From Strategy to Action:

Transcription

1 From Strategy to Action: how to become more effective in managing your Supply Chains Michael Ginap Founder and Owner, Avineo balancing supply chains SCOR Master Instructor (APICS SCC) SCM Coach 21 June 2017, Barcelona (Spain)

2 Introduction: Michael A. Ginap now 2

3 STRATEGY TO ACTION: enhancing supply chain tactics and strategy alignment Any news? 3

4 Strategy to Action: Barriers What stops organizations in successful execution of their strategies? Barriers to Implementing Strategy Only 10% of organizations execute their strategy Vision Barrier Only 5% of work force understands the strategy People Barrier Management Barrier Financial Barrier Only 25% of managers have incentives linked to strategy 85% of executive teams spend <1hr per month discussing strategy 60% of organizations do not link budgets to strategy YOU CANNOT MANAGE STRATEGY WITH A SYSTEM DESIGNED FOR TACTICS Resource Barrier Resources are spread too thin over many strategic projects Adapted from: "Translating Strategy into Action", a joint study by Renaissance, CFO Magazine and Business Intelligence 4

5 Strategy into Action? Ask Google: Key items: Balanced Scorecard Roadmaps Loops Quadrants Goals / Objectives / Targets Process / People / Technology Communication / Collaboration Segmentation? BPM? IBP / S&OP? 5

6 Style of Collaboration and Decision Making what is agile? this way or that way? drawtoast.com 6

7 How Mastering your Processes can help The Role of Segmentation and BPM in agile Supply Chains 7

8 From Company to Supply Chain from strategy to action If Corporate Strategy is not well defined, how are we determining SC Strategies? If SC Strategies are not well defined, how are we determining SC performance requirements? If SC Targets are not well aligned, how do we design appropriate processes? If SC Processes are not well designed, how do we allocate appropriate resources? If SC People are not well skilled, how do we effectively support the Corporate Strategy? 8

9 Why BPM?...Why xcor? Business Process Management is done for a purpose: improve business results and improve the organization ensure strategy execution Enablers Results Leadership People Processes. People Results Products & Services Business Results Strategy Customer Results Partnerships & Resources Society Results EFQM (European Foundation for Quality Management); Learning, Creativity & Innovation 9

10 BPM Value Proposition in summary BPM enables companies to: institutionalize sustainable business process improvement programs adopt new process management methodologies embed sustainable process re-engineering manage its knowledge Better processes lead to: higher revenues / lower cost motivated and skilled employees enhanced agility sustained product and service quality effective product and process innovations more effective internal and external collaboration and decision making great customer outcomes 10

11 Strategy Alignment: What Makes up a Business Source: APICS Supply Chain Council, Inc (all rights reserved) A business generally can be thought of as a set of processes focusing on executing a customer-focused value proposition. Supply Chain is connected deeply to Product/Portfolio Management, Product Design, Sales & Support, as well as HR, IT, Finance xcor are Operations Reference models for: Supply Chain SCOR Design Chain DCOR Customer Chain CCOR Product Lifecycle Chain PLCOR (originating at APICS Supply Chain Council) 11

12 Purpose? Understand your Business(es)! How do you bring value to markets? How many value chains are we operating? How much fit-for-purpose? Source: 12

13 Supply Chain Segmentation: Key to Sharpening the Strategy Source: APICS Supply Chain Council, Inc (all rights reserved) SCOR defines supply chain as: The processes that plan and execute the acquisition of materials, transformation of materials in sellable products, delivery and return of products and services in support of customer orders. How many supply chains do we operate? Whether from Cow to Cone, Crude to Car or from Rock to Ring, SCOR is not limited by organizational boundaries. SCOR can be applied to supply chains in any industry and to any organization in the chain. 13

14 Source: APICS Supply Chain Council, Inc (all rights reserved) SCOR : A Process Framework Combining 4 techniques into a single integrated approach 14

15 Source: APICS Supply Chain Council, Inc (all rights reserved) Identify Competitive Requirements Procedure: Prioritize supply chain performance requirements for each relevant supply chain/ market channel For each supply chain: 1 superior (S), 1 advantage (A), and 2 parity (P) Each unique combination of ratings defines YOUR Supply Chain Strategy for the channel Think of the rating as a desired state, NOT where you want to improve the most Performance Attribute or Category Supply Chain 1 Competitive Requirements Supply Chain 2 Supply Chain 3 Reliability S A A Responsiveness Agility A P S Cost P S P Asset Management P P P S: Superior A: Advantage P: Parity 15

16 Integrated Business Process Architecture xcor based landscape and architecture An integrated Business Architecture facilitates the organization with a consistent and clear structured process landscape: 1. Delineates Process Domains 2. Enables the Navigation from highest to lowest level of detail 3. Helps illustrating Value Stream Model(s) on an abstract level 16

17 Example: Value Stream Model SCOR inside enabling for consistent process design Our Approach: Top-down and Bottom-up 17

18 Our Journey: Managing Supply Chains from Strategy to Action Source: APICS Supply Chain Council, Inc (all rights reserved) Business Strategy Drives Segment business into supply chains, determine performance Feedback Supply Chain Strategies Drives Feedback Supply Chain Network Drives Manage processes towards strategic network goals Optimize network for strategic performance requirements Feedback Supply Chain Processes Drives Feedback Supply Chain Resources Continuously align resources to meet process goals 18

19 Typical Transformation with IBP/S&OP Before a continuous feedback and alignment process between business tactics and strategy After decoupled plans in Sales and Operations different levels of aggregations various intervals of planning maturity in planning processes and system use vary lack of trust in sales estimation communication often on ad hoc basis non-transparent stock levels and inventory targets best intentions one integrated set of plans across the business harmonized aggregation levels synchronized planning sequence enhanced planning skill sets and systems utilization trusted plans, mutually aligned structured, value-add communication process between business partners balanced inventory target setting and stock transparency along the chain, incl. country sales organisations collective business intelligence In simple terms: a common sense process! 19

20 S&OP: Generic (process) model and SCOR used for process design: sp1.2 sp1.1 sp1.3 sp1.4 20

21 Conclusions 21

22 Strategy to Action Critical Success Factors? 1. Linking Strategy to Action follow M4SC / SCOR Racetrack 2. Segmentation focus 3. Mastering Processes / Knowledge use xcor Frameworks 22

23 Thank you! Q&A Michael Ginap Founder and Owner SCOR Master Instructor more information: 23