Supply Chain Project Management

Daniel Newman
INTERNATIONAL PROJECT MANAGER

Prelude
Supply Chain Management - the process of managing the flow of materials and goods.
Every project or programme contains at least one or more customers, suppliers, and goods hence the need for Supply Chain Project Management (SCPM) . Our job is to get the right goods (product or service) to the right place at the right time for the right cost - but remain flexible to match demand.

Daniel Newman
International Project Manager

Source:1999 - Daniel Newman, J. Sainsburys Plc

INTERNATIONAL PROJECT MANAGEMENT

Agenda
Objective Introduction Supply Chain Management (SCM) SC Project Management (SCPM) Case Study Conclusion References
INTERNATIONAL PROJECT MANAGEMENT

Daniel Newman
International Project Manager

Objective

Daniel Newman
International Project Manager

To enhance your existing project management flexibility capabilities to an international "hands-on" practitioner level. This 2nd seminar of 5, provides a brief insight into supply chain management (SCM). You will learn about four areas concerning supply chain project management (SCPM) : (1) Plan (2) Build (3) Automate (4) Monitor We will conclude with a case study on how SCPM was successfully used in one area of Sainsbury's to recover a loss of over 3million GBP.

INTERNATIONAL PROJECT MANAGEMENT

Introduction
Pop-Quiz:
supplier
Goods, Services and information Information (Processes)

Daniel Newman
International Project Manager

customer
Goods

supplier
Reverse logistics

customer

INTEGRATION
Payment Removal

customer

supplier

Supply Chain

Supply Chain Management

Which one should we be more concerned with and why?

INTERNATIONAL PROJECT MANAGEMENT

Supply Chain Management

is thousands of years old, (aproximately 4,579 years old)

Daniel Newman
International Project Manager

Height : 139 meters (456ft)

2570 BC
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Supply Chain Management

Daniel Newman
International Project Manager

Project Management is also many thousands of years old.

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Supply Chain Management

contains several interdependent processes

Daniel Newman
International Project Manager

Strategic part of SCM, it must manage ALL resources to meet customer demands. Businesses choose suppliers to deliver goods and services needed to create products Production, testing, packaging and delivery preparation activities scheduled A.K.A. Logistics - coordinate; received orders, storage, transport, and invoicing The problematic part, support customers with defective and excess products

INTERNATIONAL PROJECT MANAGEMENT

Supply Chain Management

historically and currently problematic
Boeing, 1997 writes off $2.6 billion, due to supplier parts shortages Vipnet, 1999 GSM portal launch delayed 1 year due to supplier issues Legal

Daniel Newman
International Project Manager

Volcanic eruptions

Airbus's A380 super-jumbo 2006 delivery to customers, Sony's 2006, PlayStation 3 almost 2 years late delay gives opportunity to rivals (Microsoft's Xbox 360 and Nintendo's Wii)

Management Processes Technology

Sainsburys delayed store openings, cost them millions in lost revenue

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War

Manufacturing Strike

Culture

Supply Chain Management

some problems can be explained

Daniel Newman
International Project Manager

Poorly managed supply chains cause instabilities (i.e. poorly forecasted consumer demands). These instabilities create these bullwhip effect swings. Tell-tale signs include; non-collaboration, communication, and misreading market conditions. What should we as IPMs be doing about it?
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SC Project Management
The answer is Everything! Nothing is outside the project management scope.

Daniel Newman
International Project Manager

Supply Chain Management is everyones job.

INTERNATIONAL PROJECT MANAGEMENT

SC Project Management
Risks Operations
Supplier(s) Invoicing Resources

Daniel Newman
International Project Manager

Schedule

CRITICAL

Audit

Marketing Lead times

RESEARCH

CRITICAL

PLAN

Internal Focus External Focus

Analyse
Strategy Logistics

Functional Focus
Demand, Supply and Environment
Process, Risk and Governance

Communication

Purchasing

Procurement

CRITICAL
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Lead times

Finance

Sizing

SC Project Management
Solutions
Technical E-Procurement system Non - Technical Quality Customer Service

Daniel Newman
International Project Manager

Web SCM system

Forecasting demand

Coordination

Common Platform
CRM
Communication Collaboration

BUILD

Process

Procurement
Custom s Tax

Partnership
Suppliers Alliance OEM Product Development

Extended ERP
Enterprise Resource Planning Oracle, PeopleSoft, SAP

Distributors

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SC Project Management
SCM Quality Management
Reverse logistics Alerts

Daniel Newman
International Project Manager

Inventory Deliver

Process

AUTOMATE
Customer returns Replenishment Tracking Warehouse Procurement Workflow Reporting Mobile solution Call Centre

Increasing web technologies, and calls for effective integration.

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SC Project Management
New technology (RFID)

Daniel Newman
International Project Manager

At Sainburys we improved delivery performance through better response times, and visibility.

PIR
Post Implementation - Review

Build

Costs

Improvements

MONITOR

Networks
Benchmarking

Plan
Solutions
Product Inventory - visibility

Risks
Bad management Up-2-date Lifecycle status

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Case Study
We found the lost 3million, and this is how we did it.
NCR

Daniel Newman
International Project Manager

Sainsburys

- Improvements - New Tech (RFID) - Networks - Solutions - PIR - Cost

PLAN
- Audit - Analyse - Communication - Sizing - Schedule

MONITOR

BUILD

AUTOMATE
- Processes - Supply Chain Quality Management - Inventory
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- Partnerships - Processes - Solutions - Common platforms

Conclusion
- SCM is everyones job (i.e. Data management)

Daniel Newman
International Project Manager

- Time spent on plan management is key to success - Motivate your clients and their suppliers for change - Build better collaborative partnership models - Work smarter, learn from mistakes (PIR)

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Conclusion
Intelligence

Daniel Newman
International Project Manager

SCPM
USES

Toolkit

Cross-functional
Experience
INTERNATIONAL PROJECT MANAGEMENT

Skills

Conclusion
Supply Chain Management has a game

Daniel Newman
International Project Manager

Businesses can play in partnership with their Customers and Suppliers. We can facilitate this!
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References
AGRESSO: http://www.agressona.com/ - accessed April 14, 2010 AIRBUS: http://www.airbus.com/en/airbusfor/suppliers/ - accessed April 19, 2010 AMADEUS: http://amadeus.software.informer.com/ - accessed April 19, 2010

Daniel Newman
International Project Manager

BOEING: http://www.boeing.com/companyoffices/financial/finreports/annual/98proxy1/part16.htm - accessed April 15, 2010 Cox, A. 2001. Managing with power: Strategies for improving value appropriation from supply relationships. The Journal of Supply Chain Management, Spring, 4247 Croxton, K.L., S.J. Garcia-Dastugue, D.M. Lambert and D.L. Rogers. The Supply Chain Management Process, The International Journal of Logistics Management, (12:2), 2001, pp. 13-36 Ellram, L.M., Tate, W.L. and Billington, C. (2004) Understanding and managing the services supply chain, Journal of Supply Chain Management: A Global Review of Purchasing and Supply, 40(4), pp.1732 Forrester, J. W. 1958. Industrial Dynamics: A Major Breakthrough for Decision Makers. Harvard Business Review 36(4):37-66 IBM: http://www-900.ibm.com/cn/industry/distribution/news/pdf/caac/gds_solutions.pdf - accessed April 15, 2010 Lee, Hau, P. Padmanabhan, and S. Whang. 1997. Information Distortion in a Supply Chain: The Bullwhip Effect SAINSBURYS:http://www.information-age.com/article-archive/292891/sainsburys-dogged-by-supply-chainproblems.thtml - accessed April 14, 2010 Supply-Chain Council, Inc. Supply-Chain Operations Reference Model: Overview of SCOR Version 5.0, www. supply-chain.org, - accessed April 14, 2010

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Daniel Newman
International Project Manager

Thank you
fr.linkedin.com/in/danielnewman Email: daniel@psicoremedia.com Blog: ipm3000.wordpress.com/introduction/
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Clients
ABC News Amadeus GSK HMV IBM Interactive1 J Sainsburys Plc Knight Frank LBNL Mobilkom Austria Vipnet National Westminster Bank PwC The British Council /Crown Agents /ODA The European Society of Cardiology

Daniel Newman
INTERNATIONAL PROJECT MANAGER