Government of Alberta Energy Supply Chain Development Seminar Delivering Efficiencies in Supply Chain Management - An International Perspective

Transcription

1 Government of Alberta Energy Supply Chain Development Seminar Delivering Efficiencies in Supply Chain Management - An International Perspective Colin Oddoye November 29, 2012 kpmg.ca

2 Agenda 1. Market Overview 1. Alberta Oil & Gas Industry Participant Company Profile 2. Recent Market Developments 3. Perspectives from south of the border 2. Implications for Alberta manufacturers that support the industry 3. Similarities and Differences between Canadian and International Manufacturers (KPMG Manufacturing survey results) 4. Managing Business to Business relationships in competitive times 1. Managing the supplier relationship 2. Fiege Logistics Example 1

3 Alberta Oil and Gas Industry Participant Company Profile 1H Total Indeterminate Employees Total with Employees Conventional O&G Extraction Non-conventional O&G Extraction Contract Drilling 500 O&G Services 0 1 to 4 Employees 5 to 9 Employees 10 to 19 Employees Conventional O&G Extraction Conventional O&G Extraction Non-conventional O&G Extraction Contract Drilling O&G Services Non-conventional O&G Extraction Contract Drilling O&G Services to 49 Employees 50 to 99 Employees to 199 Employees 200 to 499 Employees 500 plus Employees Source: Alberta Enterprise and Advanced Education 2

4 Some Thoughts on Family Business 3

5 Recent Market Developments 4

6 The perspective from south of the border Source Short-Term Energy and Winter Fuels Outlook, October 10, 2012 US Energy Information Administration 5

7 A New Reality? 6

8 Supply Chain Relationships An Overview SUPPLY CHAIN OPERATIONS MODEL Plan and Manage Suppliers Source Return Make Deliver Return Customers Coordinate and Collaborate 7

9 Core Supply Chain Management Activity Sales & operations planning Sustainable (green) supply chain Retail loss prevention Supply chain strategy SKU rationalization Cost optimization Retail operations improvement Supplier risk management Spend analysis Suppliers SUPPLY CHAIN OPERATIONS MODEL Plan and Manage Source Return Make Deliver Return Coordinate and Collaborate Customers Customer service transformation Supply chain system selection Strategic sourcing Lean operations Inventory management / optimization Logistics management / optimization Procurement transformation Distribution centre design & development Transportation management / optimization 8

10 Priorities Over The Next 12 To 24 Months The top three priorities over the next one to two years for Canadian respondents are improved productivity/efficiency, topline growth, and bottom-line growth Improved risk controls for global respondents is double in focus in comparison to Canadian respondents Canada (n = 150) Global (n = 241) Improved productivity/efficiency 50% 36% Top line growth Bottom line growth 47% 45% 45% 47% Increased competitiveness compared with industry peers 25% 29% Development of new product lines 23% 11% Increased cash or liquidity 19% 25% Extension of existing product lines Reduced input costs 17% 19% 9% 12% Greater speed to market Improved risk controls 11% 10% 17% 20% Reduced operation complexity 9% 8% Other 3% 2% The other priorities include Global expansion, acceptance of renewable energy initiatives, inventory management and building a plant. Q2. What are your organization s priorities over the next 12 to 24 months? Select up to three. 9

11 Factors Considered In Selecting Another organization For Innovation Collaboration Nearly half of the Canadian respondents feel that the availability of skills is the most critical factor in selecting another organization to collaborate in innovation Processes and technology innovation and financial stability are also important factors Canada (n = 150) Global (n = 241) Availability of skills 46% 41% Processes and technology to innovate 37% 40% Financial stability 31% 46% Appropriate mix of products and/or services 29% 31% Desired geographic location Contracts/relationships within a particular market/territory Shared ethical values/common approach to treatment of employees and other stakeholders Transparency of communication and information exchange 28% 25% 18% 16% 18% 22% 22% 23% Parity 19% 12% Other 0% 0% Not currently collaborating 6% 1% Q10. Which factors are most critical for selecting another organization with which to collaborate in innovation? Select up to three. 10

12 Strategies To Become More Efficient In The Next 12 To 24 Months 62 percent of the Canadian respondents plan to improve manufacturing technologies/processes to become more efficient in the next 12 to 24 months Increasing supply chain collaboration, shorten the overall product development lifecycle and improve logistics distribution are important areas to gain efficiencies Canada (n = 150) Global (n = 241) Improve manufacturing technologies/processes 62% 54% Increase supply chain collaboration 51% 46% Shorten overall product development lifecycle 51% 21% Improve logisitics distribution Improve logistics planning to reduce time to market Upgrade IT systems Standarized key inputs/components Improve visibility and transparency across the supply chain through greater IT investment 50% 49% 47% 43% 33% 29% 49% 48% 43% 54% Consolidate production/manufacturing sites Shifting of functions or operations to low-tax jurisdictions 9% 27% 12% 47% Don't know 23% 0% Q18. What strategies do you plan to deploy to become more efficient in the next 12 to 24 months related to your supply chain and operations? Select all that apply. 11

13 Managing Business to Business Relationships

14 Managing the supplier relationship Year-End Start-up Quarterly Review Monthly Review 13

15 A Year In the life of a supplier relationship manager Accrue costs, receive invoices and authorise payments for month Year end budget review [Review YTD costs Vs budget] Review full year ( Objectives, Market developments, Supplier performance) Commence definition of targets and budgets for next period Share results and future plans with BUs/suppliers Identify new suppliers and carry out acceptance/rfx process Renew existing supplier agreements Close off existing relationships where relevant Year-End Start-up Agree SRM strategy and plan (Category specific) Align annual objectives with business requirements Sign-off on budget Define on-going projects, project start-ups, project wind-downs that impact budget Schedule internal customer review sessions Schedule supplier performance review meetings Review market developments [Mergers, acquisitions, joint ventures, new products, new developments, new market entries, etc.] Ongoing Quarterly Review Monthly Review Quarterly budget reviews with management [Restate targets, budgets, review YTD costs Vs budget] Detailed review of market developments Accrue costs, receive invoices and authorise payments for month Monitor budget Vs year to date (YTD) costs Review project progress and milestones Review supplier service performance Maintain high-level update on market developments 14

16 The Fiege Logistik Example

17 Fiege Logistik Example FIEGE key figures Founded in: 1873 Employees: 11,000 in 18 countries Trainees: 400 Branches: 200 Warehouse and logistics areas: 3 million m² Turnover in 2011: EUR 1.5 billion (updated June 2012) 16

18 Fiege Logistik Example "Fiege is family-run - and remains family-run." This statement voiced by the owners is manifested by enlarging the management by the fifth generation: Jens Fiege, son of Heinz Fiege, has been managing the international business segment - initially as CEO - since 2004 and became a member of the Executive Board of Fiege Logistik Holding Stiftung & Co. KG in Felix Fiege, son of Dr. Hugo Fiege, joined the management of the Fiege Group in 2008 as the managing director of FIEGE Engineering and became a member of the Executive Board of Fiege Logistik Holding Stiftung & Co. KG in

19 Thank you Presentation by Colin Oddoye