Microsoft Entertainment &Devices

Transcription

1 Microsoft Entertainment &Devices - David Warrick - General Manager Manufacturing & Supply Chain EMEA & APJ CIES Supply Chain Conference October, 2007

2 Entertainment & Devices (E&D) Xbox Rapid & Complex Product Innovation Zune PC Hardware FPP Games Mandates World Class E2E Supply Chain Capabilities & Solutions supporting Retail sales channel Product / Regulatory Compliance Forecasting and Planning Direct Material Procurement Virtual Global Supply Chain Systems & Program Management Returns & Refurbishment E&D Manufacturing and Supply Chain Hardware Manufacturing Software Manufacturing & Packaging Global Footprint Channel Management Warehousing and Distribution Logistics CMs DCs T2 Suppliers Operations/IT Centers Return & Refurbishment

3 Supply Chain Challenges Extremely competitive business environments Rapidly evolving product portfolios Increasing product cost and margin pressure Long product component lead times High reliance on outsourced service providers Cyclical and pronounced product lifecycles Increasingly complex regulatory requirements Numerous and dissimilar business models

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5 Halo 3 Challenges Day 1 Launch volume of over 1.5 million units Localised in 15 languages Simultaneous launch in over 25 countries One street date: 26th September Retailer Lead Times Supply Chain Security Forecasting and Allocation Multiple locations and Vendors

6 E&D Supply Chain Model Effective Product Launch Management Raw Material Suppliers Visibility Packaging Suppliers Manufacturing Optimal Lead Time Management. Distribution Centers Distributor or Wholesaler Retail Customers Shared Understanding & Education Consumers

7 To Be Proactive.. Understand future business needs Solutions need to be scalable Prioritise Optimise capabilities Re-engineer engineer Get the right people Expect the unexpected The most important part of a plan is the part not in the plan!

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9 Proactive Supply Chain Management Thursday, October 11th From 2007 Factory to Store David Warrick Microsoft

10 Challenges Supply Chain is Customer Experience Total Supply Chain Visibility Cost to Serve Transparency Pro-Active On Time SC Right Management Quantity Anticipate Action Agile Supply Chain 100% Street Date Accuracy on Store Level for 3,500 ship to s across EMEA

11 Event Management (SCEM) Suppliers Warehouses Carriers Consignees Outbound Supply Chain MIS Sales Order Creation Picking & Packing Arrival hub carrier Departure hub carrier Payment Exception Mgt Delivery Creation Goods shipped Arrange Book in slot at customer Information of Delivery (IOD) Perform. Ctrl. EDI SMS WEB Actual Events EDI SMS WEB Cost Calculation Alert Framework SCEM IT Platform Web based T&T Payment Paperwork Mgt. Planned Events Planned Events

12 Event Management (SCEM) Suppliers 90 Ship-To Countries - > Ship-To s Software Hardware Other Commercial flow of information flow of goods flow of money Delivery FTL/LTL Parcel Air/Ocean Other Carriers Clients

13 Managed Inventory (VMI) Retail Store Sales / Stock Data Order Response Despatch Advise Replenishment Orders Return Authorization Carrier ERP System Warehouse Orders Businesspartner = EDI - Interface

14 Approach & Solutions Paradigm Shifts Paradigm Shifts due to Pro-Active Event Management Information first, then physical event Corrective action before problem with customer impact occurs Transparency on root cause before investigation Cost determination before actual delivery Payment before invoice generation Fulfill before demand detection Return before obsolete Inform before asking