True Supply Chain CollaborationJohn Calder, Baringa Partners

Supply Chain & Procurement

True Supply Chain

Collaboration • What is Supply Chain Collaboration?

• Why Collaborate?

• Why is Collaboration Occurring?

• Relevant Examples of Supply Chain

Collaboration

• Technology Collaboration

• Asset Sharing

• Supply Chain As A Service

• Where to Start?

Agenda

Collaboration for growth: A cultural transformation

An Introduction

- Over 600 employees in 5 offices globally

- Deep award winning capability in Energy, Commodities

& Utilities

- Winner of Great Place To Work Awards 2017

- Middle East Office setup in 2016 in Abu Dhabi

Baringa are an award winning

consultancy with a difference

John Calder FCILT

Supply Chain & Procurement

Practice Lead

Collaboration for growth: A cultural transformation

What Is Supply Chain Collaboration?

“Coming together is a beginning

Keeping together is progress

Working together brings success”

Henry Ford

Collaboration for growth: A cultural transformation

Why Collaborate?

Collaboration can be used to unlock a

number of supply chain benefits

Safety

Visibility

Risk and Compliance

Efficiency

Cost

Flexibility

Collaboration for growth: A cultural transformation

Why Is Collaboration Occurring?Dynamic Industry Landscape

Industries are changing, creating a new focus

on collaboration in the supply chain

- The changing customer

- Long & complex supply chains

- Volatile commodity prices

- Joint ventures & partnerships

- Threats to the 3PL model

- New entrants & rise of the NOCs

Collaboration for growth: A cultural transformation

Why Is Collaboration Occurring? Digital Enablement

Disruptive technologies are also transforming supply chain

Collaboration for growth: A cultural transformation

Technology Collaboration

Energy companies are

collaborating in the North Sea

- Setup by UK government to drive technology &

innovation collaboration in North Sea

- £300m budget over 10 years to invest in collaborative

innovation projects

- Identified 4 supply chain collaboration projects

- End to End Supply Chain Visibility

- Integrated Planning

- Parts Standardisation

- Logistics Asset Sharing

- Driven by BP, Shell and Total…but also the small

operators too

- Collaborate to build, but also collaborate to run

Collaboration for growth: A cultural transformation

Asset Sharing

Oil price pressure & HSE is driving

competitors to share assets…

In the Energy Sector…

- Road transport in onshore unconventionals

- Rail heads in bulk commodities

- Vessels in offshore oil & gas

- Capital projects collaboration

More Widely…

- Urban final mile logistics

- Flexible Warehousing

Collaboration for growth: A cultural transformation

Supply Chain As A Service

Supply chain leaders are selling

their supply chain as a service…

- BT Supply Chain

- Full end to end supply chain service (planning,

logistics, returns)

- External customers include Ericsson, EE, SSE,

National Grid, EDF

- Turned from a cost centre into £30m EBITDA

generating profit centre, within 5 years

- Competing head to head with DHL, Unipart

- Unilever Ultralogistik

- Logistic control tower service

- Shared loads with Unilever

- Model adopted for Unilever Americas

Collaboration for growth: A cultural transformation

Where To Start?

From the inside out…

- Start with the customer in mind

- Set a vision of the future

- Build, buy or partner – a leader or a follower?

- Understanding collaboration models

- What role technology…and data?

- Judge the pace

- Managing the perception

Thank youwww.gpca.org.ae

Collaboration for Growth: A Cultural Transformation