Presentation Title Supply chain sustainability for innovation and growth - Focus on materials , process and technology Presented by: Dr. Lai Ving Kam Associate Professor – Berjaya University College , Malaysia Nov 22, 2017 10 th Global Supply Chain and Logistics Summit 22 Nov 2017 www.sclgsummit.org
Adaptive Responsive Supply Chain with Omnichannel approach Adaptive Responsive Supply Chain (A-RSC) Workforce Last Mile management Delivery Store fulfilment / Delivery system Store Front / Distribution as Inventory management point Order /warehouse Management A-RSC Mobile / Catalogue Order Management Allocation Policy Channel-agnostic Channel-agnostic returns management Online Infrastructure Omni Channel required How to manage Supply Chain Network Speed Business intelligence and Agility Sustaianbility ? Supply Chain Speedy On-demand fundamental connectivity and customer Delivering the right satisfaction = quality at the lowest Profitable sales cost, with the increment agreed service level. SC Sustainability 10 th Global Supply Chain and Logistics Summit 22 Nov 2017 www.sclgsummit.org
Speed – key to adaptive Responsive Supply Chain Global Trade Redefined Digital Free Trade Zone (DFTZ) Super Hub and Spoke: Wider Global Supply Chain Major Hub Super Feeders Connectivity Infrastructure Super Connectivity Feeders Infrastructure Feeders Sub Feeders 10 th Global Supply Chain and Logistics Summit 22 Nov 2017 www.sclgsummit.org
Connectivity in Adaptive Responsive Supply Chain Hub and Spoke: Wider Global Supply Chain Major Hub Feeders Feeders Feeders Sub Feeders 10 th Global Supply Chain and Logistics Summit 22 Nov 2017 www.sclgsummit.org
Structured A-RSC Framework Guides and Directs -Integrate Adaptive Responsive Supply Chain -cooperate Competitiveness Coordinate • Sustainability Core Strategic • Responsiveness Cost-price Vision • Cost Efficiencies relationship Product • Robustness Management Strategies & Cost • Agility Product Lifecycle Management Policies Management • Flexibility • Survival Adaptive Responsive • Quality Supply Chain Technology & Technology & Product Design Product Portfolio Deterministic and Development Management Product Strategies Business strategies Adaptive Sustainable Responsive Supply Profits Chain Supplier Manufacturer Distributor Retailer Consumer Phenomenon Observed in Supply Chain 9 Feb 2011 Bullwhip Effect Production Plan Uncertainty Retailer Order Order Size Customer / Volatility Demand Customer Demand Retailer Orders Distributor Orders Distributor Order Production Plan 7 Time 10 th Global Supply Chain and Logistics Summit 22 Nov 2017 www.sclgsummit.org
Centrality of Connectivity in Adaptive Responsive Supply Chain Supply Chain Core Strategic Vision Cost Product Lifecycle Management Management Adaptive Technology Technology Responsive Responsive Supply Chain Market Product Design Product Portfolio and Development Management Supplier Manufacturer Distributor Retailer Consumer 9 Feb 2011 Responsive Efficiency Adaptiveness Production Product 6 10 th Global Supply Chain and Logistics Summit 22 Nov 2017 www.sclgsummit.org
Prevailing Global Volatility Business Environment 2017 Global Volatile Business Environment What business must do ! Pre -CCR Overview Extended Product Cascading Global Supply Chain Sales Sales N Development Add-On product Sales 3 Introduction Introduction ‘n’ Growth Sales 2 Saturation Decline zation Cannibalizatio ial Potential Changing Customer Preference ‘n’ Cost1 Price 2 Price 3 Price1 Cost 2 Market Cost 3 Research Rapid Price N Saturation Sales1 R&D Expansion Changing Cost N Customer Promotion Preference Profit Price – Cost � Shortening Lifecycle Profit 1 = � Fast Technology changes Low Profit 4 Source: Lai VK (2015). “Comparative Study on Continuous Cost Reductions between Electronics and Non Electronics sub sectors in Fashionable Products” 10 th Global Supply Chain and Logistics Summit 22 Nov 2017 www.sclgsummit.org
Global Connectivity Synergetic Centre of Excellence Adaptive Agile Risk-Hedging Efficient Supply Chain Responsive Supply Chain Products & Services Hardware Manufacturing software Technology Open & Closed Information & Integrated Communication Connectivity Connectivity Multi Multi tech Technology Integrated Interface Shortening Lifecycles Order Size C u s t o m e r C u s t o m e r D e m a n d D e m a n d R e t a i l e r O R e t a i l e r O r d e r s r d e r s R e t a i l e r O R e t a i l e r O r d e r s r d e r s D i s t r i b u t o r O D i s t r i b u t o r O D i s t r i b u t o r O D i s t r i b u t o r O r d e r s r d e r s r d e r s r d e r s P r o d u c t i o n P l a n P r o d u c t i o n P l a n P r o d u c t i o n P l a n P r o d u c t i o n P l a n Bullwhip Effects T i m e S o u r c e : T o m M c G u f f r y , E l e c t r o n i c C o m m e r c e a n d V a l u e C h a i n M a n a g e m e n t , 1 9 9 8 10 th Global Supply Chain and Logistics Summit 22 Nov 2017 www.sclgsummit.org
Standard Product Design and Development Process Product Lifecycle Management- Creative --- End-of-life 9 Process Stages 47 sub stages > Creative Stage PSTO CRM CFR FCR PDR > Development Stage PDR ELF TCP MTC MBD CQP FDR ESR > Engineering Stage ESR QP PCP BOM PDC CDF TSC > Tooling Stage TSC 1st S TMR WSP > Debug Stage WSP EP 1 EP 2 CPQ FTE FEP APP WI JGA ERV Material Management stage MFG-Pro SOE MPS MRP POR CCC GR WPS MPL 9 Feb 2011 > Qualification stage ERV PPA PQT TQP MPQ FPR ERC RTP > Operations Stage RTP PP PS PST SR FS A > Post Launch Stage A PLR 10 th Global Supply Chain and Logistics Summit 22 Nov 2017 www.sclgsummit.org
Detail Product Design and Development Process Front end and backend stages 20 1st S First Shot 21 Tooling Model Review TMR Tooling Product Design and Development 22 Working Sample Pilot Stage WSP Process- front and back end stages 23 EP 1 Engineering Pilot 1 Materials Management stage a ERP ERP system lopment Back End stages b SOE Sales Order Entry 1 c MPS Master Production Scheduling PSTO Product Strategy Turn Over Creation Stage d MRP Materials Requirement Planning CRM Concept Review Meeting e POR Purchase Order Release 2 CFR Cost Feasibility Review f CC Customs Contract Debug Stage 3 g GR Goods Receiving FCR Final Concept Review h WPS Weekly Production Schedule 4 t End stages PDR i Product Design Review MPL Material Pick List 5 24 EP 2 Engineering Pilot 2 ELR Electronic Logic Flow Chart 6 25 CPQ Component/Part Qualification 26 Field Test Evaluation 7 FTE TCP Tool / Capacity Plan 27 Final Engineering Pilot FEP 8 8 Product design and Develop Product Design Front E Manufacturing Technology Manufacturing Technology 28 28 APP Assembly Process Plan Assembly Process Plan MTC Consideration 29 WI Work Instruction Development Stage 9 30 JGA Jig & Fixtures Approval SCC Supply Chain Considerations 31 Engineering Review & Validation ERV 10 32 PPA Packaging Printing Approval MBD Made / Buy Decision Qualification 33 PQT Product Qualification Test 11 CQP Cost Quote Package 34 TQP Tool Qualification Protocol 12 FDR Final Design 35 Molding Parameter Protocol MPQ 13 36 Stage Final Product Review ESR Engineering Spec Release FPR 37 ERC External Regulatory Certifications 14 QP Quality Plan 38 RTP Release to Production 15 39 Operations PP Pre-Production PCP Process Control Plan 40 Production Start-up PS 16 Engineering Stage BOM Bill of Materials 9 Feb 2011 41 Product Stress Test PST 17 Packaging Design 42 Stage SR Shipment Release Confirmation PDC 43 FS First Ship 18 Component Drawing 44 A Availability Finalization 45 Post Post launch Review PLR CDF 46 Launch PLM Product Lifecycle management 19 Tool Start Confirmation TSC 47 Product Disposal strategy Stage PDS 10 th Global Supply Chain and Logistics Summit 22 Nov 2017 www.sclgsummit.org
New Product fulfillment On Demand Loop USA Product Management China Strategy / Plan 5G Product Mechanical Conception & Design ation – Pseudo 5G definition uct Technical file China ransmission E&E PDD Product China Design & Development Development Product T Key Key trans digitalizatio components Malaysia, ASEAN, Software USA, Korea, Japan Packaging USA, China, Korea Design Multi-technology USA, China Interfacing design USA, China Multi Locations PDD IoT : On Demand Connectivity High frequency product introduction adaptively 10 th Global Supply Chain and Logistics Summit 22 Nov 2017 www.sclgsummit.org
Intelligent Product R&D / Manufacturing and Fulfillment AI 5G Intelligent Manufacturing Sustainable Workforce Last Mile management Delivery Store fulfilment Manufacturing / Delivery system Store Front / Distribution as Inventory management point Order /warehouse Management Mobile / Catalogue Order Management Allocation Policy Channel-agnostic returns management Online Infrastructure Omni Channel required Network Speed Business intelligence and Agility 10 th Global Supply Chain and Logistics Summit 22 Nov 2017 www.sclgsummit.org
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