John Adams - HouseBuilder · 2017. 5. 25. · Supply Chain Management 22nd March 2016 John Adams...
Transcript of John Adams - HouseBuilder · 2017. 5. 25. · Supply Chain Management 22nd March 2016 John Adams...
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John Adams
Group Procurement Director
Barratt Developments
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Supply Chain Management
22nd March 2016
John Adams
Group Procurement Director
Barratt Developments Plc
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Topics
• Importance of supply chains
• Creating a supply chain
• Managing a supply chain
• Improving a supply chain
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An approach to Supply Chain Management
This is not a lecture ……. just some food for thought !!
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Importance of supply chains – Current context
• Increasing volume, improving quality & reducing cost
• Capacity constraints
• Inflationary pressures
• Changing customer needs
• Changing legislation & performance requirements
• Sustainability agenda
• Need to innovate
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Where to start ? – Designing a supply chain
First step in creating a responsive supply chain is to design it!
• What do you purchase?
• Who from?
• What do you need from your suppliers?
• How do you select suppliers?
Data Management
Selection Criteria
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Barratt Journey
Start point – Acquisition of David Wilson
• Each of the 27 Divisions had its own coding practices plus 2 ERP systems
• Fragmented, poor, missing and duplicate data
• Suboptimal and overlapping framework agreements across Group
• Lack of spend visibility
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What did we do – Data management ?
• Mapped, integrated supplier and transaction data for Barratt and David Wilson
Homes
• Cleansed, backfilled, normalised and de-duplicated to a consistent output
• Ensured a unified coding system for information completeness
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Data improvement / maturity
• Supply chain includes manufacturers, distributors, contractors and subcontractors
• Lack of subcontractor spend visibility at transactional level (sub contractor supply &
fit)
• No insight into what actual cost for discrete materials
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A complex supply chain
• Understood distributor, contractor, manufacturer supply chain
• Achieved better insight into what they were paying for discrete materials
• Gained a complete, granular picture of spend across Group
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What did we do – Selection criteria
• What is important?
• Create clear list with prioritisation / weighting
• Score each criteria
• Compare relative performance
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Output
+ =Supply Chain Strategy
&
Supplier Selection
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What did we get
• Supply chain with managed structure
• Rationalised products and suppliers across the entire Group
• Achieved total spend visibility across Group
• Optimise framework agreements with suppliers
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Supply Chain Management
• Communicate, communicate, communicate !!
• Set clear objectives & priorities
• Demand forecasting
• Measure performance
• Accept you influence supplier performance
• Cooperate
• Continuous improvement culture
• Challenge
• Engage
• Listen !
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Are all suppliers pigs ???
• Who are you “strategic” suppliers ?
• How do you differentiate ?
• Why do you differentiate ?
• What do you do differently / additionally ?
• What is the benefit ?
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Barratt Approach – Key Suppliers
• Annual supply chain conference
• Regular performance monitoring
• Business review process
• Innovation forums
• Ongoing engagement
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Performance Improvement
• Performance improvement has to start with performance appraisal
• Acquire reliable feedback – data
• 360˚ feedback preferable
• Identify need for improvement
• Share with supplier
• Create action plan
• Monitor implementation & results
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Summary
• Supply chains significant impact on performance
• Good SCM will help meet challenges
• Don’t let your supply chain form by accident – create it!
• Data is your friend in whatever form
• Are all suppliers equal ?
• Communicate, communicate, communicate
• Set clear agenda’s and priorities
• Encourage cooperative working
• Measure and review performance
• Set culture of continuous improvement