Agenda. How Fixing the Basics Can Drive Supply Chain Performance. Patrick Hartless. 1. Nestle Background Why are We Here

Transcription

1 Company LOGO How Fixing the Basics Can Drive Supply Chain Performance Patrick Hartless Agenda 1. Nestle Background Why are We Here What do do We Mean by by Basics What Can be be Achieved What is is Next 2

2 Nestle - Background Nestle - Background 100 YEARS IN MALAYSIA Established as the Anglo Swiss Condensed Milk Company in Penang. Moved to Kuala Lumpur in 1939 then moved to Mutiara Damansara on 26th Oct Petaling Jaya factory established. Currently 7 factories, 6 Sales Regions Listed on the KLSE. > 5000 staff, > 50 brands, > 1500 SKUs NUMBER 1 food company in Malaysia, 11% of food basket.

3 Nestle Brands & Categories 5 Agenda 1. Nestle Background Why are We Here What do do We Mean by by Basics What Can be be Achieved What is is Next 6

4 Why are We Here To deliver benefits to shoppers & consumers in an efficient manner 7 Why are We Here Definition of 'Supply Chain' The network created amongst different companies producing, handling and/or distributing a specific product. Specifically, the supply chain encompasses the steps it takes to get a good or service from the supplier to the customer. Supply chain management is a crucial process for many companies, and many companies strive to have the most optimized supply chain because it usually translates to lower costs for the company. Quite often, many people confuse the term logistics with supply chain. In general, logistics refers to the distribution process within the company whereas the supply chain includes multiple companies such as suppliers, manufacturers, and the retailers. Read more: supplychain.asp#ixzz24f2sii4n CSCMP s Definition of Supply Chain Management Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies Wikipedia defines Supply chain management (SCM) as the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. [2] Supply chain management spans all movement and storage of raw materials, work-inprocess inventory, and finished goods from point of origin to point of consumption. Another definition is provided by the APICS Dictionary when it defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally." 8

5 Why are We Here Based on the definitions you should feel that Supply Chain truly adds value. 9 Agenda 1. Nestle Background Why are We Here What do do We Mean by by Basics What Can be be Achieved What is is Next 10

6 What Do We Mean By Basics Demand Planning Supply Planning Distribution Basic Supply Chain Customer Service Warehousing 11 What Do We Mean By Basics MY SC DASHBOARD Corporate KPI Unit Target 2011 Jan Feb Mar CSL I/As % CSL LNAs % CSL DOMESTIC % CSL IMS % You have to know where you are and what is your real Key Performance Indicator Many competing KPIs, but it is critical to articulate and focus on the Key ones 12

7 What Do We Mean By Basics Realisation it is not that great! Now you need to ask WHY? 13 What Do We Mean By Basics The Why in terms of Nestle MY SC: Embedding new structure Coping with high turnover of staff Capabilities of SC team to meet business requirements Poor data transparency and trust in the numbers Quality of the forward number in demand plan Not harnessing ERP system (Enterprise Resource Planning) Silo mentality 14

8 What Do We Mean By Basics The issues can be grouped under 3 main headings: People Are they engaged Do they understand their role Have they been trained to perform their role Is the structure right System Is it configured correctly Master data correct & up to date Do people know how to use it or is Excel default system of choice Process Do they make sense Are they defined Are they documented Have people been trained Sweet Spot 15 Agenda 1. Nestle Background Why are We Here What do do We Mean by by Basics What Can be be Achieved What is is Next 16

9 What Can be Achieved MY Supply Chain Dashboard A considerable improvement in a year with NO rocket science involved 17 How did we do it: Recruited good people within and outside Malaysia and left positions open if no one suitable What Can be Achieved We demonstrated to the team that we had a Rolls Royce in the Garage - SAP We built credibility in the function. Declared we were equal partners Ensured that all 400 people within Supply Chain knew why they went to work Put in Goal Alignment to drive empowerment down the organization 18

10 Agenda 1. Nestle Background Why are We Here What do do We Mean by by Basics What Can be be Achieved What is is Next 19 What is Next Foundations are getting in place so we can move forward. The strategy stays the same but we can now ask for more High customer service and reduced cost to serve To be participating in leading edge systems/process development on Demand Shaping and Capacity Planning 20

11 What is Next 21 Questions 22