Brainport Industries Towards the smartest supply chain

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1 Brainport Industries Towards the smartest supply chain John Blankendaal Managing Director

2 80 Members (turnover 2 bln, fte) 2

3 Brainport Industries provides a supply base for high tech 3 SEMICON MEDICAL ANALYTICAL PRINTING PHOTO VOLTAIC high mix low volume high complexity

4 Based in Eindhoven: home of the high tech supply chain 4 5 OEM s in the Netherlands 80% of OEM s in Eindhoven region FEI, DAF, Philips & ASML Océ just outside Brainport region 14 First tier suppliers 71% in Eindhoven region Bosch Rexroth, Frencken, GIS Europe, GL Group, KMWE, Neways Electronics, Norma, NTS Group, Optiwa, VanBerlo, Prodrive, SKF, VDL ETG, Wilvo 320 Second and third tier suppliers 34% in Eindhoven region

5 ASML: the world's leading provider of lithography systems for the semiconductor industry. 5

6 FEI Company: a premier provider of the highest resolution electron and ion-beam microscopes and tools for nanoscale applications across many industries like industrial and academic materials research, life sciences and semiconductors. 6

7 7 Philips Healthcare: Market leader in intelligent medical technology e.g. Imaging Systems, Home Healthcare Solutions, Clinical Care Systems, Healthcare Informatics. Sioux Group

8 Océ / Canon: One of the worlds largest suppliers of document management and printing for professionals. 8

9 A unique ecosystem in de world 9 Advanced High Tech Systems Integrate Mechatronics, Mechanics, Optics, Physics, Electronics, Software, Mathematics, Chemistry, Design Create nanoscale structures See at Atomic / Angstrom level Create, innovate, develop Supply modules, assemblies, systems and solutions Global sourcing Public and private finance for all stages available Strong government and knowledge Institutes

10 The high tech world is changing 10 World wide competition Increasing complexity Flexibility and agility demanded Shorter product life cycles Upfront investment for new product development grows Pool of technical talent shrinks Cost price pressure Higher quality levels required

11 Increasing competition 11

12 Increasing competion 12

13 High Tech Systems Industry 13 Global competition in the OEM markets: Speed of innovation (time to market and time to money) Continuous improvement price in relation to output Performance improvement Development of new features and functions Total cost price reduction OEM s can t beat competition on their own! Focus on core competences Innovation in the supply chain

14 Changing supply chains 1980: OEM VALUE CHAIN Subcontracting of component production only with different suppliers Research & Development 2. Design & Engineering 3. Prototyping & Industrialization 4. Component production 5. System integration 6. Sales & Service

15 Changing Supply Chains 2000: OUTSOURCING PART OF THE VALUE CHAIN Outsourcing core processes including Process Development Outsourcing support processes like Supply Chain Management, Sourcing and Life Cycle Management Process Development 1. Research & Development 2. Design & Engineering 3. Prototyping & Industrialization 4. Component production 5. System integration 6. Sales & Service Supply Chain Management Sourcing & Life Cycle Mngt. Sub-Assemblies Components

16 Brainport Industries connects all 2020: OPEN SUPPLY CHAIN OEM transform to lean companies Business Model Development, Financing & Funding Quality Assurance Project Management & Staffing Process Development 1. Research & Development 2. Design & Engineering 3. Prototyping & Industrialization 4. Component production 5. System integration 6. Sales & Service 1 st Tier Supply Chain Management Sourcing & Life Cycle Management Systems 2 nd Tier Sub-Assemblies 3 rd Tier Components

17 Innovation organisation 17 Past decade Current situation Next decade Centralized inwardlooking innovation Externally focused, Collaborative innovation Ecosystem centric, Cross-organizational innovation Closed innovation Open innovation Innovation Networks

18 Entrepreneurial collaboration 18 From traditional outsourcing to entrepreneurial collaboration Traditional Large pool of suppliers Late involvement of suppliers Limited responsibilities Hierarchical: your wish is our command approach and attitude OEM Power to the OEM Suppliers relying on craftmanship Entrepreneurial Early and profound involvement of limited set of key suppliers Extensive sharing of knowledge Risk reward sharing Collaboration based on mutual equivalence Opportunities for re-use of knowledge and building IP Suppliers specialising and leading in key technologies and business modelling

19 Brainport Industries designs, develops & manufactures, leading ADVANCED, PRECISE, and INTELLIGENT high tech equipment 19

20 Brainport Industries Open Supply Chain 20

21 Mission 21 Boost the competitiveness and innovation strength of the supply chain Theme's: People, Market and Technology To develop and implement concrete activities Member companies can move up to the top in their market.

22 Addlab (shared 3D metal print facility) 22 KMWE NTS-Group Frencken Europe Machinefabriek De Valk FMI MTA Philips Innovation Services De Lage Landen

23 Philips pathology scanner 23 Philips: Worlds most fastest patthology scanner. CCM, Frencken, Prodrive, Van Berlo

24 Phenom World 24 15

25 MuTracx: a Océ spin-off 25 MuTracx: Worlds most reliable PCB inner-layer production printer based on inkjet technology. 3T, CCM, NBG, NTS, Océ, Sioux, TMC, Halin

26 Solaytec: a TNO spin-off 26 Solaytec: The best layer quality for fast atomic layer depositioning equipment for solar industries. Bronkhorst, Frencken, Lamers, NTS, Sioux, TNO, VanBerlo

27 Macawi: A Dräger spin-out 27

28 Charles Darwin 28 It is not the strongest nor the most intelligent of the species that survives but the one that is the most adaptable to change. Proudly stolen of the Origin of Species, 1859

29 Thank you for your attention! 29

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