- The document provides information about an individual with a Ph.D. in Management Science and experience in supply chain and manufacturing roles.
- They have founded an organization called kreativekrowd and blog about supply chain topics on their website muddassirism.com.
- The document includes an example of a supply chain SWOT analysis and discusses various aspects of developing a supply chain strategy including people, systems, core processes, and execution.
Value Proposition canvas- Customer needs and pains
4 pillars of Supply Chain Strategy
1.
2. • I have received a Ph.D. in Management
Science from Lancaster University
Management School
• MSc. in Management of Production from
Chalmers University of Technology, Göteborg,
Sweden
• B.E. in Textile Engineering from NED University
of Engineering and Technology, Karachi,
Pakistan!
• Working in American Premier Diversified
Industrial Eaton since last 10 years in Supply
Chain & Manufacturing. Currently hold
Divisional Supply Chain Manager Position
• Founder @kreativekrowd
• Married, with two kids and I am massive
cricket & creativity fan!
• I blog on Supply Chain at muddassirism.com
Dr. Muddassir Ahmed
3.
4.
5.
6.
7. Supply Chain SWOT
Strengths, Weaknesses, Opportunities, Threats (Example)
• Customer focus
• Flexible, agile, good fire fighters
• Strong leadership and teamwork
• Cost out / cost management
• Diverse and multi-skilled team
• Project management
• “Can do” attitude – good relationships across functions to
enable synergies
• Customer service (Components)
• Inconsistent standard policies and procedures (SIOP, PSI,
assortment, lead time segmentation etc.)
• Export Customer service (projects, order management)
• Standard reporting / KPI’s
• Supply Chain agility
• Tailored supply chain services
• Seeing the big picture
• Supply Chain network Design visibility
• Priority setting
• Safety improvements
• Developing and acquiring talent
• Increase export of „future leaders“
• Inclusion of all businesses
• Communicate our success stories
• Create customer KPI leading indicators
• Strategic thinking
• Better alignment with new product line structure
• Capabilities (e.g. SIOP, Demand Forecast deployment,
Lead Time Reduction)
• Long lead time supply chain
• Lack of top class supply chain resource
• Complexity and speed of change
• Different capability / maturity levels
• Fast changing end market/regulations
• Contingency planning of DL & Arad manufacturing
Strengths
Opportunities
Weaknesses
Threats
8.
9. People, Systems, & Core Processes
The foundational elements of the strategy are the People
and the Systems. These elements work together to drive the
creation, deployment, and disciplined use of Core Processes.
10. 1. People
• Strategy: “To recognize our most important asset, our People, by building
standard org structures with defined roles & responsibilities, maintaining
relevant development & training plans, and working together as a team
through Regional and Global Process Councils.
• Processes: Organisational Capability Assessment, Goal Setting
• Tools: Skills matrix, Development & Succession plans, and Professional
certifications
11. 2. Systems
• Strategy: “To leverage the use of standard Systems by building
Core Processes around them and training the People to use them
effectively.”
• Processes: Forecasting, Planning, Scheduling, Shopfloor
Transactions, Inventory Accuracy, Monitoring
• Tools: ERO & MRP System, Forecasting System, Supplier
Management System, ERP Health Monitors, Decision Support
System , In-House bespoke Systems etc.
12. 3. Core Process
3. Core Process: Modeling
• Strategy: “To understand the characteristics that impact material flow
through data analysis, match this with the appropriate replenishment
models, and set the System up to respond accordingly.”
• Processes: ABCQ, Response Modeling, Service Strategy, Network
Analysis, and Item Categorization
• Tools: ERP tools & reports, Decision Support System, Access, Excel
13. 3. Core Process
3. Core Process: Planning
• Strategy: “To provide the best possible information for the business,
based on sound analysis and consensus planning, to allow us to plan for
and deliver results profitably.”
• Processes: Sales Inventory & Operations Planning (SIOP), Demand
Forecasting, Supply Planning, Capacity Planning, and Inventory
Forecasting
• Tools: ERP & MRP Systems, Excel Spread Sheet & Access Database (not
Recommended!)
14. 4. Execution
• Strategy: “To make full use of our People, Systems, Models and
Planning tools to deliver product on time and at minimum cost to the
business, maximizing profit and customer satisfaction.”
• Processes: SIOP, Vendor Managed Inventory, Min-Max or Kanban, Re-
Order Point (ROP), Supplier Schedules, Safety Stock, Forecast
management, shop floor processes (e.g. transactions, cycle count)
• Tools: Forecasting Software, ERP & MRP System, be-spoke Systems
15. 4. Execution
Discussion & OFI
identification
Strategy
Implementation
& Execution
Time
Effort
Strategy Development/
Listing Actions
Time
Effort
Strategy Development/
Listing Actions
Discussion & OFI
identification Strategy
Implementation
& Execution
From To
Achieve and celebrate success Engagement Employees Engaged
employees enjoy greater levels of personal well-being Work-Life Balance
Focus on vital few, not trivial many
16. Supply Chain Strategic Goals
Measures
OTTR
Gross Inventory $ Million
DOH
Past Due $Million
94.%
$50
68
$ 3.6
95%
$48
66
$3.0
95%
$46
64
$2.6
95%
$44
63
1.9
2015 2016 2017 2018
What Goals are Important to you?
17. WBDP2015 – Dept Goals 2015/ 5 Year Strategic Plan/ Dept Long Term
Planning (Example)
17
Strategic Projects/Initiatives:
• 100% deployment of Material Handling TrainingABCQ with all strategic suppliers (Min/Max stocks, Lead-time reduction).
• Drive Consign stock/VMI & Supply Viz with strategic supplier.
• Robust (SIOP) – Supply Review - more focus on capacity planning & management.
• Develop & Implement Supplier Development Strategy – Improve supplier performance through scorecards, reviews, and action
plans.
• Support Part Transitions via ramp up/ramp down to support cost out.
• Deliver Cost Out projects committed in Profit Plan.
• Implement Direct Line Feed (DLF)
Results/Goals
• Maintain OTP >95%
• Working Capital - £3.8M <68 DOH (Inventory Track)
• Improve Supplier OTD > 85%
• Improve ERP Health Monitors to achieve 95% level.
• Reducing LT of 70% of product we sell <= 5 days
• Reducing total logistic cost by 6% YoY
People:
• Goals Aligned / Published.
• Personal Development Plans 1yr – 5yr
• Develop advance project management skills
• 2 x CPIM & 1 x MCIPS
• OCA / Succession Planning- 1 x Materials Manager & 1
x Planning Team Leader
• 60% staff with Leadership Training
• 1 x FLEX Train the Trainer.
• 1 x Graduate Leadership Programme Member
18. ABC Segmentation - Easy
ABCQ
Classif.
Lead time
to the
customer
Classification justification Supply
strategy
Stocking type Materials
Replenishme
nt Trigger
Demand
repeatab.
= forecast
ability
Inventory
Excess and
Obsolete
risk
A
Short
(on shelves)
3d to 2w
“High runners”
- At least 5 customers
- Weekly sales
MTS
Make-To-Stock
Stock Finished Goods SIOP forecast High Limited
A
Override
“Exceptions”
- EDI Customer schedule
- PM exceptions
Stock Finished Goods
EDI additional buffer
to absorb schedule volatility
(typically +20% for next 4m)
“Best Of”
- EDI schedule
- SIOP forecast
(sales/PM info)
Low
High
(single
customers
/sales bet)
B
Assembly
time
“Components are high runners”
- Components (on stock) while
finished good is low runner
ATO
Assemble-To-
Order
Stock
Components
SIOP forecast
Medium
Medium
C
Cumulative
lead time
(supplier + any
assembly)
“All others”
- Low sales frequency
- Customer specific
- New products
MTO/PTO
Make/Purchase
-To-Order
Don’t Stock
(firm order triggers the
materials)
No forecast
/or/
SIOP forecast for
capacity + supply
planning (long
term)
Low
Low
(cancellation
s + supplier
Min Order)
Compo
1
Compo
2
Compo
3
Compo
4Medium
Short
Cumulative
!
NOTE: ABC Lead Time Segmentation is base for SIOP Deployment, therefore it comes first!