This is an interactive action-oriented presentation of how supply chain project management both drove and enabled a Sainsburys division to find its missing stock valued at over £3million GBP.
2. Prelude Daniel Newman
International Project Manager
„Supply Chain Management - the process of
managing the flow of materials and goods.
Every project or programme contains at least one
or more customers, suppliers, and goods – hence
the need for Supply Chain Project Management
(SCPM) .
Our job is to get the right goods (product or
service) to the right place at the right time for the
right cost - but remain flexible to match demand.‟
Source:1999 - Daniel Newman, J. Sainsbury’s Plc
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3. Agenda Daniel Newman
International Project Manager
Objective
Introduction
Supply Chain Management (SCM)
SC Project Management (SCPM)
Case Study
Conclusion
References
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4. Objective Daniel Newman
International Project Manager
To enhance your existing project management flexibility
capabilities to an international "hands-on" practitioner level.
This 2nd seminar of 5, provides a brief insight into supply chain
management (SCM). You will learn about four areas concerning
supply chain project management (SCPM) :
(1) Plan (2) Build (3) Automate (4) Monitor
We will conclude with a case study on how SCPM was
successfully used in one area of Sainsbury's to recover a loss of
over £3million GBP.
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5. Introduction Daniel Newman
International Project Manager
Pop-Quiz:
supplier customer
Goods, Services
and information
supplier customer
Reverse
logistics
customer supplier
Supply Chain
Supply Chain Management
Which one should we be more concerned with and why?
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6. Supply Chain Management Daniel Newman
International Project Manager
…is thousands of years old, (aproximately 4,579 years old)
Height : 139 meters (456ft)
2570 BC
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7. Supply Chain Management Daniel Newman
International Project Manager
Project Management is also
many thousands of years
old.
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8. Supply Chain Management Daniel Newman
International Project Manager
… contains several interdependent processes
Strategic part of SCM, it must manage ALL resources to meet customer demands.
Businesses choose suppliers to deliver goods and services needed to create products
Production, testing, packaging and delivery preparation activities scheduled
A.K.A. Logistics - coordinate; received orders, storage, transport, and invoicing
The problematic part, support customers with defective and excess products
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9. Supply Chain Management Daniel Newman
International Project Manager
… historically and currently problematic
Vipnet, 1999 GSM portal
Boeing, 1997 writes off launch delayed 1 year due
$2.6 billion, due to supplier to supplier issues
parts shortages
Volcanic eruptions Legal
Culture
Manufacturing
War
Strike
Management
Processes
Airbus's A380 Technology
super-jumbo 2006 Sainsbury’s delayed
delivery to Sony's 2006, PlayStation 3 store openings, cost them
customers, almost 2 years
delay gives opportunity to rivals £millions in lost revenue
late (Microsoft's Xbox 360 and
Nintendo's Wii)
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10. Supply Chain Management Daniel Newman
International Project Manager
… some problems can be explained
Poorly managed supply chains cause instabilities (i.e. poorly forecasted
consumer demands). These instabilities create these bullwhip effect swings.
Tell-tale signs include; non-collaboration, communication, and misreading
market conditions. What should we as IPMs be doing about it?
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11. SC Project Management Daniel Newman
International Project Manager
The answer is Everything!
Nothing is outside the
project management scope.
Supply Chain Management is
everyone’s job.
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12. SC Project Management Daniel Newman
International Project Manager
Risks Operations Supplier(s)
Invoicing Schedule
Resources
Finance Sizing
Lead times
Audit
CRITICAL Marketing
Lead times
RESEARCH
PLAN
CRITICAL
Internal Focus
External Focus
Analyse Functional Focus
Strategy
Logistics Demand, Supply and Environment
Communication Purchasing Process, Risk and Governance
Procurement
CRITICAL
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13. SC Project Management Daniel Newman
International Project Manager
Solutions
Technical Non - Technical
E-Procurement system Quality Customer Service
Web SCM system Forecasting demand
Coordination
Common BUILD Process
Platform
CRM Procurement
Custom
Communication s
Tax
Collaboration Partnership
Suppliers
Extended ERP
Enterprise Resource Planning Alliance Distributors
Oracle, PeopleSoft, SAP
OEM Product Development
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14. SC Project Management Daniel Newman
International Project Manager
SCM Quality Management
Reverse logistics Alerts
Inventory Process
Deliver
AUTOMATE
Replenishment
Customer returns
Procurement Workflow
Tracking Reporting
Warehouse
Mobile solution
Call Centre
Increasing web technologies,
and calls for effective integration.
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15. SC Project Management Daniel Newman
International Project Manager
At Sainbury’s we improved delivery performance through better
response times, and visibility.
New technology (RFID)
Build
PIR Costs
Post Implementation - Review
Improvements MONITOR Networks
Benchmarking
Plan Risks
Solutions
Bad management
Product Inventory - visibility Up-2-date Lifecycle status
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16. Case Study Daniel Newman
International Project Manager
We found the lost £3million, and this is how we did it.
NCR Sainsburys
- Improvements
- New Tech (RFID) PLAN
- Networks
- Solutions
- PIR - Audit
- Cost - Analyse
- Communication
- Sizing
- Schedule
MONITOR BUILD
- Partnerships
AUTOMATE - Processes
- Solutions
- Processes - Common platforms
- Supply Chain Quality Management
- Inventory
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17. Conclusion Daniel Newman
International Project Manager
- SCM is everyone’s job (i.e. Data management)
- Time spent on plan management is key to success
- Motivate your clients and their suppliers for change
- Build better collaborative partnership models
- Work smarter, learn from mistakes (PIR)
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18. Conclusion Daniel Newman
International Project Manager
… Intelligence
SCPM
Toolkit
USES
Cross-functional …
… Experience … Skills
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19. Conclusion Daniel Newman
International Project Manager
Supply Chain Management has a
game …
Businesses can play in partnership with
their Customers and Suppliers.
We can facilitate this!
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20. References Daniel Newman
International Project Manager
AGRESSO: http://www.agressona.com/ - accessed April 14, 2010
AIRBUS: http://www.airbus.com/en/airbusfor/suppliers/ - accessed April 19, 2010
AMADEUS: http://amadeus.software.informer.com/ - accessed April 19, 2010
BOEING: http://www.boeing.com/companyoffices/financial/finreports/annual/98proxy1/part16.htm - accessed April
15, 2010
Cox, A. 2001. Managing with power: Strategies for improving value appropriation from supply relationships. The
Journal of Supply Chain Management, Spring, 42–47
Croxton, K.L., S.J. Garcia-Dastugue, D.M. Lambert and D.L. Rogers. “The Supply Chain Management Process,” The
International Journal of Logistics Management, (12:2), 2001, pp. 13-36
Ellram, L.M., Tate, W.L. and Billington, C. (2004) Understanding and managing the services supply chain, Journal of
Supply Chain Management: A Global Review of Purchasing and Supply, 40(4), pp.17–32
Forrester, J. W. 1958. Industrial Dynamics: A Major Breakthrough for Decision Makers. Harvard Business Review
36(4):37-66
IBM: http://www-900.ibm.com/cn/industry/distribution/news/pdf/caac/gds_solutions.pdf - accessed April 15, 2010
Lee, Hau, P. Padmanabhan, and S. Whang. 1997. Information Distortion in a Supply Chain: The Bullwhip Effect
SAINSBURYS:http://www.information-age.com/article-archive/292891/sainsburys-dogged-by-supply-chain-
problems.thtml - accessed April 14, 2010
Supply-Chain Council, Inc. “Supply-Chain Operations Reference Model: Overview of SCOR Version 5.0,” www.
supply-chain.org, - accessed April 14, 2010
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21. Daniel Newman
International Project Manager
Thank
you
fr.linkedin.com/in/danielnewman
Email: daniel@psicoremedia.com
Blog: ipm3000.wordpress.com/introduction/
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22. Clients
ABC News
Amadeus
GSK
HMV
IBM
Interactive1
J Sainsbury’s Plc
Knight Frank
LBNL
Mobilkom Austria– Vipnet
National Westminster Bank
PwC
The British Council /Crown Agents /ODA
The European Society of Cardiology
Daniel Newman
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Editor's Notes
Can someone give us any five main activities required to build this pyramid?
Can someone give us any five main activities required to build this pyramid?
On the boards around the room, can you add any more problems that could impact a supply chain.