Nontraditional Supply Chains - Opportunities for APICS Chapters

Presentation Goal: Moving beyond the classic view of manufacturing supply chains (many untapped opportunities) Broadening APICS’ role / scope of influence by identifying and addressing the needs of new supply chain partners Useful tool for chapters to begin to embrace and capitalize on these changes within their regions – localized talent solving localized issues. 2

Definitions Supply Chain: The global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash. Traditional: usual, established. SYN: classic, common, regular, customary ANT: fresh, new, unusual, original, imaginative 3

Industry Trends Moving from Manufacturing to Information / Services economies Service sectors continue to increase in employment, revenue, and influence on local economies These companies tend to require fewer employees – but they must be properly trained to succeed in emerging industries 4

Examples of Non-Traditional Supply Chains Healthcare Humanitarian / Disaster Relief Social Media Entertainment / Digital Media Distribution Consulting / Education Tourism 5

Healthcare Complicated inventory usage / storage picture 6 Diagram source: Effective Demand Forecasting in the Health Care Supply Chain, (posted July 16, 2004)

Healthcare How to reduce inventory and improve efficiency in hospital supply chains? Use of 3 rd party logistics services that deliver pre- packaged surgery units directly to point of use. Sterilized tools prepared specifically for each patient’s procedure and delivered to eliminate storage and handling before use. 7

Healthcare 8 Traditional Supply Chain Revised Supply Chain Diagram Source: Cardinal Health “ValueLink”, cardinalhealth.com

Humanitarian / Disaster Relief Consider the planning and logistical activities to respond to natural disasters Demand determination – what is needed (food, water, sanitation equipment, medical personnel, etc.) Supply chain coordination – getting donors of resources to communicate and act in unison Logistics concerns – how to physically transport goods into an environment that often has unstable and dynamically changing infrastructure

Humanitarian / Disaster Relief Sample Supply Chain Interactions Diagram Source: Humanitarian and Disaster Relief Supply Chain: A Matter of Life and Death, Journal of Supply Chain Management (Vol. 48, Issue 2, April 2012)

Humanitarian / Disaster Relief Capabilities Mapping: Diagram Source: Humanitarian and Disaster Relief Supply Chain: A Matter of Life and Death, Journal of Supply Chain Management (Vol. 48, Issue 2, April 2012)

Social Media / Direct Marketing How is information collected and distributed? No longer a one-directional marketing effort Use of social media (LinkedIn, Twitter, Facebook, etc.) as tools to communicate with customers 12 Diagram source: Rohan’s B2B Marketing Blog: chain-has-now-become-the-demand-chain/

Entertainment / Digital Media Distribution Television programs, movies and music are now commonly leased instead of purchased. Distributed electronically without physical medium required. 13 Diagram Source: The Emerging Video Internet Ecosystem (v0.9) EARLY DRAFT

Consulting / Education How to get the right consultant with the proper skills in front of client? Forecasting demand of certain skills Developing programs to enhance training skills / offerings Marketing skillsets to broadening scope of clients Logistics planning to handle travel issues (flights, rental cars, lodging, dining, etc.) Granting degrees / certifications 14

Travel / Tourism 15

Travel / Tourism Consider the vast range of suppliers involved in the provision and consumption of tourism products 16 Diagram Source: “Tourism Supply Chain Management: A New Research Agenda”, Tourism Management, Vol. 30 Issue 3, June 2009

Travel / Tourism 17

Unfulfilled Market Needs Currently APICS is reviewing / rebranding its role as a mostly untapped global supply chain resource Few nationally recognized organizations have the administrative support to develop and local talent to deliver education on these modern topics An opportunity for both local and executive teams to work together to quickly fill this void and be on the forefront vs. follower / catch-up 18

Chapter Benefits Increased membership by reaching out to new industries that were not commonly represented Increased value to members as APICS fills the leadership role for modern supply chain education and execution Increased revenues in membership dues and an expanded opportunity for stand-alone / single-day presentations that are regionally focused 19

Questions & Answers 20

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