Supply Chain Strategy: A Downstream Focused Approach

1. Supply Chain Strategy: A Downstream Focused Approach Gordon McCartney Contact:- mccartg2@bp.com charlie@arran20.fsnet.co.uk 01698-426978 (Home) 01806-243591 (Daytime)

2. “Where there is no Vision, the people shall perish” [Proverbs 29:18]

3. "In the millennium, competition will not be between individual companies but will be between individual value systems" [Bititci and Carrie, 1998]. IFIP WG5.7 conference

4. Research Objectives • 1) To evaluate current academic thinking on Supply Chain activities and Business Strategy • 2)To establish the extent to which companies link business strategy and supply chain activities • 3) To extend the boundaries of strategy development from the individual company to the supply chain • 4) Establish if the supplier goals and responsibilities can be improved and more specific through strategic direction • 5) To establish if the supply chain contribution to value can be increased through improved connectivity between strategy and supply chain activities • 6) To provide a means for evaluating the effectiveness of the supply chain in contributing consistent value to the business • 7) To maximise the contribution of the combined knowledge and skills within a supply chain through Strategic Direction • 8)To establish a strategy development framework for Supply Chains

5. Research Questions • 1) Does current literature suggest a link between business strategy and supply chain activities? • 2) If these two elements are critical to manufacturing success why are organisations not linking the two together? • 3) What are the key elements required in a supply chain strategy development framework? • 4) Is there a framework available that can be used to develop supply chain strategy? • 5)If business strategy and supply chain activities are linked will this produce increased effectiveness in the supply chain?

6. Methodology

7. Literature Review • Business Strategy • Supply Chain Management

8. Current Frameworks SCOR Strategic View Company 1 Strategy Boundary Strategic View Company 2 Strategy Boundary Company 3 Strategy Boundary

9. Current Business Practice • Business Survey • www.iomnet.org.uk/scs_survey/scsform.htm • No framework being used (95%) • Desire to have one (78%) • Belief that supply Chain activities are linked to Co. Strategy (93%)

10. Information Gathering Stakeholder Identification Procurement Data Business Strategy Inputs Business Unit Development SWOT PEST Internal Analysis External Analysis Analysis Buyer Influence Supplier Influence Power Matrix Relationship Evaluation Relationship Components Uncertainties Trust Basis Supplier Focused Strategy Relationship Stages S.C. Structure Choice Internal Supply Chain Response External Supply Chain Response Implementation Implementation Supplier Strategy Control Measurement Kpi’S

11. Case Study Highlights • BP (Sullom Voe) • Contractor Agreements – Yes • Material Supply – No • Anti-foaming Injection • Single approach for several groups • Stores Policy

12. Case Study Highlights • TFC Cable Assemblies • (1) Approach (2) Business Units • Lean Vrs Agile • Upstream Solutions • Conclusion • Practice Does not agree with Survey Response

13. Contribution • Establishment of gap in Academic Theory • Confirmation of gap in Business Practice • Establish need within Industry • Development of “A” suitable model to bridge gap • Confirmation of suitability of framework as a practical solution

14. Supply Chain Strategy: A Downstream Focused Approach Gordon McCartney Contact:- mccartg2@bp.com charlie@arran20.fsnet.co.uk 01698-426978 (Home) 01806-243591 (Daytime)