e-Supply Chain

Challenges in a complex
Supply Chain
Arne Dyngeland
VP Supply Chain & Manufacturing
November 26, 2015
Laerdal Medical – One Global Company
24 Sales Companies
Major Distributors
4 R&D Center
4 Manufacturing Units
4 Centralized Distribution Centers
Laerdal Medical
1400 employees in 24 Countries
Turnover 2014 - 2.8 Billion NOK
Laerdal Global Health
17 employees in 4 countries
Laerdal Foundation
Research foundation providing financial
support for research in acute medicine
SAFER – Simulation center established
by Stavanger University Hospital,
University of Stavanger
and Laerdal
Laerdal Medical
The story began in 1940
Resusci Anne – Since 1960
Childrens books and Tomte Toys
Laerdal Medical
Mission and Vision
Our Mission
Helping Save Lives
Our Vision
“No-one should die or be disabled
unnecessarily during birth or from
sudden illness or trauma.”
Laerdal Medical
Why we do what we do
500,000 Lives
Marshall Hastings (9) was swimming when his
heart stopped. Due to swift CPR, Marshall
survived.
Laerdal Medical
How will we get there?
We can best achieve our mission by following our six Guiding Stars:
•
•
•
•
•
•
Implement what has been shown to work
Collaborate to help save more lives
Simplify products and programs
Drive therapy through education
Embrace customer responsiveness
Deliver quality in all we do
Laerdal Medical
How will we get there?
Collaborate to help save more lives
We have learned that we can achieve far greater
impact by working in collaboration with valued
partnerships and alliances.
Laerdal Medical
Resuscitation
It is estimated that over 1 million people die of sudden
cardiac arrest in higher resource countries annually.
By helping improve the implementation of the Chain
of Survival, we believe the average survival rate can be
raised from 7% to 12% in 2020, representing 50,000 more
lives per year.
Laerdal Medical
Emergency Care
Medical errors are believed to be the cause of over
250,000 deaths per year in higher resource countries.
A 20% reduction in these errors by the use of simulation
education and related activities could contribute to a
further 50,000 lives per year.
Laerdal Medical
Laerdal Global Health
Life-saving potential
Around 800 mothers and 8000 babies die during birth every day,
99% in developing countries.
Laerdal Global Health established in 2010 to focus on helping
save lives of mothers and babies on the day of birth in low
resource countries.
Solutions
Products and programs which train and equip health workers to
help save lives of newborns and mothers in low resource
countries.
Laerdal Medical
What are we going to do?
Market Development
Our Core Markets
• Healthcare Education
• Healthcare Delivery
• Pre-Hospital Medicine
• Military
• Lay Public via First Aid
and Professional Organisations
Laerdal Medical
What are we going to do?
Unique Solutions
More than just products – Laerdal
offers integrated solutions where
products, programs and services
work seamlessly together in unity.
Laerdal Medical
Unique solutions and a very diverse Product Range
T
T
T
13
Laerdal Medical
The Value Chain & Supply Chain & Manufacturing
Sourcing &
Procurement
Suppliers
Suppliers
Suppliers
Distribution
& Logistics
Sales &
Services
Manufacturing
Stavanger
DC Europe
Sales
Sales
Sales
Companies
Companies
Companies
Manufacturing
Suzhou
DC Norway
No inventory
Manufacturing
Stavanger
Suzhou
Manufacturing
Gatesville
Partners
Suppliers
Suppliers
Gatesville
Manufacturing
Monterrey
C
DC UK
C
DC
Americas
OEM
Suppliers
Suppliers
Suppliers
Customers
DC
AsiaPacific
Sales
Sales
Companies
Sales
Companies
Companies
C
Local
inventory
Laerdal Medical
Our Business is changing
• Sale of Programs in addition to traditional sales/deliveries
• Gradual shift means higher complexity
• For Programs, customers pay “per use” or on
a Subscription model
• Laerdal owns products and systems
implication
is higher
•The
Selling
a Program is a “Project
sale”
• Laerdalcomplexity
sells a total solution
for
• Laerdal installs and train/educate customers
Supply Chain, Sales,
Customer Service,
Services and Finance
• Income over long time through long contracts
• Cost to secure and fulfill the “contract” incurred
in all parts of value chain over entire contract period
• Handling of Deployment, Release, Changes
• Physical stream vs virtual/SW product delivery
• Data collection (Measurement, Assessment, Feedback)
Laerdal Medical
What are we doing to meet new business requirements
IT Business System
development,
Process Management,
Standardization
Develop
e-Supply Chain
processes and
responsibilities
Introduce better tools
to manage
complexity:
Product Configurator
Laerdal Medical
IT Business System development & Process Management
• New IT/IBS organization & Process owners in the line
• Corporate/Executive ownership of IT system development
initiatives, investments and plans for all main business systems
• New solutions & processes are being developed in cross
functional teams and -projects with participation from line
mgmt and IBS team
Laerdal Medical
Process Management – our approach
Require Senior mgmt focus
• Change of behavior is difficult (Silo/functional focus)
New work methods
• Document & create good communication tools
Need to allocate senior resources
• Process management can only work well if you have
your best people involved in developing new processes
Laerdal Medical
Business System development - Basic rules we apply
• Common systems and solutions
• Same system cross all sites for same function
(recently upgraded all ERP installations world wide on Cloud solution)
• Define and deploy our Standard processes cross all units and geographies
(Takes time, and need to accommodate for some local (legally driven) differences)
• «Vanilla» solutions and processes:
• Preferable………
• But less and less applicable with the new business requirements due to need to
“automate” cross processes, functions, and systems
• However:
Customizations to Standard processes area has to be justified, specified and
need approvals before development and implementation
• System architecture and Integrations are tightly managed and controlled
Laerdal Medical
Principle IT Business System overview
Enable
CMS
Siebel
CRM
Sales / Marketing / Services
E-com
QAD
ERP
ER
Agile
Finance
&
Supply Chain / Distribution
Accounting
PLM
Manufacturing
Product Development
Laerdal Medical
IT Systems are quite well integrated already
API mgmt using Sonic secure Data transfers and real time updates
Laerdal Medical
Develop e-Supply Chain processes and responsibilities
Why do we need to focus on e-Supply Chain ?
• Development and sale of many new SW products increase complexity for all
functions (who is really responsible for what ?)
• New Software products are developed internally at two sites, but also by
Suppliers and Partners
• Control and coordination of in-phasing, deployment, change control of SW
products towards customers, factories, suppliers and services organization need
to be managed as any other “box product”
Laerdal Medical
Our (draft) e- Supply Chain and how it fits in the operation
e-Supply Chain
Product
Development
Partners &
Suppliers
SoftWare
Software Products
products
Release – Deployment - Mgmt
Cloud Based
SW access & Downloads
for customers
Customers
Laerdal Medical
Establishing and e-Supply Chain team can drive other changes
An observation we have done in the SC&M function as well as in Sales, Marketing and Services:
We need to educate and «transition» the line organizations that is used to
«article number sales» of Boxes to selling Programs, services and Software based products
This drives need for SC&M to focus on:
• Knowledge of the new products (SW and SW combined with regular products)
• How to identify needed changes in “back office” business / transaction processes and IT systems
• How to secure that new business processes fits into existing systems that still have to support
sale and distribution of “boxes”
Laerdal Medical
Better tools to handle complexity – Our Challenge
The Products are becoming increasingly complex.
We want to offer customers a “product and services solution” that is tailored to their need.
Combining physical product with Software products
and Services offerings on a Quote/Sales Order require
very skilled people in Sales and Customer Service
selecting the right products and services
The traditional method of offering multiple options
and variants by pre-defied, assembled, stored
“article numbers/boxes” are not very scalable and
cost effective, nor customer friendly
Laerdal Medical
Configuration Management - Our Conceptual Approach
Modular
Design/Build
Supply Chain
Manufacturing
Strategy
Sales and
Marketing
Business
Systems
Configuration
Management
Strategy
SW/Services
Management
Meet
customer
needs
Sales and
Marketing
Strategy
Delivery
Methods
Product
Configurator
Laerdal Medical
Our approach
• The Configurator is placed “in” the ERP system (QAD´s configurator module)
• Configuration of products will be done in the Distribution Centers (not the factories)
• Configurator will be used by Customer Service when taking quoting/taking orders
• We will have handle configured products and article number based products in parallel
• The configurator and related business processes must be capable to handle physical and
Virtual products, Software products/licenses and Services
Laerdal Medical
System overview
CMS System
E-Commerce
(Enable)
Customers
MRP System
(QAD)
Sales Orders
(QAD)
Customer
Service
Configurator
(QAD)
CRM System
(Siebel)
Information Flow
Product Flow
Production Site
Laerdal Medical
Implementation approach
• We have set up a dedicated cross functional project team
Sales & Services, Supply Chain, Manufacturing, Business Unit (Product Management), IT / IBS, Finance
• Extensive work invested in developing, defining and test all business and transaction processes
and integrations between the IT systems
• Test of all system solutions through Conference Room pilots (ongoing)
• Test of the full concept technically and operationally through a Pilot in Europe directly with
customers (Q1 2016)
• Review and assessment of customer feedback and overall results (Q2 2016)
• Define next steps, and potential implementation plan (2016 - ………..)
Laerdal Medical
IT Business System
development,
Process Management,
Standardization
Develop
e-Supply Chain
processes and
responsibilities
Introduce better tools
to manage
complexity:
Product Configurator
Laerdal Medical
Thank you for the attention!
Laerdal Medical