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Competitive Analysis
Competitive Analysis
Competitive Analysis
Richard Wilding
Competitive Supply Chain Resilience:
Gaining Competitive Advantage Through Innovation & Collaboration
Professor Richard Wilding Cranfield School of Management www.cranfield.ac.uk/som www.richardwilding.info & www.supplychainpodcast.info
Prof. Dr. Richard Wilding Centre for Logistics & Supply Chain Management Cranfield School of Management, Cranfield, Bedford, England, MK43 0AL. Tel: +44 (0)1234 751122 Fax: +44 (0)1234 751712 Email: Richard.Wilding@cranfield.ac.uk
Agenda
Innovative methods for improving supply chain process, systems and structure
The 3Ts of highly effective supply chains Collaboration to achieve perfect order: y this is not a single g company p y concept p why
The new supply chain skill set: the qualifiers and winners
IQ & EQ Implications for learning and development
Innovation
Innovation is all about creating value, economic value, social value and/or environmental value through the application of ideas that are new to you
The screen versions of these slides have full details of copyright and acknowledgements
Competitive Supply Chain Resilience: Gaining Competitive Advantage Through Innovation & Collaboration Prof.Dr. Richard Wilding
Supply chain innovation process, infrastructure, information systems and organisation
Corporate strategy Competitive strategy Supply chain objectives
Trust
Trust
Agility
Transparency
Time
Time
Transparency
The screen versions of these slides have full details of copyright and acknowledgements
Competitive Supply Chain Resilience: Gaining Competitive Advantage Through Innovation & Collaboration Prof.Dr. Richard Wilding
To achieve perfect order you need to move people from I to T
I shaped people only understand their own function T shaped people understand the process they are part of and also their functional strengths
Customer value is created when perceptions of benefits received exceed the costs of ownership
The screen versions of these slides have full details of copyright and acknowledgements
Competitive Supply Chain Resilience: Gaining Competitive Advantage Through Innovation & Collaboration Prof.Dr. Richard Wilding
Delivering the perfect order experience through the supply chain
Pre-transaction Written customer service policy Accessibility Organisation structure System flexibility Transaction Order cycle time Inventory availability Order fill rate Order status information Post-transaction Availability of spares Call out time Product tracing/warranty Customer complaints, claims etc.
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Supply chain management can be defined as the management of upstream and downstream relationships with suppliers, distributors and customers to achieve greater customer value-added at less total cost
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Cooperation
Coordination
C3
Collaboration
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The screen versions of these slides have full details of copyright and acknowledgements
Competitive Supply Chain Resilience: Gaining Competitive Advantage Through Innovation & Collaboration Prof.Dr. Richard Wilding
Multiplying the benefits: C3 behaviour and trust
High
Win/win [1+1=8!]
Tru ust
Low Low
Adapted from: Covey, 1989
C3 behaviour
High
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Highly creative!
100 90 80
Trust
70 60 50 40 30 20 20 30 40 50 60 70 80 90 100 110
Total disaster!
C3 behaviour
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Consumer focus
Data sharing
Trust
Integrate into internal applications Flexibility responsiveness Shared KPIs
(e.g. on time in full OTIF)
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The screen versions of these slides have full details of copyright and acknowledgements
Competitive Supply Chain Resilience: Gaining Competitive Advantage Through Innovation & Collaboration Prof.Dr. Richard Wilding
To measure is to know.
If you can not measure it, you can not improve it
Lord Kelvin (Sir William Thomson) 1824 - 1907
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The screen versions of these slides have full details of copyright and acknowledgements
Competitive Supply Chain Resilience: Gaining Competitive Advantage Through Innovation & Collaboration Prof.Dr. Richard Wilding
SCCI barometer
www.sccindex.com
60 74
75 - 100
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The screen versions of these slides have full details of copyright and acknowledgements
Competitive Supply Chain Resilience: Gaining Competitive Advantage Through Innovation & Collaboration Prof.Dr. Richard Wilding
What can destroy your supply chain and your competitive advantage?
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Water classification:
Green water (rain) Blue water (irrigation) Grey water (flushed effluent)
WWF 2009
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The screen versions of these slides have full details of copyright and acknowledgements
Competitive Supply Chain Resilience: Gaining Competitive Advantage Through Innovation & Collaboration Prof.Dr. Richard Wilding
Creating the resilient supply chain
Mapping & critical path analysis Supply chain understanding 1. Supply chain (re)engineering Supply base strategy Sourcing decisions and criteria Supplier development Collaborative planning Supply chain intelligence
3. Agility
Professor Martin Christopher, Centre for Supply Chain Risk & Resilience, Cranfield School of Management 2006
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Focused on improving competitiveness Successful in delivering value Modular and flexible in design & use Built on cross industry experience and world class tools Takes an end-to-end and integrated view of the supply chain Recognises that supply chain must change to meet future visions
Und derstanding
Action
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The screen versions of these slides have full details of copyright and acknowledgements
Competitive Supply Chain Resilience: Gaining Competitive Advantage Through Innovation & Collaboration Prof.Dr. Richard Wilding
Competitive supply chain resilience
identify critical processes
Those processes which outperform the competition Processes that provide future required competencies Competitive processes Unique processes necessary to exist in your industry Innovation process
Qualifying processes
Underpinning processes
The strategic diamond These processes determine the present and future success of the organisation
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Manage the supply chain processes that drive perfect order fulfilment
Flowchart the order fulfilment process (supply chain overview) Identify the critical elements - the potential fail points Use statistical process control to monitor the critical elements Manage the order on a cross-functional/cross-company basis
Get T shaped
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The screen versions of these slides have full details of copyright and acknowledgements
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Competitive Supply Chain Resilience: Gaining Competitive Advantage Through Innovation & Collaboration Prof.Dr. Richard Wilding
IQ the technical skills of the supply chain (the order qualifier?)
Logistics, transportation, warehousing, purchasing, production, planning, regulations, environment, quality, inventory management, performance measurement, computing supply chain accounting and finance, computing, finance supply chain strategy
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The screen versions of these slides have full details of copyright and acknowledgements
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Competitive Supply Chain Resilience: Gaining Competitive Advantage Through Innovation & Collaboration Prof.Dr. Richard Wilding
EQ relational skills of the supply chain (3)
Social skills
Influence: using effective tactics of persuasion Communication: sending clear and convincing messages Conflict management: negotiating and resolving disagreements Leadership: inspiring and guiding Change catalyst: initiating, promoting, or managing change
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Conclusion
For creating the perfect order the 4 Ts are key!
Trust
Trust
Transparency
Time
Time
Transparency
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The screen versions of these slides have full details of copyright and acknowledgements
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Competitive Supply Chain Resilience: Gaining Competitive Advantage Through Innovation & Collaboration Prof.Dr. Richard Wilding
Why customers stop doing business a final thought!
1% die, retire or are terminated 3% transfer to other jobs, companies or locations 5% give their business to other friends 9% competitive reasons 14% product dissatisfaction 68% attitude of supply company
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Is your organisation capable of collaboration? Do you have the skill set required, IQ and EQ?
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The screen versions of these slides have full details of copyright and acknowledgements
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Competitive Supply Chain Resilience: Gaining Competitive Advantage Through Innovation & Collaboration Prof.Dr. Richard Wilding
Cranfield - a distinguished reputation
Financial Times Executive Education Rankings 2008
Ranked by clients as the top UK business school for customised executive development and one of the top 5 in Europe Ranked No.1 in the UK for programme preparation and follow-up; Teaching methods and materials; the relevance of new skills and learning; And achievement of academic and business expectations
Europe's largest faculty specialising in the management of logistics & supply chains
Globally recognised centre of excellence Internationally recognised MSc in logistics and supply chain management
Accreditations
One of only 20 business schools worldwide to be triple AMBA, EQUIS and AACSB accredited Cranfield has more MBA alumni at board level in top UK companies than any other business school
www.cranfield.ac.uk/som
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The screen versions of these slides have full details of copyright and acknowledgements
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