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REINVENTING THE SUPPLY CHAIN

A FEW HISTORICAL MILESTONES………..

1990’s

Walmart launches collaborative forecasting and replenishmentAuto ID labels and RFID tagsAmazon goes publicProctor & Gamble moves to continuous replenishmentERP’sAdvanced Planning & Scheduling

2000’s

Robots for distribution & warehouseUnderground rail system LA

IBM launches 10 year plan to build a global supply chain modeLean and Pull systems growth

2020

Driverless road technologyGPS integrated order trackingLast mile deliveryDronesBlockchain TechnologyThe Internet of ThingsAdvances in TMS and WMS software

Supply Chain Management first appears in published reviews - 1983

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THE SUPPLY CHAIN – EVOLUTION………..

2009

Economic disruptionH1N1 virus

Inventory all throughout the supply chainLean/Kanban/Pull Replenishment is industry dependent

Sophisticated ERP’s

2020

Pandemic DisruptionInventory at lowest levels ever

3rd party logistics managing the customer supply chain“Amazon” – next day delivery, Last Mile, Partial trucks

Big Data & Analytics are industry specificCollaboration

2030

The Next Event………

THE PERFECT SUPPLY CHAIN……..

Raw Material

Sales & Marketing

Warehouse Distribution CustomerPlanningManufacturing

Ø One SKU

Ø Full Truck

load

Ø Full pallet

Ø 10 days grace

period for

arrival

Ø No extra fees

Ø Immediate

unloading

Ø One SKU

Ø Full Truck Load

Ø Full pallet

Ø 5 shipments

per day

Ø 10 days to

prepare a

shipment

Ø One SKU

Ø Unlimited

inventory

Ø Steady state

demand

Ø Single MRP

Ø Demand

planning

system

Ø One SKU

Ø 45 day to

manufacture

Ø New

equipment

Ø Close is good

Quantity

Quality

Ø Customers pay

what ever our

costs are

Ø One SKU

Ø One Supplier

Ø Unlimited

inventory

Ø Supplier

managed

inventory

Ø Unlimited

SKUs

Ø Below

market prices

Ø 3 months of

inventory

Ø Same day

shipping

Ø Any quantity

Ø No cube

Ø Zero defects

Ø Unlimited SKUs

Ø Pricing less 50%

Ø Order today and

deliver tomorrow

Ø 100% stocking

Ø Any quantity

Ø 180 day terms

Ø Free tooling

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THE COLLABORATIVE SUPPLY CHAIN

Raw Material

Sales & Marketing

Warehouse Distribution CustomerPlanningManufacturing

Ø Vendor network

Ø Qualifying alternative raw materials

Ø Off shore competitive sourcing

Ø Collaborative forecasting

Ø Interactive real time forecasting

Ø Interactive shop floor replenishment

Ø Dashboards, KPI’s – linked to S&O process

Ø Sales collaboration with forecast

Ø Critical Customers & Items

Ø ECN

Ø Integrated CRM & information access

Ø Accurate inventory

Ø Right sized inventory (DOS)

Ø Pallet and cube improvements

Ø Optimize Current logistics system

Ø Last Mile Delivery

Ø Local & Regional

Ø Customer Collaboration

Ø Service

Ø Quality

Ø Supplier of Choice

Ø Weekly Demand Reviews

Ø Order Performance

Ø Midcycle raw material & finished goods review

PUTTING THE PIECES TOGETHER!

¡ Create the vision

¡ Choose a lane

¡ Define the value

¡ Identify how the puzzle pieces might fit together

¡ Build the team

¡ Start the journey

¡ Measure progress

¡ Define success

¡ Periodic supply chain health “check ups”

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WHAT DO YOU NEED TO LOOK LIKE WHEN YOU GET THERE?You will need to be the following:

¡ Faster

¡ More reliable

¡ More accurate

¡ More efficient

¡ More custom

You might have heard about Manufacturing 4.0 or Supply Chain 4.0 – the integration of technology to the customer experience to drive customer engagement and the use of “big data”. Unlocking efficiencies and capacity by creating or enhancing collaboration from machines to business systems to customers will be the new norm.

THE 2030 SUPPLY CHAIN

¡ Collaborative

¡ Integrated locally, regionally and nationally

¡ Alternate suppliers

¡ Reactive capacity

¡ BIG DATA – vendor to manufacturing to distribution to the customer

¡ Enhanced Analytics – “smart” systems with network planning algorithms

¡ Shorter lead times

¡ New metrics and KPI’s

The online-enabled transparency and easy access to a multitude of options regarding where to shop and what to buy drives the competition of supply chains. It’s not just the products, it’s the shared data and communications that will be part of the future solution. The future supply chain will need to capture more information and data and leverage integrated processes that use “optimization”

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WHAT’S IN YOUR WALLET…….

¡ Do I have all my vendors and suppliers listed with Business Continuity Planning information - capacity, alternate sources of supplier to their operations.

¡ Am I identified as "essential and or an essential supplier“

¡ Can my suppliers "pivot" to produce healthcare and therefore impact their ability to supply me.....

¡ Do I review 30/60/90 day requirements from my customers and share with my suppliers?

¡ What's my safety stock and DOS coverage?

¡ Do I have any materials as part of the "off shore supply chain"

¡ Do you share electronic data between customers and your suppliers?

HOW DO I FIT INTO THE BIGGER SUPPLY CHAIN?

¡ You are part of the process - one of the many puzzle pieces in the supply chain!

¡ You are often more nimble, flexible and reactive to high demand variability!

¡ Are you tied to 1-2 larger companies - you are their sole supplier?

¡ Do you have any single source suppliers in your network?

¡ Do you supply "critical or essential" components or parts?

¡ What new "pandemic" items or parts can you produce in the future? Would that be a simple change to manufacturing or require capital to have a alternate process?

¡ Who are your "pandemic" partners in the local and regional community for the future?

¡ Do you collaborate with your customer and your suppliers?

¡ How flexible are you? Labor, materials, equipment, etc. - do you really have a "pandemic passing gear“?

¡ Do you have the ability to share electronic data with your customers? With your suppliers?

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WHAT’S NEXT!

¡ Make supply chain an important business process in your organization.

¡ Start now – someone else already has!

¡ Think differently – “out of the box”.

¡ Break down old barriers between competitors –we are all one team during a pandemic.

¡ Learn from other industries!

ALL IT TAKES IS SOMEONE TO START THE PROCESS…………

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Michelle Fossett, Client Outreach Coordinator

Supplier Scouting

Re-Inventing the Supply Chain14

Supplier Scouting for COVID-19 Efforts• Opened Portal March 24th

• Partnership with The Governor's Illinois Essential Equipment Task Force

• Links:

www.imec.org/supply-chain-preparedness/https://ima-net.org/covid-19/

www.imec.org/supply-matchmaking-needs/https://ima-net.org/covid-19/manufacturing-sourcing-center/

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Re-Inventing the Supply Chain15

Results• Connected with almost 500 Illinois

manufacturers and business owners• Understanding of current capabilities• What some have pivoted too• What PPE needs there are• Other supply needs• Employee Engagement Updates• Change Practices• Current Business State• Future changes• Policy adaptations

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Updated Process for All Supplier Needs

https://www.imec.org/supply-matchmaking-needs/

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Re-Inventing the Supply Chain17

Success Stories:

vManufacturer in Wheaton needed PPE:

I wanted to let you know (and say thank you) that we not only got our surgical masks in no time, but (the Chicago Company) worked out great for 1,000 cloth masks. We even did a second order for remote sales offices to have supply sent out to each office.

Everything worked out great! Thank you so much!

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Success Stories:

vManufacturer in Roselle – Same-day resolution:

Thanks for the link! Very helpful! I already picked up 2 large sheets to make face shields.

Thanks again!

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Re-Inventing the Supply Chain19

Success Stories:

vManufacturer in Chicago – Workforce Need

Within 2 hours, they had been contacted from various organizations that said they could help them out and in 4 hours this was the response received:

We found what we needed for now, but we may need more help in the near future. I will keep your contact information on file. Thank you for your help!

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