SCM Germany award 2013

Transcription

1 SCM Germany award 2013 Bayer HealthCare AG John Koelink BHC-PS-GSCM

2 111,600 employees Full year sales: 39.8 billion 291 subsidiaries R&D expenditures: 3.0 billion As of December 31, 2012 / Employees: March 31, 2013

3 Our Mission Bayer: Science For A Better Life We help patients around the world by preventing, alleviating and curing diseases as well as improving diagnosis. We help to ensure an ample supply of high-quality food, feed, fiber and renewable raw materials. We make significant contributions in the fields of energy and resource efficiency, mobility and home living to name just a few.

4 Bayer HealthCare Divisions Pharmaceuticals Consumer Care Medical Care Animal Health General Medicine Specialty Medicine Non-prescription drugs Vitamins and nutritional supplements Rx Dermatology Diabetes Care: monitoring systems and accessories Radiology & Interventional: Contrast agents, devices for diagnostic imaging and medical therapy Food animal products Companion animal products

5 Bayer HealthCare Top Products Pharma Consumer Care Medical Care Animal Health General Medicine Specialty Medicine

6 Our Supply Chain Management Team John Koelink Global Supply Chain management Kim Riemer Assistant Silja Salge Caretaker Jörn Bieg Performance Management Achim Siegert-Wilcke Design & Development Edgar Markwart Supply Chain Execution & Master Data Patrick Leonhardt Warehousing & Distribution Stefan Bokstaller PS AH SCM Kevin Pegels PS BT SCM Mehmet Cimit PS CC SCM Frank Brokmann PS DC SCM Thomas Panzer PS PH/API SCM Eric Ferchaw PS R&I SCM Thomas Raaf Bernd Marschmann Arnim Elze Matthias Kary PS O&I PS Procurement PS QHSE PS HR

7 Our SCM motto: Performing with passion. Result oriented thinking and acting. Integrating with our partners. Driving continuous improvement. Engaging our people.

8 Our achievements Improved and maintained high service level Generated > 600 mil Euro on cash flow Contributed to > 15 mil Euro sustainable cost reduction through warehouse consolidation Established a solid IT infrastructure for managing the supply chain and tracking performance Reduced lead time at main supply centers with lean principles Established good talent management process and traineeship Established a solid Supply chain Masterplan for all divisions to meet their objectives Developing and implementing innovative concepts within the Pharma Industry Supplier integration Forward integration with customers Postponement concept for small countries

9 Achieved BHC Improvements for Supply chain Excellence Total savings of > 600m in Working Capital could be achieved in the past years Achieved Reductions in BHC Inventory by Main Lever Cumulated savings in m Others Forecast Accuracy / Vendor Managed Inventory Raw Material Supply Planning Parameters Lead Time Reduction Safety Stocks/Pipeline management Source: BHC Inventory Reduction Measures Tracking 2009 to 2012

10 Pipeline Risk Assessment a holistic approach in order to define balanced safety stock levels Total supply chain is analyzed in respect of demand, production, quality and raw material risks in cross-functional workshops with plant managers, logistics experts, quality experts and procurement. The individual risk of each supply chain step is derived from service level, forecast error, lead times, campaign sizes, equipment failure time, available backups, quote of rejected batches and supplier performance. Final safety stock levels along the supply chain are defined by a holistic approach: Allocation starts as close as possible to the market (sales affiliates) as safety stock in later stages of the supply chain can also be used for mitigation of risks in earlier stages. Pipeline A Pipeline B Pipeline C Pipeline D

11 Warehouses optimization ongoing Warehouses reduced by >50% ( ), >15 mio Euro cost reduction ( ) Warehouse footprint development ff

12 SC System Landscape Bayer HealthCare high level BI (Business Intelligence) Logistics Reporting Company BI SCM (Supply Chain Management) Global APO Global SNC Vendors Vendors Vendors Vendors ERP (Enterprise Resource Planning) Company ERP Holding ERP ERP / MDRS (Master Data Reference Server) Bayer Masterdata

13 In tablets and pipettes a strong decrease of Through Put Time with correlating inventory reductions are visible Average TPT in Calendar days Tablets Pipettes Throughput time Calendar days Inventory Mio , % target Tablets % target Pipettes

14 Supply Chain Talent Development Developed a SCM trainee program (recruitment twice a year for our Crop Science, HealthCare and internal consultancy organizations) Already running for 3 years (Link). Supply Chain Academy 700 FTE s attended courses in last 2 years Bi-yearly personnel conferences to talk about personnel. Topics to discuss are next career steps, training, development centers attendance, recruitment etc.. Partnership with University Eindhoven (European Supply Chain Forum, Netherlands). Master thesis students, sharing concepts with other industries. Partnership with Technical University of Berlin, University Berkeley and new programs with LATAM and ASIA in the make. Introduced short term assignments, 3-6 month in another supply center/sales affiliate to bring knowledge and to learn/understand other cultures

15 Supply Chain Academy Empowering our global SCM community along guided learning & training opportunities We invested substantially in harmonized processes and sophisticated systems, now we want to make the best use of them. 2 customized Base Modules (joint BCS/BHC) with over 700 participants since 2010, held in all regions, very competitively priced, high ratings In 2013, 13 tutor-based courses running 45 classes and 3 self-guided learning courses, addressing SC Planning (Calypso), KPIs, Business Intelligence and other SCM areas. Course portfolio continuously growing, further courses in development for 2014 launch. go/learn Distant learning courses to save travel & accommodation costs, Online material for on-demand self-guided learning, Coaching courses to address personal work environment Recommended learning paths for each SCM role along skill levels Learning portal as dedicated access point for SCM training matters Plus: Skill checks as system access prerequisite, full-text search in manuals, learning nuggets ( Micro-learning ), standardized learning material, raising training competence of inhouse subject matter experts, sharing material through community contributions

16 Our HR track record Diversity GSCM: 6 DC: 4 CC: 18 API/Pharma: 2 22 Job Rotations GSCM: 7 API/Pharma: 9 AH: 3 CC: 3 Opportunities 21 Short Term Assignments GSCM: 1 DC: 2 AH: 4 API/Pharma: 13 BT: 1 46 Promotions GSCM: 6 DC: 3 CC: 3 BT: 4 API/Pharma: 28 AH: 2

17 Sustainability: reduction of CO 2 emissions (I) Global BHC CO 2 footprint established for transportation based on 2011 data; in collaboration with Technical University Eindhoven Used model to calculation emissions (called NTM+), has advantaged above the current used CEFIC guidelines This model is reproducible, verifiable. The ease of data collection will improve year over year due to BHC s ERP consolidation program until Jan 2016 Main lever to reduce our global CO 2 emissions is to move freight from air to ocean resulting in: Transport emission reduction of 19% (= 5% of total BHC emission) Cost reduction of approx. 40% (11 million ) Inventory increase of 12,5 million (2 mil cost of capital)

18 BHC s aim is to fully integrate supplier and distributor into its supply chain DC= Distribution center

19 In 2012, two forward Integration Initiatives have been initiated Order to Cash Pilot Mexico Customer Service Optimization Define a new Bayer Customer Service Standard, optimizing operative and administrative processes BHC Synergy Realization Create synergies / efficiencies / benefits across BHC functions and thereby reduce transaction cost Collaborative Pharma Distribution hub (CPD) (wholesaler in Germany) Process Optimization Improve existing processes such as: Increased information transparency Automation of data exchange Structural Optimization Improve existing material flows such as: Transportation network Storage locations Channel Optimization Utilize wholesales capabilities to provide new and additional services

20 Project CPD identified mutually benefits that are scalable to our key customers Concepts to improve the Supply Chain performance Implemented: Aligned planning master data ( 12% less order lines) Enhance scope of EDI ( documents) Eliminated returns of unsalable goods (343 return processes in 2012) Slow mover concept (270 T inventory savings at wholesaler) New payment term resulting in eliminating time based discounts Scheduled: Automated re-ordering (implementation in Q2/2013) Recognized challenges to the BHC approach Local regulations and country-specific market setup Trading vs. Service culture (organizational change management) Trust (Affiliates and wholesalers need time to establish trustful relationships) Page 20

21 Order-To-Cash Achievements Mexico Speak the same language with our customers Fill Rate Decreased number of deliveries by 7% by consolidaton of orders and estimated potential deliveries reduction for AH in 2013 up to 50% Increased value per delivery by 12% Reduced scrapping by 1.5 Mio Eur Vs 2011 Optimized inventories by Mio Eur (24%) Vs 2011 Transparency across divisions with same KPI s at BHC level, all divisions talking the same language All BHC divisions using same reporting or system platforms (GIM, APO) Benchmarks, share best practices

22 Postponement Guatemala: Primary Packaging PUSH Postponement Concept Unspecific Blister Label Blister PULL Manual Secondary Packaging

23 Thank you! John Koelink