Some slides on phones, beer, supply chain planning and master data

Define Transition Converge

What is a mobile phone?

What is the supply chain?

What else can mobile phone be?

How do we evolve the supply chain to

meet scale & new geography?

What are the

ecosystems and what is our role how in

those ecosystems?

What is a mobile phone in the new

ecosystem? What is the supply chain in the new ecosystem?

New actors

I spent 16 years in the mobile phone industry. I joined Ericsson just a few years after the industry was created, was part of the

transition into Sony Ericsson and then finally two years in SonyDuring those years I saw the industry being born and pass through

three distinct phases, with three distinct challenges:

Local, independent Local and acquired Global

Beer &Beverages produced and owned

locally , local brands

Beer &Beverages produced locally, in local supply chain,

owned centrally, local

& global brands

Beer &Beverages produced locally, in global supply chain

and owned centrally , global and

local brands

I joined Carlsberg in 2013. I stepped from phones into ”FMCG”, the beverage sector, an industry that has been slowly evolving

into what it is today over 200 years, and during the past 30 years (despite the tradition...) accelerated into embracing new concepts

in surprisingly high tempo

ComparisonHigh tech,

Mobile phonesFMCG,

Beverages

The customer

The supply chain

The product (lifecycle)

High tech, Mobile phones

FMCG, Beverages

The product (lifecycle)

Mobile phones are developed through large development projects with a high

degree of new technology / R&D development, involving 100ds of people

and often taking 8-18 months. The product lives for some 12-24 months. Product

innovation originates from technology & product mgmt. The BOM structure is large

and deep (600-800 parts). Value/cost of SKU is high

Beverages are developed by small teams and mostly focus on changes to existing technologies (liquids ) and packaging.

Product innovation originates for sales and marketing . Basic product lives for very long

times (+ 100 years) while variants live for very short time (weeks/months). The product is tightly linked to events and

promotions. The BOM structure is small and shallow (15-20 components) Value/cost of

SKU is low

High tech, Mobile phones

FMCG, Beverages

The customer

The mobile phone customer has traditionally been a ”few” strong operators with

multinational presence, buying phones to sell them at subsidised prices. The objective

of the customer was to sell airtime to consumers . Som of this changed with the

more consumer centric business model that followed the smartphone but the basic

model remains

The beverage customer is either a national retailer/retailchain selling

prepacked from a shelf to the consumer or a outlet selling from tap over counter

or table

Hightech, Mobile phones

FMCG, Beverages

The supply chain

The mobile phone supply chain is long (many tiers) and global, involving many

partners. Production is heavilly outsourced . SC resources have a short

lifespan. Partners shift often. Collaboration is common

The beverages supply chain is short and local, involving relatively few

partners.Production is mainly in house. SC resources have a very long lifespan. The

partner base is stable. Collaboration is rare

National bureaucracy with presence in many

countries

International adhocracy

Central control, corporate and industry standards

Local definitions, no corporate standards , no

industry standards

But, despite the difference, the questions asked and the decisions taken

in the supply chain are similar and

the master data challenges the same

Where to have ”control & visibility”What master data does it take?

What I consume

What I produce

What I sell

What I drive

Inventory Inventory

Production plan

Inventory plan

Sales plan

Mtrl drive plan

Inventory plan

Mtrl requirement plan

What I deliver

Delivery plan

800 components

Printed boards Core units Sales items:

”One unit”

20 components Liquids Botttles/ Kegs

Sales items”Trays, kegs ,

pallets”

BTO

BTS

Discrete manufacturing

Process manufacturing

Phones

Beer

Plan

Execute

Plan

Execute

Both industries see that to run faster, organisation, communication and culture needs to change

Operational

Tactical

StrategicNature of the

decision

Time horizon

Operational

Tactical

StrategicNature of the

decision

Time horizon

Traditional view

Reality

Both industries need to go from sequential to parallell

Traditional business planning

Integrated business planning

Both has the vision of IBP

14

Isolated, silo

Sequential

Cyclical

Static Adaptiv

Responsive (ad hoc)

Parallell

Integrated, teamwork

Faster response

More fact based

Directive Consensus

Both have the ”ONE plan” vision. And both face the hard fact that ”ONE plan” requires ONE information model

One Information model

Sales Finance

OperationsProduct

development

One plan

One Information model

-Cross the enterprise-Cross the product

lifecycle

Both have to balance the approach, find the right level of ambition

17

Laplaces Demon : "We may regard the present state of the universe as the effect of its past and the cause of its future. An intellect which at any given moment knew all of the forces that animate nature and the mutual positions of the beings that compose it, if this intellect were vast enough to submit the data to analysis, could condense into a single formula the movement of the greatest bodies of the universe and that of the lightest atom; for such an intellect nothing could be uncertain and the future just like the past would be present before its eyes."

— Marquis Pierre Simon de Laplace

”A lot of things can´t be modeled very well”

Nate Silver

S&OP Doggy dogs approach?

Supply Chain Information Architecture

S&OP Doggy dogs idea : SCIA, MAIOR

• Supply Chain Information Architecture ”SCIA” is a set methods and approaches that supports ”MAIOR”

• Model” supply chains an information perspective• Analyze supply chains from an information

perspective• Model the Information objects needed to

operate the supply chain• Model Relationship between information objects

MAIOR

Model

Information objects Analyze

Relations

ONE Supply chain information model

Is established through:

Structured Supply Chain Information Architecture practices (SCIA)

SCIA practices are:

Model supply chain

Analyze supply chain

Identify information objects

Define relations between information objects

Model supply chains

Simplify reality by applying perspectives

Physical perspective

Financial perspective

Responsibility perspective

Operation

Level Location

Who triggers Who executes

Value of the level Cost of the operation

Ownership

Product

Legal perspective Rules & regulations

Approach : There is no such thing as ”Master data”

All data has a natural origin

”Master data management” is a matter of applying rules and integration to data originating from native processes.

”Master data management” is not a matter of having loads of people managing

”master data”

Lets think of the ”IT system” as a factory

Lets think of the data needed to run that factory as ”raw material” coming from suppliers

In that scenario, securing data availability would be similar to a supply chain process

Wanting such an ”information supply chain” to be lean, agile and without latency.... what

would a ”MDM” process be and where would it fit in?

Product

Part

Part

Part

part

Part

I have an idea of a product. That is what I am hired to do . I will enter

it into our product introduction process

I describe the product using the framework of our company CM

standard, in our PLM system

...and let the system transfer it to all those systems where we use it

I have an idea of a product, that is what I am hired to do . I will enter

it into our master data process

I describe the product using email or some workflow

template

Our MDM team & MDM platform will

process it

And put it into some of the

systems where we use it

And ask some questions

We are fast, lean & happy working on the same data

We are slow, duplicating and still unsure of

whether we are working on the

same data

PLM as the base, starting with the the product dimension

Separation of master data from the application

I believe that to fully explore the potential of tailoring forecast & planning methods to a segmented supply chain and a segmented product portfolio,

as well as support rapid communication between operative tactical and strategic

decisionlayers cross the whole product lifecycle (”IBP”), the product dimension used in planning needs to be designed in the PLM process

and mastered in the PLM system rather than being deduced out of the ”fulfillment” processes and mastered in the ERP system.

Planning system

ERP system

Planning system

PLM system

Challenges : Information objects for

planning cross product lifeycle phases

Idea Project Design product

Planning formulation phases

idea project design product

Supply Chain Information Architectureis a stuctured activity where the elements defined in the

configuration standard for the supply chain are used to

design processes, systems and skills for supply chain planning & execution

Governance of the architecture and adherance to the configuration standard allows for consistent implementation

of supply chain segments in any system as well as integration between any system to support

those supply chain segments