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? Supplies 12 million customers covering 5,000 square miles in and around London 20 Copyright 169。 0239。 9439。 continuous improvement ? Channel strategy ? Internal amp。 2020 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. “ Global Trade‖ – Then and Now Old Conventional Wisdom New Conventional Wisdom “ Imports‖ and ―Exports‖ In my Backyard MultiNationals Global Think Global, Act Local Think and Act Global – and Local Expatriate Local Leadership 5 Copyright 169。 2020 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Companies that can overe organizational and cultural barriers first will dominate their markets ? Who Needs Sleep Anyway? 0 2 4 6 8 10 12 14 16G e o p o l i ti c a l I n s ta b i l i tyU n k n o w n L e g a l R i g h tsD i s ta n c eU n k n o w n Su p p l i e r sC u l tu r a l D i ffe r e n c e sL a n g u a g e B a r r i e r sT i m e Z o n eTop Risk Factors Considered When Operating Globally Source: IDC, US Customer Experiences and Best Practices When Going Offshore 6 Copyright 169。 external coordination ? Supply amp。 9539。 0339。 2020 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Agenda ? Global trends in supply chain management – Theme 1—The supply chain as a petitive differentiator – Theme 2—The outsourcing phenomenon – Theme 3—Collaboration and integration e of age The ―bullwhip‖ effect was one of the drivers that created a rallying cry around collaboration True end customer demand Supply cannot meet initial projected demand, resulting in real shortages Channel partners overorder in an attempt to meet demand and stock their shelves As supply catches up with demand, orders are canceled or returned Financial and production planning are not aligned with real demand。 Gamble 15% % + 32% 99% (+ – 2%) Area Sources: Secondary Research, Accenture Analysis 28 Copyright 169。 2020 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Leading panies also establish benefit realization tracking mechanisms to ensure the business case estimates are met or exceeded. 0 10 20 30 40 50 60 70 Hours of Inventory (HSI) Actual HSI Target HSI New line Startup Go Live in June Lines 1 amp。 2020 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. In practice, collaboration occurs in different horizons ? Product designs ? future product plans ? Forecasts ? Fulfillment processes Joint buyer/seller processes, decision making and measurement, often proprietary Strategic ? Order status ? Product prices / descriptions ? Quantities available/allocations Share information before or after a purchase is made Tactical Information Sharing ? Purchase orders ? Invoices ? Transfer of funds Integrate and automate the the flow of information so that is is aligned with product flow Transactional Example Data Exchanged Definition Relationship Type 23 Copyright 169。 05 Proj.39。 9739。 2020 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. British Airways mitted to being an industry leader in Procurement. Key Components ? Current state included 30,000 suppliers and an annual procurement budget of $ ? Assess British Airways‘ current procurement processes and pare to best practice ? Help develop an panywide Strategic Sourcing (effective buying) capability ? Optimize key procurement processes and centralize overall procurement organization ? Work with client to reduce overall quantity of supplier relationships ? Implement interbased procurement applications (eRequisition, eRFX, eAuction) ? Guide British Airways through negotiation and participation in new eMarketplace for airline industry buyers and suppliers Results Achieved ? Business case estimated annual savings of $260M as a result of: – Rationalizing supplier to enable BA to develop strong relationships with fewer suppliers – Implementing ―eAuction‖ processes – Reducing amounts paid for products and serv