Osi Chukwuma CEO DGS Supply Chain UK B. Eng, MSC, PRINCE2, PMP, P3O, CITLS

Delivering Supply Chain Solutions in Emerging Economies

Content

Introduction Part 1- Growth in emerging economies Part 2- Solution Deployment oOur Goal – What we set to achieve oResearch Method oResults oSummary oRecommendations

Questions

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Part 1 - Rapid growth remains elusive More than four years after peak of financial

crisis, high-income countries continue to suffer from volatility and slow growth

Developing country prospects remain solid, but need to focus on productivity enhancing domestic policies if they are to regain pre-crisis growth rates

Risks have declined but remain and countries are vulnerable to commodity price shocks, high-income volatility, and a freezing of capital flows

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Gross Capital Flows to Developing Countries have rebounded

3 Source: World bank & Dealogic. 2013

Developing economies industrial output growth has accelerated since July ‘12

4 Source: World bank, Datastream. 2013

Industrial production out East Asia continues to Strengthen

5 Source: World bank & Datastream. 2013

Business confidence in emerging economies remain reobust

6 Source: World bank, Datastream. 2013

Global Trade: Cyclical trends between high income and developing countries remain largely synchronized

7 Source: World bank, Datastream. 2013

GDP forecast

8 Source: World bank, Datastream. 2013

Emerging economies in map

9 Source: World bank, Datastream. 2013

Time Magazine –Dec 3 2012 on Africa

Africa in the world’s next economic powerhouse. But huge challenges lie ahead.

GDP across sub-Saharan Africa’s 48 countries has risen an average of 5% to 7% per year since 2003…IMF

6 of 10 fastest growing countries in the world in the past decade were African

60% of world’s unused arable land Top 500 companies had a total turnover of close to 1

trillion USD last year

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Top 500 African Companies

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Part 2-Introduction ICT systems delivers efficiency and cost savings. Supply Chain Management practices can only deliver

competitive advantages through: o seamless integration of information and resources, o an integrated information and communications technology

(ICT) infrastructure, o agility and flexibility with speed made possible by the two

above (Mudimigh et al., 2004).

Ironically, a survey in 2004 and 2010 shows that; o 10% of organisations believe they are achieving a high return

on their ICT investments; o Globally, only a few companies have realised value out of their

ERP implementations (David Hebert, The Hackett Group – Millman 2004).

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Our Goals

Results on how companies have implemented supply chain solutions that have either succeeded, failed completely, succeeded partially or was never fully implemented.

Evolve a methodology - o Standardised o Repeatable o Cost efficient

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Research Method

Research Environment (emerging economy area) o Kenya, Ghana, Uganda, Equatorial Guinea, Cote d'ivoire,

Cameroon and Nigeria

Mixed methods Surveys Case Study

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Results

Industry sector & number of companies

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Industry Sector No. of Companies Oil & Gas

12

Telecoms 6

Utilities 4

Manufacturing 9

Transport 10

Public Sector 4

Construction 4

Financial 7

Other Industries 4

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Business satisfaction with solution

Less than 50% are satisfied with the solution

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12%

12%

43%

33%

0%

Overall level of satisfaction

Very Poor

Poor

Fair

Good

Very Good

Improvement in Customer Service

17

0

5

10

15

20

25

< 5%5% - 20%

20% - 50%50% - 70%

> 70%

16 [28%] 14

[27%]

21 [35%]

6 [7%]

0

Improvement in Customer Service

Improvement in Customer Service

Strange - 80% of 27 companies >20% oNo KPI’s oNo performance measurement

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Reduction in Supply Chain Cost

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0 5 10 15 20 25

< 5%

5% - 20%

20% - 50%

50% - 70%

>70%

24[40%]

22[37%]

13[22%]

0

0

% Reduction in Supply Chain Cost

% Reduction in Supply Chain Cost

Summary of Results

About 50% of the companies that deployed one form of Supply Chain ICT solution in emerging economies are not satisfied

28% believe that their customer service has only improved by less than 5%;

41% reported a reduction in supply chain cost of less than 5%;

40% are not convinced that the deployed solution is a total success.

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Most dominant problems

21

05

101520

Poor SolutionDelivery

Inadequate timefor implementation

Poor financialmanangement

Culture - notdisposed to change

Poor BusinessProcesses

Poor Training

Most Dominant

Most dominant problems

Poor Solution/Project delivery Culture – not disposed to

change Poor business processes Poor financial management

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Most Dominant Problem – Solution/Project Delivery

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SQEP

Solution design & architecture

Most Dominant Problem – Solution/Project Delivery

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Project financial management

Transition management

Project method

ology

Recommendations

Solution design and architecture o Process review and redesign - business system modelling

& business process re-engineering o Requirements gathering – Statement of

Requirements/catalogue o Requirements Baseline o Solution/System design specification

Physical and/or Application architecture design Technical architecture design

o Test strategy and plan o Development, test, Quality assurance & production

environments

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PD

DWS

Solution Architecture Model

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HLA High Level

Architecture

Decision on

solution

Implementation/Solution

Design

Technical Architecture

Security Architecture

Infrastructure Architecture

Technical Architecture

Applications Architecture

Design

Detailed Design

Specifications

Recommendations

Project financial management o Earned value management o Resource forecast and costing o Hardware and applications sizing and costing

Transition to operations (BAU) o Engage very early o Training before implementation o Benefits realisation management

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Recommendations

SQEP: Engagement of the right internal and external personnel

A proven solution deployment methodology o PRINCE 2, PMI, Agile, Waterfall, ASAP, etc o Must be fit for purpose o Engage experienced external consultant

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Solution Deployment Methodology

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Business process re-engineering and modelling

Recommendations

Deal with organisations Culture o Senior Sponsor o Temporary or permanent PMO o Change manager and agents o Transformational change consultant

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Summary

Now is the time to deploy supply chain solutions in emerging economies Without these solutions they cannot

compete globally To release the potential of this emerging

markets, the proposed methodologies are necessary to deliver results

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END

“Adding new technology to poor management and badly designed business processes only serves to speed up the mess.” -Ward & Peppard, Strategic Planning for Information Systems (2002)

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Q & A

Interactive Ideas exchange

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Speaker Biographical Information Osita Chukwuma, BEng, MSc is the founder and CEO of DGS Supply Chain, a UK

based Logistics and Supply Chain Consulting Company. He holds a BEng degree in Electronics and Computer Engineering, and an MSc in Logistics and Supply Chain Management from Cranfield University in the UK. He is a Certified International Trade Logistics Specialist (CITLS), a PRINCE 2 certified Project Manager, a certified P3O Manager, and a PMI certified Project Management Professional -PMP.

Osi has over fifteen years experience in the deployment of enterprise IT software applications and IT infrastructure in sub Saharan Africa and the UK.

He began to Lecture PG Students in ICT for Supply Chain Management at Multimix Academy, Lagos in 2002. Today, he contributes to the Academy’s curriculum. Osi is a regular resource person in corporate seminars and workshops on LSCM in SSA and UK.

Osi is on the Advisory Board of the African Centre for Supply Chain. He is an active member of CILT UK, RHA UK, CIPS UK, PMI UK, and many UK chambers

of commerce. He leads the deployment of a number of ongoing projects on logistics and supply chain solutions in the UK. He consults for many organisations in the UK and West Africa. His company, Daniels Global Services Ltd trading as DGS Supply Chain, is involved in Logistics and Distribution in Europe, and Supply Chain Consulting in EMEA.

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eMail osita.chukwuma@dgsworld.co.uk Website www.dgsworld.co.uk Telephone +44 1 582744808 Cell phone +44 7853027160

About DGS Supply Chain www.dgsworld.co.uk

We are Solution Partners of o JDA-RedPraire

o GS1 UK

o REPLY Logistics

Customers in UK o Haulage

Maritime Transport

TNT

o Consulting Centrica, EDF Energy/NNB, Action for Children, RBKC

Customer in Africa and Europe o Ericsson, MTN, Schlumberdger, Oando, African Petroleum

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