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