Moderated by:

Oliver Sloane, Managing Director, RaptureWorld Ltd.

Presented by:

Dr. Hau Lee David Smoley John Sicard

Thoma Professor of Operations Information Senior Vice President and Executive Vice President Marketing,
and Technology Chief Information Officer Development and Service Operations
Stanford Graduate School of Business Flextronics International Kinaxis
 Supply Chain Environment
Demand & • Fast-moving fashion
• Strong competitive forces
supply • Increasing product variety
uncertainties • Potential of external disruptions

Short product • Introduction of product innovations

• New emerging supply sources & channels
& technology • Frequent product transitions
cycles • Manufacturing cost pressures

Multiple • Outsourced manufacturing partners

• Outsourced design partners
supply chain • New channel partners
partners • Other associated product providers
 Intelligent S&OP and SCM
Stages Elements
Information sharing and
Visibility understanding (within and
between organizations)
Collaborations on joint
Coordination plans, coordinated with
multiple inputs
Integrated decisions and
Integration control, tightly coupled
sense and response
 Visibility Across the Chain

Forward Downstream
Improved Responsive Uncertainty
demand demand
performance planning reduction
information visibility

Upstream Forward Responsive

Uncertainty Improved
supply supply planning &
reduction performance
visibility information reaction
 Six Sigma
Supply Chains
Sense 1. Track and measure

Measure 2. Identification & alerts

Act Identify
3. Root cause diagnosis
4. Action analysis
Analyze
5. Action execution
Respond
6. Feedback & updates
 Design. Build. Ship. Service.

Using Technology to Accelerate Supply Chain Collaboration

David Smoley
SVP & CIO

Design. Build. Ship. Service. Design. Build. Ship. Service. 6

Flextronics…

Design. Build. Ship. Service.

$30 Billion Revenue

200,000 employees
130 Locations
30 Countries
27 million manufacturing sq ft

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There is no Single Best Supply Chain Strategy…

Product Sectors Go to Market

Company
Strategy
Strategies
• Note/Net Books
• Servers
Business Models
• Printers Energy/Solar
• Power Supplies Operations Strategy
• Glucose Meters
• Routers Value Chain Strategy
• LCD TVs
Supply Mfg Value-Add Logistics Service Replenishment
• Meters & Controls
• PCB/Flex Circuits
Integrated Manufacturer/Direct Ship
• Camera Modules
• LCD Displays No/Low Touch/Low Value Add
• Cables Direct/Online
• Machining Value Add/ CTO
• Plastics
• Metal Fabrication High Value/Solutions
• SMT Assembly
Enterprise
Services

… but there is the “best” strategy given a company’s

Business Strategy
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Value Chain Strategy Goals

Lowest End-to-End costs that

Lower Carbon Emissions and footprint include raw material costs, inbound
that results in a ‘greener’ value chain supply chain costs, transformation
costs and outbound cost including
duties to the end delivery point.

Efficient use of resources, Highest possible service

fixed assets and inventory levels that meet or exceed
in the end-to-end value customer requirements. Key
chain that compliment metrics include order cycle
lower costs and higher time, on-time delivery, order
service levels fill rate and product
availability

Flexibility and agility to mitigate risks,

sudden changes or unexpected events.

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Key Enabling Elements – From Data to Intelligent Response

Accelerated Decision making

• Beyond just supply and demand visibility…

DATA KNOWLEDGE BUSINESS INTELLIGENCE DECISION

Analytical Backbone

Operational Execution
Flexible Velocity for Delivery

•More than just demand pull versus supply push…

FLEXIBILITY + VELOCITY + INNOVATION + ADAPTABILITY

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10
Enabling Supply Chain Collaboration with Technology

1. Process and organization come first then the IT tools enable,

• Partnership & alignment with the business is key,
• Enabling business speed and agility is the top priority,
2. Best of breed portfolio of standard tools,
• Tools should be able to be coupled/de-coupled,
• Ability to span across sites, countries, regions…
• Rapid deployment
• Easy to use, easy to learn
3. Enable collaboration across org boundaries…
• Desktop video, Meetingplace, Webex…
• Filesharing via Sharepoint
• HD video conferencing

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Flextronics Supply Chain Best of Breed Tools

Finanicals, MRP, Demand management, Supply Chain Planning

Factory ops Supply-side planning

Sourcing, Service parts demand

Re-order point calculation
Procurement Management, planning
Supplier Portal

Warehouse, transportation B2B, A2A, ESB Customer management

pipeline

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Planning Application Suite Example

Customer Collaboration

Multiple tools enabling Portals

real-time collaboration
Demand Planning
• Standard MRP Logic
Supply Planning
• Rapid MRP Regeneration

“Any device, anywhere”

• Re-Order Point Calculation with
highly customizable algorithms • Standard MRP Reporting – • MRP Simulations, alt. parts
E&O, Shortage
• Safety Stock Calculation • Suggested Changes / Re-
• Demand Planning Schedule Messages
• Online Customer Collaboration
• Demand Fulfillment • Rapid ATP
Meetingplace
• Customized Supply Chain
• Procurement
FTP
Reporting • Demand Change Impact
Analysis - E&O, Shortage

FSP

Supplier Collaboration

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Where is the future going?

• Social networking tools mature/adopt… Cisco, Google, SF.com, Msoft etc…

• Saas/cloud enablement & virtualization where appropriate

• In-memory processing enhances speed/quality of decisions

• Open, web-enabled b2b and a2a integration… get data in/out fast, large
volumes

• Control tower… extending the supply chain up/down stream via technology

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 Thank you

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 Q&A
Please feel free to submit your questions now

Dr. Hau Lee David Smoley John Sicard

Thoma Professor of Operations Senior Vice President and Executive Vice President Marketing,
Information and Technology Chief Information Officer Development and Service Operations
Stanford Graduate School of Business Flextronics International Kinaxis
 Thank you for joining us

If you have any questions or comments, or would like

to receive a copy of today’s presentation please email
info@kinaxis.com