Stephen Ross PrincipalAlbemarle Supply Chain albermarlesc@outlook.com

Supply Chain Excellence Where does your Organization really need to be?

• The Concept▫ Best in Class Supply Chain is not a requirement for all organizations.

Understand where you need to be based on your ROI, market, competitors.

People and process in place before technology

What sigma level do you need to be at?

Executive Summary

• Contract Management

• Logistics

• Demand Planning

• Inventory management

• Warehouse Management

• Procurement

• Master Data Management

Supply Chain Excellence Components

Level Process

S0 No Processes

S1 Few Processes

S2 Below Standard

S3 Industry Benchmark

S4 Above Standard

S5 World Class

Definition of levels

• Your organization should be able to reach “S3” without any help from Technology.

• Technology is usually required to reach “S4, S5”

Technology

Level Process

S0 No contracts in place.

S1 Less than 80% of spend under contract

S2 Greater than 80% of spend under contract, no contract system in place.

S3 Contract system in place, managing greater than 80% spend

S4 Contract system in place that forecasts expiring contractsWarns when terms are near completion

S5 Contract system in place that prompts suppliers of pending RFPForecasts spend at risk

Contract Management

Level Process

S0 Logistics costs not tracked.

S1 Logistics cost tracked.

S2 Logistics defaulted to vendors.

S3 Logistics managed, standards in placeShipping terms negotiated

S4 Logistic strategies in place (3PL, in house, LTL, Distribution, shipping channels)

S5 Logistics points and routing networks optimized through constantly analyzing key inputs

Logistics

Level Process

S0 No forecasts in place.

S1 Yearly forecast based on history driven by operations.

S2 Quarterly rolling forecast from sales

S3 Collaborative demand plan inputs and agreement from Sales, customers, operations and suppliers.

S4 Dynamic closed loop collaborative demand plan adjusted on actuals, new data.

S5 Real time Supply/demand data contributing to the dynamic closed loop Collaborative demand plan adjusted on actuals, new data.

Demand Management

Level Process

S0 Reorder points, inventory parameters not managed by Supply Chain

S1 Inventory managed when minimum broken

S2 Inventory managed using MIN, MAX

S3 Other inventory parameters incorporated besides MIN, MAXInventory strategies in place , lead time managed

S4 Inventory optimized using “what if” simulation tools, ability to promise

S5 Inventory visibility into complete supply Chain (Vendors, distribution)

Inventory Management

Level Process

S0 Anyone in company can act as an officer of the company and place an purchase order

S1 Materials & Services sourced through requisition only, managed by procurement process professionals

S2 Requisitions executed as “one offs” no long term strategy to manage vendors or repeat purchases.

S3 Purchasing policies in place, Vendor performance tracked

S4 TCO “Total cost of Ownership” process in place

S5 Automatic replenishment in place

Procurement

Level Process

S0 All employees have access to Item Master and can make entries.

S1 Access restricted to few individuals , but no standards in place

S2 Standards and process in place to manage Item Master

S3 Item master/BOM strategy in place to support the organizational strategy.

S4 Automatically update Master Data with lead time, pricing, part number updates.

S5 One Global Centralized Master data organization and processChanges pushed and pulled to all regions impacted.

Master Data Management

• Complete baseline review of Supply Chain components.

• Identify Level requirements to support the business.

• Identify gaps in reaching level requirements.

• The creation of a Strategic roadmap and business plan to address the Gaps that have the biggest impact on the business.

• The execution of the strategic plan by engaging and influencing stakeholders through workshops one on one coaching in the development and implementation that will drive business results.

• Supporting the execution through change management, mentoring, process, training, staffing, KPI's and senior leadership support.

The Methodology

• A successful and progressive career in providing a global and national supply chain vision and direction to diverse industries from aerospace to pharmaceutical that has been struggling with lack of processes, standards and technologies.

• A rare breadth and depth of supply chain expertise from global end to end Supply chain strategies, supply chain transformation, continuous improvement. I have a proven track record of success with all aspects of supply chain regardless of the initial process maturity levels of the organizations and geographical locations.

• Leadership positions with top manufacturing firms GE, Honeywell, Barrick Gold.

• Six sigma black belt, Certified In production and inventory control.

The Expertise