Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world
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Transcript of Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world
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Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world
Keith NewtonInternational Secretary GeneralChartered Institute of Logistics and Transport
Mauritius November 2015
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My Personal Leadership Journey
Supply Chain career: 1978 to 2012Food Manufacturing with United Biscuits, HJ Heinz, Cadbury / KraftLogistics, Manufacturing & Customer Service rolesGlobal responsibility for Logistics Best Practice in Cadbury Schweppes 2000 - 2005Supply Chain Director roles in Ireland, UK & Ireland, Nordics from 2005 to 2012
CILT experience:Member for 31 years – now FellowInternational Secretary General role from April 2012Role is to enable growth and success globally
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The Chartered Institute of Logistics and Transport is the leading professional body for individuals and organisations involved directly and indirectly in transport, logistics and supply chain management
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Result
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Countries in the CILT World
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Who’s Who in the SecretariatKeith Newton - Secretary GeneralJon Harris - Professional Development Co-ordinatorCeri Williams – Communications & Administration CoordinatorZoe Roberts - Education Administrator
Keith - strategy, management of CILTI, working with key committees, Council of Trustees, profile, relationship management with Branches and Territorial OrganisationsJon & Zoe - education and professional development strategy, IESC, accreditation, training providers, student and employer enquiries, quality control, process improvement, resource developmentCeri - overall support, Committee management and communications, website updates, event, contact listings etc.
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New Website• In 2015 a new website has been designed,
developed and implemented to:– Effectively communicate our Brand and our values– Reinforce our role as a people based organisation– Promote an environment for interaction with our members
and the wider public– Allow for news, stories and fast moving content to create a
more dynamic platform– Showcase our members and their stories– Share knowledge and information
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Result
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Result
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Social Media
• Work in progress to consider and define CILT social media strategy comprising:– Consideration of International / branch structure– Consideration of relevant media – Effective use of social media within resource
limitations– Type, level and frequency of communications by
media and by international / branch– Identification of measures of success
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Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world
Mauritius November 2015
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Global Risks and Challenges• What are they?
• How do they impact you and our business?
• How do you respond?
• Will you need to respond any differently in 5 years time?
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Discuss!
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Growing Importance of Logistics and Transport as Global enablers of success
Globalization and personalization is re-defining supply chain and logistics model
Efficiency and creativity in our sector is critical to raising living standards
Innovation determines new breed of winners and survivors
Our industry is incredibly diverse
Education and professional training will help to boost capability for growth
Our core value is our commitment to promote and share professional best practices
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Ed Sweeney – Professor of Logistics at Aston University – started a recent Linked in debate on “Mega Trends that are
likely to shape Logistics over the next few years”
Demand Planning & Forecasting3D Printing Use of UAV’s (drones) for shipping cargoes
India & China mass consumerisation Private / NGO’s tie up2nd Tier countries to BRICS – Mexico, Nigeria Near ShoringStrategic Supply Chain Risk Management Holistic management in SC
Social & Environment orientation in SCGrowing Marketing & Logistics links Waves of CollaborationDisintermediation & disruptive technology
Commodisation of Water
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17 © [email protected]
Supply Chains become Global - outsourcing, offshoring; low cost country sourcing- international trade across multiple jurisdictions
Global Supply Chain Ecosystems
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18 © [email protected]
Supply Chains become Complex- Multiple Different Participants- Positional Power: Customer – Supplier - Competitor
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19 © [email protected]
Supply Chains become Strategic - in the Board Room, on the Agenda, at the Table- Chief Supply Chain Officer
Growth EnablerBusiness Driver
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Omni Channel, Multi Channel, Consumer Focused Supply Chain!
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“In the US E Commerce is the just the Dessert…. In China it’s the Main course”
Jack Ma, Alibaba
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What about the risks & challenges in your worlds?
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Discuss!
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Fire Flood and Other Disasters....
Overview of incidents:-
June 2005Fire at our Pontefract Factory- Cost still in litigation- Popcorn brand [Butterkist] off shelves for 4 months
June 2006Start of major Food Safety incident- 7 chocolate brands recalled- £20M cost- Loss of 1% market share
June 2007Flood at our Sheffield factory- 30 products off sale- 4 months of major service impact- £20M cost
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Sheffield Flood…..In-depth Focus!
The UK Customer Service Centre
The entrance to the Gums & Jellies plant
Remember to wash your hands!
The main access road to the site
Goods Out – from Gums & Jellies
Wrapping capability hit in Jelly Babies
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Sheffield Flood….The Aftermath
Starch Moulding Trays Contaminated
Our Export Warehouse
Finished Goods!
Scale of clean up
What was left floating
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Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world
Mauritius November 2015
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How do we respond?
Let’s keep it simple!
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“If you don’t know the guy on the other side of the world, love him
anyway because he is just like you. He has the same dreams, the same hopes and fears. It’s one world, pal.
We’re all neighbours.”
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My 3 Key Focus Areas
Customers
Your People
Your Processes and Systems
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Start by repositioning Customer Service….
“Customers want to deal with organisations they can trust to keep their promises. The organisations who will achieve long term success are those that put the customer at the heart of their strategy and operation”
• At Heart of Strategy = Supply Chain led• At Heart of Operation = Every Individual knows
their role
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The Basics: Communication• Flexible Product Availability• Clear, honest and effective points of contact• Operational review process
What Experience do your customers want from you?Based on understanding your ‘’Value Proposition’’
Our customers’ 3key commercial goals
GROWTH
CASH
COSTS
To Maximise Value: Engagement• Efficient portfolio• Cost effective replenishment process• Minimal stock in system• Strategic review process
Customer Service Innovation: Connect• How to make their Supply Chains more effective• Tailored solutions• T2T review process
‘’To win with your customers you need to align there requirements with your own’’
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Our companies 3Commercial goals
GROWTH
CASH
COSTS
To Maximise Value: Engagement• Reduce costs in the SC• Drive OSA• Minimal stock in system• Strategic review process
The Basics: Communication• Product Available in store• CPFR Process• Right First Time NPD Execution• Operational review process
Customer Service Innovation: Connect• How to make Supply Chains more effective• Tailored solutions• T2T review process
‘’Surprisingly your customers needs are very similar to your own, Understanding this allows you to align plans’’
What do you want from your customers?
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How do we respond?
Your People
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Your People• Be a Leader - take responsibility• Be a Leader - set the example• Be a Leader - serve your team
• Teamwork wins - create a strong team• Teamwork wins – recognise your limitations• Teamwork wins – give them time & trust
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Your People• Communicate – communicate, communicate• Communicate – invest in time• Communicate – face to face
• Create plans & set goals - Plan on a page• Create plans & set goals – Stretching goals• Create plans & set goals – Track & monitor
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First Choice for Transport & Supply Chain Professionals
To be the leading Professional Individual Member Organisation for all in Supply Chain, Logistics and Transport
cGROWTH CAPABILITY GOVERNANCE
“Creating & Championing the programmes for growth
in countries and regions”
“Service Provision in Education, Membership &
Resources”
“Guardianship of the Charter & Leadership of the
Profession”
Priorities
Plan on a Page – CILT Strategy set in 2012
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What about you and ……
Your People?
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How do we respond?
Process & Systems
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Process & Systems• Process first – write them down• Process first – implement & audit• Process first – continuously improve
• Integrated Systems – business is best• Integrated Systems – simple is best• Integrated Systems – users lead, IT follow
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What about you and ……
Process & Systems?
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Keep it simple by understanding the complex but focusing on the important
Customers
Your People
Your Processes and Systems
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Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world
Keith NewtonInternational Secretary GeneralChartered Institute of Logistics and Transport
Mauritius November 2015