Case Study: Supply Chain Network Design – Create a model for flexibility and responsiveness whilst reducing cost

Supply Network Design & Re-design

A Continuous Journey To Keep The Engine Running

Mr. Walaa MaherRegional Supply Chain Director with >15 years In two of world largest FMCG companies ( Procter & Gamble and Kimberly-Clark ). Work through simple SC redesigns and Improvement Kaizen Projects , Helped >50 entities through I-EMEA in both Private & Public Sectors to develop SC Capability. Proudly my work on the Supply Chain Education & Talent Development systems is used internationally for more than 18,000 supply Chain practitioners.

What is GCC

Those to blame !!!

Since 1993, Chris has been developing original games on the PC, the first of which was Transport Tycoon, released through Microprose in 1994. A 'World Editor' version of Transport Tycoon followed in mid-1995, followed by Transport Tycoon Deluxe at the end of that year.

Those to blame !!!So before memorizing my first M. Jackson song , I Memorized this Simple/Complicated process for the material flow till it reaches Customers..

Case Study: Supply Chain Network Design & Re-design

Simple Steps ….but not easy

What is Marathon all about ?

• $$ Requirements• Innovation Pipeline•Consumer Proposition

Business Strategy

•Industry/Technology Trends

•Business Strategy

Strategy Engagemen

t •Gap Analysis / KPIS• High Level Mapping •Options Analysis

Strategic Design

•Sourcing Strategies•Distribution Strategies•Outsourcing Options

Structural Design •S&OP

•Inventory Polices •PDCA Setup•Document & Monitor

Operational Design

Steps to Re-Design your SN

Simple Steps ….but not easy

• $$ Requirements• Innovation Pipeline•Consumer Proposition

Business Strategy

•Industry/Technology Trends

•Business Strategy

Strategy Engagemen

t •Gap Analysis / KPIS• High Level Mapping •Options Analysis

Strategic Design

•Sourcing Strategies•Distribution Strategies•Outsourcing Options

Structural Design •S&OP

•Inventory Polices •PDCA Setup•Document & Monitor

Operational Design

Simple Steps ….but not easy

This is How I Recommend to Do it ?Not our Case Study ..

Your SC Cost & Your Working Capital are High ..solve it!!!

Issue Statement

Regrets … I’ve had a few.But then again , too few to mention…

Other person to thank All what I have been doing in SC all over the years was mainly driven by 2 People

Step 1 : All Start with People Asses your Organization

1. Are those team that you want in your organization 5 Years from now ?

2. Do they have this values :1. Winning attitude 2. Change Agents 3. Process AND Result Oriented

Make the tough decision NOW !!!

Step 2 : All Start with People Re-Map Your Resources

1. What is your organization design ?– Take a minute and

See where you are ….

2. Create “What-if” model for each one.. NO Solution fits all Companies !!!

Step 3 : The Correct KPIs Matrices that Matter

1. Design End to End KPIs

2. Do not Re-invent the wheel

3. Is your KPIs will Help the ROI or Not ?

OP Vs CCC .. Is not that simple

Step 4 : S&OP Grab every Chance

1. Revisit Your S&OP 2. Take the pragmatic approach

S&OP should be for “ Winning the Extra Case”

Jake Barr CEO and Principal of Blue World Consulting

Step 5 : Supply Network Structure

Supplier Sourcing

Purchasing StrategyDriven by Manufacturing Siting

Manufacturing Siting

Watch out from the 5 Sins • Lack of Capability• Lack of SC Strategy/Plan• Aggressive Volume

assumptions• Long Project Life• Emotional Decisions

Distribution Network Design

How many inventory stocking points?Where should they be located?What products do they stock, and approximately how much?Where do they get product from?What other service (You, 3rd Party, Customer)

Distribution Modeling :• Do “Only” Modeling for your Site

• Model from plants to customer DC level• Yearly Demand• Product Aggregation• Customer Aggregation

DC network analysis• Your Actual freight cost to DC + Actual DC freight cost • Actual DC inventory cost• Estimated DC cost (fixed + handling)• Estimated Customers demands (by geographic district) • Lead time constraints :

• Legal ( truck allowance in certain time ) • Need to reach max. point after 4 hrs from DC ( >150 km )

• Truck Fill Rates • Inbound: 100%• Outbound: 85%

Step 6 : Ensure Sustainability Create PDCA Cycle

Questions ?