THE FIVE KEY ATTRIBUTES OF SUPPLY CHAIN EXCELLENCE 1 2 3 4 5 By Jeanne Reisinger Global Supply Chain Improvement Strategist (retired Global Supply Chain Director, Procter & Gamble) In partnership with TRACC Value Chain Improvement Solution
Jeanne Reisinger Jeanne worked as a Supply Chain Leader at Procter & Gamble for 32 years. She has turned supply chains from non-strategic costs to be managed into valuable assets that drive competitive advantage. Her scope of work extended from strategic network design to operational excellence across the entire value chain. Jeanne s footprint is visible from North America Paper and Health & Beauty businesses to Asia Logistics, from the P&G Walmart Customer Team to the Corporate Center of Excellence and the Global Household Care business. She consistently delivered breakthrough change that improved service, reduced cost and cash, and accelerated sales growth. Today, Jeanne is a trusted Value Chain Advisor to companies around the globe looking to transform their value chains through an integrative continuous improvement approach. There must be constant outreach to customers to understand evolving trends so your company can lead the way as the bar is raised. ONE / CUSTOMER FOCUS BY THE ENTIRE COMPANY The most important attribute of an excellent supply chain is constant focus on the customer. It starts with a deep understanding of each customer segment and their service requirements. Customer service requirements and buying behaviours are differentiated so it is clear what features are the price of entry, and which features allow you to win in the market. This knowledge must be shared broadly so every function knows their role in satisfying the customers needs. Supply chain capability is created to meet the requirements, resulting in customised value chain solutions. There must be constant outreach to customers to understand evolving trends so your company can lead the way as the bar is raised. The Value Chain Alignment TRACC leads you through the steps to segment your customers, identify their service requirements and then analyse the capability of your existing supply chain to meet those needs and make the necessary adjustments. It drives alignment by all functions to the core mission of understanding and meeting everchanging customer requirements. The Five Key Attributes of Supply Chain Excellence l 1
Collaboration and integration across functions are critical. TWO / COLLABORATION AND INTEGRATION... OF ALL FUNCTIONS Supply chain excellence is not just about excellence by the Supply Chain function, but excellence by all functions working together, focused on the customer. Collaboration and integration across functions are critical. This collaboration and integration comes naturally when the following conditions are in place: There is a formal process to share knowledge about current customer requirements and future evolving trends Work is organised around the core horizontal processes that run the business and cross-functional boundaries There are common measures between functions for each of the shared work processes Each TRACC best practice involves members of multiple functions working together to better align the company s capabilities to meet customer requirements. Excellent supply chains set targets that use the creative tension of these seemingly conflicting measures to win in the market. THREE / MEASURES LINKED TO BUSINESS OUTCOMES It is critical that all parts of the business understand how their work processes contribute to achieving the company s revenue, cash flow and profit goals. Since you get what you measure, it is important to choose both the measures and the targets wisely. As an organisation matures, it should focus on input and process measures in addition to output measures. Supply chains are a balancing act between cost, service and responsiveness. Excellent supply chains set targets that use the creative tension of these seemingly conflicting measures to win in the market. A foundation of TRACC is the balanced scorecard. Each function, work process, and supply chain must select the KPIs that reflect the needs of their internal and external customers. The Five Key Attributes of Supply Chain Excellence l 2
Horizontal Process Excellence is all about the seamless integration of people working towards common goals. FOUR / HORIZONTAL PROCESS EXCELLENCE Each company is driven by a set of operational processes that run the business. These processes range from demand and supply planning to sourcing, making and delivery. Creating a formal or informal organisational structure between the people who run these processes, allows the experts in the process to work on the process. The people, who come from multiple functions, create common goals and measures and feel a sense of ownership for the continuous improvement of their process. Horizontal Process Excellence is all about the seamless integration of people working towards common goals. TRACC best practices are designed around horizontal processes and use Implementation Task Force structures to bring people from different functions together to drive integrative improvement. Excellent supply chains can create capabilities that enable a shift in the business strategy, which can then open new markets and grow the business. FIVE / SUPPLY CHAIN STRATEGY INFLUENCES BUSINESS STRATEGY It is clear that a supply chain strategy must be aligned to the business strategy that is essential. The opportunity is created when supply chains move from being reactive to proactive and actually influence a change in the business strategy. Increased line flexibility and quick changeovers can allow a broader SKU offering that meets the need of a new customer channel. A change in the distribution network can bring the full product line-up closer to the customer, allowing broader category penetration of the customer. Excellent supply chains can create capabilities that enable a shift in the business strategy, which can then open new markets and grow the business. Supply chains are an asset to be leveraged. The TRACC maturity model takes you to World Class where your company delivers best-in-class results and is leading the way in defining Best in Class for the future. The Five Key Attributes of Supply Chain Excellence l 3
ONE SOLUTION TO ACHIEVE YOUR IMPROVEMENT STRATEGY Why ONE solution to achieve your operational improvement strategy? Meeting the ever-changing demands of markets, shareholders and customers means constantly evolving and improving every aspect of your global organisation. To drive business performance improvement and standardised efficiency gains across your support network, you need an integrative best practice and process improvement system. You also need to create a culture of empowerment, while at the same time upskilling work teams using the same playbook. If you don t, your organisation will experience pockets of excellence that are not replicated. To outperform your competitors, all your improvement projects and processes need to be collapsed into ONE standardised tried-and-tested solution that allows everyone in your value chain to continuously improve and share its practices and core processes. TRUSTED BY: AkzoNobel, Anglo American, Astrapak, Beam, CCU, Coca-Cola Bottlers, COFCO, Diageo, DuPont, Kellogg s, Lion, MillerCoors, SABMiller, SCMC, Swire, Weetabix, and many more. The Five Key Attributes of Supply Chain Excellence l 4
The TRACC Value Chain Improvement Solution TRACC follows an integrative improvement approach. Integrative improvement is the new approach to sustainable continuous improvement. Without this approach, performance improvement using methodologies such as Lean, Six Sigma and Supply Chain Optimisation are not sustainable. Integrative, in the sense of continuous improvement, must relate to each and every part of your organisation including its people, processes and systems. With TRACC, your people own the improvement process and can apply it across multiple operations, cultures and languages simultaneously. Never before has it been possible to collapse all your improvement projects across your entire value chain into one solution which engages all your people in your improvement strategy. To achieve accelerated business performance improvement that is both notable and sustainable, and to continuously increase value, you need to improve everything and enable everyone across your PLAN, SOURCE, MAKE, and DELIVER processes. TRACC provides the following solutions for your business... TRACC IMPROVEMENT STRATEGY AND ENABLEMENT BEST PRACTICES TRACC PLANNING BEST PRACTICES You need to balance the interaction between demand needs and supply capability. You need a solution that enables your people to secure alignment and cooperation across functions and departments, and builds and supports the human capital that is necessary to reach world class. [3 best practices] You need to guarantee both planned production that meets forecast demand and the availability of the appropriate amount of raw materials and goods for planned production runs. You need a solution that builds a more agile, flexible and responsive supply chain with an integrated and structured approach to planning. [7 best practices] TRACC SOURCING BEST PRACTICES TRACC OPERATIONS BEST PRACTICES You need to manage complex data, compliance and risk across increasingly global, multi-tier supply chains. You need a solution that helps you reduce the total cost of ownership (TCO) and enables your people to deliver to supply chain KPIs. [4 best practices] You need to improve operational efficiency and cut costs without reducing value. You need a solution that standardises and integrates best practice, and enables your people to implement efficiency improvement simultaneously across multiple plants. [13 best practices] TRACC LOGISTICS BEST PRACTICES TRACC TRANSACTIONAL SERVICES BEST PRACTICES Your processes are misaligned and there are activities in your warehouses and across transportation that compromise the management and delivery of your products. You need a solution that organises and coordinates all activities regarding the receiving, storage, preparation and distribution of your products to be on time and delivered in full. [5 best practices] You need to ensure a high level of transactional service in order to increase profit margins, attract new customers and retain existing ones. You need a solution that improves processes, and embeds Lean in the high-volume transactional areas of your business. [4 best practices] The Five Key Attributes of Supply Chain Excellence l 5
UNIQUE? WHATMAKES TRACC TRACC is the only solution that provides an integrative improvement system that delivers sustainable business improvement results through best practice and work process improvement. It also creates a culture that enables your people to drive up operational effectiveness and efficiency, maximising value to your customers. TRACC Improve Everything Enable Everyone TRACC SYSTEM, SERVICES AND SUPPORT SYSTEM TRACC Platform TRACC s Integrative Improvement System provides a secure online platform (digitracc) and application that enables you to assess your organisation s practice gaps, maps out the recommended sequence of best practice and process improvement steps, and provides the work packages to action these improvement steps. TRACC Reader The system includes an application for tablets (ipad and Android) and Windows PC that provides TRACC users with easy, mobile and electronic access to the TRACC best practice steps, shared learning and resources. TRACC Training The TRACC platform includes training programmes and materials designed to be customised and delivered by internal trainers. The training methodology enables companies to be competitive by unlocking the inherent capabilities of employees at all levels. TRACC elearning Cogs The TRACC Solution provides online learning with overviews of each best practice, to ensure newcomers or latecomers to the process are given the opportunity to accelerate their understanding of each practice and work process improvement. The TRACC Integrative Improvement System allows you to: ASSESS your best practice and identify opportunities and losses PLAN your step-by-step performance improvement process TRACK your progress and benchmark your operations MANAGE your implementation plan against a proven improvement methodology SHARE best practice and build internal capability services TRACC Trusted Advisors TRACC Trusted Advisors walk every step of the way with your internal implementation and training teams, guiding them through the process, and coaching and training them on how to implement TRACC, build capability, achieve your improvement strategy and sustain the improvements. SUPPORT TRACC System Support To ensure rapid deployment, TRACC provides secure online platform set-up and virtual training. As part of the secure platform set-up, various user groups are created for your organisation. This enables your business to control access rights such as creating and conducting assessments, viewing specific business areas, and system administration. TRACC Community The TRACC online community of best practice provides a mechanism for TRACC users to see photographic examples of what good looks like. This support service also provides peer networking and discussion forums for shared learning. TRACC Events TRACC events are hosted all around the world, attracting thousands of people to collaborate and innovate around business performance improvement. These events are designed to foster collaboration and networking in order to maximise the opportunity for leaders and industry experts to learn from each other s business improvement programmes, experiences and insights. The Five Key Attributes of Supply Chain Excellence l 6
Supply Chains should be CCI The People Behind TRACC an engine that drives value creation. Our reputation for building competitive capability is reinforced by our ability to enable our clients global workforce. Our focus on value-based solutions for our clients brings about process and practice improvements, efficiency gains and also substantial bottom line growth. For over 25 years, we have delivered sustainable results across more than 2 000 operations in 70 countries and in multiple languages. FOR MORE INFORMATION on the TRACC Value Chain Improvement Solution contact us on the relevant details below: North America... +1-949-679-2960 Latin America... +52-33-3002-4023 Copyright 2016 CCI (Pty) Ltd Europe... +44-207-321-3902 Africa/Middle East... +27-21-555-3610 All rights reserved China... +86-21-3382-1651 South East Asia... +65-6866-3300 Australasia... +61-75-577-4005 TRACC, its logo, and Integrative Improvement System are trademarks of CCI. www.traccsolution.com info@traccsolution.com