SlideShare uma empresa Scribd logo
1 de 16
Baixar para ler offline
How has the current economic climate
prompted consumer companies
to regain control of the supply chain?
Click to share:
3	 nigel wright recruitment
About Nigel Wright Recruitment
Abstract					 4
Introduction: new world, new challenges 					 4
Supplier relationships 							 5
Integration and coordination 							 8
Skills for now and the future 					 11
Conclusions									 13
Contact information											 14
Since its formation, Nigel Wright Recruitment has become the
leading specialist consumer search firm in the industry. We
have extensive experience of bringing together high-calibre
candidates and world-class organisations. Our consultants
are committed to delivering a quality service, to clients and
candidates alike.
Nigel Wright Recruitment has earned a strong reputation within
the consumer sector across Europe for providing a high quality
recruitment service that is built upon our industry knowledge.
We consider it important to continue to bring you relevant,
useful information that you can use, in an accessible format.
For further information or to discuss your recruitment
requirements please contact us using the details on
page 14. For more information on our services please
visit www.nigelwright.com
Contents
Nigel Wright Recruitment : Report 2012
nigel wright recruitment	4
Analysts are adamant that market instability is here to stay. As a
result, business strategy has shifted significantly from a ‘sweating
your assets’ ethos to focusing on reducing costs and investing
in the future.3
In the supply chain profession, in some respects,
this has been welcome news. Once upon a time the supply
chain was merely a mechanism in the wider organisation, now it
plays a primary role in the overall planning and strategy of 	
the business.
A survey published earlier this year highlighted that developing
leadership capability within the supply chain was a ‘critical
focus’ for businesses in 2012.4, 5
In macro terms, new leaders
of the supply chain have come to the fore due to their ability
to comprehend and also react to the greater complexity of
challenges facing businesses today – globalisation, outsourcing,
low cost production, shorter product life cycles, increased
competition and price pressures to name a few.
We interviewed six supply chain leaders from different
consumer businesses across Europe (UK, Nordics & Benelux)6, 7
to discuss how they have responded to the challenges of today’s
economy. Our questions explored factors such as the dichotomy
between outsourcing and in-sourcing, issues concerning
remote management, strategies to mitigate against the risk of
unpredictable consumer habits, financial volatility and long lead
times and also what the most coveted skills in today’s supply
chain profession. The report is structured around three key
areas: supplier relationships, integration and coordination, skills
for now and the future.
Introduction: new world, new challenges
Changing consumer preferences, emerging markets, private
label penetration, volatile economic conditions and the 	
rising cost of raw materials are some of the key issues facing 	
the consumer products industry today. According to a 2010
report by a leading global consulting firm1
, different sectors
within the consumer goods industry all have unique ways
to ensure that the supply chain is effective in light of these
challenges. It has been noted in other research however that
world class supply chain standards are not prevalent across the
consumer industries.
With further factors such as skills shortages and changes
in sustainability standards2
, there is a greater urgency for
consumer companies to be at the forefront of innovative supply
chain practices to ensure that they remain competitive in this
hugely complex environment. This is the context for our new
management report which looks at how consumer companies
are responding to these challenges by seeking to regain control
over the supply chain while at the same time realigning their
talent strategies to focus on developing leadership skills to help
reduce risk and improve efficiency.
Abstract
1
www.accenture.com/SiteCollectionDocuments/PDF/Accenture_Making_your_Supply_Chain_Famous.pdf
2
Although the report alludes to sustainability and corporate social responsibility as being one of the drivers behind supply chain strategy today, we do not discuss this
factor in any detail.
3
According to the McKinsey’s 2011 report ‘Building the supply chain of the future’ www.mckinseyquarterly.com/Building_the_supply_chain_of_the_future_2729
the focus on cost reduction has resulted in ‘an increased emphasis on leveraging every dollar spent on logistics and transportation activities.’ This is something which is
discussed later in the report in relation to a home entertainment group’s European retail operations.
4
www.logisticsexecutive.com/cms/CEO_ExecutiveSeries_Jan_2012.pdf
5
Gartner’s research from 2011 also highlighted that by 2015 at least 25% of new CEOs at Fortune 500 manufacturers will have ‘deep supply chain experience’. 	
www.gartner.com/id=1853218
6
A retailer, a furniture manufacturer, a home entertainment group, an electronics manufacturer, a pharmaceuticals business and a drinks wholesaler.
7
We would like to thank the following people for their help in compiling this report: Bo Rasmussen, Peter Høy, Peter Livingston and Martin Fisher.
Supply chain in the consumer sector
5	 nigel wright recruitment
8
www.accenture.com/SiteCollectionDocuments/PDF/Accenture_Making_your_Supply_Chain_Famous.pdf
9
The retailer indicated that it will sometimes go out to tender just to keep suppliers ‘on their toes’.
10
For example, all upholstery is manufactured in Poland, whereas tables and lamps are produced in Denmark. The business only employs ten people in Denmark, where
once it had 250 domiciled employees. Because its suppliers are ‘specialists’, the business claims that the overall quality of its products has improved.
Accenture’s 2010 report8
on consumer sector supply chains
noted six distinct strategic priorities that would become a focus
for supply chain leaders in the sector. Two of these priorities
were: outsourcing to increase capability and optimising supplier
networks to reduce cost and improve service. All of the
leaders we interviewed as part of our research had their own
interpretation of these priorities, aligned with their own unique
business models.
The Supply Chain Director at one retailer for example noted that
consumer demand has seen the business gradually move from
essentially being one product – a grocery retailer – to being an
organisation which requires its supply chain to service different
types of stores and try to meet the unpredictable demand of
its customers. The objective of the supply chain, in his opinion,
is to best serve the organisation within this more complex
arrangement by “centralising decision making and creating
a more efficient warehousing system with a greater focus on
partner development.”
Using a typical retail supply chain model, the business
outsources around 50% of its operations. “The hybrid model
gives us access to third party expertise where we don’t have
the scale.” It works hard to maintain good relationships with
its suppliers but admits that “there are often times where you
must have difficult conversations – this will happen if it comes
to a point where there is no longer a sound basis for having
the relationship in the first place and at this point we have to
reassess the situation.”9
Overall though, maintaining a direct
involvement with its outsourced operations “reduces risk and
gives us greater security over our supply chain – we get the best
of both worlds.”
Similarly, a manufacturer in our study has also realigned its
supply chain model to maximise its effectiveness. As the
interviewee explained, “we have essentially moved from
being a production company to being a ‘precision’ company,
where the focus is all about reducing cost in the supply chain
by outsourcing most of the key components to specialist
suppliers.”10
Tough market conditions as well as high salaries in
Denmark means the business has struggled to be competitive
internationally and now seeks to streamline its workforce and
focus instead on developing its supplier relationships.
The key change is within the culture of the business – it now has
to concentrate on creating a ‘value chain’ whereby employees
must act as ‘consultants’ within the businesses of their suppliers.
As the interviewee noted, they have a supply chain expert based
permanently at each supplier tasked with basically “fighting their
corner against the interests of the supplier’s other customers.”
Supplier Relationships
Nigel Wright Recruitment : Report 2012
11
Another Danish company in our study that uses suppliers in the Far East also noted that if there is an issue with the stock, suppliers will often “not tell the real picture if it
is negative. There is often a culture of ‘closed-ness’ among the parties in the supply chain – an unwillingness to share information.”
12
Interestingly the business is one of a group of Danish companies that have ‘in-sourced’ all or some of the supply chain back to Europe from the Far East. It did initially
outsource all of its production to China but the rising cost of labour there as well as the complexity of managing the distribution of goods that have unique designs – i.e.
furniture that isn’t mass produced – it made more sense to have a local production operation. Other companies are doing the same and bringing production back to
neighbouring countries such as Estonia and Poland.
13
As Ernst & Young (2011) note ‘Flexibility is the remedy when uncertainty exists.’ www.ey.com/Publication/vwLUAssets/20th_annual_trends_and_issues_in_logistics_
and_transportation_study/$FILE/2011_Annual_Logistics_Transportation_Trends.pdf
14
The business is seeking to alleviate this by introducing new alternative (mainly merchandise) products to the market.
15
Generally across the full spectrum of product categories, consumers are less able or willing to buy in advance and rather tend to purchase things at the last minute.
Supply chains have therefore responded by adopting ‘just in time’ principles at the core of which is reducing the number of locations where stock is held.
16
E.g. Distribution costs such as consolidating freight with other studios and utilising cross docking solutions.
This strategy was described as being ‘married’ to the suppliers
– “they are a key part of our success.” Large companies that
outsource must take an active role in the management of the
outsourced operations, developing contract management
capability and ensuring that the partnership is mutually beneficial
for both parties.
A common theme among businesses that choose to outsource is
to release those functions that are of a minor importance to the
customer’s overall buying decision making process, for example,
manufacturing of sub components of products or sourcing of
raw materials. The benefit is that businesses can concentrate on
factors that are more important to the customer, such as good
delivery performance or customer service. The disadvantage
however is that those companies don’t fully control all aspects of
their products. This is particularly risky when their suppliers are
purchasing materials in other continents. As one manufacturer
experienced, when their suppliers buy in specialist fabric that
is faulted, it can cause serious delays.11
Fundamentally though,
businesses find that the benefits outweigh the negatives.
Outsourcing creates less vulnerability to the changes in the
market and also the freedom to source materials depending 	
on which factor is most important at the time – be it price or 	
lead times.12, 13
As an interviewee at another business highlighted “the objective
is always about getting the right products in the right place at the
right time.” Different economic circumstances however have led
the business to source more of its ‘input materials’ from China
and India “which makes procurement more complex especially
in an inflationary environment.” The key focus of the company
over the last 12 months has been embedding a ‘supplier
relationship management program’ into the supply chain. 	
“We are working to rationalise and consolidate our customer
base – part of this has been a big tender initiative to identify 	
the best prices available and ensure that we are working with a
core group of suppliers who will provide us with a competitive
cost position.”
Accurately communicating demand is an ongoing challenge
however. The firm’s suppliers ideally want ‘one year visibility’
and the business is trying to match that by forecasting for 12
months while endeavouring to improve its communications
regarding any significant changes in demand during that time.
“Essentially we’re looking to work together with our suppliers to
optimise the supply chain.”
At the home entertainment group in our study, the issue of
reduced consumer spending is something that pervades the
organisation. Consumers are spending less, year on year, on
physical media and digital downloads are not providing enough
of a stimulus to the category, so revenue is declining.14
In Europe
however the situation varies between the North and South – i.e.
the outlook in Germany is fairly positive whereas in Spain and
Italy it is very poor. This means that the business must have a
different, tailored approach to each market. The interviewee
explained that they are “considering alternative distribution
models such as cooperating with different studios and setting
up joint sales teams” – essentially reducing its manufacturing
‘footprint’ by working with more wholesalers to manage through
the reduction in consumer spending.15
Once again, seeking to harness the relationships with key
partners and suppliers is a central business strategy. Over the
last two years the home entertainment group has outsourced
areas of manufacturing, production planning, warehousing and
order fulfilment as well as transport and customer services.
This hasn’t been an issue free process. Last year the business
in-sourced its customer services operations back to Europe after
it was felt there was “a disconnect with its culture.” With 3PL
(third party logistics), as the interviewee noted, they also have
to manage relationships with suppliers very closely, providing
them with the ‘solution’ while relying on them for logistics
capability. Overall this strategy helps to support the growth of
revenue while at the same time manage operations and capital
expenditure more effectively.16
In the next section we explore how businesses are beginning
to rely on increasingly sophisticated tools linked to the sales
and operations planning process to create more efficiency and
flexibility in the supply chain.
nigel wright recruitment	6
Supply chain in the consumer sector
“Outsourcing creates less vulnerability to the
changes in the market and also the freedom to
source materials depending on which factor is most
important at the time – be it price or lead times.”
nigel wright recruitment	 8
We asked our interviewees what the most important aspects
of supply chain strategy were today. In most cases the answer
was reducing inventory levels and creating more flexibility to
generate faster lead times. To achieve this, the supply chain
must have greater alignment with overall business strategy and
better integration and visibility.
According to McKinsey, this is the ‘new normal’ for supply chain
organisations17
. However, as one interviewee noted, trying to
facilitate closer coordination and integration of the supply chain
with the rest of the business can be a ‘tough sell internally’. 	
“The real challenge is to connect sales with operations and
getting people to understand the value of this.” A renewed 	
focus on cost reduction and customer service however, has
essentially created a revived interest in sales and operations
planning for businesses.
Three years ago, one manufacturer in our study introduced a
sales and operations planning process and now “The whole
supply chain is aligned with sales.”18
Currently the business has
98% accuracy in its supply chain19
but admitted that because 	
the sales and operations planning process is still fairly new,
it is still ‘learning everyday’ about how to improve. By 2020
its objective is to have all lead times down to one week. 	
Accenture20
highlighted in its report that a ‘gradual process of
continuous improvement’ is essential best practice for supply
chain leaders today.
Since the drinks wholesaler in our study devolved its relationship
with a major brewer in 2010, it has gradually integrated an S&OP
(Sales and Operations Planning) process into its supply chain. As
the interviewee explained, the business’ overall operation is “far
more demand driven now” and without the brewing partnership
it must seek to reduce its stock levels by being more proactive
around planning. This has been a big cultural change for the
business and although the interviewee claimed “life seems 	
easier now” he admitted they are still going through a steep
learning curve.
One of the big issues at another business in our study is
managing returns from retailers, as the Vice President of
European Retail Supply Chain commented, “Getting to grips
with returns is one of our biggest capex concerns, as it has
a knock on effect across the supply chain. We are therefore
continuously trying to lower lead times so we can reduce stock
levels.”21
The interviewee explained that consumer product
companies such as P&G and Unilever lead the way in terms
of sophisticated and robust sales and operations planning
processes and other consumer companies would benefit from
trying to emulate them. As Ernst and Young stated in their 	
2011 report22
‘Flexibility is the remedy when uncertainty 	
exists’ – reducing inventory levels is one factor but the key is
how well a business can ‘increase or decrease inventory levels
in response to changes in demand.’ Supply chains that are
strategically integrated will likely succeed in this regard, where
others will fail.23
Getting the sales and operations planning process right for
this business means implementing an adequate forecasting
strategy, “We don’t want all of our stock on day one - we agree
the timeframes with our suppliers and then make sure that
lead times are short enough to fulfil market demand.”24
There
are exceptions however, as the interviewee explained “One of
our gaming products is made in Japan and obviously you can’t
get anything from Japan to Europe in one week. So we have a
postponement strategy where we only order ‘cartridges’, not
the full product. This allows us to then customise the languages
(based on specific country orders) thus reducing the number of
actual finished products held in Europe.”
17
www.mckinseyquarterly.com/Building_the_supply_chain_of_the_future_2729
18
The interviewee noted that although the supply chain is perhaps less complicated than, for example, an FMCG business with lots of stock, because the businesses
products are made to order and also unique in design the sales and operations planning process creates the necessary flexibility they need to be able to deliver orders on
time.
19
The two percent of the supply chain that fails is usually caused by uncontrollable factors such as the faulty fabric example discussed in the first section if the report.
20
www.accenture.com/SiteCollectionDocuments/PDF/Accenture_Making_your_Supply_Chain_Famous.pdf
21
The business regularly measures the performance of the supply chain and tries to highlight where there are problems and then link them back to the wider organisation.
“This is how we have influence.”
22
www.ey.com/Publication/vwLUAssets/20th_annual_trends_and_issues_in_logistics_and_transportation_study/$FILE/2011_Annual_Logistics_Transportation_
Trends.pdf
23
A recent high profile example in the UK of poor integration was at retailer M&S. Its non food, general merchandise business ran out of stock in April after failing to
accurately forecast consumer demand for some of its best selling women’s wear fashion items. M&S are now looking to overhaul their non food supply chain.
24
This is currently about one week.
Integration and Coordination
Supply chain in the consumer sector
9	 nigel wright recruitment
25
To be discussed in the next section of the report.
26
This also often involves integrating IT systems with those of suppliers.
27
www.deloitte.com/assets/Dcom-UnitedStates/Local%20Content/Articles/Consulting/us_consulting_valuechainplanningsolutions.pdf
Nigel Wright Recruitment : Report 2012
Initiatives like the one above are only possible if the right tools
are in place. As another interviewee explained, a key function of
the supply chain today is “to consolidate the use of a number of
different new IT systems and grow efficiently by having the right
technology in the right place at the right time.” Supply chains 	
are increasingly utilising very sophisticated demand planning
and forecasting tools, which is also influencing their hiring
needs.25, 26
Particularly in cases where remote management takes
precedence IT capability in areas such as data governance and
system maintenance are indispensable. As Deloitte argues, for
many businesses this is a ‘completely new mentality’27
and those
that succeed have mastered the art of ‘synchronising’ key data
across the organisation.
The supply chain is IT dependant and with growing pressure
to be ahead of the curve in terms of technology capability,
businesses need to ensure that they have the right tech-talent on
board. What’s interesting however is that technical skills alone
are not enough. The importance of supplier relationships as well
as internal ‘bridge building’ with commercial departments means
that diplomatic, negotiation and general communication skills are
also of utmost importance. In the next section we take a closer
look at the talent strategies underpinning supply chains in the
consumer industries today.
“All of the supply chain leaders we spoke to for
this project identified technical skills as being
one of the most coveted by businesses.”
28
Interestingly a report published earlier this year noted that supply chain professionals would need to add social media skills to their repertoire due to the increased
focus on service and communication in the discipline. www.logisticsexecutive.com/news_and_insights/media_and_articles/2012/predicting_2012_-_talent_trends_in_
supply_chain
29
The employment culture at the business is about giving employees autonomy and expecting them to drive projects forward independently. This is how it seeks to
compete with larger organisations, by attracting people who will thrive on the responsibility and freedom that they perhaps wouldn’t get in a larger organisation.
30
All referenced in this report: www.logisticsexecutive.com/news_and_insights/media_and_articles/2012/predicting_2012_-_talent_trends_in_supply_chain
31
www.bcifiles.com/SupplyChainResilience2011PublicVersion.pdf
32
Overall, talent shortages had moved up the list of causes of major disruption across all continents, since the 2010 survey.
33
This has had a direct impact on those currently in supply chain roles by creating a greater demand for professionals to upskill.
Many consumer businesses have Chief Supply Chain Officers or
Chief Logistics Officers on the executive team. This highlights
how the supply chain is now recognised and valued across the
wider organisation. Yet, despite the emergence of influential
leaders in the discipline there is still a big push underway, 	
across the sector, to upskill those in the supply chain as well
as identify and recruit talent with the qualities deemed most
important today.
All of the supply chain leaders we spoke to for this project
identified technical skills as being one of the most coveted by
businesses. With the greater importance of demand planning
and forecasting as tools to reduce cost and add real flexibility
into the organisation, predictive analysis and data modelling
capability is a big focus for training and recruitment. Others
noted the “ability to implement a broad range of technical and 	
IT solutions” or have “deep knowledge of the various systems
and applications central to supply chain processes” as being
equally important. As one interviewee argued however, a lot of
these tangible qualities can be developed internally. The real
difficulty, in terms of ensuring you have the right mix of skills, 	
“is finding and retaining those with communications capability,
as well as technical.”28
Another interviewee explained “interpersonal skills which enable
people to have influence across the matrix structure of the
business, with its many internal stakeholders”, is now essential.
This view was also shared by others in our study. If supply chains
are to become more integrated, the ability to negotiate and build
relationships with other departments as well as suppliers will be
a factor in the success of the supply chain.29
In the context of
the retailer in our study, for example, this means the “capability
to drive high performance day in day out, with a multi-ethnic
workforce and have influence not by bullying but rather by
attracting others to work for them.”
Other research has also pointed to generic competencies such
as ‘business and financial experience’, knowledge of and the
ability to effectively manage commodity volatility, process
design and change management as well as an aptitude for
‘social responsibility’ as being emerging skills and experiences
in the discipline.30
According to the Supply Chain Director at
the retailer, finding people who can not only deliver change
but “who truly understand the dynamic of the supply chain” is
something that is really lacking. This ‘dynamic’ is in reference
to a multitude of complex factors that now pervade the global
business and economic landscape.
The problem, however, is that businesses cannot rely on
training and development alone. Yet in Europe, in particular, it is
increasingly difficult to find and retain supply chain professionals
with these qualities. A 2011 report by BCI (Business Continuity
Institute)31
highlighted that a loss of talent/skills was one of the
top three causes of supply chain disruption in Europe, behind IT
and telecommunication outages and bad weather. Continental
Europe was the only geography to give prominence to a loss of
talent/skills as a leading source of supply chain disruption.32, 33
We asked our interviewees how they were addressing skill
shortages in the supply chain. It emerged that although there is a
big emphasis on training, businesses are also trying to introduce
alternative skill sets into teams. The retailer in our study for
example identifies skills gaps and then seeks to develop
those skills internally. At the same time it will compliment this
by bringing in external expertise often with the intention of
“introducing new skills to the organisation”.
Skills for now and the future
nigel wright recruitment	 11
Nigel Wright Recruitment : Report 2012
nigel wright recruitment	 12
Supply chain in the consumer sector
Similarly, at another business in our study, one of the areas it
is seeking to address skills shortages in is procurement. The
company has a team in Shanghai which acts as the main interface
with suppliers in China and India. The most important factor
for the Chinese team is to “bring in people who understand the
technical aspects of products”. As the interviewee argued it isn’t
necessary for these people to have traditional negotiation skills.
“We can develop these skills and ensure that people have the
right mix. The ability to plan and do complex analysis as well as
communicate effectively with internal and external stakeholders
is what we seek to build into the supply chain.”
A recent report34
on supply chain talent argues that ‘2012 is the
time for the emergence of a more sophisticated supply chain
professional.’ Yet as our research has shown this ‘sophistication’
is something that is clearly rare among those in the discipline and
what is emerging is a hugely competitive environment for talent
at a time when a high performing, lean supply chain is becoming
increasingly synonymous with business success.
Supply Chain Disruption Continental Europe Top 3 2011
1.	Unplanned outage of IT or telecommunication systems
2.	Adverse weather
3.	Loss of talent/skills
1.	Adverse weather
2.	Unplanned outage of IT or telecommunication systems
3.	Transport network disruption
4.	Earthquake/tsunami
5.	Failure in service provision by an outsourcer
6.	Loss of talent/skills
7.	Product quality incident
8.	Volcanic ash cloud
9.	Insolvency
10. Civil unrest/conflict
Supply Chain Disruption Global Top 10 2011
34
www.logisticsexecutive.com/cms/CEO_ExecutiveSeries_Jan_2012.pdf
In this report we wanted to explore how businesses in the
consumer industries were seeking to regain control of the supply
chain to remain agile and competitive in volatile economic
conditions. We discovered that streamlining manufacturing
‘footprints’ and giving greater emphasis to developing supplier
relationships were central to the strategies of businesses across
different consumer categories. Integration and collaboration
were also themes that emerged in the research, as companies
seek to become more interconnected and leverage the expertise
of the whole organisation, making key data visible and available
to those who can exploit it. It is clear that the supply chain has
grown in importance as a tool to help businesses manage the
risks associated with some of the big challenges facing them
today. As a result, an era is emerging where supply chain leaders
will take on greater responsibility for strategy that goes above
and beyond their discipline. It is also an era, as our research
has shown, where consumer businesses will focus on both the
development of core and new supply chain skills as well as
finding and retaining the top supply chain talent.
Implied throughout the report is that globalisation has influenced
and continues to influence how supply chains are structured and
operate. Whether it’s utilising the low cost expertise of suppliers
in emerging European markets, sourcing raw material from India
and the Far East35
, integrating advanced planning software to
help respond quicker to unpredictable emerging market demand
or building local in-country teams, supply chain leaders today
need to take a ‘truly global’ approach to strategy. Also notable is
that changing customer expectations are forcing businesses to
move away from mass production to a ‘mass customisation’ of
their goods and services. This, in many ways, has provided the
greatest opportunity for supply chain leaders to drive change
and give their businesses a competitive advantage in the market.
It is also interesting to note that in the context of supply chain
strategy, price control is only half of the story. Our research
highlighted that customer service is now very high on the
agenda for supply chain leaders. In many cases the decision to
outsource or in-source aspects of the supply chain is driven by a
desire to please customers – be it in terms of product quality or
service quality. Often cost is forfeited for either of these things in
the short term as companies seek to invest in the supply chain,
to get quality and service right. Outsourcing can create issues
however, but the trend we are beginning to see is one where
businesses are prepared to take risks and working to optimise
supplier networks is therefore very much about sharing those
risks in order to reduce them.
With so many factors at play it is difficult to write a definitive
report covering all trends impacting the supply chain today. This
was why we chose not to discuss sustainability in great detail –
that in itself is a separate report. What we hoped to do with this
report was add informed thinking to the supply chain debate,
particularly around the trends we uncovered in our research. We
would like to continue this debate with you online, where you
can contribute your own thoughts and ideas via our supply chain
networking groups on LinkedIn.36
35
One of the big questions today though concerns the rising cost of raw material in places such as China, which has traditionally been a source for low cost procurement
for supply chains.
36
Nigel Wright - Nordic Supply Chain Network - www.linkedin.com/groups/Nigel-Wright-Nordic-Supply-Chain-4121542?home=&gid=4121542&trk=anet_ug_hm
Nigel Wright Consultancy BeNeLux Operations forum - www.linkedin.com/groups?gid=4319759&trk=group-name
North East Operations Recruitment - www.linkedin.com/groups/North-East-Operations-Recruitment-4135440?gid=4135440&trk=group-name
Conclusions
“It is clear that the supply chain has grown in
importance as a tool to help businesses manage
the risks associated with some of the big
challenges facing them today.”
nigel wright recruitment	 13
Nigel Wright Recruitment : Report 2012
nigel wright recruitment	 14
NEWcastlE
lloyds court
78 grey street
newcastle upon tyne
ne1 6af
t +44 (0)191 222 0770
f +44 (0)191 222 1786
e info@nigelwirght.com
london
palladia central court
25 southampton buildings
london
wc2a 1al
t +44 (0)207 4053 921
paris
Office Champs Elysees
63 Avenue des Champs Elysees
75008 Paris
France
t +33 1 53 93 54 56
stockholm
Park Venue Stockholm
Engelbrektsgatan 9-11
S-114 32 Stockholm
Sweden
t +46 (0)8 120 66 136
copenhagen
RÅdhuspladsen 16
1550 Copenhagen V
Denmark
t +45 7027 8601
Oslo
Dronning Eufemias Gate 16
0191 Oslo
Norway
t +47 23 89 77 73
Düsseldorf
Graf-Adolf-Platz 15
40213 DÜsseldorf,
Germany
t +49 211 882 42 364
amsterdam
Tower D, Level 10
WTC Amsterdam
Strawinskylaan 1059
1077XX Amsterdam
Netherlands
t +31 (0)20 333 21 88
GENEVA
Lake Geneva Business park 1
7 Route de Crassier
1262 Eysins
Switzerland
t +41 (0)22 595 67 48
madrid
miraflores palace madrid
carrera de san jerÓnimo 15 -2a
28014 madrid
spain
t +34 91 788 3172
Supply chain in the consumer sector
Contact information
Regaining Control of the Supply Chain
Regaining Control of the Supply Chain

Mais conteúdo relacionado

Mais procurados

Supply Chains to Admire Analysis for 2019
Supply Chains to Admire Analysis for 2019Supply Chains to Admire Analysis for 2019
Supply Chains to Admire Analysis for 2019Lora Cecere
 
Infosys Insights: Driving revenue through service innovation
Infosys Insights: Driving revenue through service innovationInfosys Insights: Driving revenue through service innovation
Infosys Insights: Driving revenue through service innovationInfosys
 
The Supply Chains To Admire Report for 2021
The Supply Chains To Admire Report for 2021The Supply Chains To Admire Report for 2021
The Supply Chains To Admire Report for 2021Lora Cecere
 
The State of Logistics Outsourcing; 2013 Third Party Logistics Study
The State of Logistics Outsourcing; 2013 Third Party Logistics StudyThe State of Logistics Outsourcing; 2013 Third Party Logistics Study
The State of Logistics Outsourcing; 2013 Third Party Logistics StudyDennis Wereldsma
 
International Journal of Wine Research 2013
International Journal of Wine Research 2013International Journal of Wine Research 2013
International Journal of Wine Research 2013Luis Sequeira
 
Supply Chain Optimization under New Product Development and Emergence of Risk...
Supply Chain Optimization under New Product Development and Emergence of Risk...Supply Chain Optimization under New Product Development and Emergence of Risk...
Supply Chain Optimization under New Product Development and Emergence of Risk...IIJSRJournal
 
The Supply Chain Index - 2018
The Supply Chain Index - 2018The Supply Chain Index - 2018
The Supply Chain Index - 2018Lora Cecere
 
Whitepaper Trade Compliance 1.1
Whitepaper Trade Compliance 1.1Whitepaper Trade Compliance 1.1
Whitepaper Trade Compliance 1.1Jaap Nagtegaal
 
What keeps 3pl ceos and leaders awake at night whitepaper
What keeps 3pl ceos and leaders awake at night whitepaperWhat keeps 3pl ceos and leaders awake at night whitepaper
What keeps 3pl ceos and leaders awake at night whitepaperdevin simon
 
16th Global Capital Confidence Barometer
16th Global Capital Confidence Barometer16th Global Capital Confidence Barometer
16th Global Capital Confidence BarometerEY
 
THE WASTES IN THE LEAN MARKETING. A PROPOSED TAXONOMY
THE WASTES IN THE LEAN MARKETING. A PROPOSED TAXONOMYTHE WASTES IN THE LEAN MARKETING. A PROPOSED TAXONOMY
THE WASTES IN THE LEAN MARKETING. A PROPOSED TAXONOMYAndrea Payaro
 
3D Printed Packaging Market
3D Printed Packaging Market  3D Printed Packaging Market
3D Printed Packaging Market DineshBhol
 
Advanced demand supply integration
Advanced demand supply integrationAdvanced demand supply integration
Advanced demand supply integrationarmyguy1994
 
Pharma master class v5
Pharma master class v5Pharma master class v5
Pharma master class v5DayOne
 
The Changing Pharma R&D Model, GDDIS Leaders Summit Ted Torphy CSO, Head, Ex...
The Changing Pharma R&D Model, GDDIS Leaders Summit  Ted Torphy CSO, Head, Ex...The Changing Pharma R&D Model, GDDIS Leaders Summit  Ted Torphy CSO, Head, Ex...
The Changing Pharma R&D Model, GDDIS Leaders Summit Ted Torphy CSO, Head, Ex...GBX Summits
 

Mais procurados (19)

Supply Chains to Admire Analysis for 2019
Supply Chains to Admire Analysis for 2019Supply Chains to Admire Analysis for 2019
Supply Chains to Admire Analysis for 2019
 
Mdso primer book
Mdso primer bookMdso primer book
Mdso primer book
 
Infosys Insights: Driving revenue through service innovation
Infosys Insights: Driving revenue through service innovationInfosys Insights: Driving revenue through service innovation
Infosys Insights: Driving revenue through service innovation
 
Allfresh 2012 lin
Allfresh 2012 linAllfresh 2012 lin
Allfresh 2012 lin
 
The Supply Chains To Admire Report for 2021
The Supply Chains To Admire Report for 2021The Supply Chains To Admire Report for 2021
The Supply Chains To Admire Report for 2021
 
The State of Logistics Outsourcing; 2013 Third Party Logistics Study
The State of Logistics Outsourcing; 2013 Third Party Logistics StudyThe State of Logistics Outsourcing; 2013 Third Party Logistics Study
The State of Logistics Outsourcing; 2013 Third Party Logistics Study
 
International Journal of Wine Research 2013
International Journal of Wine Research 2013International Journal of Wine Research 2013
International Journal of Wine Research 2013
 
Supply Chain Optimization under New Product Development and Emergence of Risk...
Supply Chain Optimization under New Product Development and Emergence of Risk...Supply Chain Optimization under New Product Development and Emergence of Risk...
Supply Chain Optimization under New Product Development and Emergence of Risk...
 
The Supply Chain Index - 2018
The Supply Chain Index - 2018The Supply Chain Index - 2018
The Supply Chain Index - 2018
 
Whitepaper Trade Compliance 1.1
Whitepaper Trade Compliance 1.1Whitepaper Trade Compliance 1.1
Whitepaper Trade Compliance 1.1
 
3M india ltd
3M india ltd 3M india ltd
3M india ltd
 
Cegedim 2012 pharma insights report
Cegedim 2012 pharma insights reportCegedim 2012 pharma insights report
Cegedim 2012 pharma insights report
 
What keeps 3pl ceos and leaders awake at night whitepaper
What keeps 3pl ceos and leaders awake at night whitepaperWhat keeps 3pl ceos and leaders awake at night whitepaper
What keeps 3pl ceos and leaders awake at night whitepaper
 
16th Global Capital Confidence Barometer
16th Global Capital Confidence Barometer16th Global Capital Confidence Barometer
16th Global Capital Confidence Barometer
 
THE WASTES IN THE LEAN MARKETING. A PROPOSED TAXONOMY
THE WASTES IN THE LEAN MARKETING. A PROPOSED TAXONOMYTHE WASTES IN THE LEAN MARKETING. A PROPOSED TAXONOMY
THE WASTES IN THE LEAN MARKETING. A PROPOSED TAXONOMY
 
3D Printed Packaging Market
3D Printed Packaging Market  3D Printed Packaging Market
3D Printed Packaging Market
 
Advanced demand supply integration
Advanced demand supply integrationAdvanced demand supply integration
Advanced demand supply integration
 
Pharma master class v5
Pharma master class v5Pharma master class v5
Pharma master class v5
 
The Changing Pharma R&D Model, GDDIS Leaders Summit Ted Torphy CSO, Head, Ex...
The Changing Pharma R&D Model, GDDIS Leaders Summit  Ted Torphy CSO, Head, Ex...The Changing Pharma R&D Model, GDDIS Leaders Summit  Ted Torphy CSO, Head, Ex...
The Changing Pharma R&D Model, GDDIS Leaders Summit Ted Torphy CSO, Head, Ex...
 

Semelhante a Regaining Control of the Supply Chain

demand-driven supply chain 2.0
demand-driven supply chain 2.0demand-driven supply chain 2.0
demand-driven supply chain 2.0Laurent Chabert
 
Next-generation supply chains Efficient, fast and tailored: Key findings from...
Next-generation supply chains Efficient, fast and tailored: Key findings from...Next-generation supply chains Efficient, fast and tailored: Key findings from...
Next-generation supply chains Efficient, fast and tailored: Key findings from...Infinite Myriaads
 
Supply Chain Management - 2014
Supply Chain Management - 2014 Supply Chain Management - 2014
Supply Chain Management - 2014 Colin McKillop
 
7 Principles of SCM.pdf
7 Principles of SCM.pdf7 Principles of SCM.pdf
7 Principles of SCM.pdfifuchfuhg
 
Conquering the Supply Chain Effective Frontier - 27 NOV 2017 - Report
Conquering the Supply Chain Effective Frontier - 27 NOV 2017 - ReportConquering the Supply Chain Effective Frontier - 27 NOV 2017 - Report
Conquering the Supply Chain Effective Frontier - 27 NOV 2017 - ReportLora Cecere
 
2014 Customer Relations Trends to Watch. By: Gesner Filoso, Sitel WW
2014 Customer Relations Trends to Watch. By: Gesner Filoso, Sitel WW2014 Customer Relations Trends to Watch. By: Gesner Filoso, Sitel WW
2014 Customer Relations Trends to Watch. By: Gesner Filoso, Sitel WWGesnerf
 
Hr review uk special-2013-recruitment
Hr review uk special-2013-recruitmentHr review uk special-2013-recruitment
Hr review uk special-2013-recruitmentDave Mendoza
 
PA Cost Out Maturity Benchmark - Full 10 Sector Report v 141016
PA Cost Out Maturity Benchmark - Full 10 Sector Report v 141016PA Cost Out Maturity Benchmark - Full 10 Sector Report v 141016
PA Cost Out Maturity Benchmark - Full 10 Sector Report v 141016Liam Palmer
 
Moorhouse_PharmaConsumerBusiness_NPD_whitepaper
Moorhouse_PharmaConsumerBusiness_NPD_whitepaperMoorhouse_PharmaConsumerBusiness_NPD_whitepaper
Moorhouse_PharmaConsumerBusiness_NPD_whitepaperJabar Kazmi
 
WEFUSA_BeyondSupplyChains_Report2015
WEFUSA_BeyondSupplyChains_Report2015WEFUSA_BeyondSupplyChains_Report2015
WEFUSA_BeyondSupplyChains_Report2015Sarah Shellaby
 
Beyond Supply Chains Empowering Responsible Value Chains
Beyond Supply Chains Empowering Responsible Value ChainsBeyond Supply Chains Empowering Responsible Value Chains
Beyond Supply Chains Empowering Responsible Value ChainsSustainable Brands
 
Social Enterprise Primer | beyond supply chainsreport 2015
Social Enterprise Primer | beyond supply chainsreport 2015Social Enterprise Primer | beyond supply chainsreport 2015
Social Enterprise Primer | beyond supply chainsreport 2015Liberteks
 
EY-building-responsible-and-resilient-supply-chains-1
EY-building-responsible-and-resilient-supply-chains-1EY-building-responsible-and-resilient-supply-chains-1
EY-building-responsible-and-resilient-supply-chains-1Nancy Gillis
 
Mass Portfolio Customisation and the Unique Investor - Financial Simplicity
Mass Portfolio Customisation and the Unique Investor - Financial SimplicityMass Portfolio Customisation and the Unique Investor - Financial Simplicity
Mass Portfolio Customisation and the Unique Investor - Financial SimplicityStuart Holdsworth
 
Clarity on the future of swiss private banking
Clarity on the future of swiss private banking Clarity on the future of swiss private banking
Clarity on the future of swiss private banking fb74
 
Finance assessment of ow & bin
Finance assessment of ow & binFinance assessment of ow & bin
Finance assessment of ow & binOriel Window
 

Semelhante a Regaining Control of the Supply Chain (20)

demand-driven supply chain 2.0
demand-driven supply chain 2.0demand-driven supply chain 2.0
demand-driven supply chain 2.0
 
demand-driven-supply-chain
demand-driven-supply-chaindemand-driven-supply-chain
demand-driven-supply-chain
 
Next-generation supply chains Efficient, fast and tailored: Key findings from...
Next-generation supply chains Efficient, fast and tailored: Key findings from...Next-generation supply chains Efficient, fast and tailored: Key findings from...
Next-generation supply chains Efficient, fast and tailored: Key findings from...
 
Supply Chain Management - 2014
Supply Chain Management - 2014 Supply Chain Management - 2014
Supply Chain Management - 2014
 
7 Principles of SCM.pdf
7 Principles of SCM.pdf7 Principles of SCM.pdf
7 Principles of SCM.pdf
 
Cisco cpg white_paper
Cisco cpg white_paperCisco cpg white_paper
Cisco cpg white_paper
 
Conquering the Supply Chain Effective Frontier - 27 NOV 2017 - Report
Conquering the Supply Chain Effective Frontier - 27 NOV 2017 - ReportConquering the Supply Chain Effective Frontier - 27 NOV 2017 - Report
Conquering the Supply Chain Effective Frontier - 27 NOV 2017 - Report
 
01.seven principles scm
01.seven principles scm01.seven principles scm
01.seven principles scm
 
2014 Customer Relations Trends to Watch. By: Gesner Filoso, Sitel WW
2014 Customer Relations Trends to Watch. By: Gesner Filoso, Sitel WW2014 Customer Relations Trends to Watch. By: Gesner Filoso, Sitel WW
2014 Customer Relations Trends to Watch. By: Gesner Filoso, Sitel WW
 
Hr review uk special-2013-recruitment
Hr review uk special-2013-recruitmentHr review uk special-2013-recruitment
Hr review uk special-2013-recruitment
 
PA Cost Out Maturity Benchmark - Full 10 Sector Report v 141016
PA Cost Out Maturity Benchmark - Full 10 Sector Report v 141016PA Cost Out Maturity Benchmark - Full 10 Sector Report v 141016
PA Cost Out Maturity Benchmark - Full 10 Sector Report v 141016
 
Sustainability trends
Sustainability trendsSustainability trends
Sustainability trends
 
Moorhouse_PharmaConsumerBusiness_NPD_whitepaper
Moorhouse_PharmaConsumerBusiness_NPD_whitepaperMoorhouse_PharmaConsumerBusiness_NPD_whitepaper
Moorhouse_PharmaConsumerBusiness_NPD_whitepaper
 
WEFUSA_BeyondSupplyChains_Report2015
WEFUSA_BeyondSupplyChains_Report2015WEFUSA_BeyondSupplyChains_Report2015
WEFUSA_BeyondSupplyChains_Report2015
 
Beyond Supply Chains Empowering Responsible Value Chains
Beyond Supply Chains Empowering Responsible Value ChainsBeyond Supply Chains Empowering Responsible Value Chains
Beyond Supply Chains Empowering Responsible Value Chains
 
Social Enterprise Primer | beyond supply chainsreport 2015
Social Enterprise Primer | beyond supply chainsreport 2015Social Enterprise Primer | beyond supply chainsreport 2015
Social Enterprise Primer | beyond supply chainsreport 2015
 
EY-building-responsible-and-resilient-supply-chains-1
EY-building-responsible-and-resilient-supply-chains-1EY-building-responsible-and-resilient-supply-chains-1
EY-building-responsible-and-resilient-supply-chains-1
 
Mass Portfolio Customisation and the Unique Investor - Financial Simplicity
Mass Portfolio Customisation and the Unique Investor - Financial SimplicityMass Portfolio Customisation and the Unique Investor - Financial Simplicity
Mass Portfolio Customisation and the Unique Investor - Financial Simplicity
 
Clarity on the future of swiss private banking
Clarity on the future of swiss private banking Clarity on the future of swiss private banking
Clarity on the future of swiss private banking
 
Finance assessment of ow & bin
Finance assessment of ow & binFinance assessment of ow & bin
Finance assessment of ow & bin
 

Mais de Nigel Wright Group

Consumer Sector Executive Search Brochure
Consumer Sector Executive Search BrochureConsumer Sector Executive Search Brochure
Consumer Sector Executive Search BrochureNigel Wright Group
 
LG Electronics – A brand driven by innovation
LG Electronics – A brand driven by innovationLG Electronics – A brand driven by innovation
LG Electronics – A brand driven by innovationNigel Wright Group
 
Unlocking People Potential at Premier Foods
Unlocking People Potential at Premier FoodsUnlocking People Potential at Premier Foods
Unlocking People Potential at Premier FoodsNigel Wright Group
 
Featured interview - John Stapleton, FMCG Entrepreneur and Co-Founder of New ...
Featured interview - John Stapleton, FMCG Entrepreneur and Co-Founder of New ...Featured interview - John Stapleton, FMCG Entrepreneur and Co-Founder of New ...
Featured interview - John Stapleton, FMCG Entrepreneur and Co-Founder of New ...Nigel Wright Group
 
Featured interview - Jürgen Schmitz, Country Director Consumer Imaging Group ...
Featured interview - Jürgen Schmitz, Country Director Consumer Imaging Group ...Featured interview - Jürgen Schmitz, Country Director Consumer Imaging Group ...
Featured interview - Jürgen Schmitz, Country Director Consumer Imaging Group ...Nigel Wright Group
 
Featured interview - Sarah Doyle, Brand Director at EAT.
Featured interview - Sarah Doyle, Brand Director at EAT.Featured interview - Sarah Doyle, Brand Director at EAT.
Featured interview - Sarah Doyle, Brand Director at EAT.Nigel Wright Group
 
Featured interview - Chr. Hansen focuses on the consumer
Featured interview - Chr. Hansen focuses on the consumerFeatured interview - Chr. Hansen focuses on the consumer
Featured interview - Chr. Hansen focuses on the consumerNigel Wright Group
 
Recent developments in the Norwegian retail industry have divided opinions in...
Recent developments in the Norwegian retail industry have divided opinions in...Recent developments in the Norwegian retail industry have divided opinions in...
Recent developments in the Norwegian retail industry have divided opinions in...Nigel Wright Group
 
Raising the bar for Procurement at Beiersdorf
Raising the bar for Procurement at BeiersdorfRaising the bar for Procurement at Beiersdorf
Raising the bar for Procurement at BeiersdorfNigel Wright Group
 
Featured interview - Miguel Chapa Marketing Director at Bel Spain
Featured interview - Miguel Chapa Marketing Director at Bel SpainFeatured interview - Miguel Chapa Marketing Director at Bel Spain
Featured interview - Miguel Chapa Marketing Director at Bel SpainNigel Wright Group
 
Featured interview - Paal Hansem, Founder and CEO at Fresh Fitness AS
Featured interview - Paal Hansem, Founder and CEO at Fresh Fitness ASFeatured interview - Paal Hansem, Founder and CEO at Fresh Fitness AS
Featured interview - Paal Hansem, Founder and CEO at Fresh Fitness ASNigel Wright Group
 
Skin care brand eos aims big after Nordic re-launch
Skin care brand eos aims big after Nordic re-launchSkin care brand eos aims big after Nordic re-launch
Skin care brand eos aims big after Nordic re-launchNigel Wright Group
 
Featured interview - Pedro Diezma, CEO at Zerintia Technologies
Featured interview - Pedro Diezma, CEO at Zerintia TechnologiesFeatured interview - Pedro Diezma, CEO at Zerintia Technologies
Featured interview - Pedro Diezma, CEO at Zerintia TechnologiesNigel Wright Group
 
Featured interview - Victor Duran, Senior Vice President Direct to Consumer &...
Featured interview - Victor Duran, Senior Vice President Direct to Consumer &...Featured interview - Victor Duran, Senior Vice President Direct to Consumer &...
Featured interview - Victor Duran, Senior Vice President Direct to Consumer &...Nigel Wright Group
 
Harman: Revolutionising change in audio equipment markets
Harman: Revolutionising change in audio equipment marketsHarman: Revolutionising change in audio equipment markets
Harman: Revolutionising change in audio equipment marketsNigel Wright Group
 
New CEO for Casall AB - Case Study
New CEO for Casall AB - Case StudyNew CEO for Casall AB - Case Study
New CEO for Casall AB - Case StudyNigel Wright Group
 
Learnings from working in centralised and decentralised organisations: implic...
Learnings from working in centralised and decentralised organisations: implic...Learnings from working in centralised and decentralised organisations: implic...
Learnings from working in centralised and decentralised organisations: implic...Nigel Wright Group
 
Brewing growth stirs overseas markets
Brewing growth stirs overseas marketsBrewing growth stirs overseas markets
Brewing growth stirs overseas marketsNigel Wright Group
 

Mais de Nigel Wright Group (20)

Consumer Focus 9
Consumer Focus 9Consumer Focus 9
Consumer Focus 9
 
Consumer Sector Executive Search Brochure
Consumer Sector Executive Search BrochureConsumer Sector Executive Search Brochure
Consumer Sector Executive Search Brochure
 
LG Electronics – A brand driven by innovation
LG Electronics – A brand driven by innovationLG Electronics – A brand driven by innovation
LG Electronics – A brand driven by innovation
 
Unlocking People Potential at Premier Foods
Unlocking People Potential at Premier FoodsUnlocking People Potential at Premier Foods
Unlocking People Potential at Premier Foods
 
Featured interview - John Stapleton, FMCG Entrepreneur and Co-Founder of New ...
Featured interview - John Stapleton, FMCG Entrepreneur and Co-Founder of New ...Featured interview - John Stapleton, FMCG Entrepreneur and Co-Founder of New ...
Featured interview - John Stapleton, FMCG Entrepreneur and Co-Founder of New ...
 
Featured interview - Jürgen Schmitz, Country Director Consumer Imaging Group ...
Featured interview - Jürgen Schmitz, Country Director Consumer Imaging Group ...Featured interview - Jürgen Schmitz, Country Director Consumer Imaging Group ...
Featured interview - Jürgen Schmitz, Country Director Consumer Imaging Group ...
 
Featured interview - Sarah Doyle, Brand Director at EAT.
Featured interview - Sarah Doyle, Brand Director at EAT.Featured interview - Sarah Doyle, Brand Director at EAT.
Featured interview - Sarah Doyle, Brand Director at EAT.
 
Featured interview - Chr. Hansen focuses on the consumer
Featured interview - Chr. Hansen focuses on the consumerFeatured interview - Chr. Hansen focuses on the consumer
Featured interview - Chr. Hansen focuses on the consumer
 
Recent developments in the Norwegian retail industry have divided opinions in...
Recent developments in the Norwegian retail industry have divided opinions in...Recent developments in the Norwegian retail industry have divided opinions in...
Recent developments in the Norwegian retail industry have divided opinions in...
 
Raising the bar for Procurement at Beiersdorf
Raising the bar for Procurement at BeiersdorfRaising the bar for Procurement at Beiersdorf
Raising the bar for Procurement at Beiersdorf
 
Featured interview - Miguel Chapa Marketing Director at Bel Spain
Featured interview - Miguel Chapa Marketing Director at Bel SpainFeatured interview - Miguel Chapa Marketing Director at Bel Spain
Featured interview - Miguel Chapa Marketing Director at Bel Spain
 
The bio-report 2016
The bio-report 2016The bio-report 2016
The bio-report 2016
 
Featured interview - Paal Hansem, Founder and CEO at Fresh Fitness AS
Featured interview - Paal Hansem, Founder and CEO at Fresh Fitness ASFeatured interview - Paal Hansem, Founder and CEO at Fresh Fitness AS
Featured interview - Paal Hansem, Founder and CEO at Fresh Fitness AS
 
Skin care brand eos aims big after Nordic re-launch
Skin care brand eos aims big after Nordic re-launchSkin care brand eos aims big after Nordic re-launch
Skin care brand eos aims big after Nordic re-launch
 
Featured interview - Pedro Diezma, CEO at Zerintia Technologies
Featured interview - Pedro Diezma, CEO at Zerintia TechnologiesFeatured interview - Pedro Diezma, CEO at Zerintia Technologies
Featured interview - Pedro Diezma, CEO at Zerintia Technologies
 
Featured interview - Victor Duran, Senior Vice President Direct to Consumer &...
Featured interview - Victor Duran, Senior Vice President Direct to Consumer &...Featured interview - Victor Duran, Senior Vice President Direct to Consumer &...
Featured interview - Victor Duran, Senior Vice President Direct to Consumer &...
 
Harman: Revolutionising change in audio equipment markets
Harman: Revolutionising change in audio equipment marketsHarman: Revolutionising change in audio equipment markets
Harman: Revolutionising change in audio equipment markets
 
New CEO for Casall AB - Case Study
New CEO for Casall AB - Case StudyNew CEO for Casall AB - Case Study
New CEO for Casall AB - Case Study
 
Learnings from working in centralised and decentralised organisations: implic...
Learnings from working in centralised and decentralised organisations: implic...Learnings from working in centralised and decentralised organisations: implic...
Learnings from working in centralised and decentralised organisations: implic...
 
Brewing growth stirs overseas markets
Brewing growth stirs overseas marketsBrewing growth stirs overseas markets
Brewing growth stirs overseas markets
 

Último

GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdfGUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdfDanny Diep To
 
EUDR Info Meeting Ethiopian coffee exporters
EUDR Info Meeting Ethiopian coffee exportersEUDR Info Meeting Ethiopian coffee exporters
EUDR Info Meeting Ethiopian coffee exportersPeter Horsten
 
business environment micro environment macro environment.pptx
business environment micro environment macro environment.pptxbusiness environment micro environment macro environment.pptx
business environment micro environment macro environment.pptxShruti Mittal
 
Jewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource CentreJewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource CentreNZSG
 
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxThe-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxmbikashkanyari
 
Cyber Security Training in Office Environment
Cyber Security Training in Office EnvironmentCyber Security Training in Office Environment
Cyber Security Training in Office Environmentelijahj01012
 
WSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfWSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfJamesConcepcion7
 
Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03DallasHaselhorst
 
Healthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterHealthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterJamesConcepcion7
 
Onemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
Onemonitar Android Spy App Features: Explore Advanced Monitoring CapabilitiesOnemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
Onemonitar Android Spy App Features: Explore Advanced Monitoring CapabilitiesOne Monitar
 
Unveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesUnveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesDoe Paoro
 
PSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationPSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationAnamaria Contreras
 
1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdfShaun Heinrichs
 
20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdfChris Skinner
 
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...Associazione Digital Days
 
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...Operational Excellence Consulting
 
Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...Peter Ward
 
Welding Electrode Making Machine By Deccan Dynamics
Welding Electrode Making Machine By Deccan DynamicsWelding Electrode Making Machine By Deccan Dynamics
Welding Electrode Making Machine By Deccan DynamicsIndiaMART InterMESH Limited
 
Send Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSendBig4
 

Último (20)

GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdfGUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
 
EUDR Info Meeting Ethiopian coffee exporters
EUDR Info Meeting Ethiopian coffee exportersEUDR Info Meeting Ethiopian coffee exporters
EUDR Info Meeting Ethiopian coffee exporters
 
business environment micro environment macro environment.pptx
business environment micro environment macro environment.pptxbusiness environment micro environment macro environment.pptx
business environment micro environment macro environment.pptx
 
Jewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource CentreJewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource Centre
 
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxThe-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
 
Cyber Security Training in Office Environment
Cyber Security Training in Office EnvironmentCyber Security Training in Office Environment
Cyber Security Training in Office Environment
 
WSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfWSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdf
 
Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03
 
Healthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterHealthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare Newsletter
 
Onemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
Onemonitar Android Spy App Features: Explore Advanced Monitoring CapabilitiesOnemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
Onemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
 
Unveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesUnveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic Experiences
 
PSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationPSCC - Capability Statement Presentation
PSCC - Capability Statement Presentation
 
The Bizz Quiz-E-Summit-E-Cell-IITPatna.pptx
The Bizz Quiz-E-Summit-E-Cell-IITPatna.pptxThe Bizz Quiz-E-Summit-E-Cell-IITPatna.pptx
The Bizz Quiz-E-Summit-E-Cell-IITPatna.pptx
 
1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf
 
20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf
 
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
 
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
 
Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...
 
Welding Electrode Making Machine By Deccan Dynamics
Welding Electrode Making Machine By Deccan DynamicsWelding Electrode Making Machine By Deccan Dynamics
Welding Electrode Making Machine By Deccan Dynamics
 
Send Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.com
 

Regaining Control of the Supply Chain

  • 1. How has the current economic climate prompted consumer companies to regain control of the supply chain? Click to share:
  • 2.
  • 3. 3 nigel wright recruitment About Nigel Wright Recruitment Abstract 4 Introduction: new world, new challenges 4 Supplier relationships 5 Integration and coordination 8 Skills for now and the future 11 Conclusions 13 Contact information 14 Since its formation, Nigel Wright Recruitment has become the leading specialist consumer search firm in the industry. We have extensive experience of bringing together high-calibre candidates and world-class organisations. Our consultants are committed to delivering a quality service, to clients and candidates alike. Nigel Wright Recruitment has earned a strong reputation within the consumer sector across Europe for providing a high quality recruitment service that is built upon our industry knowledge. We consider it important to continue to bring you relevant, useful information that you can use, in an accessible format. For further information or to discuss your recruitment requirements please contact us using the details on page 14. For more information on our services please visit www.nigelwright.com Contents Nigel Wright Recruitment : Report 2012
  • 4. nigel wright recruitment 4 Analysts are adamant that market instability is here to stay. As a result, business strategy has shifted significantly from a ‘sweating your assets’ ethos to focusing on reducing costs and investing in the future.3 In the supply chain profession, in some respects, this has been welcome news. Once upon a time the supply chain was merely a mechanism in the wider organisation, now it plays a primary role in the overall planning and strategy of the business. A survey published earlier this year highlighted that developing leadership capability within the supply chain was a ‘critical focus’ for businesses in 2012.4, 5 In macro terms, new leaders of the supply chain have come to the fore due to their ability to comprehend and also react to the greater complexity of challenges facing businesses today – globalisation, outsourcing, low cost production, shorter product life cycles, increased competition and price pressures to name a few. We interviewed six supply chain leaders from different consumer businesses across Europe (UK, Nordics & Benelux)6, 7 to discuss how they have responded to the challenges of today’s economy. Our questions explored factors such as the dichotomy between outsourcing and in-sourcing, issues concerning remote management, strategies to mitigate against the risk of unpredictable consumer habits, financial volatility and long lead times and also what the most coveted skills in today’s supply chain profession. The report is structured around three key areas: supplier relationships, integration and coordination, skills for now and the future. Introduction: new world, new challenges Changing consumer preferences, emerging markets, private label penetration, volatile economic conditions and the rising cost of raw materials are some of the key issues facing the consumer products industry today. According to a 2010 report by a leading global consulting firm1 , different sectors within the consumer goods industry all have unique ways to ensure that the supply chain is effective in light of these challenges. It has been noted in other research however that world class supply chain standards are not prevalent across the consumer industries. With further factors such as skills shortages and changes in sustainability standards2 , there is a greater urgency for consumer companies to be at the forefront of innovative supply chain practices to ensure that they remain competitive in this hugely complex environment. This is the context for our new management report which looks at how consumer companies are responding to these challenges by seeking to regain control over the supply chain while at the same time realigning their talent strategies to focus on developing leadership skills to help reduce risk and improve efficiency. Abstract 1 www.accenture.com/SiteCollectionDocuments/PDF/Accenture_Making_your_Supply_Chain_Famous.pdf 2 Although the report alludes to sustainability and corporate social responsibility as being one of the drivers behind supply chain strategy today, we do not discuss this factor in any detail. 3 According to the McKinsey’s 2011 report ‘Building the supply chain of the future’ www.mckinseyquarterly.com/Building_the_supply_chain_of_the_future_2729 the focus on cost reduction has resulted in ‘an increased emphasis on leveraging every dollar spent on logistics and transportation activities.’ This is something which is discussed later in the report in relation to a home entertainment group’s European retail operations. 4 www.logisticsexecutive.com/cms/CEO_ExecutiveSeries_Jan_2012.pdf 5 Gartner’s research from 2011 also highlighted that by 2015 at least 25% of new CEOs at Fortune 500 manufacturers will have ‘deep supply chain experience’. www.gartner.com/id=1853218 6 A retailer, a furniture manufacturer, a home entertainment group, an electronics manufacturer, a pharmaceuticals business and a drinks wholesaler. 7 We would like to thank the following people for their help in compiling this report: Bo Rasmussen, Peter Høy, Peter Livingston and Martin Fisher. Supply chain in the consumer sector
  • 5. 5 nigel wright recruitment 8 www.accenture.com/SiteCollectionDocuments/PDF/Accenture_Making_your_Supply_Chain_Famous.pdf 9 The retailer indicated that it will sometimes go out to tender just to keep suppliers ‘on their toes’. 10 For example, all upholstery is manufactured in Poland, whereas tables and lamps are produced in Denmark. The business only employs ten people in Denmark, where once it had 250 domiciled employees. Because its suppliers are ‘specialists’, the business claims that the overall quality of its products has improved. Accenture’s 2010 report8 on consumer sector supply chains noted six distinct strategic priorities that would become a focus for supply chain leaders in the sector. Two of these priorities were: outsourcing to increase capability and optimising supplier networks to reduce cost and improve service. All of the leaders we interviewed as part of our research had their own interpretation of these priorities, aligned with their own unique business models. The Supply Chain Director at one retailer for example noted that consumer demand has seen the business gradually move from essentially being one product – a grocery retailer – to being an organisation which requires its supply chain to service different types of stores and try to meet the unpredictable demand of its customers. The objective of the supply chain, in his opinion, is to best serve the organisation within this more complex arrangement by “centralising decision making and creating a more efficient warehousing system with a greater focus on partner development.” Using a typical retail supply chain model, the business outsources around 50% of its operations. “The hybrid model gives us access to third party expertise where we don’t have the scale.” It works hard to maintain good relationships with its suppliers but admits that “there are often times where you must have difficult conversations – this will happen if it comes to a point where there is no longer a sound basis for having the relationship in the first place and at this point we have to reassess the situation.”9 Overall though, maintaining a direct involvement with its outsourced operations “reduces risk and gives us greater security over our supply chain – we get the best of both worlds.” Similarly, a manufacturer in our study has also realigned its supply chain model to maximise its effectiveness. As the interviewee explained, “we have essentially moved from being a production company to being a ‘precision’ company, where the focus is all about reducing cost in the supply chain by outsourcing most of the key components to specialist suppliers.”10 Tough market conditions as well as high salaries in Denmark means the business has struggled to be competitive internationally and now seeks to streamline its workforce and focus instead on developing its supplier relationships. The key change is within the culture of the business – it now has to concentrate on creating a ‘value chain’ whereby employees must act as ‘consultants’ within the businesses of their suppliers. As the interviewee noted, they have a supply chain expert based permanently at each supplier tasked with basically “fighting their corner against the interests of the supplier’s other customers.” Supplier Relationships Nigel Wright Recruitment : Report 2012
  • 6. 11 Another Danish company in our study that uses suppliers in the Far East also noted that if there is an issue with the stock, suppliers will often “not tell the real picture if it is negative. There is often a culture of ‘closed-ness’ among the parties in the supply chain – an unwillingness to share information.” 12 Interestingly the business is one of a group of Danish companies that have ‘in-sourced’ all or some of the supply chain back to Europe from the Far East. It did initially outsource all of its production to China but the rising cost of labour there as well as the complexity of managing the distribution of goods that have unique designs – i.e. furniture that isn’t mass produced – it made more sense to have a local production operation. Other companies are doing the same and bringing production back to neighbouring countries such as Estonia and Poland. 13 As Ernst & Young (2011) note ‘Flexibility is the remedy when uncertainty exists.’ www.ey.com/Publication/vwLUAssets/20th_annual_trends_and_issues_in_logistics_ and_transportation_study/$FILE/2011_Annual_Logistics_Transportation_Trends.pdf 14 The business is seeking to alleviate this by introducing new alternative (mainly merchandise) products to the market. 15 Generally across the full spectrum of product categories, consumers are less able or willing to buy in advance and rather tend to purchase things at the last minute. Supply chains have therefore responded by adopting ‘just in time’ principles at the core of which is reducing the number of locations where stock is held. 16 E.g. Distribution costs such as consolidating freight with other studios and utilising cross docking solutions. This strategy was described as being ‘married’ to the suppliers – “they are a key part of our success.” Large companies that outsource must take an active role in the management of the outsourced operations, developing contract management capability and ensuring that the partnership is mutually beneficial for both parties. A common theme among businesses that choose to outsource is to release those functions that are of a minor importance to the customer’s overall buying decision making process, for example, manufacturing of sub components of products or sourcing of raw materials. The benefit is that businesses can concentrate on factors that are more important to the customer, such as good delivery performance or customer service. The disadvantage however is that those companies don’t fully control all aspects of their products. This is particularly risky when their suppliers are purchasing materials in other continents. As one manufacturer experienced, when their suppliers buy in specialist fabric that is faulted, it can cause serious delays.11 Fundamentally though, businesses find that the benefits outweigh the negatives. Outsourcing creates less vulnerability to the changes in the market and also the freedom to source materials depending on which factor is most important at the time – be it price or lead times.12, 13 As an interviewee at another business highlighted “the objective is always about getting the right products in the right place at the right time.” Different economic circumstances however have led the business to source more of its ‘input materials’ from China and India “which makes procurement more complex especially in an inflationary environment.” The key focus of the company over the last 12 months has been embedding a ‘supplier relationship management program’ into the supply chain. “We are working to rationalise and consolidate our customer base – part of this has been a big tender initiative to identify the best prices available and ensure that we are working with a core group of suppliers who will provide us with a competitive cost position.” Accurately communicating demand is an ongoing challenge however. The firm’s suppliers ideally want ‘one year visibility’ and the business is trying to match that by forecasting for 12 months while endeavouring to improve its communications regarding any significant changes in demand during that time. “Essentially we’re looking to work together with our suppliers to optimise the supply chain.” At the home entertainment group in our study, the issue of reduced consumer spending is something that pervades the organisation. Consumers are spending less, year on year, on physical media and digital downloads are not providing enough of a stimulus to the category, so revenue is declining.14 In Europe however the situation varies between the North and South – i.e. the outlook in Germany is fairly positive whereas in Spain and Italy it is very poor. This means that the business must have a different, tailored approach to each market. The interviewee explained that they are “considering alternative distribution models such as cooperating with different studios and setting up joint sales teams” – essentially reducing its manufacturing ‘footprint’ by working with more wholesalers to manage through the reduction in consumer spending.15 Once again, seeking to harness the relationships with key partners and suppliers is a central business strategy. Over the last two years the home entertainment group has outsourced areas of manufacturing, production planning, warehousing and order fulfilment as well as transport and customer services. This hasn’t been an issue free process. Last year the business in-sourced its customer services operations back to Europe after it was felt there was “a disconnect with its culture.” With 3PL (third party logistics), as the interviewee noted, they also have to manage relationships with suppliers very closely, providing them with the ‘solution’ while relying on them for logistics capability. Overall this strategy helps to support the growth of revenue while at the same time manage operations and capital expenditure more effectively.16 In the next section we explore how businesses are beginning to rely on increasingly sophisticated tools linked to the sales and operations planning process to create more efficiency and flexibility in the supply chain. nigel wright recruitment 6 Supply chain in the consumer sector
  • 7. “Outsourcing creates less vulnerability to the changes in the market and also the freedom to source materials depending on which factor is most important at the time – be it price or lead times.”
  • 8. nigel wright recruitment 8 We asked our interviewees what the most important aspects of supply chain strategy were today. In most cases the answer was reducing inventory levels and creating more flexibility to generate faster lead times. To achieve this, the supply chain must have greater alignment with overall business strategy and better integration and visibility. According to McKinsey, this is the ‘new normal’ for supply chain organisations17 . However, as one interviewee noted, trying to facilitate closer coordination and integration of the supply chain with the rest of the business can be a ‘tough sell internally’. “The real challenge is to connect sales with operations and getting people to understand the value of this.” A renewed focus on cost reduction and customer service however, has essentially created a revived interest in sales and operations planning for businesses. Three years ago, one manufacturer in our study introduced a sales and operations planning process and now “The whole supply chain is aligned with sales.”18 Currently the business has 98% accuracy in its supply chain19 but admitted that because the sales and operations planning process is still fairly new, it is still ‘learning everyday’ about how to improve. By 2020 its objective is to have all lead times down to one week. Accenture20 highlighted in its report that a ‘gradual process of continuous improvement’ is essential best practice for supply chain leaders today. Since the drinks wholesaler in our study devolved its relationship with a major brewer in 2010, it has gradually integrated an S&OP (Sales and Operations Planning) process into its supply chain. As the interviewee explained, the business’ overall operation is “far more demand driven now” and without the brewing partnership it must seek to reduce its stock levels by being more proactive around planning. This has been a big cultural change for the business and although the interviewee claimed “life seems easier now” he admitted they are still going through a steep learning curve. One of the big issues at another business in our study is managing returns from retailers, as the Vice President of European Retail Supply Chain commented, “Getting to grips with returns is one of our biggest capex concerns, as it has a knock on effect across the supply chain. We are therefore continuously trying to lower lead times so we can reduce stock levels.”21 The interviewee explained that consumer product companies such as P&G and Unilever lead the way in terms of sophisticated and robust sales and operations planning processes and other consumer companies would benefit from trying to emulate them. As Ernst and Young stated in their 2011 report22 ‘Flexibility is the remedy when uncertainty exists’ – reducing inventory levels is one factor but the key is how well a business can ‘increase or decrease inventory levels in response to changes in demand.’ Supply chains that are strategically integrated will likely succeed in this regard, where others will fail.23 Getting the sales and operations planning process right for this business means implementing an adequate forecasting strategy, “We don’t want all of our stock on day one - we agree the timeframes with our suppliers and then make sure that lead times are short enough to fulfil market demand.”24 There are exceptions however, as the interviewee explained “One of our gaming products is made in Japan and obviously you can’t get anything from Japan to Europe in one week. So we have a postponement strategy where we only order ‘cartridges’, not the full product. This allows us to then customise the languages (based on specific country orders) thus reducing the number of actual finished products held in Europe.” 17 www.mckinseyquarterly.com/Building_the_supply_chain_of_the_future_2729 18 The interviewee noted that although the supply chain is perhaps less complicated than, for example, an FMCG business with lots of stock, because the businesses products are made to order and also unique in design the sales and operations planning process creates the necessary flexibility they need to be able to deliver orders on time. 19 The two percent of the supply chain that fails is usually caused by uncontrollable factors such as the faulty fabric example discussed in the first section if the report. 20 www.accenture.com/SiteCollectionDocuments/PDF/Accenture_Making_your_Supply_Chain_Famous.pdf 21 The business regularly measures the performance of the supply chain and tries to highlight where there are problems and then link them back to the wider organisation. “This is how we have influence.” 22 www.ey.com/Publication/vwLUAssets/20th_annual_trends_and_issues_in_logistics_and_transportation_study/$FILE/2011_Annual_Logistics_Transportation_ Trends.pdf 23 A recent high profile example in the UK of poor integration was at retailer M&S. Its non food, general merchandise business ran out of stock in April after failing to accurately forecast consumer demand for some of its best selling women’s wear fashion items. M&S are now looking to overhaul their non food supply chain. 24 This is currently about one week. Integration and Coordination Supply chain in the consumer sector
  • 9. 9 nigel wright recruitment 25 To be discussed in the next section of the report. 26 This also often involves integrating IT systems with those of suppliers. 27 www.deloitte.com/assets/Dcom-UnitedStates/Local%20Content/Articles/Consulting/us_consulting_valuechainplanningsolutions.pdf Nigel Wright Recruitment : Report 2012 Initiatives like the one above are only possible if the right tools are in place. As another interviewee explained, a key function of the supply chain today is “to consolidate the use of a number of different new IT systems and grow efficiently by having the right technology in the right place at the right time.” Supply chains are increasingly utilising very sophisticated demand planning and forecasting tools, which is also influencing their hiring needs.25, 26 Particularly in cases where remote management takes precedence IT capability in areas such as data governance and system maintenance are indispensable. As Deloitte argues, for many businesses this is a ‘completely new mentality’27 and those that succeed have mastered the art of ‘synchronising’ key data across the organisation. The supply chain is IT dependant and with growing pressure to be ahead of the curve in terms of technology capability, businesses need to ensure that they have the right tech-talent on board. What’s interesting however is that technical skills alone are not enough. The importance of supplier relationships as well as internal ‘bridge building’ with commercial departments means that diplomatic, negotiation and general communication skills are also of utmost importance. In the next section we take a closer look at the talent strategies underpinning supply chains in the consumer industries today.
  • 10. “All of the supply chain leaders we spoke to for this project identified technical skills as being one of the most coveted by businesses.”
  • 11. 28 Interestingly a report published earlier this year noted that supply chain professionals would need to add social media skills to their repertoire due to the increased focus on service and communication in the discipline. www.logisticsexecutive.com/news_and_insights/media_and_articles/2012/predicting_2012_-_talent_trends_in_ supply_chain 29 The employment culture at the business is about giving employees autonomy and expecting them to drive projects forward independently. This is how it seeks to compete with larger organisations, by attracting people who will thrive on the responsibility and freedom that they perhaps wouldn’t get in a larger organisation. 30 All referenced in this report: www.logisticsexecutive.com/news_and_insights/media_and_articles/2012/predicting_2012_-_talent_trends_in_supply_chain 31 www.bcifiles.com/SupplyChainResilience2011PublicVersion.pdf 32 Overall, talent shortages had moved up the list of causes of major disruption across all continents, since the 2010 survey. 33 This has had a direct impact on those currently in supply chain roles by creating a greater demand for professionals to upskill. Many consumer businesses have Chief Supply Chain Officers or Chief Logistics Officers on the executive team. This highlights how the supply chain is now recognised and valued across the wider organisation. Yet, despite the emergence of influential leaders in the discipline there is still a big push underway, across the sector, to upskill those in the supply chain as well as identify and recruit talent with the qualities deemed most important today. All of the supply chain leaders we spoke to for this project identified technical skills as being one of the most coveted by businesses. With the greater importance of demand planning and forecasting as tools to reduce cost and add real flexibility into the organisation, predictive analysis and data modelling capability is a big focus for training and recruitment. Others noted the “ability to implement a broad range of technical and IT solutions” or have “deep knowledge of the various systems and applications central to supply chain processes” as being equally important. As one interviewee argued however, a lot of these tangible qualities can be developed internally. The real difficulty, in terms of ensuring you have the right mix of skills, “is finding and retaining those with communications capability, as well as technical.”28 Another interviewee explained “interpersonal skills which enable people to have influence across the matrix structure of the business, with its many internal stakeholders”, is now essential. This view was also shared by others in our study. If supply chains are to become more integrated, the ability to negotiate and build relationships with other departments as well as suppliers will be a factor in the success of the supply chain.29 In the context of the retailer in our study, for example, this means the “capability to drive high performance day in day out, with a multi-ethnic workforce and have influence not by bullying but rather by attracting others to work for them.” Other research has also pointed to generic competencies such as ‘business and financial experience’, knowledge of and the ability to effectively manage commodity volatility, process design and change management as well as an aptitude for ‘social responsibility’ as being emerging skills and experiences in the discipline.30 According to the Supply Chain Director at the retailer, finding people who can not only deliver change but “who truly understand the dynamic of the supply chain” is something that is really lacking. This ‘dynamic’ is in reference to a multitude of complex factors that now pervade the global business and economic landscape. The problem, however, is that businesses cannot rely on training and development alone. Yet in Europe, in particular, it is increasingly difficult to find and retain supply chain professionals with these qualities. A 2011 report by BCI (Business Continuity Institute)31 highlighted that a loss of talent/skills was one of the top three causes of supply chain disruption in Europe, behind IT and telecommunication outages and bad weather. Continental Europe was the only geography to give prominence to a loss of talent/skills as a leading source of supply chain disruption.32, 33 We asked our interviewees how they were addressing skill shortages in the supply chain. It emerged that although there is a big emphasis on training, businesses are also trying to introduce alternative skill sets into teams. The retailer in our study for example identifies skills gaps and then seeks to develop those skills internally. At the same time it will compliment this by bringing in external expertise often with the intention of “introducing new skills to the organisation”. Skills for now and the future nigel wright recruitment 11 Nigel Wright Recruitment : Report 2012
  • 12. nigel wright recruitment 12 Supply chain in the consumer sector Similarly, at another business in our study, one of the areas it is seeking to address skills shortages in is procurement. The company has a team in Shanghai which acts as the main interface with suppliers in China and India. The most important factor for the Chinese team is to “bring in people who understand the technical aspects of products”. As the interviewee argued it isn’t necessary for these people to have traditional negotiation skills. “We can develop these skills and ensure that people have the right mix. The ability to plan and do complex analysis as well as communicate effectively with internal and external stakeholders is what we seek to build into the supply chain.” A recent report34 on supply chain talent argues that ‘2012 is the time for the emergence of a more sophisticated supply chain professional.’ Yet as our research has shown this ‘sophistication’ is something that is clearly rare among those in the discipline and what is emerging is a hugely competitive environment for talent at a time when a high performing, lean supply chain is becoming increasingly synonymous with business success. Supply Chain Disruption Continental Europe Top 3 2011 1. Unplanned outage of IT or telecommunication systems 2. Adverse weather 3. Loss of talent/skills 1. Adverse weather 2. Unplanned outage of IT or telecommunication systems 3. Transport network disruption 4. Earthquake/tsunami 5. Failure in service provision by an outsourcer 6. Loss of talent/skills 7. Product quality incident 8. Volcanic ash cloud 9. Insolvency 10. Civil unrest/conflict Supply Chain Disruption Global Top 10 2011 34 www.logisticsexecutive.com/cms/CEO_ExecutiveSeries_Jan_2012.pdf
  • 13. In this report we wanted to explore how businesses in the consumer industries were seeking to regain control of the supply chain to remain agile and competitive in volatile economic conditions. We discovered that streamlining manufacturing ‘footprints’ and giving greater emphasis to developing supplier relationships were central to the strategies of businesses across different consumer categories. Integration and collaboration were also themes that emerged in the research, as companies seek to become more interconnected and leverage the expertise of the whole organisation, making key data visible and available to those who can exploit it. It is clear that the supply chain has grown in importance as a tool to help businesses manage the risks associated with some of the big challenges facing them today. As a result, an era is emerging where supply chain leaders will take on greater responsibility for strategy that goes above and beyond their discipline. It is also an era, as our research has shown, where consumer businesses will focus on both the development of core and new supply chain skills as well as finding and retaining the top supply chain talent. Implied throughout the report is that globalisation has influenced and continues to influence how supply chains are structured and operate. Whether it’s utilising the low cost expertise of suppliers in emerging European markets, sourcing raw material from India and the Far East35 , integrating advanced planning software to help respond quicker to unpredictable emerging market demand or building local in-country teams, supply chain leaders today need to take a ‘truly global’ approach to strategy. Also notable is that changing customer expectations are forcing businesses to move away from mass production to a ‘mass customisation’ of their goods and services. This, in many ways, has provided the greatest opportunity for supply chain leaders to drive change and give their businesses a competitive advantage in the market. It is also interesting to note that in the context of supply chain strategy, price control is only half of the story. Our research highlighted that customer service is now very high on the agenda for supply chain leaders. In many cases the decision to outsource or in-source aspects of the supply chain is driven by a desire to please customers – be it in terms of product quality or service quality. Often cost is forfeited for either of these things in the short term as companies seek to invest in the supply chain, to get quality and service right. Outsourcing can create issues however, but the trend we are beginning to see is one where businesses are prepared to take risks and working to optimise supplier networks is therefore very much about sharing those risks in order to reduce them. With so many factors at play it is difficult to write a definitive report covering all trends impacting the supply chain today. This was why we chose not to discuss sustainability in great detail – that in itself is a separate report. What we hoped to do with this report was add informed thinking to the supply chain debate, particularly around the trends we uncovered in our research. We would like to continue this debate with you online, where you can contribute your own thoughts and ideas via our supply chain networking groups on LinkedIn.36 35 One of the big questions today though concerns the rising cost of raw material in places such as China, which has traditionally been a source for low cost procurement for supply chains. 36 Nigel Wright - Nordic Supply Chain Network - www.linkedin.com/groups/Nigel-Wright-Nordic-Supply-Chain-4121542?home=&gid=4121542&trk=anet_ug_hm Nigel Wright Consultancy BeNeLux Operations forum - www.linkedin.com/groups?gid=4319759&trk=group-name North East Operations Recruitment - www.linkedin.com/groups/North-East-Operations-Recruitment-4135440?gid=4135440&trk=group-name Conclusions “It is clear that the supply chain has grown in importance as a tool to help businesses manage the risks associated with some of the big challenges facing them today.” nigel wright recruitment 13 Nigel Wright Recruitment : Report 2012
  • 14. nigel wright recruitment 14 NEWcastlE lloyds court 78 grey street newcastle upon tyne ne1 6af t +44 (0)191 222 0770 f +44 (0)191 222 1786 e info@nigelwirght.com london palladia central court 25 southampton buildings london wc2a 1al t +44 (0)207 4053 921 paris Office Champs Elysees 63 Avenue des Champs Elysees 75008 Paris France t +33 1 53 93 54 56 stockholm Park Venue Stockholm Engelbrektsgatan 9-11 S-114 32 Stockholm Sweden t +46 (0)8 120 66 136 copenhagen RÅdhuspladsen 16 1550 Copenhagen V Denmark t +45 7027 8601 Oslo Dronning Eufemias Gate 16 0191 Oslo Norway t +47 23 89 77 73 Düsseldorf Graf-Adolf-Platz 15 40213 DÜsseldorf, Germany t +49 211 882 42 364 amsterdam Tower D, Level 10 WTC Amsterdam Strawinskylaan 1059 1077XX Amsterdam Netherlands t +31 (0)20 333 21 88 GENEVA Lake Geneva Business park 1 7 Route de Crassier 1262 Eysins Switzerland t +41 (0)22 595 67 48 madrid miraflores palace madrid carrera de san jerÓnimo 15 -2a 28014 madrid spain t +34 91 788 3172 Supply chain in the consumer sector Contact information