MANUFACTURING ADVISORY SERVICE

Intelligent Cities Conference 2014

Manufacturing and Collaborative Supply Chains

Don McCombe.

AGENDA

• Who are MAS?

• English Manufacturing

• Manufacturing in Bradford

• Investment in Manufacturing in Bradford

• Re-shoring

• Bradford “Producer City”

• Supply Chain Collaboration

WHO ARE MAS?Manufacturing Advisory Service:-

• Only works with Manufacturing

• 90 advisors within England

• 99% of advisors are from Manufacturing Industry.

• 90% of work with SME’s

MAS UK INFORMATION

• MAS core work is to improve manufacturing in England and promote growth

• Also run “GROW” (off shore wind within Humber estuary)

• Partnership with UKTI on “Re-Shore” bringing manufacturing back to UK

• Local Opt in from LEP to work on “Supply chains”

• Working Partner on Bradford Council “Producer City”

• Matched funding available for eligible companies and projects

AGENDA

• Who are MAS?

• English Manufacturing

• Manufacturing in Bradford

• Investment in Manufacturing in Bradford

• Re-shoring

• Bradford “Producer City”

• Supply Chain Collaboration

MAS ENGLAND MANUFACTURER DATA

8,000 Number of projects undertaken by MAS since Jan 2012

56,000Number of jobs safeguarded by MAS following intervention.

2,500New Apprentice roles created since 2012

22,000Number jobs created from projects sponsored by MAS

90,000 Number of manufacturers in business in the UK known to MAS

AGENDA

• Who are MAS?

• English Manufacturing

• Manufacturing in Bradford

• Investment in Manufacturing in Bradford

• Re-shoring

• Bradford “Producer City”

• Supply Chain Collaboration

MAS BRADFORD DATA

120 Number of projects undertaken by MAS since Jan 2012 in BRADFORD

1,350Number of jobs safeguarded in BRADFORD following MAS intervention.

38New Apprentice roles created since 2012 in BRADFORD

397Number jobs created in BRADFORD from projects sponsored by MAS

911 Number of manufacturers in BRADFORD known to MAS

AGENDA

• Who are MAS?

• English Manufacturing

• Manufacturing in Bradford

• Investment in Manufacturing in Bradford

• Re-shoring

• Bradford “Producer City”

• Supply Chain Collaboration

LEEDS CITY RGF GRANTS TO BRADFORD

£4.89M Value of Grants awarded to BRADFORD

80%Of all awards within BRADFORD goes to the manufacturing sector.

£34.6MMatched Private investment in BRADFORD

730Number jobs created in BRADFORD from grants awarded by LCRGF

233 Number of businesses in BRADFORD enquired to LCRGF

AGENDA

• Who are MAS?

• English Manufacturing

• Manufacturing in Bradford

• Investment in Manufacturing in Bradford

• Re-shoring

• Bradford “Producer City”

• Supply Chain Collaboration

RESHORE UK

• Collaboration between MAS and UK Trade & Investment (UKTI)

• ‘one stop shop’ service to take advantage of business opportunities created by re-shoring:

• Jan 2014: Prime Minister announces new Re-shoreUK service

• expert strategic and technical advice

• help to develop the business case for reshoring

• visibility of high-value supply chain opportunities

• access to funding to support your goals

RE-SHORE UK / SUPPLY CHAIN

• Jul-Sep 2013 MAS Barometer identified:

AGENDA

• Who are MAS?

• English Manufacturing

• Manufacturing in Bradford

• Investment in Manufacturing in Bradford

• Re-shoring

• Bradford “Producer City”

• Supply Chain Collaboration

BRADFORD PRODUCER CITY

• Bradford MDC commissioned a report looking at the future of Advanced Engineering & Materials (AE&M) in Bradford.

• Highlights from Report show that:-

– Bradford has a higher proportion of it’s workforce in the AE&M sector than other regions in the area around Leeds, and is one of the most active AE&M UK regions.

– There is chronic under-investment in plant & equipment by Bradford AE&M companies

– There is also under investment in R&D and in new products by the Bradford AE&M companies

– Bradford has a large resource of people with AE&M skills and sufficient to allow for significant growth

Source; AE&M sector report Lamberhurst corporation

BRADFORD PRODUCER CITY

• The final report identified some key areas of recommendations that will be required to continue the manufacturing growth in Bradford

• From the key areas of concern the following projects have been adopted:-

Establish an Advanced Materials and R&D Manufacturing Centre Investment in New Product development Export Support for Manufacturers

Industrial Automation and Robotics Sector Business Collaboration Networks Manufacturing Supply Chain Initiative

The last three of these key areas fall within MAS core skills

AGENDA

• Who are MAS?

• English Manufacturing

• Manufacturing in Bradford

• Investment in Manufacturing in Bradford

• Re-shoring

• Bradford “Producer City”

• Supply Chain Collaboration

SUPPLY CHAIN

• When we think of Supply Chain many may agree that it is viewed from a hierarchical point of view following the links in a chain:-

• Whilst we are continuing the initiative to “Re-Shore” suitable manufacturing, in order to stay competitive we need to address the dated issues of traditional supply chain constraint and remove the problem that the supply chain is only as strong as the weakest link.

• Many companies spend many man hours and labour cost on ‘Vendor Management’ and ‘key supplier performance,’ whilst this cannot be all wrong perhaps we could look to a step change?

MOVE FROM A SUPPLY “CHAIN” TO A SUPPLY “COMMUNITY”

Move from supply “chain”

to a supply “community”

SUPPLY CHAIN COLLABORATION

• From our work with Re-shore and Supply Chain across the region it is becoming more apparent that Tenders and big business can be won by SME companies that collaborate together and work in partnership to meet the clients needs.

• This is no easy feat though,

• Communication is of paramount importance but the rewards can be tremendous.

• Companies that collaborate effectively across the supply chain can enjoy dramatic reductions in inventory and costs, together with improvements in speed, service levels and customer satisfaction

SIX STEPS TO COLLABORATIONSTEP 1

COLLABORATE IN AREAS WHERE YOU HAVE A SOLID FOOTING

• Manufacturers may feel tempted to use collaboration as a way to fill a gap in their own capabilities. In practice, the most successful collaborations will build on strengths rather than weaknesses.

Step 2

Turn win – lose into win-win opportunities with the right benefit sharing model

• Some collaborations promise equal benefits for each party. If, for example a manufacturer and a retailer collaborate to optimise product mix, both could expect to benefit from the resulting increase in sales. In other cases however the collaboration might create as much value overall but the benefit could fall more to one partner than the other.

Source Mckinsey & Company 2012

SUPPLY CHAIN COMMUNITIESStep 3

Select partners based on capability, strategic goals and value potential.

• As in some other cases the biggest potential partner may not be the best one. Many companies aim to collaborate with their largest suppliers or customers because they assume that the greatest value is to be found there. In many cases however this turns out not to be true, Collaboration may be more of an interest to a smaller partner which may invest more time and effort in the program than a very large one that is already juggling other initiatives

Step 4

Invest in the right Infrastructure and people.

• One of the top three reasons for the failure of collaboration efforts is the lack of dedicated resources. Companies frequently underestimate the resources required to make collaborations work, assuming they can leave it up to staff in various functions to do what’s required in addition to their other responsibilities

SUPPLY CHAIN COMMUNITIESStep 5

Establish a robust, joint performance-management system.

• Much akin to a stakeholder plan the KPI’s for your project should be common to all parties and jointly monitoring the progress, this should avoid the misaligned incentives that damage so many collaboration efforts.

• As in most business try to keep it simple picking the smallest possible number of metrics required to judge the overall performance.

Step 6

Collaborate for the long term

• It may take time and effort to overcome the initial roadblocks and hurdles to make a collaboration work. All parties need to recognise this and build an appropriate long term perspective into their goals and expectations.

• From the start this means going well beyond the first year this will allow for greater longer term objective setting to take place and the relationship should grow as you become ‘comfortable’ in the collaboration.

SUMMARY

Where to Collaborate

1. In areas where you have a solid footing

2. Turn win- lose, into win-win opportunities with the right benefit sharing models.

3. Select Partners based on capability and strategic alignment, not just size

How to Collaborate

4. Invest in the right infrastructure and people

5. Jointly manage performance and measure impact

6. Collaborate for the long term

Source Mckinsey & Company 2012

BRINGING IT ALL TOGETHER

From MAS Latest Barometer 52% of companies surveyed will be investing in new technology in the next 6 months

From MAS Latest Barometer 59% of companies surveyed will be investing capital equipment or premises in next 6 months

From MAS Latest Barometer 54% of companies surveyed will be investing in new employees in the next 6 months

Figures based on average response of 864 manufacturers

MANY THANKS FOR YOUR TIME AND ATTENTION

We look forward to meeting you again soon

www.mymas.org