1. European Chief Supply
Chain Officer Forum 2001
Kris Van Ransbeek
Vice President Product Supply &
Ingredients Business EMEA
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2. Topics
• The importance of innovation
• How can Supply Chain help to make a difference
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3. Innovation is the name of the game in many
industries
• The board dilema: continue to innovate when budget priorities
lie elsewhere
 Are we making the right innovation choices
 Are our innovation investments closely aligned with the customers needs,
while also recognizing that you can’t rely on customer input for “break-
through” ideas
 Are we able to measure the progress accurately
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4. The Innovation Challenge
• You can't just ask customers what they want and then try to
give that to them. By the time you get it built, they'll want
something new.
Steve Jobs
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5. Increasing complexity depending on the type
of innovation of FMCG
• Products and Packaging
Increasing time to market
Increasing investment
Increasing complexity
• Recipe optimization
• A new raw material or ingredient
• Changing the packaging design
• New packaging shape
• Machines and Processes
• Installation of new equipment
• Adaptation of the Production line
• New factories
• New production technologies
(will introduce new products, new markets,…)
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6. The innovation balancing act
• Short-term return vs. long-term investment
• Risk vs. Opportunity
• Creativity vs. Discipline
Faster…
Cheaper…
More predictable
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7. How best collaborate with your innovation
Colleagues
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8. Wait until it is big enough!
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9. Wait until it is big enough!
…could be difficult to handle at that time
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10. Push through the standard processes
and organization
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11. Dedicated team of supply chain
experts, imbedded within the
innovation organization
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12. Key pitfalls that can be avoided
• Attention given to innovation by the SC team running the
base business
• Day to day operations will take over
• Cost saving gives a better and faster return then innovation
• To small to bother about
• Guarantee sufficient Supply Chain expertise is available
during the design phase
• Up to 80% of the supply chain cost is structurally defined during design
• Wrong choices will only become visible during scaling and can be
extremely costly and time consuming to correct during/after launch
• When to integrate within base business
• Avoid the emergence of a shadow organization
• Missing the economies of scale
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13. SC innovation needs different KPI’s
• Base Business performance • Innovation Support
drivers Performance drivers
• Cost • Time to Market
• Customer Lead Time • Fail Cheap
•
• Product and Service Quality Limit upfront capital investments
• Fast Scalable
• Reliability and resilience • Initial technology choices
• No service Glitches
• Key supplier selection
• SC Security • Route to market
• Supporting business processes
• Small batches
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14. Conclusions
• Get involved from the start
• Strategic Supply Chain decisions are taken early in the development
phase
• Create a dedicated team within your Supply Chain
organization that focus on supporting innovation
• Define the appropriate KPI’s
Fail Cheap
Scale up Fast
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