global supply chain management 2015

G L O B A L S U P P L Y C H A I N

Unit 1: Introduction

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S ) , M A N N H E I M | G E R M A N Y |

G L O B A L S U P P L Y C H A I N M A N A G E M E N T

, M A N N H E I M | G E R M A N Y | O C T 2 0 1 5 V 1 . 4

WHY AM I

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

AM I HERE? 2

WHY AM I

ROBERT DILTS‘ UNIFIED FIELD OF NLP


AM I HERE?

SPIRITUAL

ROBERT DILTS‘ UNIFIED FIELD OF NLP

IDENTITY

BELIEF

CAPABILITY

BEHAVIOR

EVIRONMENT

3

WHY AM I


AM I HERE? 4

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CB8QuAIwAGoVChMI9f_js7uexwIVxf1yCh0wDQAW&url=http://www.youtube.com/watch?v=mvI1c4xIPOQ&ei=C5LIVbXOIsX7ywOwmoCwAQ&usg=AFQjCNEWUUvgVtZVPQ8PWPOzS7e7Sq-I8Q&bvm=bv.9

https://www.youtube.com/watch?v=yKcwLbchIhk


5

North America Europe

South America


Australia

Asia

Africa

Europe 6

AGENDA

POLITICS

3GSCM Intro & Hist

1ECONOMICS

2


AGENDA

COMPETENCE

5POLITICS

3INFRASTRUCTURE

4

7

2

3

Introductionof EPIC

analysis andweighting

EPIC – NEXT

EPICchallenge


Introductionto EPICstructure

START

FINISH

EPIC inaction

NEXT STEPS 8

Start

MultipleTransitions

through ages

1

ProcurementManufacturingWarehousingDistribution

Sales

2

Innovation is keyevolutive ordisruptive

3

GSCM - HISTORY


Hungry?Ch. 1

Innovation is keyevolutive ordisruptive

3

Global economicpower keeps

moving

4

What‘s next ?

5

HISTORY 9

EPIC -

04

01

03Infrastructure

Competence


INTRO01

02

03

Economics

Politics

10

EPIC – OF


OF WHAT ? 11

• Economic output of a country

• Potential for future growth

• Ability to attract foreign directinvestment

• Ability to generate a steady returnon investments made in the country

EPIC – ECONOMY


returncountry

ECONOMY (1/4) 12

EPIC – ECONOMY


• Indicate overall potential forconsumer sales

• Determine supply chain activity

• Help to craft future investmentstrategy

Economic Output &Growth Rate

• Indicate overall potential forconsumer sales

• Predict existing sales potential

• In relation with economic outputindicator for market attractiveness

Population Size

ECONOMY (2/4) 13

EPIC – ECONOMY


• Measure global market‘s belief insingle economy

• Compare FDI inflow & outflow overtime

• Indirect Investments

Foreign Direct Investment(FDI)

• Devaluation: reduces trade deficit

• Depreciation: improves export priceattractiviness

• Comfort level for investment throughstability

Exchange Rate Stability &Consumer Price Inflation

ECONOMY (3/4) 14

EPIC – ECONOMY


• Transportation and logistics costs tendto be affected

• Bottle-necks may occur

• Imbalance is difficult to tackle

Balance of Trade

ECONOMY (4/4) 15

EPIC – POLITICS (1/3)

• Ease of doing business

• Bureaucracy & corruption

• Legal & regulatory framework

• Tax & tariff barriers

• Risk of political instability

• Protection of property rights


POLITICS (1/3) 16



• Drives cost and time efficiences onvarious levels

• Bureaucracy and corruption hinderssmooth flow of goods and services

Ease of Doing Business

• Governs the level of governmentoversight and any accompanyingrestrictions on doing business & supplychain investment

• Influences investment decisions

Legal & RegulatoryFramework

POLITICS (2/3) 17



• Affects long-term viability of investmentand business model

• Measures economic distress andsocial unrest

• Differs from stability of government

Political Stability

• Safeguards company‘s efforts toinnovate

• Absence puts brand image at risk

Intellectual Property Rights

POLITICS (3/3) 18

EPIC – INFRASTRUCTURE(1/3)

• Physical infrastructure

• Energy infrastructure

• Telecommunications infrastructure

• Influences how SCM takes place


INFRASTRUCTURE(1/3)

Telecommunications infrastructure

Influences how SCM takes place

19



• Consists of road, rail, air and water

• Highly dependent on country specifics

Transportation Infrastructure

• Relates to generation and transmissionof electricity

• Measures interruptions of powersupply and voltage fluctuations

Utility Infrastructure

INFRASTRUCTURE(2/3) 20



• Measures how well information iscommunicated

• Measured by number of telephonelines and number of internetsubscriptions

• Need to be scaled on per capita basis

Telecommunication &Conncetivity Infrastructure

INFRASTRUCTURE(3/3) 21

EPIC – COMPETENCE

• Labor productivity

• Labor relations

• Availability of skilled labor / level ofeducation

• Influences the speed of SCM


COMPETENCE (1/3)

Availability of skilled labor / level of

22

EPIC – COMPETENCE (2/3)


• Determines effectiveness of offshoring

• Metrics: productivity, cooperation, skillset

Labor Relations

• Understanding costs of quality is key

• Sustain initiatives

• Ability to solve problems

Education Levels for LineStaff and Management

COMPETENCE (2/3) 23

EPIC – COMPETENCE (2/3)


• Measures effectiveness of variouslogistics functions within a country

Logistics OperationalCompetence

• Efficiency of clearance proceduresused by customs authorities

• Existence of proper security controls toensure protection of internal market

Customs & Security

COMPETENCE (2/3) 24

2

3

Introductionof EPIC


EPIC – NEXT

EPICchallenge



START

FINISH

EPIC inaction

NEXT STEPS 25

Variables

EPIC - ASSESSMENTWHAT‘S NEXT ?


Data Sources

Decision Uses

ASSESSMENT 26

E

I

EPIC - WEIGHTINGWHAT‘S NEXT ?


P

C

WEIGHTING 27


Unit 2: First



Unit 2: First Steps

WHY AM I


AM I HERE? 29

WHY AM I


AM I HERE? 30

https://www.youtube.com/watch?v=VE0lPTfsBoI

EPIC -

04

01

03Infrastructure

Competence


INTRO01

02

03

Economics

Politics

31

2

3

Introductionof EPIC


EPIC – NEXT

EPICchallenge



START

FINISH

EPIC inaction

NEXT STEPS 32

Variables

EPIC - ASSESSMENT


Data Sources

Decision Uses

ASSESSMENT 33

EPIC - SOURCES


SOURCES 34

EPIC - SOURCES

https://www.wto.org/english/res_e/res_e.htm


SOURCES


35


EPIC - SOURCES


SOURCES 36

http://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=1245

EPIC - SOURCES


SOURCES 37

http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2014-15.pdf

ECONOMY -Variables

• GDP / GDP Growth

• Population Size

• Foreign DirectInvestment

• Exchange RateStability & ConsumerPrice Index

• Balance of TradeD I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

- CONNEX A

GDP / GDP Growth

Stability & Consumer

Data Sources

• CIA World Book, WTO

• CIA World Book, NationalCensus Bureaus

• UNCTAD FDI AttractionIndex

• CIA World Factbook,National Central Banks,National Chambers

38

ECONOMY -Variables

• GDP / GDP Growth

• Population Size

• Foreign DirectInvestment

• Exchange RateStability & ConsumerPrice Index

• Balance of Trade

Decision Uses

• Investments

• Investments, SalesPotential

• Investment,ManufacturingBusiness

• Investors,Business, Trade (int. /ext.)


- CONNEX BDecision Uses

Investments

Investments, Salesotential

Investment,Manufacturing, ExportBusiness

Investors, ImportBusiness, Trade (int. /ext.)

39

POLITICS -Variables

• Ease of doingbusiness

• Legal & regulatoryframework

• Risk of politicalstability

• Protection of propertyrights


CONNEX A

Legal & regulatory

Protection of property

Data Sources

• World Bank

• Deloitte InternationalTax Survey, Rule ofLaw Matrix

• Economist PoliticalInstability Index

• International PropertyRights Index, HKOrdinance

40

POLITICS -Variables

• Ease of doingbusiness

• Legal & regulatoryframework

• Risk of politicalstability

• Protection of propertyrights

Decision Uses

• Retail StoreSupply NetworkSourcingLocation

• R&D CenterInnovation Hubs,Trade & CommercePioneers

• Banking & Finance


CONNEX BDecision Uses

Retail Store Location,Supply Network,Sourcing and ManuLocation

R&D Center,Innovation Hubs,Trade & CommercePioneers

Banking & Finance

41

INFRASTRUCTUREVariables

• TransportationInfrastructure

• Utility Infrastructure

• Telecommunication &Connectivity


INFRASTRUCTURE - A

Utility Infrastructure

Telecommunication &

Data Sources

• World EconomicForum

• CIA World Factbook

• Eurostat, RegionalStatistic Bureaus

• World Bank

• IMF, OECD Library

42

INFRASTRUCTUREVariables

• TransportationInfrastructure

• Utility Infrastructure

• Telecommunication &Connectivity

Decision Uses

• DifferentPreferrableDifferent Purposes(ProducingRetail

• ConnectivityDetermines DecisionsOn OutsourcingOffshoringetc.


INFRASTRUCTURE - BDecision Uses

Different RegionsPreferrable ForDifferent Purposes(Producing, Sourcing,Retail, Selling)

Connectivity,Determines DecisionsOn Outsourcing,Offshoring, Insourcingetc.

43

COMPETENCEVariables

• Labor Relations

• Education Level

• LogisticsCompetence

• Customs & Security


COMPETENCE - CONNEX A

Customs & Security

Data Sources

• WEF GCI, NationalLabor Statistics,Eurostat, OECD

• National Bureaus ForEducation

• WTO PerformanceIndex

• Defense Offices

44

COMPETENCEVariables

• Labor Relations

• Education Level

• LogisticsCompetence

• Customs & Security

Decision Uses

• Sourcing,Manufacturing, Retail

• E-Logistics

• Six SigmaQuality

• Just In TimeManufacturing,Express Logistics


COMPETENCE - CONNEX BDecision Uses

Sourcing,Manufacturing, Retail

commerce,Logistics

Six Sigma, TotalQuality Managament

Just In TimeManufacturing,Express Logistics

45

15%POPULATION

SIZE

25%

ECONOMY30% of total EPIC score

EXCHANGERATE

EPIC - WEIGHTING


45%

ECONOMICOUTPUT

35%

FDI

20%

5%

ECONOMYtotal EPIC score

WEIGHTING

TRADE

47

15%

FRAMEWORK

POLITICS20% of total EPIC score

INTELLECTUALPROPERTY

EPIC - WEIGHTING

EASE OF DOINGBUSINESS

35%


45%POLITICALSTABILITY

25%LEGAL

FRAMEWORK

35%

POLITICStotal EPIC score

INTELLECTUAL

WEIGHTING 48

15%

PHYSICAL

50

INFRASTRUCTURE30% of total EPIC score

EPIC - WEIGHTING

CONNECTIVITY

25%


45%ENERGY

25%PHYSICAL

50%

INFRASTRUCTUREtotal EPIC score

WEIGHTING 49

10%

COMPETENCE

COMPETENCE20% of total EPIC score

CUSTOMS ANDSECURITY

EPIC - WEIGHTING

LABORRELATIONS

25%


45%EDUCATION

LEVELS

25%LOGISTICS

COMPETENCE

40%

COMPETENCEtotal EPIC score

AND

WEIGHTING 50

A global supply chain requires asound decision making ground

which is composed ofinterdisciplinary, interdependent

and international layers

IDEA

EPIC – REVISED


The EPIC approach provides asystematic and structures way toevaluate the global terrain withrespect to an organizations(prospective) supply chainactivity

RESULT

REVISED 51

2

3

Introductionof EPIC


EPIC – NEXT

EPICchallenge



START

FINISH

EPIC inaction

NEXT STEPS 52

East Asia is a geographic regionthat encompasses the ancientcultural and economic centres ofChina, Japan, and the Koreas.

East Asia

The countries of Central andEastern Europe are all thecountries covered by the formerEastern bloc as any otherEuropean country that does notbelong to Western Europe.

Central & Eastern Europe

EPIC - CASESWHAT‘S NEXT ?


Western Europe is the regioncomprising the westerly countriesof Europe.

Western Europe

North and Central America standfor the countries USA; Canadaand Mexico with its adjacentcountries and islands that doesnot belong to any other region.

North & Central America

CASES 53


Unit 3: Next



Unit 3: Next Steps

WHY AM I


AM I HERE? 55

WHY AM I


AM I HERE? 56

https://www.youtube.com/watch?v=gO6cFMRqXqU

EPIC -

04

01

03Infrastructure

Competence


INTRO01

02

03

Economics

Politics

57

Variables

EPIC - ASSESSMENT


Data Sources

Decision Uses

ASSESSMENT 58

E P

I C

EPIC - WEIGHTING






WEIGHTING 59

2

3

Introductionof EPIC


EPIC – NEXT

EPICchallenge



START

FINISH

EPIC inaction

NEXT STEPS 60


East Asia



EPIC - CASES



Western Europe



CASES 61

C1: W-EUR


EUR TO CHINA 62

Raw materials and productsare sourced and built locally

Logistics

Outskirts of cities, next torail networks and public

transport

Store Location

C1: IKEA TO CHINA


Modern products that fitsChinese apartment sizes,

affordable prices

Product & Price

Good quality, westernbrand, middle classaspirations

Value Proposition

C1: IKEA TO CHINA 63

C2: CHINA TO W


C2: CHINA TO W-EUR 64

The Commercial Aircraft Corporation ofChina, Ltd. ("Comac") is a Chinese state-owned aerospace manufacturer establishedon 11 May 2008 in Shanghai. The companyhas a registered capital of USD 2.7 billion asof May 2008. This government-ownedcorporation is designing and will eventuallybuild large passenger aircraft with a capacityof over 150 passengers to reduce thecountry's dependency on Boeing and Airbus.Therefore, China invests more money thanthe EU did when Airbus was formed.

In June 2011 COMAC and Irish low-costairline Ryanair signed an agreement to co-operate on the development of the C919, a200-seat single-aisle aircraft which willcompete with the Boeing 727.


C2: COMAC TO

May 2008 Foundation

Dec 2009Start C919

2018 First delivery /commercial roll-out of C919

Nov 2010 C919Presentation of C919prototype on airshow

: COMAC TO W-EUR 65

C3: US TO E


C3: US TO E-EUR 66

Disruptive understandingof mobility of the 21st

century

Technology

Create most compelling carcompany by driving the

world‘s transition to electricvehicles

Vision / Mission

Aim is to leverage theunique benefit of

electric powertrain

Costs

SpiritRelentlessInnovation

C3: TESLA TO E


Nikola TeslaSerbian scientist who created the AC

power system and is the „father ofradio“, re-invented the dynamo andinvented the induction motor. As an

old man he lived in poverty

Create most compelling carcompany by driving the

world‘s transition to electricvehicles

Vision / Mission

Integration is key todeliver a system that isgreater than sum-of-

parts

IP & PP

C3: TESLA TO E-EUR 67

C4: E-EUR


EUR TO USA 68

C4: SBERBANK TO USA


01

Founded in 1841 Sberbank hasfocused on domestic banking thatcreates > 95% of revenues

02

With a focused culture of >17.500branches and 200.000 employeesin Russian Federation Sberbank isready to open up to internationalcultures

03

A unique position in growingdomestic markets and as a linkbetween Europe, Asia and theMiddle East. Sberbank facesmultiple opportunities

C4: SBERBANK TO USA 69

2

3

Introductionof EPIC


EPIC – NEXT

EPICchallenge



START

FINISH

EPIC inaction

NEXT STEPS 70


Unit 4: The Challenge



Unit 4: The Challenge


WHY AM IAM I HERE? 72

WHY AM I


AM I HERE? 73

http://www.google.de/imgres?imgurl=http://i.ytimg.com/vi/n4ILV4IL-PA/maxresdefault.jpg&imgrefurl=http://www.youtube.com/watch?v=n4ILV4IL-PA&h=1080&w=1920&tbnid=VfZzk3Gwpp_wSM:&docid=oX9MzeTe-rHy3M&ei=kH0bVqG0G4aeU5OSo9gM&tbm=isch&iact=rc&uact=3&dur=127&page=1&start=0&ndsp=19&ved=0CCEQrQMwAGoVChMIobzVxc-8yAIVBs8UCh0TyQjL

EPIC -

04

01

03Infrastructure

Competence


INTRO01

02

03

Economics

Politics

74

Variables

EPIC - ASSESSMENT


Data Sources

Decision Uses

ASSESSMENT 75

E P

I C

EPIC - WEIGHTING






WEIGHTING 76


East Asia



EPIC - CASES



Western Europe



CASES 77


78

Reflect YourPerformance /

Individual Performance

What Will YouUse Next Time

What Are YourKey Take-Aways

EPIC – LESSONS


Your TeamPerformance / Your

Individual Performance

What Worked BestAnd Second Best

What Will I TellOther People

LESSONS LEARNED79

2

3

Introductionof EPIC


EPIC – NEXT

EPICchallenge



START

FINISH

EPIC inaction

NEXT STEPS 80

C1: W-EUR TO CHINASweco


EUR TO CHINASweco

81


82

C2: USTO WAmerican Water


C2: USTO W-EURAmerican Water

83


84

C3: CHINA TO EAlibaba


C3: CHINA TO E-EURAlibaba

85


86

C4: E-EUR TO USASolaris


EUR TO USASolaris

87


88

2

3

Introductionof EPIC


EPIC – NEXT

EPICchallenge



START

FINISH

EPIC inaction

NEXT STEPS 89


NEXT:PRESENTATIONS

NEXT: YOURPRESENTATIONS

90

global supply chain management 2015

Leadership & Management