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    Bridgestone Presentation

    Uploaded by

    Teju Gavankar
    944 views21 pages
    bridgestone pdf

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    bridgestone pdf

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    944 views21 pages

    Bridgestone Presentation

    Uploaded by

    Teju Gavankar
    bridgestone pdf

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 21

    Towards the Information Driven Supply Chain ?

    Every Angle Klanten Dag 16 November 2011 - Rotterdam


    Niek Vaessen, General Manager Transformation Planning Supply Chain & Information Technology

    Global Bridgestone Organisation

    Japan Tyre SBU

    Americas SBU

    Europe SBU

    China Tyre SBU

    Bridgestone Corporation
    = 8 SBU's (Strategic Business Units)
    Asia & Oceania Tyre SBU Middle East & Africa Tyre SBU Specialty Tyre SBU Diversified products SBU

    Global Bridgestone Organisation


    Bridgestone Corporation
    Head Office: Tokyo, Japan

    Bridgestone America Holding


    Regional HQ in Nashville, USA 4 technical centres
    Tokyo, Japan (2), Rome, Italy & Akron, USA

    Bridgestone Europe NV/SA


    Regional HQ in Brussels

    2010 Key Data: Employees, worldwide Consolidated subs Financial results Net earnings 137,135 340 companies 31,5 billion US$ 1086 million US$

    57 tyre factories worldwide 98 plants for other products Sales network in more than 150 nations and territories around the world

    Bridgestone Europe
    Facilities in Europe include:
    Sales presence through 6 regions covering the following countries: Austria, Baltic Countries, Belgium, BosniaHerzegovina, Bulgaria, Croatia, Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Poland, Portugal, Romania, Serbia, Spain, Slovakia, Slovenia, Sweden, Switzerland, UK, The Netherlands 2 Exclusive Distributors Greece and Norway 9 Factories 3 in Spain, 2 in Poland 1 in France, in Italy, in Hungary, in Belgium 1 Technical centre with Proving Ground (Rome) 1 European Proving Ground (Rome)

    Passenger Car Tyres: Original Equipment Market

    2010 OE Suppliers and share in Europe

    Bridgestone basically supplies tyres to all mass market manufacturers in the world, with some exceptions. Bridgestone is a steady number 3 player in the European OE business

    Passenger Car Tyres: Replacement Market For the replacement market, Bridgestone Europe produces tyres for small city cars up to exclusive super cars. Tyres are sold through retail channels such as: tyre dealers, auto centres, gas stations, hyper markets and car dealers

    Bridgestone Europe has a market share of 12.3% in Europe Bridgestone Europe sells mainly following brands: Bridgestone, Firestone and Dayton, following the multi-brand strategy: goodbetter-best

    Supply Chain Transformation: The Journey


    Initial transformation from a Feudal Logistics network into a professional PanEuropean Supply Chain Second phase
    Develop business segmentation through Supply Chain differentiation multiple parallel Supply Chains Customer Channel Distribution Channel Product Demand/supply situation Making use of a responsive and agile Supply Chain with improved (quasi) real-time Supply Chain visibility

    Having the Right Information at All Levels in the Organisation is Key to Drive the Supply Chain (ROA, Availability,)

    Supply Chain Management Policy


    Scope of LSCM: S&OP, PLM ,DSI, OF Central control of Finished Goods inventory to improve customer service Full cross border business flows with basic 24 hours service to almost 95 % of the customers in Europe Implementation of Pan-European strategies in the area of warehousing and distribution resulting in a lower cost base Consistent measurement of our integrated performance to be able to benchmark and define improvements A European LSCM organization reporting to the CEO with people acting on a central, regional and local base Gain Competitive Advantage

    Customer Service improvements Reduction of Cost To Serve Reduced Asset Base and Working Capital End to end Supply Chain Optimisation
    Integrates supply chain & delivers Sells & defines customer needs SALES

    Business plan objectives

    Produces

    MANUFACTURING PLANTS
    Economies of Scale

    BSEU LSCM PLANT WHS DISTRIBUTION WHS

    CUSTOMERS
    Differentiation Customer Focus

    Customer Service Cost to serve

    Minimise costs

    Supply Chain Transformation


    FROM
    Feudal Logistics Country shipment to customer Sales/Manuf warehouses Sales/Manuf controlled inventory Sales/Manuf LSCM management Sales/Manuf local Service providers Many LSCM voices of the company

    TO
    Central/regional Logistics & SCM Cross-border shipment to customer Shared (outsourced) warehouses Pan-European managed inventory Pan-European LSCM management Centrally contracted service providers One LSCM voice of the company

    Shared Inventory and Warehouses in Europe


    MDCs EDCs RDCs
    Goteborg Jnkping Hinnerup Balbriggan Balbriggan Birmingham Hamburg Moerdijk Zeebrugge Dortmund Coventry Poznan Moerdijk Zeebrugge ELC Bethune Paris Vienna Altishofen Oviedo PSM Porto Burgos Lisbon Madrid Le Pouzin Bilbao Montauban Yurre Barcelona Valencia Aprilia Rome Lisbon Bari Madrid ELC Milano PSM Burgos Bilbao Barcelona Le Pouzin Montauban Aresse Bari Vienna Lahr Tatabanya Budapest Bor ELC Hamburg Poznan Warsaw Lappeenranta

    MDCs ELCs RDCs


    Goteborg Jnkping

    Lappeenranta

    Baltics Hinnerup Malm

    Bethune Rennes

    Appenweier

    Altishofen A Corua

    Sevilla Algeciras

    National RDCs Local service provider contracts Local ownership of inventory (SalesCo Manuf) EDC for centralised import for one Product Group

    Regional RDCs European standard contracts European ownership of inventory 3 ELCs with full line-up

    Distribution Network Optimalisation


    Previous distribution network
    Plant
    shuttles 288 lanes 100% volume

    Current distribution network


    Plant
    35 lanes 46% volume 7 RDC

    MDC 40 RDC

    Port
    3 lanes

    ELC

    11 RDC 14 lanes 25% volume Customers

    Port
    3 lanes

    EDC

    Single-Tier
    Distribution network evolution
    Reduction of # distribution warehouses by 50% Cross border flows Combined Tier 1 & Tier 2 flows European Logistics Centers functioning as a hub

    Flexible Multi-Tier

    Delayed commitment of inventory to Market facing warehouses Consolidation of Service providers supporting these cross border flows

    Supply Chain Challenges @ BS


    Context Dynamic global economic conditions Unprecedented competition Rapidly changing consumer preferences Supply Chain requirements Increased volatility and variability Cost pressure on Supply Chain Supply Chains contribution to RoA target Maximise profitability Maximum Sales (Fill Rate) and Gross Profit Reducing operating cost Efficiency of total company operations Reduce working capital Reduction inventory levels (FG, WIP, RM) Minimise assets used
    Industry Top challenges within Supply Chain (Capgemini Study*)
    Continued pressure to reduce supply chain costs Managing volatility and variability Lack of visibility into the supply chain Delivery performance does not meet customer requirements Too much working capital (poor cash flow) Global economic conditions Globalisation of Supply Chain Management Business, IT and SCM strategy out of sync Long lead times Extended and complex supply chains Unreliability of supply base Availability of suitable people to carry out SCM activities Product introduction/exit Complexity of regulations and compliance Contract manufacturing capacity constraints Expanding/Operating in emrging markets Other Sustainability

    Industry Top trends within Supply Chain (Capgemini Study*)


    Increased Service requirements Increased collaboration & Transparency Increased focus on logistics improvements Globalization of sourcing Growth in emerging markets (global sales) Globalization of production facilities Other Increased competition from new countries

    *Source : Capgemini Global Supply Chain Planning Study 2009

    Information Challenges @ BS
    In the past material flows have been optimized (centralisation, automation,) resulting in only marginal opportunities to further optimize Supply chains become more and more information driven and Information complexity and proliferation increases Increasing line-up complexity Demand variability, customer collaboration programs (VMI,) Global and dispersed supply Increase flexibility & speed Increased need on visibility of supply Track & Trace of products Extended Supply Chain coverage Contribute to ROA objectives

    From the three key flows in any supply chain ( Material, Resources , Information), information becomes the competitive battle field

    Integration Challenges @ BS

    OEMs
    C U S T O M E R C O M M U N I C A T O R

    B2C & B2B Marketplaces Design Collaboration( OE) Demand Collaboration( OE/REP) Catalogue Management E-business (Tyrelink, EDI,..) Websites (BS/External) FST B2C & other online websites
    C U S T O M E R C O M M U N I C A T O R

    Product Development Integrated product development

    B2B Marketplaces
    S U P P L I E R C O M M U N I C A T O R

    CAD, CAM, CAPP,

    Product Information

    Industrialisati on

    Tyre Spec.

    Design Collaboration

    Standard Sales

    Revenue-Profit optimalisation
    Customer Customer Product Segment Info price & Service service Campaign level Promotion Mgt strategy placement

    Demand/Supply Planning
    Demand Planning Supply Planning

    Supply Collaboration

    S U P P L I E R C O M M U N I C A T O R

    Suppliers

    Direct Business

    Inventory Planning

    Contract Manufactu rers

    Indirect Business

    Real-Time Order Management


    Configure Available / Tracking to Order Capable & Tracing to promise

    Supply Chain Execution


    Purchasing ManufactMgt uring Mgt Distribution Mgt

    Replenishment Collaboration

    Inventory Management

    Consumer

    Support Functions

    Collaborative Transport Management

    Logistics Service Providers

    How is Bridgestone Addressing these challenges ?


    Create Total information system to connect retail stores, sales organisations, manufacturing plants, headquarters, Product Development centres and external/internal suppliers, cutting across organisational and informational silos At all level employees should have (real-time) access to recent sales, product range information, inventory levels, production schedule, cost components, in order to perform their job correctly Important is to put information into the hands of the people who need it and know how to get it and know what to do with it
    Management reporting: Structured & standardised reports & KPIs On-demand reporting: Ad-hoc, fast access to all levels of details

    Supply Chain & Information Unit created in order to play a key role, together with the other units, in defining the managerial and operational information required to transform and manage the business successfully

    Example on How Data is Used to Support Business Decisions Master data validation
    Improve quality of material master data by Product Lifecycle Management dept Line-up status Field changes: what/who Quality management with

    Example on How Data is Used to Support Business Decisions Network analysis & tender support
    History trends on sales, deliveries, shipments,... down to order-line Warehouse handling volumes Distribution volumes

    Availability of Data to Support the Tendring Process (transport and warehousing) at the Lowest Level allows for Right-Sourcing of Services

    Example on How Data is Used to Support Business Decisions

    Freight cost analysis


    Detailed reporting on delivery item level Flexible consolidation, grouping and re-grouping by customer, by warehouse, by region, by material,

    Freight cost

    ERP
    Delivery data

    Supply Chain Control Tower


    Planning DP S&OP
    Production Plan Sales Forecast Demand Sensing Import Plan Inventory OE/Rep Slow moving DS

    Execution Inv
    IMS Planning Book Alternatives STOs ATP

    ERP
    Fill Rates Orders Lost Sales

    MES
    Yield

    TMS
    Delivery Carrier DR

    WMS
    IDR DOT view Import shipments ABC ETA

    Molds

    Track & Tracing EDR

    Backord er Inventory Forecasting

    Availability

    Delivery

    PLM

    Production

    Structured Management Reporting On-Demand Reporting Down to most detailed level


    Integrate Planning & Execution by Real Time Information on FC, orders, shipments, inventory, production Delivers Accurate information to executives, operations managers, and operational execution people.

    Is the SC transformation finished ? Phase 1 : Successful completed


    Customer service up Cost to serve and inventory reduction Reduction by 50% of Slow Moving & Dead stock Full control and transparency of costs Extended Supply Chain scope

    Phase 2 : Ongoing
    Multiple parallel supply chains supply chain differentiation Fully integrated S&OP Production planning & scheduling Full supply chain visibility from planning to execution across all silos

    Phase 3 : ...

    Bridgestone Europe

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