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File: Phase 2 launch MJH DELIVER in Asia Regional Supply Chain course October 3rd, 2001 Today ... Context The basics The opportunities Vision Outsourcing, VMI, inventory planning DELIVER CoP The future?? First, some pictures of a supply chain Advice on DELIVER Get the basics right Ordering, Delivery, Billing Do the sexy stuff Integration and synchronisation VMI, e-Business, CPFR The basics have to be in place Customer Service Cost: %Overdue Service: lead time, ease of ordering Quality:#CNs due to error, invoicing accuracy Warehousing/Distribution Cost: %NPS Service: %case fill, %order fill, IRA Quality: %rejects, %returns, %damages KPIs are the key KPIs are the key The Opportunities in DELIVER The SEA VCA 2000 study -LaundryCost saving World Class Supply Chain Functional Excellence Organisation focused on functional excellence Information optimised to facilitate functional excellence Many small customers and suppliers Service and Integration Organisation manages business through multi-functional teams, exploiting functional excellence whilst focusing on immediate upstream and downstream customers Information requirements optimised for management of internal organisation Customer base predominantly key account (60% Volume weighted) Key supplier consolidation - relationship management Integrated Network and Collaboration Organisation focus on extended Supply Chain (Customers and Suppliers) Information shared with all parties in the extended Supply Chain High percentage of business in a few key accounts Supplier base consolidated - partnership management Phase III (Integrated Network and Collaboration) Some quoted benefits Cisco, Intel, TNT, Kodak, Nestle, PG: Cost savings: 75% reduction in errors” 12,000 engineers saved” 45% inventory reductions” Growth opportunities: 40% more orders in same time” 1 week product development cycle reduction” reduce product lead times by 50-70%” order cycle times cut from 6-8 weeks to 1-3 weeks One way of looking at DELIVER D