Improve Care Delivery Performance through Supply Chain Transformation. BD Greater Asia Experience. Jimmy Khoo
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1 Improve Care Delivery Performance through Supply Chain Transformation BD Greater Asia Experience Jimmy Khoo Singapore Health Care Supply Chain Management Congress 2014
2 Agenda Introduction BD BD Asia Supply Chain Management & Landscapes Supply Chain Performance today The Transformation Fun & Discovery Journey Path forward
3 Who is BD? FORTUNE 500 company (#332); BDX - NYSE Locations in > 50 countries Nearly 30,000 associates worldwide Serves healthcare institutions, life science researchers, clinical laboratories and the general public Sells a broad range of medical supplies and services, devices, laboratory equipment and diagnostic products Gartner s Health Care Supply Chain - Top 25
4 A Picture of BD Video (3min) Helping all people live healthy lives
5 FY 2013 Revenues: $8.054B Helping all people live healthy lives By Segment: By Geography: BD Medical $4.3B BD Diagnostics $2.7B BD Biosciences $1.1B
6 Strategy and Focus Areas BD s Strategy is to Apply Technology and Clinical Knowledge to Make Healthcare More Effective, Efficient and Safe. Optimizing Patient & Healthcare Worker Safety Increasing Healthcare Access Lowering the Cost of Healthcare Delivery Improving Patient Outcome and Quality of Care
7 BD Supply Chain Management & Landscape Jimmy Khoo Singapore Health Care Supply Chain Management Congress 2014
8 What has changed over 4 years? Less Country Centric Supply chain decision making Uncoordinated Supply Chain delivery network Country Specific Sales and Inventory planning Inconsistently defined Supply chain cost elements Supply Chain Experts locate in the country More Globally Aligned Regional centric decision making Coordinated Supply Chain network simplified by RDC Regional Optimized Inventory management as outcome of S&OP Standardized cost elements - visibility and optimizations Establishment of Region COEs for & Country BP
9 Supply Chain Performance Today Jimmy Khoo Singapore Health Care Supply Chain Management Congress 2014
10 Supply Chain Performance Dashboard Customer Service Levels Line fill Rate + 5%
11 Supply Chain Performance Dashboard Operations Excellence Forecast Accuracy +4% to 5% Supply Chain Cost Down by 6% Inventory Turn +6% to 8%
12 The Transformation Journey FUN & DISCOVERY Jimmy Khoo Singapore Health Care Supply Chain Management Congress 2014
13 The Discovery Journey that is FUN! Organization capability gaps and design Regional Distribution Center Region Logistics/Procure ment SME Share Service Center Global SAP SCM Region Demand Planning COE Standardize Supply Chain Cost management Region Supply Planning COE Country SCM Business Partner Sales and Operations Planning (S&OP) Formalized Supply Chain dashboard Simplify/Rationale Country transportation planning TODAY: Next Wave Customer Centric Supply Chain
14 Benefits of Region Distribution Center Service Level = Safety Stock Lead time* Replenishment* Forecast Safety Stock Lead time Replenishment Forecast Overall Supply Chain Cost AS IS MODEL TO BE MODEL Source Receiving Country Source Receiving Country Country DC 1 Country DC 1 Europe US LT Ave 40 Days Country DC 2 Country DC 3 Country DC 4 Europe US SGP RDC LT Ave 15 Days Country DC 2 Country DC 3 Country DC 4
15 Planning Center of Excellence (COE) Efficiency Growth AS-IS To-Be Talent Countries Region Countries Region ANZ China Light S&OP Demand Consensus Finance Commitment Projections Data intensive S&OP AP demand/supply Conduit to WWBU Allocations Planning Strategy Light S&OP Demand Consensus Finance Commitment Projections Improved productivity S&OP AP demand/supply Conduit to WWBU Allocations Planning Strategy ~60% of Country Planners 90% of Country Planners ANZ China Order Fulfillment Supply Expedites Inventory Highly transactions ~40% of Country Planners X% supply from RDC Consolidation Opportunity Supply Chain Specializations RDC Order Fulfillment Supply Expedites Inventory High transactions Service Level Agreement 15
16 Customer Service Shared Service AS-IS Local Country Process Account Set up Customer Master New/change Trigger Credit Release Letter of Credit Complaints Management Customer Feedback PIR Short/Over shipment Damage Pricing Errors 90% of the CS activities are transactional Order Management Standard orders, Service agreements Backorder Order Consolidation Batch Management 10% Non Transactional 90% Transactional TO-BE Model Efficiency Country Business Partner Talent Customer Care Direct account management Distributor Management Effectiveness Customer escalations Local Legal/Regulatory compliance TO-BE Model Regional SSC Order lines/head Headcount: X Current To Be Best in class Transactional Efficiency driven E-order Multi-Lingual Multi-Time zones Align to EVEREST Growth
17 Launch of SCM Metrics Dashboard in FY13 Historical trending Good for analysis & improvement Multi measurements, Biz aggregations in ONE single view Slice & Dice capability Understand BU weightage & impact to SCM Automation Drive productivity- country & region Color Coding Better visualization of performance across biz & countries
18 FY14 Greater Asia Integrated S&OP Process Steps Week 2 Week 3 Week 4 Week +1 Week +2 Process Ctry Consensus Meeting (w/demand & Supply review) Regional Aggregation & Deck Preparation Regional Reconciliation Meeting Regional Operations Review Regional MBR Who Product Mgr Planner Analyst Regional Planners Regional Leader Ctry Market Leader FIN Analyst Regional Planner SC Director Regional Planners and Managers President Regional Leader Opn Director FIN Director FIN Analyst Ctry Leaders Process WW Demand Review WW Supply Review WW Integrated Reconciliation WW MBR Who WW Demand Manager WW Planner GAR Planner GAR Manger GAR Planner WW Planner GAR Manager WW Manager GAR Planner WW Planner Platform Leader WW Finance GAR Manager WW Leader Platform Leaders WW OPS Leaders GAR SC Leader GAR Planners
19 Path Forward Customer Centric Supply Chain 2020 Logistics Implication in Life Science Differentiated Supply Chain Direct Distribution to End Customers Geographic expansion Supply Chain Visibility Flexible Manufacturing Supply Chain Other trends to watch out Big data Internet of Things UDI (Unique Device Identification)
20 Top Corporate Contributors Recognition & Awards Healthcare Supply Chain Top 25 20
21 BD Logo and all other trademarks are property of Becton, Dickinson and Company BD 21
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