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6/17/22 September 2016 Supply Chain Insights Global Summit #Imagine2030 Mourad Tamoud Schneider Electric Senior Vice President, Global Supply Chain – China

Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

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Page 1: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

9/12/2016 September 2016Supply Chain Insights Global Summit #Imagine2030

Mourad TamoudSchneider Electric

Senior Vice President, Global Supply Chain – China

Page 2: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

9/12/2016 September 2016Supply Chain Insights Global Summit #Imagine2030

Driving Global Supply Chain Improvements Using a Tailored

Supply Chain Strategy

Mourad TamoudSchneider Electric

SVP, Global Supply Chain - China

Page 3: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Schneider Electric Introduction

Global Supply Chain Overview

Tailored Supply Chain 1.0

Tailored Supply Chain 2.0

Tailored Supply Chain 2.0 in China

Today’s Agenda

Page 4: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Schneider Electric

Introduction

Page 5: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

~ 5%of revenues devoted to R&D

~160K+

people in 100+ countries

Schneider Electric, the Global Specialist in Energy Management and Automation

€26.6BnFY 2015 revenues

Page 6: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

...with Balanced Geographies

FY 2015 Revenues

Asia Pacific Rest of the world

27% 26%29% 18%

North America Western Europe

Page 7: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

...with Diversified End Markets

21%14% 45% 20%Datacenter & Networks

Building

Infrastructure

Industry

FY 2015 Revenues

Page 8: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

…and accelerated 3X investment to Innovation

800

1200

400

M€

600

1000

200

0

1400

2000

2015

~5%of sales devoted to R&D

20,000Patents active orin application worldwide

20,000+R&D & Solution Engineers• 10,000+ Solution Engineers• ~5,000 Software Engineers

--- R&D Spend over 15 Years ---

Page 9: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Aster Capital Fund

Demand response, software breakthrough

Funding start-ups

for Intelligent Buildings,

Renewables, Homes,Smart Electricity,

Green Grid& Data Centers

Leading Global Projects

Standards & Protocols

Supporting Interoperability

Best-in-classPublic & Private Organisations

and start-ups

Partnering with 50+

...working with a strong ecosystem of partners

Page 10: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Easy access to informationAwards and Recognitions

Superior transparency

A guarantee of compliance

...striving for Sustainability for our customers and planet

Page 11: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Global Supply Chain

Overview

Page 12: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Confidential Property of Schneider Electric December 2014 (including Delixi and Invensys, w/o CST)

Our Global Supply Chain: A vast worldwide set up resulting from growth & acquisitions

90,000 employees (Total industrial headcount incl. Purchasing, Manufacturing and Logistics)

Purchasing

• 45,000 suppliers • €12B purchases

Manufacturing

• 212 factories • 44 countries

Logistics

• 103 distribution centers

• 130,000 order lines / day

• 500,000 references

Orders

Page 13: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

13

Customer satisfaction #1 priority

Market driven and tailored to customer buying behavior

Competitive advantage in the market

World-class competencies and talent

Dynamic improvement process

Sustainability

Within the framework of the safety of our employees and the protection of the environment, our supply chain’s strategic objectives are in order of priority:

1. To obtain service level and offer quality that meet or exceed customers’ expectations

2. To obtain competitive products landed costs and drive high level of productivity

3. To develop agility and to limit risks

4. To optimize capital employed

While using the best of breed of IT technology

Supply Chain Vision Strategic Objectives

Page 14: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Confidential Property of Schneider Electric

• Perfect storm coming in supply chain talent with significant anticipated shortages

• Remove organizational barriers• Success relies on collaboration between

different sites, functions, and partners

• Shocks are transmitted faster and further than ever before• Increasing concerns about risk and resilience of global supply networks

• Population and higher incomes strain scarce resources • Supply chain sustainability is part of brand management

• Be bold, go beyond focus on cost, be creative to help drive growth• Regionalization of supply chains to support growth markets • End-to-end supply chain segmentation

• Build digital dream teams • Customer transparency and collaboration. • Analytical capabilities on top of solid foundations

The Main Supply Chain Trends 2015-2020

Supply Chain as

a Growth Enabler

Digitization & Innovation

Risk & Resilience

Supply Chain Talent &

Knowledge Integration

Sustainable Supply

Networks

Page 15: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Confidential Property of Schneider Electric

Footprint & Lean

Simplification

Footprint & Lean

Tailored Supply Chain

Simplification

Footprint & Lean

Tailored Supply Chain

We have made several breakthroughs towards Customer Centricity and Cash Efficiency while delivering improved performance on Productivity

Tailored Supply Chain

Simplification

Footprint & Lean

Tailored Supply Chain 2.0

2005-2008 2009-2011 2012-2014 2015-2020

Supply Chain Transformation is embedded in the company programs

Page 16: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Create more opportunities for

our customers and for ourselves

Digitize for our customers, for efficiency and simplicity

Innovate to make our customers’ lives

simpler and better

Our customers get great service

because great people work at

Schneider

Simplifying our work makes

the difference to customers

Page 17: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

A Look Back at Tailored

Supply Chain 1.0

Page 18: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Confidential Property of Schneider Electric

Tailored Supply Chain 1.0: 2011 - 2014“Provide our Customers what they value while leveraging scale and efficiency”

Page 19: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Talent transformation supports the tailored supply chain journey

> Assessment of ~100 leaders in 4 transformation domains

> Strong collaboration between Supply Chan leaders and HR (e.g., Edison annual selection, culture of learning)

LEADERSHIP

A measured progress: Talent Health Index> Measuring sustainability

> Supply Chain Edison program to leverage expert talents to develop organization

> Global Supply Chain Academy learning curriculum

> Talent health management (e.g., pipeline, diversity, exposure)

> Integrated and globalized Supply Chain functions to enable synergies of scale

> Created Center’s of Excellence in core supply chain skills

> Acquired external talent to close competency gaps

TALENT DEVELOPMENT

A recognized commitment> 2015 SCM World’s ‘Talent

Breakthrough of the Year’ award winner

ORGANIZATIONALCAPABILITIES

Page 20: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Schneider Electric – 2015 Investor Day – Group Strategy

• Customer Net Satisfaction on delivery improved by 13 points, and customer dissatisfaction decreased by 28%

• Increased on-time delivery by 3pts, up to 95.5%

• Logistics network optimized to match customer needs

• Main process capabilities deployed to improve customers’ delivery experience

Customer Satisfaction Cash Efficiency• Reduced average inventory cash

consumption by 0,5 Bn€, 12 days coverage

• Improved inventory health by +34% (reduction of obsolete, excess and missing inventories)

• Capex controlled at optimal level

Cost Efficiency• 1 B € industrial productivity• Leverage Schneider Production System

• Rebalanced global network of manufacturing and distribution center sites

• Ramped-up “lean with suppliers”, “should cost” and “e-auctions”

• Sales and Inventory Operation Planning (SIOP) deployed and starting to extend capability of co-planning with key customers and suppliers

• Key talents hired reducing competency gaps • New organizational structure in place, aligned to Country execution and Business strategic

inputs• Digitization (Customer capabilities, Kinaxis SIOP tool, Transport Control Tower,…) will

accelerate the implementation of Tailored Supply Chain

Our Transformation Results: 2011 - 2014

Page 21: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Tailored Supply Chain 2.0

supports our Company’s 2020 Vision

Page 22: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

22

Tailored Supply Chain 2.0 is designed to do more in each supply chain model…

• Develop new initiatives to drastically improve speed and responsiveness throughout the supply chain:

– Make our end to end customer lead-time a competitive advantage

– Improve time to market and new product introduction

– Create “special care units” for small enterprises

• Deploy our strategy of best of breed digital tools.

• Enhance the supply chain transformation with focus on SIOP maturity, network optimization, footprint transformation, and next wave of new customer capabilities.

• Grow competencies focused on customer centricity and continue to attract the best talent

For Our Customers

Page 23: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

23

FROMTailored Supply Chain 1.0We have been building the foundational elements of our tailored supply chain

TOTailored Supply Chain 2.0We are now tailoring our supply chain value propositions to the five customer dominant buying behaviors

COLLABORATIVE: Value reliability and trustworthiness

LEAN: Are price sensitive and will look to our competitors quickly. They want efficiency and reliability.

AGILE: Are demanding, unpredictable and expect speed

PROJECT: Are time sensitive to project schedules. Big projects and big budgets with longer time horizons.

FULLY FLEXIBLE: Crisis environments where speed and innovation are a premium. Business crisis and humanitarian crisis that are unplannable events. Speed is a primary focus

Page 24: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Tailored Supply Chain 2.0 is supported by 9 Transformations

Orders130,000 order

lines/day

500,000 references

Logistics103 distribution

centers

Order

11 Customer Segments

with different Buying Behaviors- COLLABORATIVE- LEAN- AGILE- PROJECTS- FULLY FLEXIBLE

9 Key TransformationsEnd to End Customer Lead TimesTime to MarketSpecial Care UnitsSIOP and KinaxisCustomer Process CapabilitiesNetwork Optimization & TransportationETO Supply Chain ManagementField Services Supply ChainSupply Base Management

Electrical Distributors

IT Distributors

Consumer Retailers

Consumers

Small and Med installers – EcoXperts

Panel builders

Repetitive OEM

System Integrators, Large installers,

Non repetitive OEM, EPC

Utilities

Other End Users

Web Giants

StandardProducts

Make ToStock

Make To

ConfigureToOrderMake

ToStock

Plan - Source - Make - Deliver

SIOP

SIOP

SIOP

SIOPEquipmentsSpare parts

Make ToStock

To

To

Plan - Source - Make - Deliver

SIOP

SIOPEquipment

Systems

Spare parts

-Customer order

FULLY FLEXIBLE

LEAN

AGILE

COLLABORATIVE

PROJECTS -Equipment-Systems

MakeTo Stock

Make To Order

ConfigureTo Order

Track & Trace

Precision Delivery

Direct Shipment

Merge in Transit

Order Grouping

On Site Delivery/Storage

……

5 Supply Chain Models

EngineerTo Order

Manufacturing232 factories

44 countries

Purchasing45,000 suppliers

ϵ128 purchases

Customer Process Capabilities

Network Optimization and Transportation

“Provide our Customers with what they value while leveraging scale and efficiency”

Page 25: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Page 25Confidential Property of Schneider Electric |

Customer Process Capabilities (CPC) 2.0• Focused collaboration with Lines of Business & Front Offices to drive

adoption of existing capabilities, whilst also developing future capabilities • Secure Customer “Buy-in” and input to existing and future Capabilities

through customer panels and focus groups with specific focus on priority segments (Proximity, Strategic, Targeted) offering segmented Lead Times.

• Digital delivery action plan by country / cluster level on a quarterly basis focusing on Detractor / Passive customer visits to ensure maximum End to End Coverage

• Drive Competitive lead time and End-to-End analysis utilizing OneMM

Main Actions

Service Level   OTDC = 95.8 % (Target 2016)Dissatisfaction on delivery   13.0 % (Target 2016)NSS on delivery 32.5% (Target 2016)

Key Indicators

In collaboration with the Lines of Business and Front Office(s) deliver differentiated delivery capabilities by customer buying behaviour, by customer segment & Geography. 

Objectives / Vision

Digitize Customer Delivery Experience

Delivery Capabilities13.5%

24.8%

40.0%

2011 20172015

Drive Customer Delivery Experience Improvements

Develop & Deploy Supply Chain Capabilities

Page 26: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Page 26Confidential Property of Schneider Electric |

Customer Satisfaction on Delivery Improvement Process

Step 2: Visit selected Customers & gain a

thorough understanding of their dissatisfaction

- 3 weeks

Step1: From quarterly survey select Detractor & Passive customers to visit

- 1 week

Step 3: Identify route causes contributing to customer pain points and

develop a systemic action to fix, culminating in a country action plan,

then implement within the quarter- 2 months

Step 4: Close the loop with customer(s) and ensure the results of these actions translate into improvement in the next quarterly customer survey

Country Customer Council

Starting by Customer Satisfaction survey results …

The key success factors:

• VP Logistics leads the action plan in close collaboration with Country president• Intimacy of logistic organization with the business• Passion to quickly solve dissatisfied customers issues

Page 27: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Page 27Confidential Property of Schneider Electric |

Customer Visits – Current PracticesWe welcome customers

Objective: Move customer from detractor & passive to promoters

Who: GSC, CCC, CSQ, Sales

Ritual: From the quarterly customer survey run the 4 steps:

1 Select both detractor & passive customers

2 Meet and understand in depth customer pain points

3 Route Cause Analysis and select systemic actions & implement within the quarter the action plan

4 Close the loop with the customers’ and validate their change of mind

We visit Customers We meet Customers at Marketing events

Objective: Grow customer centricity & listen

Who: Country Mgt, GSC , CCC, Sales

Ritual: Each Thursday welcome the customers to Venaria DC in order to:

- Present GSC, CCC organizations

- Visit warehouse, CCC- Promote delivery capabilities &

Commercial Logistic Offer(s)- Introduce Logistics services

So far 9 events welcoming 160 customers with very positive feedback

Practice: Italy TOP 11 countries Practice: China

Objective: Promote our products and Services (Support, delivery …)

Who: Marketing, Sales, GSC, CCC

Ritual: Attend key commercial event and present the 15 global capabilities and the 7 local capabilities focusing on customer value proposition;

This event in China hosted460 Distributors with 100 salesPersons . The customerFeedback is very good.This Event is done on yearlybasis

Page 28: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Page 28Confidential Property of Schneider Electric |

Commercial Logistics OfferThe key process to increase agility and responsiveness and get competitive advantage

CLO formalizes relationships with our customers, framing their desired end to end order to delivery experience

CLO defines lead time offer and logistic capabilities to be implemented by customer segment

Output is the best possible trade-off between Product offer, Lead Time & capabilities, inventories and costs

Roles

Product Offer (Broadness of catalogue)

Lead Time offer & Capabilities

CostsInventories

● Within a collaborative and regular process, it engages all Stakeholders from Logistics, Supply Chain Planning, Sales and Finance.

● In geographies, the process owner is the CPC / CLO manager within the Logistics organization

● Country president & Business VPs sponsor and support the process. They validate the final CLO, and ensure the proper communication to the customers

Page 29: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Page 29

15 Capabilities & Customer Segment – Global (Subject to Localization)

Capability applicable to this customer segment

OEM Non-Repetitive OEM

Panel Builder

System Integrator

Distributor - Project

Distributor - Diffused

Retail Distributor

DIY End-User

Commercial Logistics Offer

Product Life Cycle

Fast Track

Digital Order & Delivery Status

Track & Trace

Customer Dashboard

Staging Order

Complete Order

Promotion

Kitting

Plant to Customer

Last Minute Change

On-Site Delivery

Order Grouping

Precision Delivery

Some capabilities can be charged (Fast Track, Kitting,..) Some capabilities can have different service level depending customers (last minute change for CTO for VIP customers

Page 30: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Confidential Property of Schneider Electric

Digital Delivery Experience in GSCWhat’s coming

next onMy Schneider ?

72.9% of order lines are placed digitally by Customers

Digitization at Order Entry in Q1

Q1’16 Vs Q4’15

MySE 21.8% -0.8

EDI 51.3% -2.3

Track & Trace in Q1

Track & Trace deployment in NZ, Colombia

Staging order in India, Brazil, Chile

Order Modification : Deployment in several countries & new feature (simulation button)

P&A : display Stock Available for Russia & India

* DCE Source / GSC Emea

Digitization dashboard : Q1 2016

Forwarders connected

77

Number of lines delivered

32.0 Millions

27,4 MillionsNumber of lines with Track & Trace 85.6% of lines delivered

Out of 490+ carriers

Delivery Functionalities

Number of Front-OfficesConnected

Deployed up to

MySE Coverage

24

65

68.5%(accessible

scope)

Customer activities In few key countries, the activity with MySE increased by 10% over Q1 :China 3268 visit / dayIndia 974 visit / dayRussia 1533 visit / dayUK 1170 visit / dayAustralia 678 visit / day

Top FunctionalitiesPrice & Availability ,Order Entry, Order & Delivery Status, T&T

Page 31: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

We focus our transformation on 3 Major dimensions to drive our Strategy & Success for our Customers

Page 31Confidential Property of Schneider Electric |

Network Optimization & Transport

Page 32: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

TSC 2.0 Key Initiative UpdateNetwork Optimization & Transport• Create a Customer Aligned Logistics Footprint with Delivery

Capabilities that drive optimal Customer Satisfaction, quality, service and cost to serve leveraging Network & Transportation Modeling

 

Objectives / Vision• Network modeling completed in Brazil, China, Pacific, Europe, India,

NAM & SELA. Global Model & refreshes in China and Pacific.• Refine strategy/next steps using model outputs NAM/Europe.• Drive the Global transport transformation with regions.• Align and accelerate productivity with the regions from low hanging

fruits focusing on Air & Express.• Launch loading factor improvement optimization program.• Implement digitization for customers on transport with LLP/LTP.

Main Actions

% Air/Sea deployed with global partners   > 99% YTD May > 95%

Air / Sea ratio (with ITB) 7.8% YTD May 8.8%

Regions DS Modeled 7DS initial, 2 refreshed, Global model in-flight

Key Indicators

Network Modelling and Optimization Customer Aligned Logistics

Digitization

• 5 Supply chains incorporating Services: Collaborative, Lean, Agile, Project & Fully Flexible (Crisis)

• EAN & Master Data to improve Delivery Complaint Rate and drive next level of Distribution Centre Optimization

• Industrialized GSC Customer Research Survey, rolling out in select Countries in EMEA, EAJ. .

• Digital Delivery customer experience• Adopt Supplier Visibility tools to

support Transport Control Tower• Global Messaging Platform• Digitized trade tools deployment• Lead Transport Provider (LTP)/

Transport Management System (TMS) deployed in targeted sites.

• Lead Logistic Provider(LLP) air and ocean

• Modeling deployed in all regions, working now on global model

• DC Transformation initiatives under way to optimize use of footprint.

• Transport Supplier Reduction targeted to 300

• Brokers Reduction Targeted to 120• Freight Audit Payment either in place

of process of implementation• Drive sustainable productivity

Page 33: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Tailored Supply Chain 2.0

deployment in China

Page 34: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Schneider China Supply Chain Digitization journey

Page 34Confidential Property of Schneider Electric |

NCP

Supply Chain Transformation

+ more

Downstream SC• Kinaxis (SIOP)• One MM tool (MM)• Track & Trace• LIME

Upstream SC• E-Reverse Auction • Vfast (Supplier forecast)• Vendor Web Portal (PO)

Logistics• Llamasoft (Network Modeling)• OTM (Transportation)

Manufacturing• MES (E- Order, E-SIM & Andon, E-Kanban&Pull, E-WI, Quality control)

Page 35: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Implement Best of Breed Digital tools> Extract customer insights through our data lake> Extract the value of our best of breed Tools in supply chain optimization> Setup Data Analytics incubation team to Innovate and create competitive

advantage

Digital Journey within our Tailored Supply Chain 2.0

> Digital End to End Planning, Forecasting and Inventory with Kinaxis

Digital Solutions for Supply Chain efficiencyDigital Customer Delivery Experience

> Network Modeling to optimize distribution footprint, transportation and lead times

> Digital Factory to have full visibility and ensure product quality

Page 36: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Smart Supply Chain is an End to End Approach with Customer

Page 36Confidential Property of Schneider Electric |

Dashboard Order Pattern

Open Orders

Customer Lead Time

Sales Backlog LIME

• Dashboard

Calculate & Show the KPIs by chart & Excel based on user selection.• Order Pattern

Analysis sales order info to get customer’s ordering behavior. • Customer Lead Time (CN To Be Deployed Due to China SAP not capture

E2E yet)Analysis the lead time from order placing to ex-works DC/at door by customer to get improvement opportunity

• Open Orders

Show overall backlog order status .per selection (future due and past due)• Sales backlog

Show overall sales backlog status VS forecast

LIME - Logistic Intelligence Made Easy: Customer Sales & Performance shared dashboard

Page 37: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Page 37Confidential Property of Schneider Electric |

Track & Trace - provide full delivery visibility optimizing our customers’ projects and operations

Shipping Details• Tracking delivery-to-customer door 24/7 through

Schneider’s online portal

• Improve customer digital experience on order and delivery tracking, easy manage project scheduling

• Available in MySE

Schneider DC

Customer door

Smart Supply Chain is an End to End Approach with Customer

Page 38: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Page 38Confidential Property of Schneider Electric |

Transparent Plant - Transparent Information from SO Creation to SO Delivery

https://setp.schneider-electric.cn/

It can provide customer transparent, reliable, on time SO Info.

Smart Supply Chain is an End to End Approach with Customer

Page 39: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Page 39Confidential Property of Schneider Electric |

Kinaxis – Sales, Inventory, Operation Planning Tool

What is Kinaxis• ONE Unique Planning Collaborative platform to support

End to End SIOP Process:

Achievement• Collaborative Sales Forecast :

• Operational run with Kinaxis in China and HK from 2015 Q2

• Deployment Co-planning with Customer in progress.

• Demand Requirement Planning : • Operational run with Kinaxis in

Trading cluster and MTS-MTO Cluster.

• Validating the solution for network modeling, to meet China specific biz needs.

• Master Production Planning : • Operational run with Kinaxis in

SSD&WPF from 2014.• Green light for MPP roll out to

other plants. Deployment Schedule to be validated by Global team.

• Vendors Forecast co-Planning : • Validating Vendor forecast new

logic in 2015 Q3• Plan to go live in Q1,2016.

Next Focus• Complete End to End Digital

Supply Chain implementation with vendor forecast co-planning function.

• Roll out Master Production Planning to all Make To Stock plants

• Deployment of DRP to remaining entities in China.

• Run all SIOP Steps and Collaborative meetings live in Kinaxis

Smart Supply Chain is an End to End Approach with Customer

Page 40: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Page 40Confidential Property of Schneider Electric |

• Interfaced with our ERPs • Effective daily transportation

planning and DC execution• Deployed in 7 GSC China sites

so far• 1 single data source of truth

• Local for Local deployment • Deep data mining & crunching• Perform continuous “what if”

analysis • Identify saving opportunity• Optimize End to End supply

chain operations

• Master data accuracy

• Break carrier monopoly

• Transportation business processes, contracts & rates standardization

• Cost visibility and management

• Improved productivity

• Benefiting to customer delivery experience

Transportation transformation by Schneider Supply Chain in

China

Providing Operationswith tactical directions

(flow optimization,stock rebalancing…)

Data feeding ourNetwork Modeling

Translate business need into OTM system

Oracle Transportation Management system & Network modeling - enables us to re-engineering our SC 1/2Smart Supply Chain in Designing the Logistic footprint

Page 41: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Smart Supply Chain in Designing the Logistic footprint

Page 41Confidential Property of Schneider Electric |

Integrate & optimize transportation resource

Customer demand vs.

DC LfL status

Planning:what’s to be shipped today?

Planning: What’s to be shipped today?

Oracle Transportation Management system & Network modeling - enables us to re-engineering our SC 2/2

Page 42: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Smart Supply Chain is an End to End Approach: Manufacturing

Page 42Confidential Property of Schneider Electric |

Manufacturing Execution System 1/3

Operations Technical Scheduling Labor Management Technical Data &

Document ControlMaintenance Management

Machine Allocation and Status

Data Collection

Quality Management Product Tracking & Genealogy

Work Orders Management

Process Management (Interlocking &

Conformity)Performance

Analysis

PROCESS (Manufacturing operations)

ERP / PDM (Business Operations)

Closer to the ERP features

Closer to the Process Features

Acquisition

Production management

Process control

Performance and Quality

Receipts providing

Maintenance

Dat

a tr

ansa

ctio

n tim

e fr

ame

> Day / shift

< Day / shift (hour)

Real-Time

• Standard of 11 modular bricks of functionality (refer to ISAs95 standard)• MES is the “production driver” of data between real time and business operations• Functions logically contribute to each other

Page 43: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Page 43Confidential Property of Schneider Electric |

Support assembly process in the workshop:The aim of the MES is, from an order portfolio issued from SAP, to prepare the execution (technical scheduling if required), to control and follow up the production execution. After the production execution, the information is given back to SAP for the inventories and production activities update.

Align with SPS requirements: •Must be design in accordance with the 40 SPS principles

•Must display “visual” information to users: Visual Management

•Must be Helpful to react faster in front of problems

•Must be useful for Short Interval Management

•Must be helpful to trigger production and MPH when process or mix-model make it difficult

•Complementary to ERP when the function required is not available

Smart Supply Chain is an End to End Approach: ManufacturingManufacturing Execution System 2/3

Page 44: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Page 44Confidential Property of Schneider Electric |

MaintenanceCustomer

Production

SAPMESWarehouse

Quality

KPI & Andon(E-SIM)

Order management

Paperless(E-WI,drawing…)

E-Kanban & Pull

Quality control(traceability)

Smart Supply Chain is an End to End Approach: ManufacturingManufacturing Execution System 3/3

Page 45: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Page 45Confidential Property of Schneider Electric |

One MM Tool – ERP Master Data Management and Optimization

What is One MM Tool Is a cloud based web client application

for material Management, could be used by multi -organization, multi –functions with standard rule, KPI and dashboard

Achievement•Stock Parameters Optimization: installed standard calculation method for the parameters such as ABC/FMR, Safety Stock, Re-order Point Economic order quantity etc.

• Health Stock Management : Health stock range, Health stock Ratio, Health stock tracking and actions tracking

• Demand &Inventory Visibility: get stock, open SO and order history in Global IG plant

• Obsolescence Management : manage New Obsolete Creation(NOC) and Pre- NOC, Scraping Tracking

• Lead Time Management : OG customer E2E lead time track, OG supplier lead time management

Next Focus

• Continuous Optimization on Health

stock Ratio, reduce Obsolescence

• Continuous Optimization on E2E

Lea time to customer or from

suppliers base on analysis from

one MM Tool

• Deploy NOC and Pre-NOC for

other DCs and Plants

• Training for new deployed plant

AVX P

• Deployment plan for AVX E

Architecture scheme

UHS Management

UHS RCA

Management

NOC Management

Supplier LT

Management

Customer LT

Management

Smart Supply Chain is an End to End Approach: Manufacturing

Page 46: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Page 46Confidential Property of Schneider Electric |

Sites Management Practices – Visit register, Plant introduction, Andon, …

Andon SystemPlant Digital Introduction

GO See – to share excess equipments, toolsCustomer Visit e-register System

Smart Supply Chain is an End to End Approach: Manufacturing

Page 47: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Smart Supply Chain is an End to End Approach: Vendor Bidding Tool

Page 47Confidential Property of Schneider Electric |

e-Reverse Auction : Supplier on-line bidding tool

I know exactly the price range and I want savings

3I want to have some allocation and I want savings

2I will award 100% business to the best price

1

English Auction Dynamic Auction Dutch Auction

An e-Reverse Auction (eRA) is a dynamic on-line negotiation where one buyer invites several suppliers to

progressively improve their bids during a short period of time, in order for them to win a specific contract.

ARIBA

Page 48: Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy

Smart Supply Chain Is an End to End Approach: Upstream Order Management

Page 48Confidential Property of Schneider Electric |

Vendor Web Portal: standard tool in PO Release, Acknow., VMI Visibility, Delivery Bar Coding Paperless

Paperless PO

Vendor Performance