Innovation

1. Innovation - Global Supply Chain New Products, Services & Processes Anand Subramaniam

4. SCM - Principles

5. Supply Chain Management Collaboration Arrangement Joint Business Plan Sales Forecasting Order Planning/ Forecasting Order Generation Order Fulfillment Exception Management Performance Assessment Manufacturer Account Planning Market Planning Customer Scorecard Execution Monitoring Logistics/ Distribution Production & Supply Planning Demand Planning Market Data Analysis Vendor Management Category Management POS Forecasting Replenishment Planning Buying/ Re-buying Logistics/ Distribution Store Execution Supplier Scorecard

7. Need for Innovation in SCM

9. Emerging Opportunities Disciplined Profitable Growth Majority Supply Chain Innovators The Lean and the Masterful Closure Strong/Weak Currencies Advanced Technologies Emerging Skill Sets Rising Commodity Prices Global Competition Global Liquidity Crisis Profitability Performance Partnership

12. Some thoughts going in your mind !! Who selects the right ideas and how will it be funded? How to remain competitive and delight our customers & shareholders? Where do we grow revenue stream and is it from new and / or existing products? What process, tools and methods should we use to ensure success? How can we get employees to contribute to new ideas and ensure we have a process to capture this? How do we create an environment for taking risk and enable creativity? How can we objectively assess and prioritise ideas? When do I create a market disruption? What is the best practice for an innovation process? When and where do I involve my supply chain in innovation? How do we measure the innovation performance? What competencies / capabilities should we have in place tin order to deliver innovative products / services / processes ? When do we cut our losses before it is too late? How do I manage change? Who decides on Go / No Go at stage gates? What, Who, Why, When, Which, How, Where ?? What to do about global competition?

13. Managing Current SCM Challenges

16. Managing SCM Process Tier 1 Supplier Manufacturer Distributor Retailer Customer Inefficient logistics High stockouts Ineffective promotions Frequent Supply shortages High landed costs to the shelf High inventories through the chain Low order fill rates Glitch-Wrong Material, Machine is Down – effect snowballs Frequent breakdowns

17. Managing End to End Networks Sustaining Competitive Advantage New Materials Cooperative Development White-Space Development New Processing Product Adaptation Integrated Solutions Key Process Improvement New Products Supply Chain Responsiveness Alternative Channels Cost to Serve New Sales Sales Leadership Strategies New Business Systems Suppliers Manufacturing Distribution Retailer Consumer Flow of information, products, services and financials Product Development Distribution Efficiency Product Replenishment Order Fulfillment Marketing Strategy Business Development

18. Managing Product & Information Flow Postponement Vendor managed inventory Cross docking Continuous replenishment Flexible automation Modularisation Mass customisation Quick response Efficient consumer response End to End Supply Chain Time-based logistics Extended warehouse Visibility Integrated business planning / Sales & Operations Planning Cloud based services: Managed Services, On-Demand, SaaS Sustainability & Green Supply Chain Closed-loop Supply Chain Execution & Supply Chain Planning Demand Driven Lean Supply Chain Transportation Management & Global Trade Management Convergence Need for Innovations in Supply Chain

19. Managing Product Life Cycle Negative cash flow Introduction Growth Maturity Decline Sales, cost, and cash flow Cost of development and production Cash flow Net revenue (profit) Sales revenue Loss

20. Managing Competitive Pressures Requires a change in Business Model Serving localised customer with complex supply lines Demanding customers Changing market boundaries and new channels Aggressive global competition Industry consolidation and alliances Environmental and risk issues Stakeholder pressures Speed of technology change Shortening product life cycles Pressure on margins, growth, cost Supply & Demand Co-ordination Hyper – competition & Globalisation Partnership Green SCM

21. Managing Areas of Complexity Strategy / Change Management People Process Technology Financials Global Competition Costs, Revenues ROI, Payback Periods Data Connectivity Hardware Applications/ Tools Architecture Software Licensing Data Flow Work Flow Travel Practices Communication Coordination Competency Training Culture Leadership & Management Process Owners and Task Owners

22. Managing Disruptive Change Functional Innovative Products Focused Agile Manufacturing Fast Warp Speed Speed of Change Design-make-sell Sell-design-make Process Passive Interactive Customers Organised Chaotic Planning Hierarchical Networked Organisations Guarded Available to all Information Turnover Profit Growth Focus “ C” Level challenges in every area

24. Managing Stakeholder Expectation Jobs for life Life of jobs Employment Manage the business Change the business Management Solo working Team working Ways of working Education for life Life of education Education Functional Performance Cross-functional performance KPI’s Direction Empowerment Leadership Reference books Gateway to the world Knowledge Organisational performance Supply chain performance Vision Competitive Collaborative Relationships

25. Providing Value to End Customer Assets & Utilisation Continuous Innovation Excellence Operational Excellence End Customer Value - Seeking benefits at acceptable prices Service Excellence Cost Differentials Competitors Your Company Assets & Utilisation

26. SCM Innovation - Trends & Drivers

31. Supply Chain Innovation Process

33. Engagement Model Engage Prioritise Plan Build Sustain Initial Assessment Prioritisation Business Strategy New Product Innovation Relationship building phase during which the capabilities and opportunities of the company are preliminary assessed Diagnosis and prioritisation phase to assess the company's capabilities in relation to its priorities and the environment within which it operates Strategic planning based on in-depth assessment of the company Capability development phase with targeted use of tools for business areas requiring attention Sustain phase often accompanied by periodic diagnosis audits to assess any changes and adjust the nature of the intervention as appropriate; supported by mentoring Re Prioritise Tools Process

35. Supply Chain Innovation - Process Initial Screen Pr eliminary Inv estigation Development Detail Investig ation (Build the Business Case) Testing & Validation Full Production and Market Launch Second S creen Dec ision on Bu siness Case Post-development Review Pre-commercialise Business Analysis Post-Launch Review Idea / Discovery G1 G2 G3 G4 G5 Scoping Business Case Development Gates Stages Post Launch Review Test & Validate Launch

39. Innovative Global SCM Strategies

40. Global SC - End to End Performance Flow of information, products, services and financials Sell Multiple channels and customer touch points Single source dashboard to view overall performance Tracking from order to delivery Knowledge of total pipeline customer inventory Plan Synchronising supply and demand Integrating customer forecasts and demand with their suppliers to plan logistics requirements Participation in customer’s Sales & Operations Planning process Source Multi-source orders and fulfillment Ability to track purchase orders through their entire lifecycle Knowledge of total pipeline supplier inventory Deliver Monitoring shipment status Monitor shipment status throughout pipeline with proactive event notification Improved ability to identify short and over shipments Make Integration with manufacturer’s systems Access to order commitments & delivery schedules Visibility into order production status Service Service after Sales Management Efficiently process returns Manage Spare Parts Inventories Visibility to entire reverse logistics processes Suppliers Manufacturing Distribution Retailer Consumer

50. Calculating Target Price Input from NPD, Customer, Market Customer Input about competition Customer & Management Input Input from NPD, R&D, Buyer, Supplier, Eng. Input from NPD, R&D, Buyer, Mkt Supplier, Eng. Manufacturing. Cost contained & Product launched Use Lean / Six Sigma to remove waste and fine tune process Product Characteristics Desired Target Selling Price Desired Profit Margin Direct Cost Behaviour Cost Management Overall Target Continuous Improvement

52. SCM - Product Innovation

56. New Product (NPD) - Categories Incremental / Derivative Next Generation / Platform Products Breakthrough / Radical Products

59. NPD – Breakthrough / Radical Represent new “system” solutions for customers. Require more resources to develop. Are key to continued product revenue growth. Incremental / Derivative Next Generation / Platform Products Breakthrough / Radical Products

66. SCM - Service Innovation

68. New Service Development Process New Service Development Process Design Analysis Launch Develop Consider the financial implications of the new service Examine supply chain issues for delivery of service Test service design, train personnel, conduct pilot runs Release the service to the market place Formulate objectives and strategies for the new service

70. SCM - Competency / Performance Relationships

73. Integration Fulfillment Product Quality Asset Utilisation Flexible Response Cost Management Strategic Alignment Customer Integration Internal Integration Planning Process SC Network Integration Tactical Planning Relationship Management Competencies SC Performance Technologies Execution Systems Supplier Integration Supply Chain Segmentation Strategic Planning

79. Example – Increase Customer Satisfaction Increase Customer Satisfaction Develop new products Eliminate stockouts Enter new markets Reduce overall supply chain costs Improve pricing Improve service levels Reduce order lead time Vendor managed FG inventory Time to Market Time to Volume Easier test runs Increase Equip . Flexibility Improve warehouse plan Improve forecasting # Compliants Product Customer Order Shipments Partial Shipment Stockouts On time R & D to Production Setup time / SKU

80. Manage Change & Risks

81. Need for Change & Communication Supplier Rationalisation Flexible Manufacturing Strategies Cross- docking Activity- Based Costing DSD Strategy Salesforce Planning Production Scheduling Inventory Planning Distribution Scheduling Integrated- Micro Marketing Customer-Focused Planning Vendors Inbound Logistics Manufacturing Transportation Warehousing Delivery Retailer Consumer Quick Response Forecasting EDI Category Management, Continuous Replenishment Net Landed Cost Palletisation, Bar Coding Vendor Managed Inventory Supply Chain Systems Selection and Implementation Promotion Planning Information, Finance & Product flows

83. Change Process Environmental Forces Internal Forces Need for change Initiate change Implement change Monitor global competition, and other factors Consider plans, goals, company problems, and needs Evaluate problems and opportunities, define needed changes in technology products, structure, and culture Facilitate search, creativity, idea champions, venture teams, skunk works and idea incubators Use force field analysis, tactics for overcoming resistance

84. Overcoming Resistance Crisis exists; initiators clearly have power; other techniques have failed Coercion Involves multiple departments or reallocation of resources; users doubt legitimacy of change Top Management Support Group has power over implementation; will lose out in the change Negotiation Users need to feel involved; design requires information from others; have power to resist Participation Change is technical; users need accurate information & analysis Communication / Education When to Use Approach

85. Assess Assumptions & Risk 5. Communicate (what, to whom, when, how) 4. Assess what’s changing & who is impacted? 8. Assess if behavior has changed & how to adjust the plan 7. Identify actions that motivate employees to change 6. Develop/Deliver specific training for new process / tool 1. Identify risks & develop strategies/plans to mitigate risks 3 Stakeholder Analysis 2 Organisational Alignment 7 Employee Commitment 8 User Adoption Assessment 4 Change Impact Assessment 5 Communication Plan 6 User Training 3. Document expectations and issues 2. Engage sponsors for their support 1 Assess Assumptions, Risks, Contingencies and Plan