Transcript Central & Eastern European Supply Chain Industrial Round table

Central & Eastern
European Supply Chain
Industrial Round table
‘Restructuring & Co-ordination’
‘Restructuring & Co-ordination’
• 1995
-
Outsourcing
• 2000
-
The China Factory
• 2005
-
Reality Sets in
• Today
-
A change is on
• Most amount of change will occur for the past 6/7 Years
• Wrestle with your Supply Chain, It needs to be deconstructed
The Asia Factory Challenge
Plane
Boat
Fuel Price
Dynamic
5/6weeks
Shipping
Fresh Air
Balance
Sheet
Duty
Duty
Past 18 months
18% - 28 %
Cost Of Working Capital : Cash Conversion Cycle
Consumer Demands : Availability : Speed To Market
First Winner Advantage
Today’s Typical Retailer Supply
Chain Model using PC,s
Title of
Product
Passes to
Retailer
Cost of Money $1
Supplier
China
Country
Warehouse
Sea Freight
6 Weeks
Customs/Truck
2 Days
50% Deliveries
To Customer’s Home
Deliver to Customer
Title of
Product
Passes to
Customer
2 Days
Warehouse
4 Weeks
Retailer
1 Week
Deliver to Retailer
2 Days
50% Customers
Take from
Retail Outlet
$500 Product
$10 Cost of Money
$4 Cost of Money
$1 Cost of Money
Base Unit Price
Cost of Money
Total Lead
$2 Cost of Money
= $500
= $518
= 83 Days
Must Deconstruct Your Supply Chain
- know your true costs by cost centre
Integrate Your Suppliers – Their ROI
A Real Time IT Collaborated
Demand Chain
Benefits
• Improves The Bottom Line
Suppliers
• Predictability
Customer
• More Reactive
Company
Transparent Digital
Environment
Disti Centres
Freight
• Reduced E&O
• Reduced logistic
• Everyone Is connected
• Improved Cash position
• A better Balance sheet
Watch Out For TheTrap….. Where You Know
The Price of Everything & The Value of Nothing
THANK YOU