From Supply Chain to Value Chain The Axia Institute Approach

Transcription

1 February 12, 2018 From Supply Chain to Chain The Axia Institute Approach John D. Hatfield Director of Marketing and Communications The Axia Institute: Delivering Chain Solutions Michigan State University

2 Agenda Topic The Axia Institute Operating Model The Axia Institute Mission and Vision Chain Examples Questions The Axia Institute: Delivering Chain Solutions Michigan State University 2

3 The Axia Institute chains encompass the complete life cycle of a product. The Axia Institute helps firms address some of the industry s greatest challenges by providing high-impact solutions. #1 ranked Supply Chain Management program Leading value chain innovation center The Axia Institute Operating Model MULTIDISCIPLINARY APPROACH: Delivering comprehensive solutions with input from across functional areas The Axia Institute Operating Model Chain Center of Excellence INDUSTRY PARTNER: Solving grand challenges through collaborative and applied research Institute model to help facilitate faculty research and company collaboration Open/consortia or proprietary research projects EXPERIENTIAL ENGAGEMENT HUB: Deepening expertise through capstone projects KNOWLEDGE NEXUS: Bridging the gap between theory and practical, real-world solutions The Axia Institute provides a neutral environment to foster collaboration and an integrated systems approach to value chain optimization. The Axia Institute: Delivering Chain Solutions Michigan State University 3

4 The Axia Institute Breakthrough Approach Vision We are the top-of-mind center of excellence, leading the world in highimpact solutions to revolutionize value chains. Mission The Institute provides world-class research, teaching programs and outreach that make business happen. Research Education Outreach Pioneering tomorrow s solutions Fostering private/public partnerships Enabling multidisciplinary collaboration Executive education programs + + Experiential learning Student internships Executive retreats and forums Innovative solutions Chain Excellence Index The Axia Institute: Delivering Chain Solutions Michigan State University 4

5 Research Grand Challenges Smart Packaging RFID Sensing for Tracking and Sensing Packaging Printing RFID Sensors Product Authentication and Anti-Tampering Multi-Factor Intelligent Packaging Solution to Prevent Opioid Abuse and Misuse Industry Needs Chain Solutions Chain Index Automated SC Management Using Machine-Learning- Based Tariff Classification and Optimized International Trade Compliance Priority Chains MSU Expertise Risk Mitigation Nano-Bioelectric Technique for Novel Microbial Intervention in Packaged Food The Axia Institute: Delivering Chain Solutions Michigan State University 5

6 Chain Creation: Chronological History The evolution of value creation from supply chain to integrated value chain: Single company integrated supply chain model End-to-end integrated supply chain model Single company integrated value chain model End-to-end integrated value chain model End-to-end integrated value chain management provides firms with the next transformational opportunity for value creation. VALUE VALUE VALUE VALUE Raw Materials Processing Manufacturing Distribution Retail Consumer The Axia Institute: Delivering Chain Solutions Michigan State University 6

7 Integrated Chain Management Extending the firm s focus from supply chain to integrated value chain management: From product focus to solution focus From cross-functional focus to an integrated scalable model From single company focus to multi-company focus From technology project focus to full-scale multi-company digitization From customer focus to consumer focus Integrate, End-to-End Chain Raw Materials Processing Manufacturing Distribution Retail Consumer Cost, Health, Ease of Use, Emotional Influence, Reliability, Social Impact The Axia Institute: Delivering Chain Solutions Michigan State University 7

8 Chain Competencies Customer Integration: Business unit capabilities to assure customer needs are understood in order to quickly respond to rapidly changing customer needs. Innovation: Business unit capabilities to promote cross business unit value chain innovation, and exchange intellectual property with value chain partners. Integrative and Digital Technologies: Business unit capabilities to facilitate information sharing by value chain partners to increase value chain visibility and analytics opportunities. Internal Integration: Business unit capabilities focused on crossfunctional structure and best practice procedures to help the company quickly adapt and respond to customer demand and external market changes. Supplier Integration: Business unit capabilities to assure supplier capabilities are understood for improved value chain performance across both companies. Risk Management: Business unit capabilities to manage and implement value chain risk management to improve and maintain integrated value chain performance. Talent Management: Business unit capabilities to manage and develop human capital across the integrated value chain. The Axia Institute: Delivering Chain Solutions Michigan State University 8

9 Chain Competencies Customer Integration: Business unit capabilities to assure customer needs are understood in order to quickly respond to rapidly changing customer needs. Innovation: Business unit capabilities to promote cross business unit value chain innovation, and exchange intellectual property with value chain partners. Integrative and Digital Technologies: Business unit capabilities to facilitate information sharing by value chain partners to increase value chain visibility and analytics opportunities. Internal Integration: Business unit capabilities focused on cross-functional structure and best practice procedures to help the company quickly adapt and respond to customer demand and external market changes. Risk Management: Business unit capabilities to manage and implement value chain risk management to improve and maintain integrated value chain performance. Supplier Integration: Business unit capabilities to assure supplier capabilities are understood for improved value chain performance across both companies. Talent Management: Business unit capabilities to manage and develop human capital across the integrated value chain. The Axia Institute: Delivering Chain Solutions Michigan State University 9

10 Chain Capability and Performance Indicators Assess an organization s ability to compete with these value chain cultural competencies: Customer integration Integrative and digital technologies Innovation Internal integration Risk management Supplier integration Talent management Assess which competences are driving directional changes for these outcome variables: Cost Quality Customer Responsiveness Speed to Market Customer Integration Internal Integration Supplier Integration Cost Customer Responsiveness Innovation Chain Culture Integrative and Digital Technologies Risk Management Talent Management Quality Speed to Market The Axia Institute: Delivering Chain Solutions Michigan State University 10

11 Mid-Michigan Chain Certificate Program ATTENDANCE Spring 2019 Registration Open Tuesdays, April 23 June 11, WEEK COURSE $2,500 Overview & Customer Trends & Implications SCODE Simulation Procurement Sales & Operation Planning Logistics & Network Design Anti-Counterfeiting, Brand Protection Sustainability & Risk Management SCODE Simulation & Conclusions The Axia Institute: Delivering Chain Solutions Michigan State University 11

12 Chain Certificate Program Testimonials The Axia Institute: Delivering Chain Solutions Michigan State University 12

13 2017 Chain Summit The Axia Institute: Delivering Chain Solutions Michigan State University 13

14 Fruits and Vegetables Implementation Pathway Methodology Wrapping Wrapping Bags Customer use Target Customers: Trader Joe s, Sysco, Dole, Chiquita, C.H. Robinson, Fresh Del Monte, Premium Fresh, O Organic, Nature s Basket, Natural Selection Foods, Fresh Point, Green Harvest Understand our expertise, mission, and goals: Packaging Define the industry or customer problem: Food waste Understand the flow of goods, money, information, etc.: Flow of product Understand the value to be created: Reduce waste generated Focus on areas with a fit for potential solutions: Wrapping and bags for customer use Sources: USDA, UN FAO, IBISWorld, Crean, Big Six, Gordon, R. The Axia Institute: Delivering Chain Solutions Michigan State University 14

15 Example: Pharma Chain Pharma Chain PLAYER Manufacturer Wholesaler Retail (Pharmacy, Online, Other) Non-Retail Payor (PBM/Insurance) Patient VALUE ADDED Innovation Regulatory documentation Quality assured manufacturing Education Continuous supply Waste management Order processing Education Medicine availability Pharmacist advice Patient convenience Health services Education Negotiated volume discounts Manufacturer rebates Formulary placement $ GROSS REVENUE 23.90B CHAIN TOTALS $ NET REVENUE 17.47B 22.31B 21.77B 4.45B 23.93B 27.23B $ PROFIT 7.36B M 1.08B M 1.03B 10.99B Source(s): IMS Institute, Statista, The U.S. Department of Health & Human Services, U.S. Senate Committee on Finance, Minority Staff, IQVIA. The Axia Institute: Delivering Chain Solutions Michigan State University 15

16 Thank you. QUESTIONS?