Supply Chain strategies
An Integrated Approach to
Supply Chain Strategy:
Combining Lean and Agile
Solutions
Professor Martin Christopher
Cranfield School of Management
Cranfield University
Cranfield
Bedford MK43 0AL
United Kingdom
Tel : 44 (0)1234 751122
Fax : 44 (0)1234 751806
E-mail : m.g.christopher@cranfield.ac.uk
Agenda
•
•
•
•
•
New competitive realities
Lean and Agile – what’s the difference?
Attacking complexity and waste
Improving on-shelf availability
Building a consumer-driven supply chain
A
2
New Competitive Realities
3
The changing marketplace
•
•
•
•
•
The ‘shift to thrift’ continues
The rise of the ‘promiscuous’ shopper
Declining brand loyalty
The importance of availability
Meeting the multi-channel challenge
A
4
Diminishing brand loyalty
“When I find a brand I like, I tend to stick to it”
% agreeing
76
74
72
70
68
66
64
62
60
1988 1989 1990 1991 1992 1993 1995 1996 1997 1998 1999 2000 2001 2002
Source : BMRB/TGI 2003
A
5
The ‘Commoditisation’ of Markets
“Price premiums have eroded and margins are following suit. Consumers are 50% more price sensitive that then were 25 years ago. In recent surveys of consumer-goods managers, seven out of ten cited pricing pressure and shoppers’ declining loyalty as their primary concerns.”
Source : Leonard M Lodish and Carl F Mella
Harvard Business Review, July-Aug, 2007
A
6
The importance of availability
In mature markets on-the-shelf availability can transform profitability both for the manufacturer and the retailer.
Two thirds of all shopping decisions are taken at the point-of-purchase. Availability can overcome brand loyalty where the shopper selects from a ‘portfolio’ of brands
A
7
Increasing pressure from retailers
• Focus on cost reduction in the ‘last 50 metres’
• Demands for shorter order-to-delivery cycles
• On-shelf availability is critical
• Customised solutions are increasingly
Supply Chain Strategy:
Combining Lean and Agile
Solutions
Professor Martin Christopher
Cranfield School of Management
Cranfield University
Cranfield
Bedford MK43 0AL
United Kingdom
Tel : 44 (0)1234 751122
Fax : 44 (0)1234 751806
E-mail : m.g.christopher@cranfield.ac.uk
Agenda
•
•
•
•
•
New competitive realities
Lean and Agile – what’s the difference?
Attacking complexity and waste
Improving on-shelf availability
Building a consumer-driven supply chain
A
2
New Competitive Realities
3
The changing marketplace
•
•
•
•
•
The ‘shift to thrift’ continues
The rise of the ‘promiscuous’ shopper
Declining brand loyalty
The importance of availability
Meeting the multi-channel challenge
A
4
Diminishing brand loyalty
“When I find a brand I like, I tend to stick to it”
% agreeing
76
74
72
70
68
66
64
62
60
1988 1989 1990 1991 1992 1993 1995 1996 1997 1998 1999 2000 2001 2002
Source : BMRB/TGI 2003
A
5
The ‘Commoditisation’ of Markets
“Price premiums have eroded and margins are following suit. Consumers are 50% more price sensitive that then were 25 years ago. In recent surveys of consumer-goods managers, seven out of ten cited pricing pressure and shoppers’ declining loyalty as their primary concerns.”
Source : Leonard M Lodish and Carl F Mella
Harvard Business Review, July-Aug, 2007
A
6
The importance of availability
In mature markets on-the-shelf availability can transform profitability both for the manufacturer and the retailer.
Two thirds of all shopping decisions are taken at the point-of-purchase. Availability can overcome brand loyalty where the shopper selects from a ‘portfolio’ of brands
A
7
Increasing pressure from retailers
• Focus on cost reduction in the ‘last 50 metres’
• Demands for shorter order-to-delivery cycles
• On-shelf availability is critical
• Customised solutions are increasingly