Embracing global perspectives for a sustainable transformation

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1 COLOMBO INTERNATIONAL MARITIME CONFERENCE Embracing global perspectives for a sustainable transformation Professor Terrence Perera Assistant Dean (Portfolio & Partnerships) Logistics & Supply Chain Management Research and Group

2 In next 45 mins... Global Challenges and Strategies Global Perspectives Way Forward Sheffield Hallam University

3 Global Challenges & Strategies

4 Supply Chain Management and Logistics Supply chains connect businesses and form very complex structures Logistics run supply chains (Logistics is more than transportation) Supply chain management aims to achieve the highest possible customer satisfaction whilst maximising profits

5 Global Challenges (1/2) Network economy - from independent players to vertical/horizontal collaborations Cost pressures - ever growing price competitiveness Talent shortfalls - skills shortages in all areas - from operational to strategic Volatility - Turbulences in both demand and supply sides

6 Global Challenges (2/2) Sustainability - Greening supply chains High risks and disruptions - Across supply chains - environmental, political... New technology - Maximising business benefits

7 Strategies Talent Development Rapid Decision Making Governance Process Standards Integrated Planning Technology Investments Integration Collaboration PEOPLE PROCESS TECHNOLOGY NETWORK Talent shortfalls Volatility Cost pressures High risks and disruptions Sustainability New Technology Network Economy

8 Global Perspectives - People

9 Global Perspectives - People

10 University Graduates Sri Lankan students are learning more than ever at the country s universities. However, when they enter the job market, whether the government or the private sector, their knowledge is most often limited to theoretical knowledge they learn in their texts. In contrast, the job market now seeks a more versatile graduate...

11 Qualifications & Credit Framework

12 Apprenticeships An Apprenticeship is a paid job with training, leading to a package of qualifications which relate to the job Has created 2.2 million apprenticeships since 2010 apprenticeships to be given equal legal treatment as degrees commitment to create 3 million apprenticeships by 2020 will be enshrined in law public sector bodies will be set targets to help reach 3 million

13 Apprenticeship Scheme UK Government funds apprenticeship scheme in collaboration with industry via the National Apprentice Service Age up to 100% up to 50% National Apprenticeship Service contribution 25 + Contribution for specified places

14 Industry Partners

15 Trailblazers Trailblazers are led by large and small employers. They are leading the way in developing new Apprenticeship standards and assessment approaches for key occupations in their sectors Over 400 employers are involved in the Trailblazers so far. They are building on what already exists to ensure that professionalism and quality in training are the primary focus Aerospace Automotive Digital Industries Electrotechnical Energy & Utilities Financial Services Food and Drink Manufacturing Life &Industrial Sciences

16 Benefits

17 Knowledge Transfer Partnership (KTP) Designed for fresh graduates Focusing on a challenging problem which requires an innovative solution Typically, a 2 year long programme Partly funded by the UK government (up to 60%) Succesfully running over two decades!

18 Fosters Bakery - Transforming Business Operations Challenge Loosing competitiveness as costs were rising and losing customers Projects Mapped end-to-end operations across the supply chain Applied lean principles and re-designed business processes Implemented SAP One solution Results High-skilled graduate Improved customer confidence Profit growth

19 Sector Skills Councils

20 Global Perspectives - Process

21 Business Process - Needlessly Complex?

22 Supply Chain Operational Reference (SCOR) Model Understanding how businesses operate is a pre-requisite to any process improvement efforts Different businesses use their own languages to describe business operations making connectivity difficult SCOR provides a simple framework to describe supply chain operations and improve performance

23 Supplier processes SCOR Key Building Blocks Source Return Supply Chain Plan Make Deliver Return Customer processes Process, arrow indicates material flow direction Process, no material flow Information flow

24 End-to-End Supply Chain Modelling Plan Deliver Source Plan Make Deliver Source Make Deliver Source Plan Make Deliver Source Return Return Return Return Return Return Return Return Suppliers Supplier Supplier Internal or External Your Company Customer Internal or External Customers Customer

25 SCOR Framework SCOR brings together three well known methodologies, Business Process Re- Engineering, Benchmarking and Best Practices Analysis SCOR

26 SCOR Hierarchy Level 1 Level 2 Level 3 Level 4 Level 5 Scope Configuration Activity Workflow Transactions S Source S1 Source Stocked Product S1.2 Receive Product EDI XML Differentiates Business Differentiates Complexity Names Tasks Sequences Steps Links Transactions Defines Scope Differentiates Capabilities Links, Metrics, Tasks and Practices Job Details Details of Automation Framework Language Framework Language Framework Language Industry or Company Language Technology Specific Language Standard SCOR practices Company/Industry definitions

27 Internal Customer Performance Attributes Attribute Reliability (RL) Strategy Consistently getting the orders right, product meets quality requirements Responsiveness (RS) Agility (AG) Cost (CO) The consistent speed of providing products/services to customers The ability to respond to changes in the market (external influences) The cost associated with managing and operating the supply chain Assets (AM) The effectiveness in managing the supply chain s assets in support of fulfillment

28 Example

29 Benefits of SCOR Provides a structured approach and practical methodology for supply chain process improvements Provides a common language to share operational views, and communicate changes or definitions of processes Provide a set of common, easy to understand terminology, process building blocks with definitions and performance metrics SCOR offers companies insights and suggestions on best practices to build a project portfolio for improvement

30 Supply Chain Simulation & Optimisation Spreadsheet models cannot capture complexities of supply chains Simulation is the only credible alternative which enables companies to assess the impact of structural and policy changes A new generation of supply chain simulation and optimisation tools fuelling wider deployment - programming free simulation! Built-in optimisation for produce cost-efficient solutions Built-in Geographical Information System (GIS) for realistic animation

31 Supply Chain Simulation & Optimisation Spreadsheet models cannot capture complexities of supply chains Simulation is the only credible alternative which enables companies to assess the impact of structural and policy changes A new generation of supply chain simulation and optimisation tools fuelling wider deployment - programming free simulation! Built-in optimisation for produce cost-efficient solutions Built-in Geographical Information System (GIS) for realistic animation

32 Supply Chain Simulation & Optimisation

33 Port Operations Simulation Bottleneck elimination - Efficiency Improvements - Optimal Resources

34 Global Perspectives - Technology

35 Supply Chains generates large volumes of data

36 Big Data Analytics Velocity Simulations Statistics Variety Big Data Econometrics Volume Optimisation

37 Benefits Improved Decision Making Better Customer & Supplier Relationships Big Data Analytics Future Insights Optimised Supply Chain Performance Quicker Reaction to Changes

38 Global Perspectives - Network

39 Collaboration for Competitive Advantage

40 Way Forward

41 First National Level National framework - Sector Skill Council? Government + Industry? Talent Development - Government supported schemes (Apprentices, KTP...) Single Voice - Working together (Professional Institutes, Trade Associations, Education Institutes, Businesses...) Infrastructure Development - Coordinated, evidence-based,...

42 First Businesses Talent Development - Tailored development plans, exposure to best practices/new technologies Discover processes and dynamics - SCOR modelling, simulation, optimisation Become efficient & consistent - Value stream mapping, Lean, six-sigma... Embrace Technology - IT systems with high level integration capabilities Improve visibility across supply chain - Integration, Collaboration...

43 Sheffield Hallam University (SHU)

44 The City of Sheffield Britain s 5th largest city Population of over 530,000 Home to two universities (45,000 students!) Student friendly and low cost of living

45 Sheffield Hallam University Nearly 35,000 students (Undergraduate 24,000 +) International Students from over 100 countries Over 3,000 academic, technical and admin staff Nearly 500+ undergraduate and postgraduate taught programmes Two campuses Four Faculties

46 Why Sheffield Hallam? Industry Advisory Boards assist course design and operation Industry led research programmes Largest provider of sandwich courses Sector specific courses Built-in vendor qualifications Accredited by professional bodies Working with industry and professional bodies to enhance the employability of our graduates

47 First university in the UK to... Develop Railway Engineering & Food Engineering degree programmes in collaboration with industry Become the only SAP Centre of Excellence in the UK Integrate SAP and SupplyChainGuru into masters provision in Logistics and Supply Chain Management

48 Sheffield Hallam University in Sri Lanka Working with universities/industry over 20 years Partnership with SLIIT - 10 th Anniversary in 2016 SHU MSc Logistics & Supply Chain Management at SLIIT Extending research collaborations

49 MSc Logistics & Supply Chain Management Developed by academics with extensive research and consultancy experiences, the course covers Strategies Management Technology Systems

50 Course Content Finance and marketing Project and quality management Strategic sourcing and procurement Lean operations and six sigma Supply chain modelling and simulation Global supply chain and manufacturing strategy Warehouse systems and transportation Logistics and enterprise information systems MSc project and dissertation

51 Thank You

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