supply chain competencies and roles may 2015

OptimaIntegraOperational Excellence

Workshop

Supply Chain Evolution

What will be the Competences required?

Santiago, Abril 14, 2015.

Pedro Angulo Monsalve

2


Initial Scene …

Supply Chain concept has evolved during last 20 years, from local pure

Logistic management, very much focused on Cost and Material flow, with

vertical structure and internal solutions oriented, towards a Global interaction

in a digitalized world where Service and Agility are the main differentiators,

and where information flow and knowledge are shared.

3


what is the actual scenario in the Supply Chain arena?

what will be the main changes next 10 years?

how to achieve / keep competitive advantage?

can some actions be anticipated?

which supply chain competences will be required?

Some Key Questions…

4


Supply Chain 2015. External Forces …

Un-Balance between low cost and high level of services required.

Customization versus Availability. Security of Supply diminished.

Quality is not any longer a clear differentiator, but just a standard.

Loyalty is not as strong as was in the past.

Specialities are becoming standards. Niches are more difficult to find.

Efficiencies are already implemented. What else? How differentiate?

Two major drivers for Demand: Speed, Flexibility.

Focus on Services, more than Products.

Innovation Yes, but at similar Cost.

CUSTOMERS:

5



Substantial shifts in global demographics economic power towards

emerging countries, like East Asia, LATAM and Africa.

Companies needs to provide comparable services worldwide,

independently of sourcing points.

Customer are not tolerating excessive lead times even in emerging

markets.

Communities instead of individual countries: Europe, Atlantic Zone,

Pacific Zone, South Cone, Asia, etc. Impacts on Commercial

Agreements, common legislations, standardization on documents flow.

Global Supply Chains in place, specialized on Niches.

GLOBALIZATION:

6



Strong competition on Global scale. Local companies that were not

competitors are becoming competitors at global level: the “global

village” problem.

Market share is not enough to secure long term profitability, leading to a

more active and tense market environment. Markets are being

acquired, not developed.

All competitors are exposed to similar level of Technology development,

with quick and cheap access to information available on the Web.

Therefore, Cost reduction initiatives and Efficiencies programs are

present in all competitors segments.

COMPETITION:

7



Internet is dramatically changing the way that Companies are

commercializing. New Business models based on Internet, Tablets,

GPS, e-Auctions, e-Ordering, Tracking, etc., are challenging the supply

chain process established not long ago.

More powerful modelling tools are in place, shortening the decision

process, with faster algorithms, higher accurate, decentralized users,

scenarios simulation.

The amount of information available is unlimited, the access to that

information is easy, fast and cheap. Management of that Information is

becoming crucial.

ERP systems broader implemented, with high level of processes

centralization, where business rules are controlled and standards are

secured. Regions needs to follow central Hubs, allowing Performance

benchmarking.

IT & KNOWLEDGE TRANSFER:

8



Communities are strongly influencing the physical flow and planning.

Distribution network in EU, Mercosur, Asia.

Common legislations replacing local legislations.

Pressures linked to a clean, healthy and safer environment: recycling

materials, waste minimization, transport contamination, packaging and

packing materials, permits for transport and storage, time restrictions, .

Supply chain are requested to be re-designed with much more

attention to the end of product use cycle, including returns and

disposal.

LEGAL & ENVIRONMENTAL REGULATIONS:

9


Supply Chain Future 2020: the 10 Trends…

1.- Increased Urbanization and the rise of megacities will impact the size of

stores, logistics and distribution infrastructures, among other factors.

2. Aging Population will have economic and political consequences related

to the amount of money spent on necessities like food and drink, and the

type of delivery services, store formats and locations offered to older

consumers.

3. Increasing Spread of Wealth will lead to a growing middle class in

developing regions, impacting consumption and availability of food items and

providing a source of growth for manufacturers and retailers.

4. Increased Impact of Consumer Technology Adoption will be reflected

not only in consumers’ own behavior but also in their ability to influence the

buying behavior of other consumers as the use of social and digital media

continues to spread.

5. Increase in Consumer Service Demands will define new service models,

offered via the Internet, that move beyond selling individual products and will

bring different types of “solutions” to consumers and shoppers.

(*) Source: 2020 Future Value Chain Project

10


Supply Chain Future 2020: the 10 Trends…

6. Rapid Adoption of Supply Chain Technology Capabilities will enable a

more synchronized value chain with greater visibility and traceability.

7. Shifting of Economic Power to countries like China and India will cause

trade areas to evolve and a new generation of globally competitive

companies from these developing markets to emerge.

8. Scarcity of Natural Resources like energy, water and food will become a

growing issue as demand is projected to outstrip easily available supplies

over the next decade, resulting in increasing production costs.

9. Increase in Regulatory Pressure will be seen particularly for hot-button

areas like the environment, sustainability and food safety.

10. Impact of Next-Generation Information Technologies like cloud

computing will lead to a new way to deal, jointly, with business and

technology in the consumer goods industry.

(*) Source: 2020 Future Value Chain Project

11


The Challenge on Supply Chain professionals…

Quickly absorb/ incorporate large amount of information on its

background, being able to generate and validate hypothesis. Constant

iteration.

Understand global business interactions, local regulations and economic

developments. Full English is a must, 3rd language even desirable: Europe: English, German, Spanish or French.

LATAM: Spanish, English, Portuguese.

Stronger involvement with 3 or 4 PLs, as cost pressure and Regulations

will force to work in a Collaborative environment, even with Competitors.

Needs to understand not only own Supply chain, but also the supply

chains from competitors, customers and suppliers. Larger integration.

Be prepared for constant optimizations instead of one-time effort.

Stronger interaction with Product design, Technical development, and

Manufacturing.

Better prepared for Changes; stress resistant & flexibility. It will not stop.

12


The Challenge on Supply Chain professionals…

Get closer to customers, as much as Commercial people; understand

customer need´s. Supply Chain professionals should be perceived as

Facilitators.

More demanding environment; it is expected much higher level of

performance. KPI´s domain.

More exposed to Negotiations, not only with 3 PL´s, but also with

Customers, or internal stakeholders such as Peers, St.Comms., Boards.

It must combine Content domain together with People management.

It must be perceived as an inspiring leader for reporting Teams, Peers

and Superiors.

Act as a Change Agent.

Do the right things versus Do the things right.

(the Art of Delegation).

13


Main 12 Competencies for Supply Chain professionals

Conceptual Strategic Thinking (Vision)

Learning Ability (Innovation)

Result Orientation

Customer Focused

Leadership (Change agent)

Negotiation (stakeholders)

Collaboration (internal, external)

Entrepreneurship

Decisiveness

Judgement

Communication (oral, written)

Planning and Organizing

Sequence doesn´t represent Priority…

14


Last, but not least …

Project Management (Green/ Black belt)

ERP systems (SAP, Oracle, …)

Languages (3) (English, …..)

International exposure

Additional competencies are now necessary to stay competitive…

15


Functions within Supply Chain field

Role Abrev

Supply Chain Manager/ Team Lead SCM

Supply Chain Planning (Demand, Supply) SCP

Logistic Manager/ Supervisor LM

Supply Chain Engineering SCE

More functions can be added…

16


Matrix Roles vs Competences

SCM SCP LM SCE

Conceptual Strategic Thinking (Vision) 3 2 2 2

Learning Ability (Innovation) 3 1 2 3

Result Orientation 3 2 2 3

Customer Focused 3 2 3 3

Leadership (Change agent) 3 2 3 3

Negotiation (stakeholders) 2 2 3 2

Collaboration (internal, external) 3 3 3 3

Entrepreneurship 3 2 2 2

Decisiveness 3 2 3 2

Judgement 3 2 2 2

Communication (oral, written) 3 2 2 2

Planning and Organizing 3 2 3 2

Level 1: Individual (Reactive)

Level 2: Team (Proactive)

Level 3: Organization (Facilitator)It can varies according to specific industry...

17


[email protected]

mailto:[email protected]

supply chain competencies and roles may 2015

Leadership & Management

supply chain process

supply chain arena

global supply chains

chain competences

global level

security of supply diminished

global interaction

global scale