How Technology Can Optimize Your Supply Chain Management. By Dr. Ruanthi de Silva Director Supply Chain Management

Transcription

1 How Technology Can Optimize Your Supply Chain Management By Dr. Ruanthi de Silva Director Supply Chain Management

2 AGENDA What is Supply Chain? What is Supply Chain within the context of Shipmanagement The need for a continuous Management of the Supply Chain What is Technology The Role & Value of Technology The Key Drivers Of Supply Chain Use of Technology for Value Creation to Internal/External Customers An Example in Managing Port Agency Arrangements Conclusion

3 What is Supply Chain??? Different interest groups define Supply Chain in different ways. A supply Chain is the alignment of firms that bring products or services to market. Lambert, Douglas M., James R. Stock., Lisa M. Ellram; Fundamentals of logistics management. A supply Chain consists of all stages involved, directly or indirectly, in fulfilling a customer request. The Supply Chain not only includes the manufacturer and suppliers but also transporters, warehouses, retailers and customers themselves. Chopra and Meindl : Supply Chain Management: Strategy, Planning and Operations. The systematic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain for the purpose of improving the long-term performance of the individual companies and the supply chain as a whole. Mentzer, De Will, Deebler, et al Defining SCM Journal of Business Logistics

4 What is Supply Chain within the context of Shipmanagement Through Defined Policy and Processes.. Ensure an undisrupted service, providing the right products and services from the right suppliers at the right place at the right time AND at the right PRICE. Select and Work with the RIGHT FIT Suppliers. Who Can Always Supporting The Ethos on Ethics Seafarer Safety Asset Preservation On Time-Every time Delivery of Customers Cargo Meet Regulatory Needs

5 Offices locations Holistic Information Flow Holistic Information Flow Tier 2 Supplier Tier 1 Supplier SCM Logistics Procurement PRODUCT /SERVICE FLOW Current Needs New Business Finance Value Creation Internal Customer End-Customer/ Owner CUSTOMER RELATIONSHIP MANAGEMENT BETWEEN END USERS AND SUPPLIERS TO OPTIMISE VALUE CREATION DEMAND MANAGEMENT FOR RELIABLITY ASSUSRED DELIVERY OF PRODUCTS AND SERVICES ORDER FULFILLMENT WITH QUALITY PRODUCTS AT COMPETITIVE PRICES WITH OPTIMUM LEAD TIMES ACROSS THE GROUP PREMPTING DEMAND TO FACILITATE SUPPLIERS SUPPLY CHAIN PLANNING PROCUREMENT AND LOGISTICS ARRANGEMENTS PREMPTING NEED BASED ON REGULATORY COMPLIANCE SUPPORT OPERATIONAL COMPETENCE WITH NEED-BASED TRAINING FROM SUPPLIER RESOURCES

6 Offices locations Why the need for a continuous Management of the Supply Chain Why the need for a continuous Management of the Supply Chain Changing NEEDS of the customer and the Supplier markets Globalization of supply chains Unplanned or catastrophic events Company consolidation and ownership changes Increased emphasis on controls Increase demands on short lead time for delivery Continued search Text for savings or revenue enhancement Need for Continued Special training for Shore Staff and Crew Secure product delivery stability, quality Across the Organisation Look out for New technologies to improve process Adapted from a publication of Atos Consulting Asia Pacific 6

7 Offices locations What is Technology Throughout the decades, the use of the term TECHNOLOGY has taken many dimensions. Technology as Objects - Physical devises of technical performance Tools, Machines, Instruments Technology as Knowledge The know-how behind technological innovation Technology as Activities What people do, their skills, methods, procedures, routines Technology as a Process Need and Solution Based Technology as a medium of Information sharing

8 The Role & Value of Technology The role of Technology and the Value Chain Will be positive only if it significantly impacts the competitive advantage or industry structure Scheduling, controlling, optimising, measuring etc. Technology will affect cost or differentiation if it influences the cost drivers or the drivers of uniqueness of the value activities Technological Change and the entry barriers Technology and the shift of power between buyers and sellers Technology Strategy The Choice of Technologies to Develop Technology Leadership or Followership

9 Technology Leadership & Followership?? Technological Leadership Technological Followership 1 st firm down the learning curve Learn from the leaders experience Pioneer a unique product that increases company value Avoid R&D Cost through Imitation Innovate in activities that increase company value Opportunity to be more adaptable by watching other performers in the market

10 The Five Major Supply Chain Drivers Need Identification and Sourcing What, How & When and with whom? Inventory How Much & Where & How to Manage? Information The basis of making these decisions Logistics How and When and with whom to move? Location Planning Where to do What? Responsiveness & Efficiency The right combination of responsiveness and efficiency in each of these drivers allows a supply chain to increase throughput whilst reducing inventory and operating cost. How to Optimize? The Use of Right Technology

11 Use of Technology for Value Creation to Internal/External Customers Internal Customers For Process efficiency Across The Organisation An easy to source consolidated supplier base covering its Technical Needs Reduction of Order Processing Cycle-Time Supplier Segregation for the right level of Focus Cross functional Team Participation for Organisational Buy-In A robust ERP System Management of Service Level defined Agreements Supported with Tariffs, Terms and Conditions Defined Supply Chain Policy and working manual in place for Clarity and common understanding across the Organisation Supplier Evaluation/re-evaluation techniques on a structured basis

12 Use of Technology for Value Creation to Internal/External Customers Internal Customers For Competency Development Training arrangements for sea and Shore Staff and Record management Web Based CBT s Videos on Demand etc. Initiating Key Supplier Participation in Creating an Industry Standard in Procurement Methodologies Supplier Integration, Industry Standards, security in e-procurement platforms etc.

13 Use of Technology for Value Creation to Internal/External Customers External Customers Possibility of Measurement of Cost competitiveness - Benchmarking Efficient Inventory Management techniques Barcoding/RFID Technology Managing Transparently, Tender Processes Conventional or Reverse Auctions Possibility of coordinating Vessel Docking Arrangements from a global perspective Global Web Based Data Management Regulatory need monitoring for retrofit Negotiations Internet/Intranet facilities Ensuring the usage of the Best in class suppliers Procurement Analytics Confidence of asset preservation due to the engagement of only maker authorized service providers at optimal cost Life Cycle Cost Analysis Ethical behaviour within all purchasing teams Transparency of engagement Transparency in selection of the right supplier Information sharing.

14 Offices locations Segmenting Customers For Relationships And Approaches High Value/Criticality Strategic Items Collaborative Relationships Cost Focus Retention Tactics Leverage Items Cooperative Relationships Creation tactics Transaction Items Transactional Relationships Transaction Cost Focus Market items Competitive Relationships Price Focus Low Few Transaction Cost Focus Price focus Qualified Supplier Availability Many

15 Offices locations FOUR PILLARS OF SUPPLY CHAIN EXCELLENCE Proactive Supply Chain Management and Approaches Objective: The effective management of RISK, RELATIONSHIPS & TRADE-OFFS HUMAN ASSETS ORGANISATIONAL DESIGN INFORMATION TECHNOLOGY MEASUREMENT View the Supply chain holistically process wise Manage critical relationships Understand the Business Engage in Analysis Centrally Coordinated Executive Responsibility Cross-functional teams to manage the Supply- Chain SCM strategy Coordination Real time & Shared IT Systems Order Planning Order Management Use data from sources visible to the org: Quantify what creates Supply chain value Link to Business goals Assign Ownership and Accountability

16 Offices locations An Example in Managing WEB-Based Port Agency Arrangements Creating easy single Point of contact by any Shore/Sea staff for any Agency need Anytime from Anywhere. Easy Control for All Agency Related Financial Transactions Time Managed DA processing within the prescribed time frames across the globe Pre agreed rates and condition management for global Ports which may exceed where services can be planned accordingly

17 Offices locations Conclusion The Positive Impact of Good Supply Chain Management can have a multiplier effect If The right fit Technology Is used as an enabler

18 Thank you THANK YOU!