chain Control TowersSupply Chain Control Towers
Dinalog InstituteStart-up companies
Service providers
Incubators
Academic
Service providers
Incubators
Academic
Service providers
Incubators
Academic
Incubators
AcademicStart up companiesResearch institutes Innovative companiesR&D oriented companies
Academicprofessionals
Research Institutes
Dinalog Institute
Academicprofessionals
Research Institutes
Dinalog Institute
Academicprofessionals
Research Institutes
Dinalog Institute
Academicprofessionals
Research Institutes
Dinalog Institute
R&D oriented companiesAcademic professionals A dynamic mix of service providers
Innovative companies
OPEN INNOVATIONInnovative companiesInnovative companies
OPEN INNOVATION
Supply Chain Control Towers…
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