microsoft powerpoint - 12. greg skrovan
Post on 20-May-2015
786 Views
Preview:
TRANSCRIPT
Intel Confidential1
International Air Cargo Forum and ExpositionInternational Air Cargo Forum and ExpositionSeptember 2006September 2006
Greg SkrovanGreg SkrovanIntel CorporationIntel Corporation
Intel Transportation Supply Chain
Intel Confidential2
The Intel you think of…
Intel Confidential3
The Intel that is a…
Intel Confidential4
Intel Supply Chain
Intel Supply Chain characteristics10 fabrication plants, located in Ireland, Israel and USA7 Assembly Test factories in Asia and Costa Rica14 Distribution Centers throughout the world, including four retail boxing linesThe manufacturing cycle of a typical Intel product includes at least one round world tripIntel ships ~1.9 million shipments per year averaging 550 kilos per dayIntel Supply Chain has ~2,500 people in 14 countries.
Supplier Fabrication Plant Assembly Test Boxing,Storage and
Cross docking
Customer
Intel Confidential5
The Intel NetworkEuropeEurope
AmericaAmerica
AsiaAsia
Intel Confidential6
Intel’s Influence in the Supply Chain
Leader in internet negotiations; used for virtually all freight Leader in internet negotiations; used for virtually all freight contracts and negotiations.contracts and negotiations.
Instrumental in establishing the High Tech Shippers Coalition Instrumental in establishing the High Tech Shippers Coalition as a forum for influencing governmental policies.as a forum for influencing governmental policies.
Helping to establish direction for RosettaNet proliferation Helping to establish direction for RosettaNet proliferation through leadership in RosettaNet consortium. through leadership in RosettaNet consortium.
An original founder of Technology Asset Protection Association An original founder of Technology Asset Protection Association (TAPA) and active in leadership positions in all geographies.(TAPA) and active in leadership positions in all geographies.
Transportation Materials & Manufacturing Engineering group Transportation Materials & Manufacturing Engineering group has patented thermohas patented thermo--forming solutions that have saved forming solutions that have saved millions in freight and packaging costs.millions in freight and packaging costs.
•• Intel was ranked number 11 of the Intel was ranked number 11 of the ““Top 25 Supply Top 25 Supply Chain CompaniesChain Companies”” by AMR Research in 2005.by AMR Research in 2005.
Intel Confidential7
Freight Spending and Geo Demand
Imbalance between billings and consumption drives freight costsAir cargo represents 78% of freight spending59% of freight spends originate in Asia (~20% from China 3PL’s)
Challenges: – Align the “right service / mode”
to the Business Unit needs– Comprehend total landed costs
in supply chain decisions
Q2 Billings Revenue
51%
12%
18%
19%
IJKKEMEAASMOAPAC
Q2 Billings Revenue
51%
12%
18%
19%
IJKKEMEAASMOAPAC
Q2 Consumption Revenue
33%
26%8%
33%
Q2 Consumption Revenue
33%
26%8%
33%
Network Complexity
Emerging Markets:Increase in smaller orders to more remote locations.Unstable logistics infrastructures.– Security risks– Delivery reliability – IT / systems– Accessibility to tier 2 cities
Global Freight Profile: Trade imbalance impacting costs and delivery reliability.Higher fuel costs passed through to shippers.
IntraAmericasIntraAmericas27%27%
IntraAsiaIntraAsia24%24%
IntraEuropeIntraEurope11%11%
TransAtlanticTransAtlantic
3%3%
1%1%
EurAsiaEurAsia1%1%
10%10%
TransPacificTransPacific3%3%
14%14%
20052005
Intel Global Freight Profile by WeightIntel Global Freight Profile by Weight
88
Intel Confidential9
Emerging Markets
Latin America (LAR)–LAR sourced primarily via Miami 3PL (84% of 3PL volume)–Direct shipments to LAR limited to MNC’s only–Direct shipments expected to increase by 50% ‘05 to ‘06
China –Lift capacity remains major issue
– Linearity in uplift capacity (3X demand to supply Sept-Dec)
– Limited landing rights in China–U-turn requirements for intra-China shipments–Non-direct flights between Taiwan and China
Intel Confidential10
Challenge to the Air Cargo Industry
Constantly seek out new ways to improve reliability– Global consistency with materials handling; i.e. Emerging Markets– Practice Business Continuity religiously; terror, hurricanes, etc – Face complexities and challenges as opportunities to get better, not as
immovable barriers that halt progress or raise costs– Adequate and affordable lift capacity from growth and emerging markets
Cost efficiency and effectiveness– Segmented services (one solution does not fit our BU needs)– Fuel efficiency and environmental awareness– Seamless inter-modal capabilities with customer transparency– Educate shippers on ways to make your life easier (bid timing, etc)
Work as an industry to create breakthrough innovations, standards and leverage your collective power. – Increase collaboration with supply network partners– Industry associations / leverage your positions government, regulations.
Intel Confidential11
Intel Confidential12
Back-up
Intel Confidential13
Intel Supply Chain Vision
Mission: Increase customer and Intel success by Mission: Increase customer and Intel success by optimizing supply and demand, and delivering optimizing supply and demand, and delivering valued supply chain solutionsvalued supply chain solutions
Vision: Agile fulfillment capability that is easy for customers and maximizes shareholder value.
Intel Confidential14
Vision Vision -- TransPerfectionTransPerfection““Perfecting the Business of Global TransportationPerfecting the Business of Global Transportation””
Global Transportation & Logistics Outsourcing
Establishing Cutting-Edge
TransportationManagement
Systems
Providing the Right Service at the Right Cost at the Right Time
Evolving aCulture of Controls
Ensuring Clean, Visible Data for
Value-Add Information
Investing in the Growth of our
People
Mission:Mission:Deliver a Supply Chain Advantage to Intel by:
Intel Confidential15
Supply Network Trends – Environmental ScanD.A.R.T. Board
DistributionAvailabilityRegulationsTechnology
DistributionDistribution Availability of Logistics SupplyAvailability of Logistics Supply
Regulatory RequirementsRegulatory Requirements
1.1. Air Freight Capacity:Air Freight Capacity: Capacity constraints impact delivery performance and drive costs up.
2.2. Fuel:Fuel: High fuel prices and lack of management strategies impact distribution decisions.
3.3. Ocean Port Congestion:Ocean Port Congestion: Increased ocean volumes causing long wait times at ocean ports (particularly in China, Japan & West Coast US).
1.1. Security:Security: Challenge network reliability and shipment integrity (e.g., TSA).
2.2. Customs:Customs: EM challenges & inspection of cargo on PAX.
3.3. Environmental and Packaging:Environmental and Packaging:Requirements becoming more strict
4.4. Trucking Regulations:Trucking Regulations: Affecting labor and profitability.
5.5. Lithium Ion Batteries:Lithium Ion Batteries: Restrictions could impact future shipments
1.1. RosettaNet:RosettaNet: Enable “plug-and-play”startups and improve data quality.
2.2. RFID: RFID: Offers benefits for operations management and security.
1.1. Globalization:Globalization: Growth in emerging markets challenges logistics capabilities, increases security risks, and drives up costs.
2.2. Inventory Management:Inventory Management: Increased requests for consignment, leaner inventory models, SKU proliferation.
3.3. Network Complexity:Network Complexity: Increased outsourced manufacturing, fragmentation of disti channel, direct- and drop-ship models, exponential lane pair growth.
TechnologyTechnology
Intel Confidential16
Business Trend Summary-More intense, not new….
Trend 1: Market and service requirements growing
Trend 2: Supply Chain complexity accelerating
Trend 3: Increased customer expectation: responsiveness/expectations/power
Trend 4: Getting more difficult to manage affordability
Trend 5: Our growth is in emerging markets
top related