Twelve years ago Claude Laurent took up the challenge of running the European supply chain for Japanese pharmaceutical company Astellas Pharma. His philosophy is that the supply chain is a process of product transformation, an approach that has helped to increase European turnover by fivefold to around €8.5 billion. While he would like total ownership of the supply chain he realises that sometimes you have to make compromises.

Interview conducted by Martijn Lofvers en Edwin Tuyn, written by Helen Armstrong

The pharmaceutical market is anything but simple. It is characterised by complexity, segmentation and it is limited by policies and authorisation. Still the major players have to find a competitive edge. Astellas Pharma, which manufactures and markets pharmaceuticals worldwide, is head quartered in Tokyo and employs around 17,000 people. Its aim is to expand sales by becoming Global Category Leader in several therapeutic areas including immunology, urology and oncology, It’s European subsidiary has more than 20 affiliates, three manufacturing plants and one research & development centre in Leiden, the Netherlands, which is home to Claude Laurent. He talks about his role as vice president supply chain and manufacturing for Astellas Pharma Europe and how he actively pursues the company’s business strategy and maintains a consistent line.

How do you see the supply chain and how can it make the difference?

I was brought in 12 years ago to deliver a supply chain transformation, assembling all steps from sourcing materials at suppliers to delivering finished products at customers, to conversion at manufacturing plants owned or contracted, into a consistent supply chain process; a process valid through all phases of the product life cycle.  Such a focus on process often conflicts with the prerogatives of the traditional, vertical, organisations in the company. Keeping the unity of the supply chain requires a continuous effort. In Astellas, the Supply Chain cohesiveness in Europe has also to compromise with global interactions.

We have undergone significant corporate changes but have maintained the supply chain model during the last 12 years, and our turnover has multiplied five times. Part of my role has been and still is to maintain the unity and the consistency of the supply chain. You need to focus and to actively pursue your business strategy.

You manage the supply chain as a business, so do you have to follow the business plan of the affiliates?

A replenishment forecast, by definition, is delivered by collaboration. The Supply Chain however concludes the process by ultimately deciding the numbers that will drive the replenishment loop. We are listening to the affiliate, who, in reality, is making the first draft forecast. There is space for negotiation and a need for transparency. It only works cohesively if one party takes ownership. Supply chain in the end takes ownership of the replenishment forecast.

> Read complete interview on the iPad here

> Read complete interview on Android tablet here

ADVA Optical Networking, a Meiningen based manufacturer of telecommunication equipment focusing on fiber-optic transmission technology, is the winner of the Supply Chain Management Award 2013. ADVA Optical Networking is being honored for the end-to-end supply chain solution with which it has secured strategic advantages. The Supply Chain Management Award 2013 was presented at the inaugural Exchainge – the Supply Chainers’ Convention in Frankfurt on June 18, 2013.

The jury was impressed by the systematic integration of the business model and supply chain model. “The development-driven company created an agile supply chain organization based on the needs of its customers. The result is that Adva Optical Networking can now serve its customers faster, with better on-time performance, and at lower cost than its competitors,” noted juror Harald Geimer,Partner at PwC, summarizing the reasons for the jury’s pick.

Efficient balance

“ADVA Optical Networking has succeeded in striking an efficient balance between the varying demands of suppliers and customers, establishing a critical competitive edge that allows this medium-sized enterprise to thrive among the big players,” remarked Petra Seebauer, Director of Publishing at Hussverlag in Munich and editor of the trade publication Logistik Heute, speaking of the winning solution.

“With this solution, Adva Optical Networking can offer valuable insights to other sectors,” praised speaker Pavel Krych, Director of Technical Purchasing at Deutsche Telekom, in his congratulatory speech. The supply chain solution from Adva Optical Networking is in a class of its own when it comes to planning and translating planning into production, says Krych, noting that ADVA Optical Networking found an elegant implementation of an innovative idea with its supply chain segmentation customized to the specific needs of the industry.

Paulus Bucher, Senior Vice President of Global Operations at Adva Optical Networking, was very pleased with the distinction: “Our industry is characterized by intense global competition. We thrive in this aggressive environment thanks to three key qualities that define who we are: innovative power, speed in addressing customer requests and new trends, and the ability to build long-lasting relationships of trust with our customers. Supply chain management plays an important role in addressing all three competitive advantages. The transformation was the logical culmination of this insight and required a great deal of commitment and elbow grease at all levels of our relatively small but global organization. It means a great deal to us to have all our hard work validated by this coveted award.”

Radical transformation

Adva Optical Networking built on its global supply chain strategy to standardize its processes and systems around the world, improving customer focus and establishing a strong competitive stance. End-to-end supply chain optimization that extended beyond development, production, and sales to include suppliers made it possible to establish a powerful and comprehensive supply chain. The pull-based solution that was implemented features an unprecedented level of flexibility and boasts measurable results, a wide array of customer-specific solutions, and best-practice processes. This led to a reduction in supplier lead time of over 50 percent, an increase in on-time delivery from 85 to 97 percent, and an acceleration in stock turnaround from 3 to 6 times annually. These improvements required a radical transformation at all levels of the supply chain that was achieved in less than 2.5 years.

The flexibility this yielded is key to the success of Adva Optical Networking in keeping both its customers and its suppliers happy. While the customers have the products delivered at relatively short lead times of 15 days on average, the suppliers have long lead times of 4 to 12 weeks.

Segmentation

The end-to-end and cross-enterprise segmentation of the supply chain – from the supplier’s supplier to the customer’s customer – is a unique innovation in the industry. Segmentation means defining and differentiating segments on the basis of the product portfolio and the existing demand structures. This makes it possible to effectively and efficiently serve distinct portfolios. Production and planning have also been decoupled. This two-stage approach enables late-stage customization – customer-specific product configuration and adaptation in the regional final assembly centers – enabling a quick response to changing customer demands and a high degree of flexibility to satisfy customer wishes. Close collaboration of this type between developers and suppliers makes end-to-end optimization possible.

“This so-called end-to-end segmentation of the supply chain in conjunction with decoupled production and planning is the key to customer-specific product configuration in the regions,” notes Geimer from PwC, explaining the innovative approach.

Differentiated planning groups make it possible to serve customers with optimized lead times – individually arranged by product group based on the customer’s specific needs. A prime example is the end-to-end planning model offering ten planning groups that draw upon more than seven different  distinguishing criteria as well as real-time planning optimization. This means that the regional account managers can immediately gauge the effects on time-to delivery and adjust the product configuration directly if needed, thereby providing input to the weekly planning process.

Two-stage production with the centralized manufacturing of product components and customer-specific configuration regionally also offers greater flexibility to the customers. This puts the business in the position to respond as late in the process as possible to changing customer requirements and manage stock and production times with flexibility. The end result is that Adva Optical Networking serves its customers faster, with better on-time performance, and at lower cost than the competition.

Top-tier finalists

Each year since 2006, the Supply Chain Management Award has honored the best value chain in the manufacturing industry. It is presented by PwC and the trade journal Logistik Heute in collaboration with the Institute for Supply Chain Management (ISCM) and the House of Logistics & Mobility (HOLM) to reward innovative solutions in supply chain management that have made significant contributions to competitiveness and paved the way for other companies. The award is presented to powerful end-to-end supply chain solutions and outstanding implementations within individual links in the value chain.

ADVA Optical Networking has prevailed in what was once again a strong competitive field. From two rounds of applications, four finalists ultimately emerged: The HealthCare Business Area of Bayer (Leverkusen), Intel Mobile Communications (Neubiberg), and Symrise (Holzminden), a global provider of fragrances and flavors. All the finalists presented compelling solutions, though they varied in their focus.

Bayer applied a comprehensive supply chain strategy to consistently optimize its end-to-end strategy from the supplier to the customer. Intel created an innovative, fully integrated solution for the entire supply chain of its Mobile Communications unit that supports a production network in a volatile market driven by the demands of applications and customers. Once installed, the solution achieved a high degree of automation and made it possible to significantly reduce stock.Symrise created an innovative, vertically integrated, farmer-to-customer supply chain for vanilla that fuels the company’s success in the market for vanilla fragrances.

An independent jury of 14 prominent industry experts, scientists, journalists, and consultants chose ADVA Optical Networking as the winner. Past winners are: Siemens Electronic Assembly Systems Division (2006), Siemens Gerätewerk Erlangen (2007), international packaging and paper group Mondi (2008), Henkel Laundry & Home Care Business Sector (2009), BMW Group’s Motorcycle Division (2010), BASF (2011), and Infineon Technologies (2012).

More information: www.beste-supply-chain.de

One in every six vehicles drives on tyres made by the Bridgestone Corporation. Under brand names such as Bridgestone, Firestone and Dayton it has, over the last 85 years, built up a 15% global market share just ahead of Michelin and Goodyear. Today it employs over 144,000 people worldwide and operates 171 plants. The mission for the Tokyo-based company and the world’s largest tyre manufacturer is to achieve Dan-Totsu – to be an absolute and undisputed leader – in all aspects of business. To maintain market leadership and in line with its commitment to be lean and strategic it is transforming its supply chain. Not only is this designed to improve customer service, it has already led to an eye-opening reallocation of costs. In charge of the new strategy in Europe is Henri-Xavier Benoist.

Henri-Xavier Benoist, VP Logistics & Supply Chain, Bridgestone Europe

‘We want people in the supply chain to be multi-skilled’

The majority of car drivers are not very loyal when it comes to tyres brands. Providing safety, high performance and high quality are a given then brand is less important. As Bridgestone Europe is getting more and more customer and distribution driven, it is discovering that the key to sales is availability, says Henri-Xavier Benoist.

Since joining the company three years ago, the vice president Logistics & Supply Chain, has been transforming process and organisation to establish the supply chain as the backbone that cost-efficiently connects upstream manufacturing with downstream sales, customers and end users. He is making it his job to ensure that the thousands of distribution points across Europe can rely on fast, reliable deliveries, but not at any cost.

In Europe Bridgestone employs 12,000 staff, has sales organisation clustered in 6 sub-regions, nine manufacturing plants (in Spain, Poland, Belgium, France, Italy, and Hungary), one plant  producing tyre molds (Belgium) and it operates a Technical Centre (Rome) and two Proving Grounds (one in Rome and one in the North of Sweden). Its distribution network comprises a distribution centre at each plant, two European logistic centres and enough regional distribution centres to cover all EU countries within 24 hours or less delivery lead-time.

While it is a major supplier of original equipment most of its sales, which in 2014 totalled € 3 billion in Europe, are replacement, sold through a network of distributors and dealers. Henri-Xavier Benoist describes how the supply chain is changing to benefit end users, customers and the business

This article was first published in Supply Chain Movement Q3 – 2015

Subscribe on print to read the full version>>

or

Subscribe on tablet to read the full version>>

Two years ago Diageo, the global leader in beverage alcohol with iconic brands including Johnnie walker, Smirnoff and guinness, embarked on a route to Consumer programme. this is an end-to-end Supply Chain transformation and a shift in the way that Diageo gets its brands from its own and third party manufacturing facilities to bars, restaurants, hotels and retailers, both directly or through a network of distributors. the aim is to grow in an even more sustainable and profitable way. the route to Consumer programme brings together the product flow from plant to retailer to consumer activities at point of purchase, all to service the consumer experience Diageo is trying to create.
Interview conducted by Martijn Lofvers and Oskar Verkamman, written by Helen Armstrong

Ivanka Janssen, Director Global Sales Operational Excellence, Diageo

“We have one plan throughout the company that drives all targets”

Diageo employs over 33,000 people worldwide and enjoys net sales of GBP10.813 billion (year ended 30 June 2015). The company is putting the consumer experience first and working backwards. This is enabling it to define how it puts in place a Route to Consumer program. In order to get closer to these consumers and deliver these experiences it is becoming more agile, more responsive and more efficient. Diageo began this transformation in 2013 and it is now running across its 21 global geographic markets that cover 180 countries. With more than 200 sites in over 30 countries and an International Supply Centre (ISC) that employs over 4,000 people Ivanka Janssen and her team have the responsibility of implementing the Supply Chain transformation.

The Route to Consumer is a huge initiative. What brought about this transformation?

We have iconic global brands however when we looked into where we are present, while we are strong in the historical big cities such as Hong Kong, Singapore, Sao Paulo, London, etc., over the years other cities have become equally big and important. For example, in Europe, Berlin is the place to be because this is where the young, creative people are settling. We realised that if we wanted to grow the business we needed to adapt our strategy to be closer to the consumer. It meant moving from a sell-in to sell-out culture. Two years ago we started the transformation which is based on four key pillars: Participate in the highest growth opportunity markets geographically and demographically; Present our products in best possible way through commercial execution; Deliver in the most effective and efficient way – the supply chain pillar; and do so with the best talent. All four pillars have specific objectives and we have to make sure that they are linked.

What are your direct responsibilities?

… Read more …

This article was first published in Supply Chain Movement Q4 – 2015

Subscribe on tablet to read the full version>>

or

Subscribe on print to receive the next issue>>

European Supply Chain Directors Forum
Date: February 25, 26
Venue Corinthia Hotel, Prague
Organisation: Accucore Group
URL: www.manucore.com/forum/escdf/

European Supply Chain Directors Forum brings together 100 members from the manucoreCONNECT community for two active days of debate, interaction, networking and thought leadership. Our members will focus on the latest trends in Supply Chain and debate the most up to date innovations available to the industry. The event is comprised of an agenda of original case studies, inspirational keynote sessions, interactive workshops and specialist working groups.

Our members include:

VPs/Directors/Group Heads in:
Supply Chain
Procurement
Purchasing
Logistics
Sourcing
Operations
Supply Chain Quality

Focus for 2016

One of the key elements of our event is the work our Advisory Board puts into the development of our agenda, topics and speakers. This is content by the industry directly for the industry. Our focus for 2016 is:

• Transformation – Information technologies, understanding big data, and digital supply networks are pushing supply chain management to new levels of efficiency. Learn from influential case studies and best practice discussions on how advanced technologies can create new levels of transparency, responsiveness and effectiveness in order to transform your supply chain around your customer.
• Culture – how can you successfully align supply chain strategy with business strategy and people management? Share experiences and hear success stories on leadership strategies, cultural excellence and talent development. Featuring real life examples of leadership and employee engagement on a global scale improving business performance via the supply chain.
• Collaboration – Collaboration is key and vital to running a supply chain yet it is a win/loss ratio over time so is a challenge. Supply chain strategy and design, risk and inventory management, cost effectiveness vs customer service, offshoring vs reshoring – these areas require special attention and can add tremendous value to your supply chain through collaboration. Learn from the best case studies, workshops and examples in the industry on how we must collaborate to orchestrate.

More information>>

Twelve years ago Claude Laurent took up the challenge of running the European supply chain for Japanese pharmaceutical company Astellas Pharma. His philosophy is that the supply chain is a process of product transformation, an approach that has helped to increase European turnover by fivefold to around €8.5 billion. While he would like total ownership of the supply chain he realises that sometimes you have to make compromises.

Interview conducted by Martijn Lofvers en Edwin Tuyn, written by Helen Armstrong

The pharmaceutical market is anything but simple. It is characterised by complexity, segmentation and it is limited by policies and authorisation. Still the major players have to find a competitive edge. Astellas Pharma, which manufactures and markets pharmaceuticals worldwide, is head quartered in Tokyo and employs around 17,000 people. Its aim is to expand sales by becoming Global Category Leader in several therapeutic areas including immunology, urology and oncology, It’s European subsidiary has more than 20 affiliates, three manufacturing plants and one research & development centre in Leiden, the Netherlands, which is home to Claude Laurent. He talks about his role as vice president supply chain and manufacturing for Astellas Pharma Europe and how he actively pursues the company’s business strategy and maintains a consistent line.

How do you see the supply chain and how can it make the difference?

I was brought in 12 years ago to deliver a supply chain transformation, assembling all steps from sourcing materials at suppliers to delivering finished products at customers, to conversion at manufacturing plants owned or contracted, into a consistent supply chain process; a process valid through all phases of the product life cycle.  Such a focus on process often conflicts with the prerogatives of the traditional, vertical, organisations in the company. Keeping the unity of the supply chain requires a continuous effort. In Astellas, the Supply Chain cohesiveness in Europe has also to compromise with global interactions.

We have undergone significant corporate changes but have maintained the supply chain model during the last 12 years, and our turnover has multiplied five times. Part of my role has been and still is to maintain the unity and the consistency of the supply chain. You need to focus and to actively pursue your business strategy.

You manage the supply chain as a business, so do you have to follow the business plan of the affiliates?

A replenishment forecast, by definition, is delivered by collaboration. The Supply Chain however concludes the process by ultimately deciding the numbers that will drive the replenishment loop. We are listening to the affiliate, who, in reality, is making the first draft forecast. There is space for negotiation and a need for transparency. It only works cohesively if one party takes ownership. Supply chain in the end takes ownership of the replenishment forecast.

> Read complete interview on the iPad here

> Read complete interview on Android tablet here

Het bericht “We make life saving drugs so we can’t take risks.” verscheen eerst op Supply Chain Movement.

ADVA Optical Networking, a Meiningen based manufacturer of telecommunication equipment focusing on fiber-optic transmission technology, is the winner of the Supply Chain Management Award 2013. ADVA Optical Networking is being honored for the end-to-end supply chain solution with which it has secured strategic advantages. The Supply Chain Management Award 2013 was presented at the inaugural Exchainge – the Supply Chainers’ Convention in Frankfurt on June 18, 2013.

The jury was impressed by the systematic integration of the business model and supply chain model. “The development-driven company created an agile supply chain organization based on the needs of its customers. The result is that Adva Optical Networking can now serve its customers faster, with better on-time performance, and at lower cost than its competitors,” noted juror Harald Geimer,Partner at PwC, summarizing the reasons for the jury’s pick.

Efficient balance

“ADVA Optical Networking has succeeded in striking an efficient balance between the varying demands of suppliers and customers, establishing a critical competitive edge that allows this medium-sized enterprise to thrive among the big players,” remarked Petra Seebauer, Director of Publishing at Hussverlag in Munich and editor of the trade publication Logistik Heute, speaking of the winning solution.

“With this solution, Adva Optical Networking can offer valuable insights to other sectors,” praised speaker Pavel Krych, Director of Technical Purchasing at Deutsche Telekom, in his congratulatory speech. The supply chain solution from Adva Optical Networking is in a class of its own when it comes to planning and translating planning into production, says Krych, noting that ADVA Optical Networking found an elegant implementation of an innovative idea with its supply chain segmentation customized to the specific needs of the industry.

Paulus Bucher, Senior Vice President of Global Operations at Adva Optical Networking, was very pleased with the distinction: “Our industry is characterized by intense global competition. We thrive in this aggressive environment thanks to three key qualities that define who we are: innovative power, speed in addressing customer requests and new trends, and the ability to build long-lasting relationships of trust with our customers. Supply chain management plays an important role in addressing all three competitive advantages. The transformation was the logical culmination of this insight and required a great deal of commitment and elbow grease at all levels of our relatively small but global organization. It means a great deal to us to have all our hard work validated by this coveted award.”

Radical transformation

Adva Optical Networking built on its global supply chain strategy to standardize its processes and systems around the world, improving customer focus and establishing a strong competitive stance. End-to-end supply chain optimization that extended beyond development, production, and sales to include suppliers made it possible to establish a powerful and comprehensive supply chain. The pull-based solution that was implemented features an unprecedented level of flexibility and boasts measurable results, a wide array of customer-specific solutions, and best-practice processes. This led to a reduction in supplier lead time of over 50 percent, an increase in on-time delivery from 85 to 97 percent, and an acceleration in stock turnaround from 3 to 6 times annually. These improvements required a radical transformation at all levels of the supply chain that was achieved in less than 2.5 years.

The flexibility this yielded is key to the success of Adva Optical Networking in keeping both its customers and its suppliers happy. While the customers have the products delivered at relatively short lead times of 15 days on average, the suppliers have long lead times of 4 to 12 weeks.

Segmentation

The end-to-end and cross-enterprise segmentation of the supply chain – from the supplier’s supplier to the customer’s customer – is a unique innovation in the industry. Segmentation means defining and differentiating segments on the basis of the product portfolio and the existing demand structures. This makes it possible to effectively and efficiently serve distinct portfolios. Production and planning have also been decoupled. This two-stage approach enables late-stage customization – customer-specific product configuration and adaptation in the regional final assembly centers – enabling a quick response to changing customer demands and a high degree of flexibility to satisfy customer wishes. Close collaboration of this type between developers and suppliers makes end-to-end optimization possible.

“This so-called end-to-end segmentation of the supply chain in conjunction with decoupled production and planning is the key to customer-specific product configuration in the regions,” notes Geimer from PwC, explaining the innovative approach.

Differentiated planning groups make it possible to serve customers with optimized lead times – individually arranged by product group based on the customer’s specific needs. A prime example is the end-to-end planning model offering ten planning groups that draw upon more than seven different  distinguishing criteria as well as real-time planning optimization. This means that the regional account managers can immediately gauge the effects on time-to delivery and adjust the product configuration directly if needed, thereby providing input to the weekly planning process.

Two-stage production with the centralized manufacturing of product components and customer-specific configuration regionally also offers greater flexibility to the customers. This puts the business in the position to respond as late in the process as possible to changing customer requirements and manage stock and production times with flexibility. The end result is that Adva Optical Networking serves its customers faster, with better on-time performance, and at lower cost than the competition.

Top-tier finalists

Each year since 2006, the Supply Chain Management Award has honored the best value chain in the manufacturing industry. It is presented by PwC and the trade journal Logistik Heute in collaboration with the Institute for Supply Chain Management (ISCM) and the House of Logistics & Mobility (HOLM) to reward innovative solutions in supply chain management that have made significant contributions to competitiveness and paved the way for other companies. The award is presented to powerful end-to-end supply chain solutions and outstanding implementations within individual links in the value chain.

ADVA Optical Networking has prevailed in what was once again a strong competitive field. From two rounds of applications, four finalists ultimately emerged: The HealthCare Business Area of Bayer (Leverkusen), Intel Mobile Communications (Neubiberg), and Symrise (Holzminden), a global provider of fragrances and flavors. All the finalists presented compelling solutions, though they varied in their focus.

Bayer applied a comprehensive supply chain strategy to consistently optimize its end-to-end strategy from the supplier to the customer. Intel created an innovative, fully integrated solution for the entire supply chain of its Mobile Communications unit that supports a production network in a volatile market driven by the demands of applications and customers. Once installed, the solution achieved a high degree of automation and made it possible to significantly reduce stock.Symrise created an innovative, vertically integrated, farmer-to-customer supply chain for vanilla that fuels the company’s success in the market for vanilla fragrances.

An independent jury of 14 prominent industry experts, scientists, journalists, and consultants chose ADVA Optical Networking as the winner. Past winners are: Siemens Electronic Assembly Systems Division (2006), Siemens Gerätewerk Erlangen (2007), international packaging and paper group Mondi (2008), Henkel Laundry & Home Care Business Sector (2009), BMW Group’s Motorcycle Division (2010), BASF (2011), and Infineon Technologies (2012).

More information: www.beste-supply-chain.de

Het bericht Supply Chain Management Award for Adva Optical Networking verscheen eerst op Supply Chain Movement.

One in every six vehicles drives on tyres made by the Bridgestone Corporation. Under brand names such as Bridgestone, Firestone and Dayton it has, over the last 85 years, built up a 15% global market share just ahead of Michelin and Goodyear. Today it employs over 144,000 people worldwide and operates 171 plants. The mission for the Tokyo-based company and the world’s largest tyre manufacturer is to achieve Dan-Totsu – to be an absolute and undisputed leader – in all aspects of business. To maintain market leadership and in line with its commitment to be lean and strategic it is transforming its supply chain. Not only is this designed to improve customer service, it has already led to an eye-opening reallocation of costs. In charge of the new strategy in Europe is Henri-Xavier Benoist.

Henri-Xavier Benoist, VP Logistics & Supply Chain, Bridgestone Europe

‘We want people in the supply chain to be multi-skilled’

The majority of car drivers are not very loyal when it comes to tyres brands. Providing safety, high performance and high quality are a given then brand is less important. As Bridgestone Europe is getting more and more customer and distribution driven, it is discovering that the key to sales is availability, says Henri-Xavier Benoist.

Since joining the company three years ago, the vice president Logistics & Supply Chain, has been transforming process and organisation to establish the supply chain as the backbone that cost-efficiently connects upstream manufacturing with downstream sales, customers and end users. He is making it his job to ensure that the thousands of distribution points across Europe can rely on fast, reliable deliveries, but not at any cost.

In Europe Bridgestone employs 12,000 staff, has sales organisation clustered in 6 sub-regions, nine manufacturing plants (in Spain, Poland, Belgium, France, Italy, and Hungary), one plant  producing tyre molds (Belgium) and it operates a Technical Centre (Rome) and two Proving Grounds (one in Rome and one in the North of Sweden). Its distribution network comprises a distribution centre at each plant, two European logistic centres and enough regional distribution centres to cover all EU countries within 24 hours or less delivery lead-time.

While it is a major supplier of original equipment most of its sales, which in 2014 totalled € 3 billion in Europe, are replacement, sold through a network of distributors and dealers. Henri-Xavier Benoist describes how the supply chain is changing to benefit end users, customers and the business

This article was first published in Supply Chain Movement Q3 – 2015

Subscribe on print to read the full version>>

or

Subscribe on tablet to read the full version>>

Het bericht “We want people in the supply chain to be multi-skilled” verscheen eerst op Supply Chain Movement.

Two years ago Diageo, the global leader in beverage alcohol with iconic brands including Johnnie walker, Smirnoff and guinness, embarked on a route to Consumer programme. this is an end-to-end Supply Chain transformation and a shift in the way that Diageo gets its brands from its own and third party manufacturing facilities to bars, restaurants, hotels and retailers, both directly or through a network of distributors. the aim is to grow in an even more sustainable and profitable way. the route to Consumer programme brings together the product flow from plant to retailer to consumer activities at point of purchase, all to service the consumer experience Diageo is trying to create.
Interview conducted by Martijn Lofvers and Oskar Verkamman, written by Helen Armstrong

Ivanka Janssen, Director Global Sales Operational Excellence, Diageo

“We have one plan throughout the company that drives all targets”

Diageo employs over 33,000 people worldwide and enjoys net sales of GBP10.813 billion (year ended 30 June 2015). The company is putting the consumer experience first and working backwards. This is enabling it to define how it puts in place a Route to Consumer program. In order to get closer to these consumers and deliver these experiences it is becoming more agile, more responsive and more efficient. Diageo began this transformation in 2013 and it is now running across its 21 global geographic markets that cover 180 countries. With more than 200 sites in over 30 countries and an International Supply Centre (ISC) that employs over 4,000 people Ivanka Janssen and her team have the responsibility of implementing the Supply Chain transformation.

The Route to Consumer is a huge initiative. What brought about this transformation?

We have iconic global brands however when we looked into where we are present, while we are strong in the historical big cities such as Hong Kong, Singapore, Sao Paulo, London, etc., over the years other cities have become equally big and important. For example, in Europe, Berlin is the place to be because this is where the young, creative people are settling. We realised that if we wanted to grow the business we needed to adapt our strategy to be closer to the consumer. It meant moving from a sell-in to sell-out culture. Two years ago we started the transformation which is based on four key pillars: Participate in the highest growth opportunity markets geographically and demographically; Present our products in best possible way through commercial execution; Deliver in the most effective and efficient way – the supply chain pillar; and do so with the best talent. All four pillars have specific objectives and we have to make sure that they are linked.

What are your direct responsibilities?

… Read more …

This article was first published in Supply Chain Movement Q4 – 2015

Subscribe on tablet to read the full version>>

or

Subscribe on print to receive the next issue>>

Het bericht Ivanka Janssen: “One plan that drives all targets” verscheen eerst op Supply Chain Movement.

European Supply Chain Directors Forum
Date: February 25, 26
Venue Corinthia Hotel, Prague
Organisation: Accucore Group
URL: www.manucore.com/forum/escdf/

European Supply Chain Directors Forum brings together 100 members from the manucoreCONNECT community for two active days of debate, interaction, networking and thought leadership. Our members will focus on the latest trends in Supply Chain and debate the most up to date innovations available to the industry. The event is comprised of an agenda of original case studies, inspirational keynote sessions, interactive workshops and specialist working groups.

Our members include:

VPs/Directors/Group Heads in:
Supply Chain
Procurement
Purchasing
Logistics
Sourcing
Operations
Supply Chain Quality

Focus for 2016

One of the key elements of our event is the work our Advisory Board puts into the development of our agenda, topics and speakers. This is content by the industry directly for the industry. Our focus for 2016 is:

• Transformation – Information technologies, understanding big data, and digital supply networks are pushing supply chain management to new levels of efficiency. Learn from influential case studies and best practice discussions on how advanced technologies can create new levels of transparency, responsiveness and effectiveness in order to transform your supply chain around your customer.
• Culture – how can you successfully align supply chain strategy with business strategy and people management? Share experiences and hear success stories on leadership strategies, cultural excellence and talent development. Featuring real life examples of leadership and employee engagement on a global scale improving business performance via the supply chain.
• Collaboration – Collaboration is key and vital to running a supply chain yet it is a win/loss ratio over time so is a challenge. Supply chain strategy and design, risk and inventory management, cost effectiveness vs customer service, offshoring vs reshoring – these areas require special attention and can add tremendous value to your supply chain through collaboration. Learn from the best case studies, workshops and examples in the industry on how we must collaborate to orchestrate.

More information>>

Het bericht European Supply Chain Directors Forum 2016 verscheen eerst op Supply Chain Movement.

The traditional boundaries between sectors and industries are blurring, or even vanishing, due to the increasing digitalization of business globally. It’s now much easier for new digital players to enter – and completely transform – existing markets. Consultancy firm McKinsey predicts that, in less than ten years’ time, companies will be less likely to compete with their traditional opponents and much more likely to face competition from rapidly emerging ecosystems made up of companies from different sectors.

By Martijn Lofvers

“Ecosystems are the future for digital supply chains,” claimed Gartner’s Michael Burkett during the firm’s supply chain conference in London in September 2017. American seed giant Monsanto and American tractor manufacturer John Deere are both planning to link their customer communities – containing data, knowledge and advice – to raw materials traders’ online platforms. The knowledge in the resulting ecosystem is expected to help farmers increase their harvest yields by eight to 12 percent, according to Burkett.

For me, this looming battle between ecosystems brings to mind the popular TV series Game of Thrones which is set on the mythical continent of Westeros. Following the king’s death, various noble families fight for the throne in frequently changing alliances. You could liken this to how Mercedes is collaborating with DHL and Amazon on car-boot deliveries of online orders. Volvo has similar kinds of partnerships with a number of retailers in Sweden, Norway and Switzerland. In Game of Thrones, the Iron Bank of Braavos plays an important role in financing the warring parties. Amazon has close ties with the Capital One bank for its connection with Amazon Alexa, with whom users can chat and place online orders, and Amazon’s competitor Alibaba even has its own bank in the shape of Ant Financial.

In Game of Thrones, in addition to continuously forging new alliances, the warring families also have to listen to the people – just as companies have to listen to their customers’ wants and needs. The dragons and black magic featured in this TV series can be likened to the new technologies and business models with which newcomers ambush the traditional players. My advice to companies is to visualize their changing competitive landscape, such as by drawing a map of their own world just like the one in Game of Thrones.

Martijn Lofvers, publishing director & chief editor
martijn.lofvers@supplychainmedia.nl

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Please note: The main language during this event is German.

Driving the Transformation of Supply Chain Management

Rethink! Smart SCM 2018 is the strategy & technology event for Supply Chain & Logistics Managers from the manufacturing industry to discuss current projects, latest developments, innovative technologies and trends in Smart Supply Chain Management and Logistics in the context of IoT & IIoT. As a networking platform for top-level decision-makers, tailored to the complexity of your business, Rethink! Smart SCM offers solutions for the development of tomorrow’s digital SCM strategy. Networking & Benchmarking – Meet 150+ logistics and production decision makers from DACH.

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The growth of European management consulting firms is outpacing Europe’s GDP growth, and the focus is shifting from strategy to operations and supply chain consulting. Supply Chain Movement has analysed the European supply chain consulting market for the fifth time and once again positioned Europe’s most important supply chain consulting firms on the popular subway map. European supply chain consulting thrives on digital transformation.

By Martijn Lofvers

In Europe, management consulting turnover grew by 7.5% in 2016, according to the European consultancies association FEACO (Fédération Europérenne des Associations de Conseils en Organisation). The recovery in the European consulting industry has been very much driven – both directly and indirectly – by digital transformation projects; all countries highlight that client companies have been asking for ever-more advice and implementation support in that area since 2016. Because consulting on digital transformation requires significant investment, the growth in most European countries appears to have been driven by large and very large consulting companies (with more than 50 employees).

Looking at the various service lines of the consulting firms, it’s clear that strategy has lost its central position in the portfolio, declining from 30% (2006 to 2008) to 18% today. At 22%, operations, including supply chain management, is now the most important focus area. Sales & Operations Planning (S&OP) and Integrated Business Planning (IBP) remain the most important topics in supply chain consulting at the moment.

Growth is increasingly becoming a challenge for consulting firms because of the continuing fierce battle for talent within a shrinking (but diversifying) talent pool. Furthermore, the rise of independent consultants is creating freelance- and network-based models that are disrupting the consulting industry. For example, Comatch, a platform that matches clients with management consultants, has been named one of Germany’s ten fastest-growing digital companies. The firm, which has offices in the DACH (Germany, Austria and Switzerland) region, the Netherlands, Denmark, France, the UK and UAE, has expanded both its revenues and its workforce dramatically over the past year.

Organic growth and acquisitions

Almost all the consulting firms with supply chain activities in Europe that participated in the Supply Chain Movement study have grown in terms of their number of consultants, with evidence of organic growth for the big firms and the niche boutique consultancies alike. There were two interesting acquisitions in the supply chain consulting market last year. BearingPoint, one of the largest management consultancies in Europe, acquired UK-based LCP Consulting in March 2017. The addition of LCP Consulting’s expertise in supply chain network design and distribution management has increased BearingPoint’s footprint on the Supply Chain Movement consulting subway map. Meanwhile, the UK-based boutique supply chain consultancy Hughenden Consulting has joined forces with Efeso Consulting, an international management consultancy with 27 offices globally. Hughenden brings extra S&OP and IBP expertise to Efeso.

Consulting subway map

The fifth edition of the SCM Consulting Subway Map of Europe is based on information provided by the consulting firms themselves. A combination of the number of consultancy projects completed, the market share by revenue for each specific area of advice, the size of the company and the degree of specialization determines whether a company gets its own subway station on the relevant line, thus visualizing the company’s proven experience in a particular area of supply chain expertise. To be included on this subway map a consultancy firm must have offices in more than one European country, although a few exceptions have been made for supply chain consulting firms with a truly international customer base.

For each specific area of advice, the consultancy firms were also asked to name the three competitors that they come up against most regularly when pitching. Companies that named each other most often are located closest together on the map. As a result, the subway map shows distinct clusters: the so-called Accountancy Area, the neighbouring Technology Area and the Corporate District dominated by the management consultants – who, incidentally, are also increasingly moving into the area of supply chain management and operations. The rest of the subway map is populated by boutique supply chain consulting firms in varying shapes and sizes.

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On the 27th and 28th of February, the second annual Smart and Connected Supply Chain Forum will be held in Berlin, Germany. This exclusive BIS small-scale forum will showcase the most effective strategies in Supply Chain management of today and its operation and maintenance. Gain knowledge about how to leverage Big Data from the IoT, how to ensure successful IoT adoption and how to gain more supply chain visibility.

With the focus on strategic vision, identification and analysis of new SMART technologies, operational efficiency, cost reduction and creation of growth opportunities, the forum will help companies meet their business objectives and increase productivity with minimal risks. With the help of in-depth panel discussions, interactive sessions and workshops, senior executives and business experts will get a chance to develop an effective vision for their supply chain. Learn how to improve business performances using Big Data Analytics & IoT technologies, and find out about innovative trends of the digital age that are shaping the Supply Chain of the future.

Key learnings

• Digital Transformation from the Perspective of a Logistics Service Provider: our Journey to Stay Future-Proof
• Moving More with Less – Gaining Transport Efficiency through Collaborative Transport Solutions
• Improving Supply Chain Efficiency with IoT Solutions – Truck Loading Analytics
• Platform-Based Services for the Global Transportation Industry
• Blockchains Meet Smart Connected Supply Chains
• Supply Chain Trends & Innovation
• Supply Chain in the Era of Digitization

Interested to visit the second annual Smart and Connected Supply Chain Forum? Visit the website and register!

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