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Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

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Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world Keith Newton International Secretary General Chartered Institute of Logistics and Transport Mauritius November 2015
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Page 1: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Keith NewtonInternational Secretary GeneralChartered Institute of Logistics and Transport

Mauritius November 2015

Page 2: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

My Personal Leadership Journey

Supply Chain career: 1978 to 2012Food Manufacturing with United Biscuits, HJ Heinz, Cadbury / KraftLogistics, Manufacturing & Customer Service rolesGlobal responsibility for Logistics Best Practice in Cadbury Schweppes 2000 - 2005Supply Chain Director roles in Ireland, UK & Ireland, Nordics from 2005 to 2012

CILT experience:Member for 31 years – now FellowInternational Secretary General role from April 2012Role is to enable growth and success globally

Page 3: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

The Chartered Institute of Logistics and Transport is the leading professional body for individuals and organisations involved directly and indirectly in transport, logistics and supply chain management

Page 4: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Result

Page 5: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Countries in the CILT World

Page 6: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Who’s Who in the SecretariatKeith Newton - Secretary GeneralJon Harris - Professional Development Co-ordinatorCeri Williams – Communications & Administration CoordinatorZoe Roberts - Education Administrator

Keith - strategy, management of CILTI, working with key committees, Council of Trustees, profile, relationship management with Branches and Territorial OrganisationsJon & Zoe - education and professional development strategy, IESC, accreditation, training providers, student and employer enquiries, quality control, process improvement, resource developmentCeri - overall support, Committee management and communications, website updates, event, contact listings etc.

Page 7: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Result

Page 8: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

New Website• In 2015 a new website has been designed,

developed and implemented to:– Effectively communicate our Brand and our values– Reinforce our role as a people based organisation– Promote an environment for interaction with our members

and the wider public– Allow for news, stories and fast moving content to create a

more dynamic platform– Showcase our members and their stories– Share knowledge and information

Page 9: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Result

Page 10: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Result

Page 11: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Social Media

• Work in progress to consider and define CILT social media strategy comprising:– Consideration of International / branch structure– Consideration of relevant media – Effective use of social media within resource

limitations– Type, level and frequency of communications by

media and by international / branch– Identification of measures of success

Page 12: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Mauritius November 2015

Page 13: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Global Risks and Challenges• What are they?

• How do they impact you and our business?

• How do you respond?

• Will you need to respond any differently in 5 years time?

Page 14: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Discuss!

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Page 15: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Growing Importance of Logistics and Transport as Global enablers of success

Globalization and personalization is re-defining supply chain and logistics model

Efficiency and creativity in our sector is critical to raising living standards

Innovation determines new breed of winners and survivors

Our industry is incredibly diverse

Education and professional training will help to boost capability for growth

Our core value is our commitment to promote and share professional best practices

Page 16: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Ed Sweeney – Professor of Logistics at Aston University – started a recent Linked in debate on “Mega Trends that are

likely to shape Logistics over the next few years”

Demand Planning & Forecasting3D Printing Use of UAV’s (drones) for shipping cargoes

India & China mass consumerisation Private / NGO’s tie up2nd Tier countries to BRICS – Mexico, Nigeria Near ShoringStrategic Supply Chain Risk Management Holistic management in SC

Social & Environment orientation in SCGrowing Marketing & Logistics links Waves of CollaborationDisintermediation & disruptive technology

Commodisation of Water

Page 17: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

17 © [email protected]

Supply Chains become Global - outsourcing, offshoring; low cost country sourcing- international trade across multiple jurisdictions

Global Supply Chain Ecosystems

Page 18: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

18 © [email protected]

Supply Chains become Complex- Multiple Different Participants- Positional Power: Customer – Supplier - Competitor

Page 19: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

19 © [email protected]

Supply Chains become Strategic - in the Board Room, on the Agenda, at the Table- Chief Supply Chain Officer

Growth EnablerBusiness Driver

Page 20: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Omni Channel, Multi Channel, Consumer Focused Supply Chain!

Page 21: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

“In the US E Commerce is the just the Dessert…. In China it’s the Main course”

Jack Ma, Alibaba

Page 22: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

What about the risks & challenges in your worlds?

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Page 23: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Discuss!

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Page 24: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

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Fire Flood and Other Disasters....

Overview of incidents:-

June 2005Fire at our Pontefract Factory- Cost still in litigation- Popcorn brand [Butterkist] off shelves for 4 months

June 2006Start of major Food Safety incident- 7 chocolate brands recalled- £20M cost- Loss of 1% market share

June 2007Flood at our Sheffield factory- 30 products off sale- 4 months of major service impact- £20M cost

Page 25: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

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Sheffield Flood…..In-depth Focus!

The UK Customer Service Centre

The entrance to the Gums & Jellies plant

Remember to wash your hands!

The main access road to the site

Goods Out – from Gums & Jellies

Wrapping capability hit in Jelly Babies

Page 26: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

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Sheffield Flood….The Aftermath

Starch Moulding Trays Contaminated

Our Export Warehouse

Finished Goods!

Scale of clean up

What was left floating

Page 27: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Mauritius November 2015

Page 28: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

How do we respond?

Let’s keep it simple!

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Page 29: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

“If you don’t know the guy on the other side of the world, love him

anyway because he is just like you. He has the same dreams, the same hopes and fears. It’s one world, pal.

We’re all neighbours.”

Page 30: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

My 3 Key Focus Areas

Customers

Your People

Your Processes and Systems

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Page 31: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Start by repositioning Customer Service….

“Customers want to deal with organisations they can trust to keep their promises. The organisations who will achieve long term success are those that put the customer at the heart of their strategy and operation”

• At Heart of Strategy = Supply Chain led• At Heart of Operation = Every Individual knows

their role

Page 32: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

The Basics: Communication• Flexible Product Availability• Clear, honest and effective points of contact• Operational review process

What Experience do your customers want from you?Based on understanding your ‘’Value Proposition’’

Our customers’ 3key commercial goals

GROWTH

CASH

COSTS

To Maximise Value: Engagement• Efficient portfolio• Cost effective replenishment process• Minimal stock in system• Strategic review process

Customer Service Innovation: Connect• How to make their Supply Chains more effective• Tailored solutions• T2T review process

‘’To win with your customers you need to align there requirements with your own’’

Page 33: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Our companies 3Commercial goals

GROWTH

CASH

COSTS

To Maximise Value: Engagement• Reduce costs in the SC• Drive OSA• Minimal stock in system• Strategic review process

The Basics: Communication• Product Available in store• CPFR Process• Right First Time NPD Execution• Operational review process

Customer Service Innovation: Connect• How to make Supply Chains more effective• Tailored solutions• T2T review process

‘’Surprisingly your customers needs are very similar to your own, Understanding this allows you to align plans’’

What do you want from your customers?

Page 34: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

How do we respond?

Your People

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Page 35: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Your People• Be a Leader - take responsibility• Be a Leader - set the example• Be a Leader - serve your team

• Teamwork wins - create a strong team• Teamwork wins – recognise your limitations• Teamwork wins – give them time & trust

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Page 36: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Your People• Communicate – communicate, communicate• Communicate – invest in time• Communicate – face to face

• Create plans & set goals - Plan on a page• Create plans & set goals – Stretching goals• Create plans & set goals – Track & monitor

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Page 37: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

First Choice for Transport & Supply Chain Professionals

To be the leading Professional Individual Member Organisation for all in Supply Chain, Logistics and Transport

cGROWTH CAPABILITY GOVERNANCE

“Creating & Championing the programmes for growth

in countries and regions”

“Service Provision in Education, Membership &

Resources”

“Guardianship of the Charter & Leadership of the

Profession”

Priorities

Plan on a Page – CILT Strategy set in 2012

Page 38: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

What about you and ……

Your People?

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Page 39: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

How do we respond?

Process & Systems

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Page 40: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Process & Systems• Process first – write them down• Process first – implement & audit• Process first – continuously improve

• Integrated Systems – business is best• Integrated Systems – simple is best• Integrated Systems – users lead, IT follow

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Page 41: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

What about you and ……

Process & Systems?

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Page 42: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Keep it simple by understanding the complex but focusing on the important

Customers

Your People

Your Processes and Systems

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Page 43: Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Global Risks & Challenges in Logistics: Simple ways to succeed in a complex world

Keith NewtonInternational Secretary GeneralChartered Institute of Logistics and Transport

Mauritius November 2015


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