CHAIN THINKING 2013-1-ES1-LEO05-67282

Transcription

CHAIN THINKING 2013-1-ES1-LEO05-67282
CHAIN THINKING
2013-1-ES1-LEO05-67282
Reminder: future trends in the food
industries

The Global Micro System
 Narrow
regional anchoring; Self-sustaining system;
Close collaboration and adaption between parties

Ingrediense based foods
A
mix of ingredients “extracted”
extracted from raw materials creates
end product; Ingredients are a tradeable global
commodity; End user might define the meal solution (Flavour,
(Flavour
nutrition, volume etc.)
Reminder: future trends in the food
industries

The integrated value chain
 Parties
in the value chain are linked together;
High level of knowledge sharing; Value chain can be
globally dispersed

The disintegrated value chain
 Products
and services will be commoditised and traded in a
global market; There is no static value chain; Volume
flexibility is high
Introduction


The basis of competition between firms is shifting
towards competition between chains
Performance potential of chains (being part of a wellperforming
p
g chain g
generates important
p
performance
p
benefits for the individual firms themselves)
What is a chain?

The terms:
„ g
„logistics”
„supply chain (management)”
“d
“demand
d chain
h i (management)”
(
t)”
“value chain (management)”
…
are used interchangeably and confusingly. They
overlap and different actors define them in their
own way.
way
What is a chain?
L i ti vs. supply
Logistics
l chain
h i


Logistics: The process of planning, implementing
and controlling the efficient flow and storage of
products, services and related information through a
business.
1st generation of supply chains were viewed as
individual companys, customers and suppliers
focusing on logistics integration.
integration
What is a chain?
S
Supply
l chain
h i vs demand
d
d chain
h i



Emphasize the shift in emphasis from efficient
physical supply of the product/services to meeting
the needs of the customer
Demand chain reflects the fact that the chain
should be driven by the market, not by suppliers.
Starts with the consumer and work backwards,
backwards
instead of starting with the supplier/manufacturer
and working forward
What is a chain?



A value chain is a collection of businesses ranging
from primary producers, processors, distributors and
retailers that progressively create superiour
consumer value in a specific market segment.
The value is created through interrelated activities
which progressively generate added value through
a sequence of stages to achieve a common goal
The value is not created just by one company,
company but
by other companies in the chain.
What is a chain?

A set of three or more organisations directly
involved in the upstream and downstream flows of
products, services, finances, information and/or
knowledge from a source to a customer (Mentzer et
al, 2001)
What is a chain? – from chain to a network
33rd party
d a ty
logistics
supplier
External
laboraty
UPstream
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Focal Focal company
Focal company
Focal company
Focal company
company
3rd party
3rd
party
Market DOWNstream
financial
research
provider
Customer
C
t
Customer
C
t
Customer
Customer
Customer
Customer
Custome
Customer
Custom
Customer
Custo
Cust
What is a chain?



Supplier
Focal company
p y
 the company from whose point of view the chain
is investigated.
investigated From the viewpoint of the focal
company a chain is the group of all
companies/organisations with whom the focal
company interacts directly or indirectly through its
supplier or customer from point of origin to point
of consumption.
C
Customer
What is a chain?
H
Hungarian
i ffermented,
d smoked,
k d air-dried
i d i d sausage chain
h i
10. Casing supplier
1 Farmer: Feed
1.
2. Piglet
g
supplier
3. Pigg breeder
6. Hungarian
slaughterhouse
(meat, natural
casing
7. Hungarian meat
wholesaler (meat,
natural casing)
11. Spice, ingredient, casing supplier
12. Spice ingredient wholesaler
13. Meat procesor
21. Distribution center of
center of retailer chain
16.Meat product wholesaler
17. Small, independent retailer, small retailer chains, butcher’s shops, speciality shops
23.
Consumer
18. Food manufacturer
8. EU (foreign) slaughterhouse
4. Calf
supplier
5. Beef breeder
14. Packaging wholesaler
9. EU (foreign) meat wholesaler
15. Packaging material supplier
22.. Retailer’s stores, hipermarkets, supermarkets
k t
19. C
19
Caterer,
HORECA
20.Local market,
di t sale
direct
l
12
Benefits of involving customers into
innovation process






BBetter compliance
li
to customer’s
’ needs
d (agreed
(
d specification;
ifi i tailor
il
made functions; better understanding and control of food safety
risks in the next steps)
p)
More information on market demand: functions, volume
Better understanding
g of cost limitations,, minimum costs
Access to customer’s knowledge: standards, procedures (quality,
food safety, sustainability, ethical, etc.), technology, marketing
Better understanding of legal requirements and constraints,
Optimised allocation of tasks - access to complementary resources,
capabilities
bili i and
d competencies
i (l(less waste, llower use off resources,
lower costs)
Benefits of involving suppliers into
innovation process






BBetter understanding
d
di off availability,
il bili ffunctions,
i
lilimitations
i i
off raw
materials, equipment, software – capabilities on which innovation
can be based,, benefits and drawbacks of alternatives
Meeting the need of the (focal) company better: agreed
specification; tailor made functions; control food safety risks at the
focal company
Better understanding od price/cost limitations – cost reduction
opportunities at mutual benefits
Access to the knowledge and resources of the supplier
Increased security of sourcing
Optimised allocation of the tasks – access to complementary
p
, competencies
p
((less waste,, lower use of
resources,, capabilities,
resources, lover costs)
Main factors affecting the structure of chains –
opportunities for innovation (1)




Concentration of the raw material production
 size of farms
 spatial concentration of farms
Ratio of edible part of the raw material
 changes
g of ratio of edible part
p during
g processing
p
g (A)
( )
 number and importance of by-products
Perishability / shelf-life
 raw material
 processed products at different stages (A)
Food safety risks associated with different stages of production,
production
processing and packaging
(A): at processed, value added products
Main factors affecting the structure of chains –
opportunities for innovation (2)
Availability of raw material
 local, regional, national, sub-continental, continental, global
 continuous, seasonal
 Processing aspects
 Economies of scale at different stages from different
suppliers/regions
 Tendency for oligopoly or monopoly
 Processing costs vs. transport costs
 Processing costs in different locations, countries
 Cost of labour at different stages, countries (A)
 Economies of scale at different techniques (A)
(A): at processed, value added products

Main factors affecting the structure of chains –
opportunities for innovation (3)
Quality aspects
 Quality grades / standards of the raw materials (A)
 Quality groups / standards of the intermediate products (A)
 Quality grades / standards of the finished products (A)
 Specific claims associated with the final product (A)
 Uniformity of quality and the easiness of its assessment
(A): at processed, value added products

Main factors affecting the structure of chains –
opportunities for innovation (4)



Added
Add
d value
l
 Value added at different stages (A)
 Specific
p
skills,, services necessaryy to add value (A)
( )
Economic factors
 Tax system for different stages / for different countries
 Availability of government / regional support for investments /employment
Market aspects
 Demand / consumption patterns / concentration of the consumption
 Minimum quantity to access a certain market / retailer
 Required lead time for replenishment
 Export subsides and import quotas
 Importance of domestic vs. export markets
(A): at processed,
processed value added products
Chain management
g
C
F
S
The management of multiple relationships
(accompanying products, services,
finances, information and/or
knowledge flows) – focusing on
harmonizing the use of
• resources
• capabilities
• competencies
along
l
th
the entire
ti chain
h i
(instead of focusing on only on the
individual steps)
to deliver higher added value
• by improving the quality of chain
relationships
l ti hi
Chain management – Why to harmonize the use
of resources,
resources capabilities and core competences?


Your resources/capabilities
Y
/
biliti and
d your suppliers’/customers’
li ’/ t
’ resources / capabilities
biliti
can be a basis for a core competency of your relationship, and of your chain
Chain management allows a company to rethink their and their suppliers’ and
customers’ resources, capabilities and core competencies and to harmonize them.
CHAIN MANAGEMENT - FRAMEWORK
Core competencies
of supplier
Resources
Core competencies
of company
Capabilities
Resources
Capabilities
Core
C
competences
Core competencies
of customer
Resources
Core
competences
Core
competences
Core
competences
Chain core
competences
Sustainable chain competitive advantage
Capabilities
TRADITIONAL ITALIAN CHEESE CHAIN
Core competencies of
supplier
Resources
Capabilities
Core competencies of
company
Resources
Core competencies of
customer
Capabilities:
-Produce &
supply
superior
quality
-Maintain
traditional
image of
products
Resources:
-Qualified
professional
staff (with
high product
knowledge)
-Distribution,
Distribution,
logistic and
storage
facilities
Capabilities:
- Identify and
communicate
back
(upstream)
problems
Core competency of the
relationship:
(Bilateral competitive advantage)
-Quality management
-Flexibility
Flexibility in problem solving
-Superior product quality
TRADITIONAL BELGIAN BIO CHEESE CHAIN
Core competencies of
supplier
Resources
Capabilities
- Produce &
supply
superior
quality biomilk
Core competencies of
company
Resources:
- Technology
- Production
skills
Capabilities:
- Innovation
capability
Core competency of the chain:
(Chain competitive advantage)
-Superior product quality
-Integrated approach in product
innovation
Core competencies of
customer
Resources:
-Market
information
-Reputation
Capabilities:
Collaborative innovations in food chains:
Omega-3 rich dairy products by PharmAgora innovative cluster
RESEARCH AND
DEVELOPMENT
PRODUCTION
SERVICES
 Functional
F
ti
l foods
f d
 Food
F d
 Dietary supplements
 Pharmaceuticals
 Food
F d technology:
t h l
R&D related
l t d
technical troubleshooting services,
 Pharmaceuticals (generic)
 Diagnostics
 Pre-clinical methodology
 Recording systems for preclinical studies
 Pre-clinical equipment
 Food safety and quality
g
,
management,
 Food chain management,
 Knowledge management,
 Medical
M di l diagnostic
di
ti methods
th d
(devices)
 Cardiovascular
 Gastroenterology
 Organising pre
pre-clinical
clinical,
pharmacological and efficacy trials
 Hardware/software, data
structure
 Nervous system,
behaviour
 Organising and monitoring clinical
trials
 Electrophysiology
 Data-management and biostatistics
 Cell biology
 Quality assurance beyond the food
sector,
 Medical
M di l diagnostic
di
ti devices
d i
 Fittness systems
 Independent audit (GCP, GLP)
Hardware/software validation
MEMBERS
UNIVERSITY OF WEST‐HUNGARY
Faculty of Agriculture and Food S i
Science
Agrofill Ltd.
EcoMotive Ltd.
Funkció Ltd.
Solum Ltd.
SEMMELWEIS UNIVERSITY
II.sz. Pediatrics Clinic
Faculty of Physical Education
and Sport Sciences
Meditop Ltd.
Brunswick Mo. Ltd.
Campden Ltd.
Diagnosticum Plc.
GenProt Ltd.
I
Ld
Immunogenes
Ltd.
Agrofill Ltd.
ADEXGO Ltd.
AdWare Research Ltd.
Diagnosticum Plc.
Plc
Experimetria Ltd.
Measuring & Software Ltd.
Meditop Ltd.
Toxi-Coop Plc.
CeraMed Ltd.
Huniko Ltd.
Pharmapolis Ltd.
Local Government of
Balatonfüred
UNIVERSITY OF SZEGED
Department of Public Health
Department of Pharmacology and
Pharmacotherapy
Institute of Drug-efficacy and
Biopharmacy
OUTPUTS AND PRODUCTS OF THE CHAIN
 Functional
F
i l foods:
f d
 Omega 3, and CLA rich fresh milk, dairy products, milk
p
powder
 Multifunctional egg (diabetes II., pre-mature birth giving
prevention and supplementary therapy), liquid egg, egg
powder
 Pork with high CLA and Omega 3,
yp
recycling/
y g/ sustainable food p
production
 By-products
 Molasses
 Whey permeate
 Medical devices
 Digestion monitoring according to gut motility
NEW APPROACH
• Combined use of optimised feeding technology (feed composition) and rumen protected omega 3 feed additive
• Use of by product of food production (molasses) in the U
fb
d t ff d
d ti ( l
) i th
optimised diet of ruminants
• Adapting target effect focused R+D practices of the Adapting target effect focused R+D practices of the
pharmaceutical industry to food R+D
• No reduction of the milk production of capacity of cows
No reduction of the milk production of capacity of cows
• No taint of the milk, dairy products, egg and meat
COMMERCIAL DAIRY PRODUCTS
In summary






Reminder: future trends in the food industries
The basis of competition
p
between firms is shifting
g
towards competition between chains
What is a chain
Benefits of involving customers/suppliers into
i
innovation
ti process
Opportunities for innovation
Chain management – combine resources,
capabilities
p
and core competences
p
in the chain