Dinalog Institute & Campus
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1 Dinalog Institute & Campus Realizing Supply Chain Control and Collaboration Jan C. Fransoo Professor of Operations Management & Logistics Eindhoven University of Technology Vice-President, Dinalog 1
2 An example: A multibillion dollar chemical company Dozens of businesses, thousands of planners Planners are operational decision makers in the supply chain, such as: Business Planners Sales& Operations Planners Customer Order planners Production planners & schedulers Transportation planners & dispatches 2
3 Pre-1990s Virtually all functions decentralized Business planners at HQ of units, typically main manufacturing location BU HQ Dispersed manufacturing locations Business Planners Sales& Operations Planners Customer Order planners Production Transport Production planners planners schedulers Transport dispatcher s 3
4 Situation 2000 Centralization of function per region, per BU Regional HQ BU HQ Business Planners Centralized location per Regional BU Sales& Operations Planners Customer Order planners Production planners Transport planners Dispersed manufacturing location Production schedulers Transport dispatchers 4
5 Situation 2000 Centralization of function per region, per BU Regional HQ BU HQ Business Planners Centralized location per Regional BU Sales& Operations Planners Customer Order planners Production planners Transport planners Dispersed manufacturing location Production schedulers Transport dispatchers 5
6 Situation now Centralization of function per region, per BU Abandoned most of the offshoring Regional HQ Centralized location per Regional BU Dispersed manufact uring location BU HQ Business Planners Sales& Operations Planners Customer Order planners Production planners Transport planners Production schedulers Transport dispatchers 6
7 Centralized Supply Chain Planning Controls S&OP process for region or world Conducts customer-facing planning operations Conducts factory-facing facing scheduling Match supply and demand Medium term VMI Order exception handling Transportation and/or production Manages contracts for Economies of scale logistics services Transport utilization Arranges collaboration with other companies Horizontal collaboration Vertical collaboration 7
8 Large corporations are increasingly centralizing their supply chain functions Cost reduction Performance f improvement Attract Supply Chain Talent Speed up innovation 8
9 New ways of creating scale Individual Manufacturer Response to Fragmentation Erosion of scale Challenges in meeting unique customer requirements Difficulty in meeting cost targets Today Tomorrow Pooling Response to Fragmentation Today Cross Chain Company D Tomorrow Company A Supply Chain Collaboration Center Company C Company B Rural Area s Company A Supply Chain 4C Rural Area s Maintain scale benefits when facing various channels Provides access to new channels Maintains cost efficiencies when serving fragmented channels
10 Dinalog Ambition & Goals: Facilitating industries to obtain benefits from centralization, collaboration, and innovation
11 Our (historical) background Geographical position of the Netherlands (gateway to Europe) 2 Excellent Mainports, Rotterdam and Schiphol Excellent Hinterland Connections (roads, trains, barge, terminals, hubs,..) Excellent sector of Logistic Service Providers High level l of knowledge, leadership position i in Science Legislation, legal aspects, financial aspects are OK Current total of GDP in The Netherlands, related to logistics and transport is approximately 42 billion (appr. 7.5%of GDP); 11 Appr. 750,000 jobs in this sector!
12 GOAL: European Market Leader in Logistic Control In 2020 the Netherlands has a position as European Market Leader controlling transnational flows of goods. The annual contribution of the Control Part of the Logistics and Supply Chain Sector to the gross national product will triple from 3 billion in 2007 (which is part of a total of 42 billion) to over 10 billion in By boosting development and innovation and wide implementation the whole Dutch sector will profit. Dutch Network of Main Ports / Logistic Hub 12
13 Dinalog Institute Runs 62M innovation program Develop knowledge, software and management insights to make 4C possible > 100 companies 10 universities Port of Rotterdam Amsterdam Airport 13 Dinalog Campus Greenfield to develop office facilities Control Towers of large corporations 4Cs Service providers (IT, consulting, development) Based on Open Innovation principles Sharing of people, ideas and facilities
14 Dinalog Institute 14
15 Key figures Institute. (draft) Dinalog Institute: 44 FTE, 4 year start up period ,= innovation budget plus ,= co-funding Need to multiply this to at least n times this amount (public, private, national, international, Europe,.)
16 Dinalog, themes and targets Themes: 4C (Cross Chain Control Centers) Main Ports Control function Service Logistics Program lines: Highly qualified Applied Research Investment t in Human Capital on all levelsl Knowledge dissemination and valorisation Demonstration and experimental projects
17 Open innovation & wide implementation Projects: R&D : only open for consortia consisting of at least 1 SME and 1 university or academic research institute Demonstration projects: free or depending on criteria external funding Knowledge g dissemination Congresses, seminars, experience sharing, demonstrations, Project valorization, incubators, executive courses, summer programs... Partnerships t and exploiting networks: Line organizations, SME Networks, all levels of the education system Regional and international networks and platforms, stakeholders and government 17
18 1 st en 2 nd R&D Call 2010: 8 projects 4C SL THC (Cross Chain Control Centers) (Service Logistics) (Transport Hubs in Control) 4C4More Cross-chain order fulfillment coordination for internet sales ProSeLo: Proactive Service Logistics for Advanced Capital Goods Extended Single Window: Information gateway to Europe: New information and governance models in international trade & logistics ULTIMATE: Efficient Multimodal Hinterland Networks new concepts for design and operations Value creation by closing the loop 4C4D (4C for Distribution) Da Vinc 3 i: Dutch Agricultural Virtualized International Network with Coordination, Consolidation, Collaboration and Information availability. 18
19 1 st Experimental development Call 2010: 4C SL THC (Cross Chain Control Centers) (Service Logistics) (Transport Hubs in Control) Logistics in building: Prefab building Demonstration project Planning Services 19
20 R&D Call s 2010: organizations in the network 20
21 2nd R&D Call 2010: organizations in the network
22 1 st Demo Call 2010: organizations in the network
23 Dinalog governance Supervisory Board: Karla Peijs Frank van der Duyn Schouten 2 vacatures Executive Board: Willem Heeren, Chairman Jan Fransoo, Vice Chairman Enno Osinga Wando Boevé Remco Overwater Fokke van der Veer International Scientific Advisory Committee (ISAC) Advisory Committee Experimental Development (ACED) Supervisory Board Executive Board Management Management: Wim Bens, Managing Director Henk Zijm, Scientific Director Staff: Secretary / office management Project Management / Monitoring Administration / Accountancy Marketing / Communication / PR Reception / Hostess / Events Staff Research Program Cross Chain Control Centers Research Program Main Ports in Control Research Program Service Logistics
24 Supervisory Board Management Frank van der Karla Peijs, member Duyn Schouten, member supervisory board, supervisory board, Queen s commissionar General Director Netspar Zeeland Executive Board Wim Bens Managing Director Henk Zijm Scientific Director Willem Heeren, Chairman Executive board, Managing Director Jan de Rijk Logistics Jan Fransoo Vice Chairman Executive board, Professor Eindhoven Technical University Fokke van der Veer, Member Executive board,vice president Unilever Benelux Enno Osinga, Member Executive board, Senior Vice President Cargo Amsterdam Schiphol Airport Remco Overwater Member Executive board, Managing Director Vanderlande Industries Wandoo Boevé Member Executive board, Director Marketing & Sales ECT 24
25 Dinalog Campus
26 Dinalog: National function based in Breda Dinalog temporary office Dinalog Campus
27 Dinalog Campus The place to be for innovations in logistics and supply chain management Start building as of January 2012 First settlers: DHL, Jan de Rijk Logistics, 12return, Cass Europe, Chain Balance, Transsmart and many others. Where is your European control tower?...
28 Ambition Dinalog Campus Dinalog Campus: stimulates interaction between the academic world and private industry attracts qualified European industry partners with their control towers and planning departments attracts university innovators in research and education provides a hothouse for innovative companies, start-ups and new post education activities The place where supply chains are innovated and from which several transnational supply chains are managed 28
29 Key figures Campus Breda: excellent geographic location 13.2 hectares (33 acres) >>4,000 associates >>250,000 visitors every year 100,000, m 2 (1M sq.ft.) office space and shared facilities: 8,000 m² Dinalog Offices 5,000 m² Dinalog Incubator 5,000 m² Dinalog Experience 10,000 m² Dinalog Facilities 29
30 Dinalog Campus premises Central Campus construction starts in January
31 Campus = ECO-system ECO-system: a community of complementary companies and institutes a knowledge intensive program shared facilities DINALOG Innovation concept DINALOG initiatives Dinalog Campus ECO-system - open innovation
32 Dinalog Campus Residents Supply Chain Control Towers Dinalog Institute Start-up companies Research institutes Innovative companies R&D oriented companies Academic professionals A dynamic mix of service providers Supply Chain Control Towers Service providers Incubators Academic professionals Dinalog Institute Research Institutes OPEN INNOVATION Innovative companies 32
33 33
34 34
35 Any Questions? Please contact or me at
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