Managing an Award Winning Supply Chain
Managing an Award Winning Supply Chain
Transformation Programme –
The Lego Story
The Lego Story
Presented by Egil Møller Nielsen, Vice President,
Global Distribution Logistics LEGO
Global Distribution Logistics, LEGO
12 October 2010
Short introduction to the LEGO story
The Supplier of choice
In October 2008, LEGO won the prestigious European Supply Chain Excellence Award in the "Logistics and Fulfillment” category. The award recognized the supply chain changes that had been accomplished and which were seen as one of the key enablers of LEGO’s astonishing turnaround. LEGO had lost money for four out of seven years from 1998 to 2004, and with only 62 per cent of orders being delivered on time, its logistics capability had been shattered. The turnaround highlights both the organizational and operational issues that arose in reviving its distribution and logistics system and turning its supply chain operations into a distinct competitive advantage. Transforming a supply chain operation is equivalent to performing open heart surgery and the transition proved anything but smooth. This webinar will emphasize the importance of keeping communication lines open, open as well as obtaining an introduction to common outsourcing issues, issues ranging from supplier capability assessment to culture differences.
The turnaround also explores the strategic issues surrounding supply chain transformation and its role in and d iintegration t ti with ith overallll company strategy. t t
Key topics for discussion include:
1. Understanding the market is key in making the strategy and turnaround plan 2. Collaborating across value chain and optimizing on total costs/lead time etc. 3. Having an organization and people reflecting the strategy is key for success
PAGE 2
Agenda
The Supplier of choice
• Introduction to the LEGO Group
• Logistics
L i ti tturnaround d 2004
2004-2008
2008
• Where are we today?
• Strategic Initiatives – our ambitions
Transformation Programme –
The Lego Story
The Lego Story
Presented by Egil Møller Nielsen, Vice President,
Global Distribution Logistics LEGO
Global Distribution Logistics, LEGO
12 October 2010
Short introduction to the LEGO story
The Supplier of choice
In October 2008, LEGO won the prestigious European Supply Chain Excellence Award in the "Logistics and Fulfillment” category. The award recognized the supply chain changes that had been accomplished and which were seen as one of the key enablers of LEGO’s astonishing turnaround. LEGO had lost money for four out of seven years from 1998 to 2004, and with only 62 per cent of orders being delivered on time, its logistics capability had been shattered. The turnaround highlights both the organizational and operational issues that arose in reviving its distribution and logistics system and turning its supply chain operations into a distinct competitive advantage. Transforming a supply chain operation is equivalent to performing open heart surgery and the transition proved anything but smooth. This webinar will emphasize the importance of keeping communication lines open, open as well as obtaining an introduction to common outsourcing issues, issues ranging from supplier capability assessment to culture differences.
The turnaround also explores the strategic issues surrounding supply chain transformation and its role in and d iintegration t ti with ith overallll company strategy. t t
Key topics for discussion include:
1. Understanding the market is key in making the strategy and turnaround plan 2. Collaborating across value chain and optimizing on total costs/lead time etc. 3. Having an organization and people reflecting the strategy is key for success
PAGE 2
Agenda
The Supplier of choice
• Introduction to the LEGO Group
• Logistics
L i ti tturnaround d 2004
2004-2008
2008
• Where are we today?
• Strategic Initiatives – our ambitions