This document summarizes a presentation given by Sonoco Packaging Solutions on their end-to-end supply chain solutions. It discusses Sonoco's evolution from packaging products to providing supply chain services. Sonoco Packaging Solutions (SPS) offers innovative, customized, collaborative, and scalable supply chain solutions from design through distribution. The implementation model follows the SCOR methodology with an assessment of the current supply chain, design of a new model, and continuous improvement. SPS encourages customers to think big with their vision, start smart with a first implementation, and scale fast by leveraging SPS's resources and experience.
4. Sonoco Global Packaging
Credentials
Supply Chain
thoughts
SPS
Implementation
Models
Get Started !
Case Studies
285 operations
32 countries/5 continents
17,000 employees
Customers - 85 countries
Turnover - US$2.8 billion
5. Sonoco Packaging Portfolio
Credentials
Supply Chain
thoughts
SPS
Implementation
Models
Get Started !
Case Studies
Pack Center
6. European operations: over 43 plants
Credentials
Supply Chain
thoughts Industrial
Products
SPS
Implementation
Models
Consumer
Products
Get Started !
Paper Mills
Case Studies
7. Credentials “Only Perceptive, Adaptable and Innovative packaging
Supply Chain
companies can get closer to their customers and markets by
thoughts developing extended enterprises & supply chain
SPS
partnerships”.
Implementation
Models
Get Started !
All others …
will just be passengers during the journey
Case Studies
8. Sonoco’s Traditional Value Drivers …
Paper Tube
Recycling
Credentials Mechanics
&
&
Supply Chain Reclamation
Design
thoughts
SPS
Sonoco
Implementation
Models
Value
Drivers
Get Started !
Case Studies
9. Sonoco’s Traditional Value Drivers …
Product Dependent Model
• Defends existing position Service
• Protects existing margins Service
Credentials • Builds barrier to competition
Supply Chain Limitations Product
thoughts • Commodity model
• Value extraction is limited
• Costs justified on product margin
SPS • Short life time for incremental benefits
Implementation
Models
Get Started !
Case Studies
10. Sonoco’s Traditional Value Drivers …
Product Dependent Model
• Defends existing position Service
• Protects existing margins Service
Credentials • Builds barrier to competition
Supply Chain Limitations Product
thoughts • Commodity model
• Value extraction is limited
• Costs justified on product margin
SPS • Short life time for incremental benefits
Implementation
Models
Supply Chain Driven Model Possibilities
Get Started !
• Products are pushed or pulled • Higher point of entry (food chain)
• Fully defined value • Multi-site scalability
• Sustainable over time • Long-term activity
Case Studies
• Non-product Dependent • Diversification of income portfolio
Products Sourcing W. Housing Pac Center Logistics Products
Consultancy / Implementation
11. Sonoco’s journey to add value …
Paper Tube
Recycling
Credentials Mechanics
&
&
Supply Chain Reclamation
Design
thoughts
SPS
Sonoco Inventory
Implementation
Models
Six Sigma Value Management
Drivers Systems
Get Started !
Case Studies
Pack Center
Concepts
Sonoco
Proprietary
12. Evolution: from products…
Credentials
Supply Chain
Paper Textile Film / Tape Specialty
thoughts
SPS
Implementation
Models
Get Started !
Case Studies
13. Evolution: …to packaging…
Credentials
Supply Chain
Paper Textile Film / Tape Specialty
thoughts
SPS
Implementation
Models
Get Started !
Film Packaging Paper Packaging
Case Studies
14. Evolution: …to services…
Credentials
Supply Chain
Paper Textile Film / Tape Specialty
thoughts
SPS
Implementation
Models
Get Started !
Film Packaging Paper Packaging
Case Studies
Pack Design Logistics Supply Chain Procurement Reclamation
15. Sonoco’s extended enterprise …
Paper Tube
Recycling
Credentials Mechanics
&
&
Supply Chain Reclamation
Design
thoughts
SPS
Sonoco Inventory
Implementation
Models
Six Sigma Value Management
Drivers Systems
Get Started !
Case Studies
End-to-End
Pack Center
Supply Chain Concepts
Management
Sonoco
Proprietary
16. Sonoco’s extended enterprise …
Credentials 3M Europe
DuPont Europe
Supply Chain
thoughts MFE Europe
SPS MFE US
Implementation Whirlpool
Models
Cryovac
Get Started !
Gillette UK
Case Studies Gillette US
Consultancy Design / Sourcing JIT / Pack Planning W.H. Distribution Return
Graphics VMI Center Scheduling Mgmnt. Recycle
Refurbish
= assessments
= implementations
17. Offering experience through partnership
Credentials
Supply Chain
thoughts
SPS • Global scale and infrastructure •• Resources & Scalability
Resources & Scalability
• Supply Chain Management Sonoco Consulting Methodology
•• Consulting Methodology
Implementation • Packaging Solutions Packaging •• Venture Capital
Venture Capital
Models • Customer Relationships Solutions •• IT & B2B Integration
IT & B2B Integration
• Operational integration / •• Previous project
Previous project
Get Started ! Pack-Centre management SPS Client experience
•• Client experience
Case Studies
19. Competitive Pressures in the Supply
Chain
More demanding
More demanding
customers Global competition
Global competition
Credentials customers
& shareholders & industry
& industry
& shareholders consolidation
consolidation
Supply Chain
thoughts
Shorter product
Shorter product
SPS life cycles
life cycles
Implementation
Models
Get Started ! Speed of technology
Speed of technology
change
change
Case Studies
Environmental
Environmental
risk and issues
risk and issues
20. Competing through collaboration
Credentials
No company, on its own, has the ability to
Supply Chain
dominate the future … without:
thoughts
SPS
A vision that creates growth & wealth
Implementation
Models Accelerating the speed of change
Get Started ! Executing and sustaining improvement
Case Studies New partnerships that manage complexity
21. Managing for change & performance
Credentials
ACCESS…
Supply Chain
thoughts
access to economies of scale
SPS
access to know-how
Implementation
Models access to technology and innovation
Get Started ! access to new collaborative models
Case Studies
22. An evolution toward greater collaboration
H
Credentials
Supply Chain
Collaboration
thoughts
Supply Chain Performance
SPS Coordination
Implementation
Models
Transactions
Get Started !
Case Studies
L Partnership & Trust H
23. Areas of desired collaboration
Credentials
Supply Chain
1 Supply Chain
Re-engineering
Optimisation Synchronisation
End-to-end
& Packaging solutions
thoughts implementation
2
SPS
Co-asset and
Pack Centre Inventory and Production
Implementation Labour
Management WC management planning
Models management
3
Get Started !
Packaging & Smart Outsourcing & Multi-use/reuse/
Case Studies Graphics packaging design JIT Kit Delivery returnable
Design
4 Information
ERP systems Optimisers
The emerging
Packaging web
Technology
Market place…
24. Therefore…
Credentials
Sonoco has developed and implemented
Supply Chain
thoughts end-to-end supply chain solutions for its
SPS
customers around the world … called
Implementation
Models
Get Started !
Case Studies
SPS ™
SONOCO PACKAGING SOLUTIONS
25.
26. Credentials
Supply Chain
SPS ™
SONOCO PACKAGING SOLUTIONS
thoughts
SPS innovative
Implementation customized
Models
collaborative
Get Started !
scalable
Case Studies profitable
3pl
27. 3rd party 4th party logistics
3pl used to be mainly about sub-contracting warehouse and
Credentials distribution services …
Supply Chain
thoughts
SPS Tomorrow’s 4pl will sit in the middle of the
value chain, drawing products or components
Implementation
Models
from all parts of the network as available …
Get Started ! managing product assembly or packaging …
Case Studies and then handling the distribution to
individual customers by the fastest and most
efficient route.
Financial Times
October 2000
28. Credentials
Supply Chain
thoughts
4pl
SPS
Implementation
with a
Models
difference
Get Started !
Case Studies
35. What is the SCOR model and framework?
Supply Chain Operations Reference Model
Process reference map that allows you to construct supply chain implementation models.
Of itself it is not sufficient to describe a supply chain implementation. You cannot implement
a “reference” model. You use the reference model together with business attributes (I.e. geographic,
organization, product, etc.) to specify and implement a process model that can be analyzed (metrics)
and executed.
36. Vision of an Extended enterprise
Plan
COLLABORATIVE
SYNCHRONIZED
OPTIMIZED
Deliver Source Make Deliver SOURCE MAKE DELIVER Source Make Deliver Source
• Finished
• Procurement Pack Goods
Suppliers
SONOCO
Customer’s
Customers
• Inbound Logistics Warehousing
Customers
Your
• Inventory • Shipping &
Management Outbound
Logistics
• Optimized Core & packaging Design
Integrated Packaging Design & Life Cycle Management
SONOCO CUSTOMER SONOCO
• RETURN PROGRAMME
37. Applying a Tool Framework
to Support Supply Chain Modeling
Drilling Down to Levels of Detail AS- IS
Assessment
Enterprise Processes
Level 1
Process Scenarios -
Value Chain Diagram
Level 2
Level 3 Business Processes -
* Event Driven Process Map
Level 4 Activities -
Event Driven Processe Map
38. Objective of this work: Align Scenario
Implementation with SCOR Methodology …
SCOR Methodology TO - BE
Employs a Top-Down Approach Implementation
Material Flow View
Identify Roles within the logical flow
Establish product responsibility
Analyze for performance to select
Analyze Basis scenarios
of Business Scenario View
Competition Role-based Scenarios
Configure Collaborations/Biz Documents
Supply-Chain Encapsulation of process detail
Align Process Definition View
Performance
Levels, Practices, * Consistent Modeling
and Systems Link to public protocol definitions
Bounding events
Implement
Supply-Chain Process Specification View
Processes and
Systems
40. Think Big, Start Smart, Scale Fast
ig
Credentials
Think B • Vision
Supply Chain 1
thoughts
Performance
SPS
• Leverage resources
Implementation Scale Fast
3 and experience
Models
Get Started !
Case Studies
2 Start Smart • First Plant Implementation
2001 2002 2003 2004
Source: Accenture
41. Think Big
Think BIG
Because…nothing short of a step-change
Credentials
will keep you ahead of the competition
Supply Chain
thoughts
ging
SPS
Implementation Think packa
Models
Get Started !
Because…packaging touches every
Case Studies
aspect of your supply chain
42. Think Bi g
Credentials
Package
Supply Chain Reclamation Design/
thoughts Reuse Engineering
Recycling Graphics
Management
SPS
Implementation Packaging
Models Packaging
Machinery
Engineering Supply Packaging
Get Started ! Chain Materials
Case Studies Inventory
Management Package
Procurement
Package
Filling
43. Improvement Criteria &
To-Be Success Metrics
Internal
Credentials
Customer Facing Facing
Supply Chain Performance
Responsiveness Flexibility Assets
thoughts Attribute
SPS
Order fullfillment
Superior
Implementation Lead Time
Models
Supply Chain
Advantage
Get Started ! Response Time
Case Studies Production
Advantage
Flexibility
Inventory
Advantage
Days of Supply
44. Building the Treasure Map
High
Credentials
Supply Chain
thoughts
Silver Bullets Strategic
Step Changes
Effort / Benefit
SPS
Implementation
Models
Get Started !
Case Studies
Quick Wins
Low High
Value Achievement
45. Start Smart
Start SMART
Assess Performance Attributes
Credentials
Supply Chain
thoughts Benchmark Performance
SPS
Implementation Prove Scenarios
Models
Get Started !
Design Supply Chain Model
Case Studies
Optimize
46. Assess Benchmark Prove Design
Credentials
Supply Chain
thoughts
SPS
Implementation
Models
Get Started !
Case Studies
47. Project overview
Opportunities
Pre-Screening
Prioritisation
Assessment Cycle
End
Letter of Full Final
SPS Education
Pre-Assessment Intent for Supply Chain Presentation
& Presentation Assessment
Implementation and Contract
Implementation
Adjustments and Subsequent Phases
Solution Design, Deployment Benefits
Project Continuous Tracking
Development Start-up and
Planning Operation and
and Validation Transition Sharing
Implementation Cycle
48. Project overview
Opportunities
Pre-Screening
Prioritisation
Assessment Cycle
End
Letter of Full Final
SPS Education
Pre-Assessment Intent for Supply Chain Presentation
& Presentation Assessment
Implementation and Contract
• Define Offering and • Team of 3-4 • Resource aligned • Team of 4-6 for 1-4 weeks
• Process and Financial Analysis Implementation
SPS Supply Chain • 2 days per site • Project Scope & KPI’s
Management Program • High level discovery • Steering Committee • AS-IS Mapping
• Opportunity pockets • Resource ID’d • Stakeholders & Implementation Issues/barriers
• Value extraction • Assess SOP’s • TO-BE Mapping (game changing)
• Prepare LOI (?) • Recommendations & Implementation roadmap
Adjustments and Subsequent Phases
Solution Design, Deployment Benefits
Project Continuous Tracking
Development Start-up and
Planning Operation and
and Validation Transition Sharing
• Milestones • Joint team formed • 2-6 months depending on scope • Daily • Assess
• Timing • Duration depends on complexity site, equipment, & management of delivered value
• Resources scope & complexity systems operations • Quarterly
• Plan / Metrics • QA review • Change management performance review
Implementation Cycle
49. Fast
Scale FAST
To pick the fruit
Credentials
Leverage resources and experience
Supply Chain
thoughts
SPS
Implementation
Models
Get Started !
Case Studies
50. Infrastructure = reusable capabilities
START SCALE
1 2 3 5 6 7 SMART Acceleration FAST
8 Nth
Gillette Whirlpool Mitsubishi Mitsubishi Gillette 3M yourco yourco
N.America. N.America N.America Europe Europe
Plant 1 Plant 20
Insights:
It’s not about one site, it IS about leverage and speed
It is not about a fad, it IS about improving the business
It’s not about going for change, but it IS about going dollars
52. SPS™ Europe - Global Film Manufacturer
Key Bottlenecks
Logistically Independent Production Units - Duplication
Credentials of Logistics Activities and Costs
Lack of Collaborative Planning between Manufacturing
and Packaging Replenishment
Supply Chain Inventory Accuracy and Visibility
thoughts Network of Past Relationships
Size of Carrier Base vs. Synergies
Interfaces and Transaction Processes - use of SAP
SPS
SPS Solutions
Implementation Reorganised pack matl. planning & purchasing
Models SAP - Inventory control
Re-engineered packaging supplier base
Get Started ! Return & refurbishing with on-site service
provider
Selected 3PL for warehousing, dispatch,
Case Studies transport
Reduction of Carrier Base from 40 to 6 Achieved
Cost Reduction of 11%
Logistics 8%
Procurement 9%
Warehousing 17%
Return / Recycling 20%
Core Cutting (JIT) 30%
53. SPS Europe Implementation Example - Major Film Company
PLAN
Source Make Deliver
CONTAINERS MILKRUN
Prod LINE 4
3 1
2 Prod LINE 5
Third Party FIN GOODS
Suppliers Warehouse
Prod LINE 6
4
3
Customers
Refurbishing
Dispatch
Operation
Consignment
Customer Prod 2
Warehouses
Sonoco
3
5 Prod LINE 1
Sonoco
Plants Prod LINE 2 FIN GOODS
Warehouses
Prod LINE 3
Customer Prod 1
Managed by Sonoco Managed by Sonoco and Outsourced to 3PL
54. SPS™ Europe – Global Tape Manufacture
High
Credentials Cost Optimisation / Opportunity Size
Packaging
Supply Chain Cycle
Ph. 3
thoughts
Converting
Outsourcing
SPS
Packaging
Cycle
Ph. 2
Implementation
Models
Scrap Purchasing
Reduction Leverage
Get Started !
Kaizen
Lean
Ph. 2
Kaizen
Lean
Case Studies Ph. 1
DPOU
Low High
Speed of Implementation
55. Conclusion. What makes SPS™ so different ?
Experience & success in 4 areas
Credentials
Outsourcing & Supply chain
Supply Chain Contract Re-engineering
thoughts Management & Implementation
SPS
Packaging
SPS ™
IT integration
Implementation
Models Design & & interface
Manufacturing optimization
Get Started !
Ability, desire, and culture to implement &
Case Studies
partner
– Gain sharing (accountability)
– Co-asset management
– Resource sharing & leveraging
56. Changing
the way
the world
sees
PACKAGING
Sonoco Europe s.a.
Boulevard du Souverain, 100 box 3
1170 Brussels – Belgium
Tel: +32 2 663 45 40
Fax: +32 2 675 02 25
www.sonoco.com