Adaptive SCM

DAY:

SESSION:

PRESENTER:

Redefining relationships in the supply chain

Wednesday

1

Dr Chris Manning

Where are we now?

ObjectivesBy the end of this session you will be able to:1. Where are we now - Compare best-of-class SCM relationship

development with your current operations to evaluate your current state.

2. Where do we want to go - Evaluate the strategic implications of future business models and how these are/will drive strategy in your SC operations.

3. What are our changing requirements - Evaluate the potential for developing a knowledge-based view of SCM to grow new competencies and mitigate risks in a rapidly changing global business environment.

Changing requirements = changing relationshipsRelationships between supply chain parties describe what is valued in the supply chain:

What SC relationships are best-in-class firms developing currently?

– How do these examples fit with your current SCM strategy and operations?

Best-in-class TrendsHarris et al. (2009) reports best-in-class

manufacturing SCM:• Focus on partnerships rather than contracts.

– To leverage economies of scale– To create new efficiencies & cost reductions– To manage complexity and focus on core business

through outsourcing relationships– To improve reliability and long-term performance

AssumedControl of

Global Sourcing & Procurement

Hidden purchaseof strategic

components directly from lower supplier manufacturers

Resells components

up the supply chain

LeverageGlobal

Buying Powerto

Reduce Costs

Reduces risk of lower order

suppliers feeling

pressured to reduce prices

Ensures distributionbased on

need

Mitigates risk to Quality

Mitigates risk fromsupplier cost

blow-outsand fluctuations

Increases SCtransparency

Ensures supplyof critical

components

Opportunity tomonitor quality& performance

Reduces suppliercosts & risks

Keeps sensitiveInformation within

The company

Reliability and long-term performance

• Solely cost-oriented competitive approaches have given way to long-term, value-driven relationships between parties.

SuppliersOpen collaboration:

Expertise & Knowledge Sharing

Improved long-termrelationships built on

trust

Shared supplychain risk

Shared responseto cost reduction

from larger cost base

ImprovedTime-to-market

Activity 1Consider HP and Bombardier Case Studies:1. Why have these companies developed

different approaches to supplier relationships?2. Give one fundamental assumption required for

success in both case studies.3. Is your business moving towards partnerships

over cost-based competitive management? Why/Why not? Share your insights.

DAY:

SESSION:

PRESENTER:

Innovation leadership in the supply chain

where are we going?

Wednesday

2

Dr Chris Manning

Industry Leadership through relentless InnovationRelentless capability to innovate is the engine of

future competitiveness: What is the basis for new competitiveness

driving collaborative networks in the supply chain?

– How will these trends impact your SCM vision and strategy?

Basis for new competitivenessPrahalad and Krishnan (2008) argue:• N=1 Customers will demand unique

personalised experiences over products or solutions.

• R = G satisfying customer demands will be resourced from a global talent pool.

N = 1 Focus on the centrality of the individual• Value based on unique, personalised

experiences

• One customer experience at a time - even if you have a 100 million customers.

R = G Focus on access to, not ownership of resources • No firm is big enough in scope and size to

satisfy experiences of one customer at a time.

• Firms will access resources from a “global ecosystem” of multiple, globally positioned, small & large suppliers.

Evidence of change

ABB enters strategic partnering agreements in

China for manufacturing and IT to focus on “ABB’s real

art.”

Phillips is teaming up with academics, industry peers

and suppliers to create momentum for future

directions.

EADS is looking for innovation and people who think differently – student competitions to design

aircraft parts, materials and systems.

Bombardier had developed a industry-leading logistics,

technical, maintenance, and field support network for its

Learjet.

TomTom collects customer innovations and feeds them

directly into the design process.

OAIC Conference 2009• Office of Australian Industry Capability• Joint venture – DMO and Boeing US• Introduce “Best of Australia’s SME Defence Industry” to Boeing’s

supply chain• 4 day conference – St Louis (Defence) and Seattle (Civil) aviation

supply chains• Meeting with Boeing supplier management and key suppliers to

develop relationships and foster new opportunities• Tour of 787, 777, 747, 737 lean production lines – Everett and

Renton

Delegates at Everett 777 assembly line

Examples of change

The basis for relationship

Expertise

CollaborativeMedia

Business Analytics

Data and Information Infrastructure

Knowledge Management

Connectivity

Open Innovation

Collaboration

Collective Intelligence

Knowledge Discovery

Data and informationManagement

LEARNING ACTION

Sense-making

EXPERIENCEIndividual

© Knowledge-n-Abler 2009

Open innovation networks

CustomerNetworks

ProfessionalNetworks

BusinessNetworks

PracticeNetworks

Process Networks© Knowledge-n-Abler 2009

Activity 2Consider N = 1 and R = G• What is SCM’s roll in this scenario? • How relevant do you feel these drivers are to your future

business?• How consistent is your strategic vision with these

emergent business drivers? Why / why not?• What personal leadership competencies would be

important in developing your SCM staff to meet these new challenges?

DAY:

SESSION:

PRESENTER:

Adaptive SCM: A learning environment for SCM

Wednesday

3

Dr Chris Manning

Change requirements

Linking intent with knowledge & expertise• N = 1 and R = G intent is fuelled by knowledge

and expertise.• Knowledge & expertise are unique corporate

assets that are the sole source of sustained advantage

• Adaptive-SCM supports knowledge-enabling processes, which are fundamental to SCM’s future success in an N=1, R=G world.

Adaptive SCM Learning Environment

Purpose, Strategy, Culture, Roles, Relationships & Regulations

On-demand task-focused information, knowledge, and expertise for decision-making

and action at the point-of-need

After-action assessmentinforms future learning

Track response& outcome

Mission/Learningobjectives

Store event

© Knowledge-n-Abler 2009

Adaptive-SCM Framework

© Knowledge-n-Abler 2009

BUSINESS CONTEXT

Ad

aptive-S

CM

G

OV

ER

NA

NC

E

DECISION SUPPORT SERVICES

SCM SITUATION

CONTENT SERVICES

TE

CH

NO

LO

GY

A

RC

HIT

EC

TU

RE

Adaptive-SCM

Adaptive-SCM Architecture

CASEREPOSITORY

MOBILEDEVICE

HANDLER

SCMKNOWLEDGEWAREHOUSE

&ANALYTICS

TRAININGCONTENT

GPSGIS

Google EarthLocalisedContent

Google RSSWikipedia NewsTwitter FlickrYoutube Avatar

FEEDS

LANGUAGETRANSLATION

TRANSACTIONSYSTEMS

PARTNERNETWORK

DATA &INFORMATION

Event sensitive channel-based message bus

Business Analytics

© Knowledge-n-Abler 2009

Wikis BlogsForums VoIP

Chat MessagingTags RSS

Podcast Videocast

SECURECOLLABORATIVE

MEDIAPARTNERNETWORK

COLLABORATIVEFEEDS

Data & Information Infrastructure

COLLABORATIVE MEDIA

COLLABORATIVEANALYTICS

Expertise

CollaborativeMedia

Business Analytics

Data and Information Infrastructure

Knowledge Management

Connectivity

Open Innovation

Collaboration

Collective Intelligence

Knowledge Discovery

Data and informationManagement

LEARNING ACTION

Sense-making

EXPERIENCEIndividual

Expertise

CollaborativeMedia

Business Analytics

Data and Information Infrastructure

Expertise

CollaborativeMedia

Business Analytics

Data and Information Infrastructure

Knowledge Management

Connectivity

Open Innovation

Collaboration

Collective Intelligence

Knowledge Discovery

Data and informationManagement

LEARNING ACTION

Sense-making

EXPERIENCEIndividual

Activity 3• The next two slides provide propositions that are

the underlying assumptions of Adaptive-SCM:– “An N=1 Supply Chain”– “An R=G Supply Chain”

• Are your SCM processes and systems suited to Adaption and Learning given these assumptions and the Adaptive-SCM model presented?

An N=1 Supply Chain• Knowledge-enabled systems focus on

providing individual experiences to LEARN and APPLY knowledge and expertise skilfully within a challenging and changing environment.

• Data, information, and knowledge feeds must be customised to the SC participant’s capability, objectives, and current operating context.

An R = G Supply Chain

• Acquiring and aligning resources successfully from a complex global environment requires a rich understanding of context

• Multiple data and information feeds describe the context.• Previous knowledge of similar contexts provides a

structure for analysis & interpretation• Expertise enables us to select and ADAPT these

interpretations to provide the BEST COURSE of ACTION• Leveraging collective intelligence and expertise via

ADAPTION is imperative to an R = G supply chain.