Michigan State University, 2016 - 1 -
Beyond the Horizon: Next Generation Supply Chain Presented to: Grand Rapids Joint PDM w/ISM, SCMC, and CSCMP January 11, 2017 David J. Closs, Ph.D. Chairperson, Department of Supply Chain Management The Eli Broad College of Business Michigan State University closs@msu.edu
Michigan State University Team • David J. Closs, Ph.D. • M. Bixby Cooper, Ph.D. • Patricia J. Daugherty, Ph.D. • David J. Frayer, Ph.D. • Stanley E. Griffis, Ph.D. • Nick Little, MCIPS • Steven A. Melnyk, Ph.D. • Gary L. Ragatz, Ph.D. • Judy M. Whipple, Ph.D. Michigan State University, 2016 - 3 -
Overarching Research Questions “What emerging trends or developments will shape the future of supply chain management ?” “Why are some firms more successful with strategic supply chain management than others?” (even when they possess similar tools, systems and practices)?” Michigan State University, 2016 - 4 -
Major Traits of the New Supply Chain • Increasing rate of technological advances that are rooted in the supply chain. • Acceptance of complexity as a business driver. • New competitive pressures. – Amazon Effect • New methods of accommodating customers. – Omnichannel Michigan State University, 2016 - 5 -
Project Outline • Phase I: In-depth interviews with 50+ medium and large firms – Manufacturers, retailers, and service providers across North and South America, Europe, Asia, and Africa – Enabled broad understanding of strategic initiatives being undertaken and capabilities firms were developing • Phase II: Online survey – Predominantly manufacturer and North American based – Examines linkages between competencies, capabilities and performance Michigan State University, 2016 - 6 -
Online Survey Research Process • Survey development • Overall survey response (336 total responses) – APICS/MSU – Market research firms • Various demographic information – Respondent job title and scope of responsibility – Type of firm • 70% manufacturers – Size of firm (sales and employee) Michigan State University, 2016 - 7 -
Insomnia • Integrated solutions • Talent and leadership • Complexity and risk • Threats/challenges • Compliance • Cost/purchasing issues Michigan State University, 2016 - 8 -
Insomnia • Integrated solutions • Talent and leadership • Complexity and risk Michigan State University, 2016 - 9 -
Omni Channel Supply Chain Michigan State University, 2016 10 - 10 -
OMNI-CHANNEL – UNDERSTANDING THE DIMENSIONS Order Fulfillment On-Site Delivery Direct to Person Traditional Showroom In Person Retail Order Local Delivery E-tailing Placement On-line Michigan State University, 2016 - 11 -
Omni-Channel Network Strategy • Typically begin as single network • Moving toward separate network for D2C • Focus on growing regional markets • Delivery requirements? • Role of Amazon in D2C • Growing percent of business • Ecommerce packaging – Bags vs. boxes – Brand requirements – Plastic not good from a sustainability point • Hassle free returns process • Time to credit card Michigan State University, 2016 - 12 -
Insomnia • Integrated solutions • Talent and leadership • Complexity and risk Michigan State University, 2016 - 13 -
TALENT OBSERVATIONS • In the minds of today’s SCM executives, talent and resource management are the primary drivers of SC performance. • Firms are beginning to use different employment models as a means to develop a talent competitive advantage. • Increase SCM collaboration with sales to understand cross-functional requirements and to provide increased value to customers. • Increase consideration of T-shaped skills for employment acquisition and development. Michigan State University, 2016 - 14 -
TALENT OBSERVATIONS • Increase cross-functional collaboration (ex. SCM with sales) to understand requirements. • Sell benefits of S&OP beyond planners to understand the requirements for integration • Firms’ real talent needs must become top-of-mind to students and primary suppliers (universities and training programs). Michigan State University, 2016 - 15 -
TALENT LESSIONS LEARNED • Create a solid college recruitment strategy that builds on multiple level relationships with key talent suppliers. • Develop a formalized talent show and networking. • Measure senior management for their performance as a talent developer and a scout. • Apply a formal structured process to evaluate candidate capabilities currently and likely for the future. Using structured assessments and evaluations, high performing firms are able to define education and experiential plans to elevate the candidates up the ladder and across the lattice. Michigan State University, 2016 - 16 -
The Future Outlook for SC Talent • Demand • Supply Michigan State University, 2016 - 17 -
Insomnia • Integrated solutions • Talent and leadership • Complexity and risk Michigan State University, 2016 - 18 -
MANAGING THE COMPLEXITY PARADIGM • Complexity sources • Approaches to managing complexity Michigan State University, 2016 - 19 -
COMPLEXITY SOURCES • Customer accommodation – Speed – Visibility – Product/service assortment – Product customization • Operational globalization – Localized variety – Location complexity – Legal & regulatory Michigan State University, 2016 - 20 -
COMPLEXITY SOURCES • Supplier complexity – Local sourcing complexity – Cultural complexity – Global operations • General business and supply chain trends – Process customization – Technology turnover – Increasing SCM scope – Mergers & acquisitions – Collateral complexity Michigan State University, 2016 - 21 -
APPROACHES TO MANAGING COMPLEXITY • Avoidance • Good partners • Information technology • Flexible workforce • Supplier collaboration • Access to leadership • Supplier/customer understanding Michigan State University, 2016 - 22 -
Respondent Information Level of Respondent Scope of Responsibility President SVP Director Logistics Purchasing Production/Mfg SCM 21% 39% 30% 43% 34% 15% 18% Michigan State University, 2016 - 23 -
Firm Information Annual Sales No. of Employees Under $250m $250m-1B Under 250 250-1000 Over $1B 1001-10,000 over 10,000 15% 27% 29% 30% 31% 27% 41% Michigan State University, 2016 - 24 -
Corporate Strategy Cost Differentiated Mixed 18% 47% 35% Michigan State University, 2016 - 25 -
Organizational Reporting Structure • Centralized – SCM Reporting Structure function reports to CEO Centralized Decentralized • Decentralized – each unit Matrix has its own SCM function or several units share a SCM function 29% 35% • Matrix – SCM function has unit and corporate responsibility 36% Michigan State University, 2016 - 26 -
Practices, Capabilities & Competencies • • • Competency – the broad set of skills, knowledge, and aptitude that create Practice – the specific activities engaged in by the organization to achieve Capability – the infrastructure, processes, systems, assets, and resources and sustain a supply chain supply chain goals and objectives That contribute to a specific competency Competency 2 Competency 1 Capability A Capability B Capability C Capability D Capability E Practices: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Michigan State University, 2016 - 27 -
Practices & Capabilities (An Example) Risk Management Practices: Firm’s senior Firm’s senior Firm’s senior Firm has a management views corporate level management views management supply chain risk strategy to address supply chain risk supports supply management as risk management management as a chain risk necessary for concerns competitive management protecting our advantage initiatives brand or reputation Michigan State University, 2016 - 28 -
Capabilities • • Complexity Simplification Customer Relevancy • • Corporate Strategic Customer Responsiveness Integration • Risk Management • Customer Segmental Focus • Structural Adaptation • Information Connectivity • Supply Chain Planning • Information Management Responsiveness • • Internal Process Supplier Collaboration Connectivity • Supplier Management • Internal Process • Supplier Strategic Simplification Alignment • Customer Communication • Talent Management Michigan State University, 2016 - 29 -
Competencies Corporate Strategic Integration • Set of abilities of the organization to promote senior management support and ensure compliance with strategic vision Customer Integration • Set of abilities of the organization to segment and communicate with customers, while promoting relevancy and responsiveness Internal Integration • Set of abilities of the organization to adapt structure, reduce complexity, and increase internal process connectivity Michigan State University, 2016 - 30 -
Recommend
More recommend
