business collective 1.0...six pillars of success: making bc 1.0 work 1. focus on the customer –...

BUSINESS COLLECTIVE 1.0: Shifting the supply chain from transactional relationships to strategic partnerships

October 11, 2016

Moderator: Lori Dearman, Executive Webinar Producer, WebAttract

The experts

Damian Pike VP Innovation DHL Supply Chain Limited

Lisa Harrington President, Lharrington Group LLC Strategic Consultant

Dr. Michael Lang, PhD Head of Panasonic Business Software Solutions, Panasonic System Solutions Europe

Who is in the audience

21% Technology 20% Life Sciences and Healthcare 12% Engineering and Manufacturing 11% Consumer 11% Automotive 5% Energy 5% Retail 15% Other

A diverse audience of over 250 attendees registered from 33 countries, representing the following industries:

The experts




Poll 1

How do you characterize your company’s relationships with most suppliers?

A. Strictly transactional

B. A blend of transactional plus some strategic partnering

C. Largely strategic/long term partnerships

The experts




“Multiple organizations meld together to face the market as one single entity.”

Business Collective 1.0

Six pillars of success: Making BC 1.0 work

1. Focus on the customer – Learn about their needs and priorities; 360 degree perspective • “Outside-in” perspective

• Johnson Controls example

2. Build the foundation – Create a shared vision, roadmap and executive commitment • Align investments and operating plans toward mutual growth

• Create shared KPIs

• Institutionalize senior executive support

3. Tap suppliers for innovation – Leverage and capitalize on supplier strengths • Don’t waste time trying to develop strengths in areas where other partners already have them

• KPMG study: 51% of manufacturer respondents believe partnerships with suppliers will define the direction of innovation

Six pillars of success: Making BC 1.0 work

4. Open up and share – Required: Open up the information supply chain to accelerate innovation • Lennox Industries example:

– Single shared version of the truth

– Shared view of supply & demand

– Common, plug-and-play information systems platform

5. Start small and run fast – Pilot the changes first in field tests that can later be scaled up • Big bang approach – hugely risky

• Concept of ‘minimum viable transformation’: Companies launch products that are not perfect and use customer/user feedback to iterate and improve

6. Think long-term – Building a business collective is not a short-term project • Build value over time, deliver sustained results

The experts




DHL Supply Chain – Who we are

1) Market share more than 3 times higher than No. 2; Highly fragmented market estimated at EUR 176bn; top 10 players account for about 20% of the overall market; 2) Countries with significant supply chain revenue, DPDHL is present in more than 220 countries and territories; 3) DHL Supply Chain owned or leased warehouse space

● Excellent operations and innovative solutions across the supply chain

● Supply chain solutions based on industries’ requirements and needs

● Network of approx. 145,000 experts in more than 50 countries and territories

● >13.4 million square meters warehouse space

● Global market leader with 7.4% market share1)

● EUR 15.8bn in annual revenue in 2015

DHL Supply Chain presence Getting you ahead of your competitors

AHEAD

industry sectors KEY

• Energy & Chemicals // Automotive Technology // Engineering & Manufacturing // Retail // Life Sciences & Healthcare // Technology // Consumer

~13,400,0003) Square meter

~1,500 Customers

2178 Locations

~145,000 Employees

Other DPDHL Group operations

# of countries2)

15 11 25

2 2

Asia Pacific Latin America MLEMEA North America UK&I

Need to manage growth

Need to deliver Innovation

Need to get real dialog with stakeholders

Need to address priority issues

Need to get beyond transactional relationships

Need to extend relationships

Need to take on more complex problems

Need to drive business profitability To deliver next-

generation supply chains, we need to get the ‘right dialog’ going

Moving beyond a transactional supply chain

Understand the nature of the relationship

Procurement Growth

Specification

Price

Process

Commoditization

Repetition

Problem Solving Executive

Sponsorship Applied Innovation

Differentiation

Open up new ways to think about your supply chain

Sell To Business Collective Partner

New Clients (existing services)

Sell Through

Sell With

Handheld devices

New Clients (joined up services)

Smart Warehouses

Business Collective

Video Analytics Solutions

Supply Chain Services

Benefits and watch-outs: In short, the return is proportional to the investment

Benefits:

• Establish strong executive sponsorship

• Unlock new revenue streams

• Create innovative services

Watch-outs:

• It takes longer than you think

• You need to have aligned cultures

• You need to establish a supportive coalition outside of the team

The experts




Panasonic Corporation is one of the largest electronic product manufacturers in the world, comprised of 475 companies* Applications for private,

commercial and industrial markets

Panasonic Today

Global turnover business year 2015/2016: 7,553.7 billion JPY (56,794 billion Euro)* 249,520 employees * Stock exchange listing: Tokyo

and Nagoya

*As of 31st March 2016 (consolidated)

Global revenue proportion: April 2015 – March 2016

Eco Solutions

Your Home

Your Community

Your Business

Your Journey

Your Car

Cloud Cloud

Appliances Automotive & Industrial Systems

AVC Networks

32%

14% 19%

27%

8% Infotainment, eco-car, related technology, semiconductors, optical devices and batteries Others

B2C and B2B broadcast and communications technology

Creating comfortable environments and generating and managing energy

Including air conditioners, refrigerators and washing machines

Housing, land and buildings

Consumer Electronics

Panasonic today

Traditional approach – Routes to market / business development

Customer

Hardware

Specialist Software

Installation/ Services

Systems Integrator

Distribution

A paradigm shift

Results / benefits: • Looking outside in: Holistic view on the value-chain for

customer • Integrated approach to business development to fully

explore and exploit each others’ strengths and capabilities

Lessons learned: • Executive sponsorship is a must • Risk and rewards need to be balanced

A Business Collective

Customer Hardware

Software

Systems Integration

Logistics Services

Operational Excellence

A Business Collective can be a powerful new ecosystem to not only drive value for customers but also to the bottom line

The experts




BC 1.0 – Where do we go from here?

Givens: • Being able to orchestrate business collectives will determine future success

• The supply chain will be the vehicle that delivers this success

What leaders will do – the next five years: • Develop shared goals

• Fully align along these goals up and down the supply chain

• Co-invest in each other to fund innovation

• Measure value across the entire ecosystem – not just for one or two players

Two supporting behaviors leaders will adopt

Leaders will accelerate the benefits of BC by…

Harvesting “tribe” intelligence • End-to-end ecosystem that includes active participation of end consumer

• Dynamic innovation hub

Using collectives as “learning platforms” • Formalized innovation community working to solve big challenges

• Scalable, highly agile, rapid response.

The payoff: The 1 + 1 = 3 paradigm

• Realizing the “accelerator benefit” – Technology allows operating the business collectives on a highly distributed platform – Technology provides the means to tap the collective’s intellectual and capabilities ‘firepower” - to harness

the group brain trust to come up with new ways of doing business

• This is the “accelerator benefit” • The “brass ring” of future business

Poll 2

Where are you on implementing this new partnering model with suppliers?

A. Just starting to explore

B. Partnering, but on a transactional basis

C. Partnering (beyond transactional)

D. Fully integrated

E. No plans to partner

Next steps

• Request – Business Collective research findings report – Business Collective white paper series – Business Collective infographic

• Subscribe

– Supply Chain Insights: DHL’s monthly thought leadership newsletter

• Attend – Attend future webinars

Ask the experts




Poll 3

I would like to:

A. Receive research findings report on the Business Collective

B. Receive a copy of the Business Collective white paper series

C. Be contacted so I can learn more about the Business Collective

D. Sign-up for DHL’s monthly thought leadership newsletter, Supply Chain Insights

E. Be notified about future webinars

business collective 1.0...six pillars of success: making bc 1.0 work 1. focus on the customer –...

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