Supply Network Shannon Maurice Mc Lernon Chairman

S UPPLY N ETWORK S HANNON An Industry-led initiative aimed at Representing, Promoting, Developing and Connecting Together Sub-Supply companies in the Shannon Region

Electromechanical Assembly / Box Build Electronic Component / Cable Assembly Finishing / Coating / Plating General Engineering / Fabrication Packaging / Containers / Boxes / Labels Plastic Moulding Precision Engineering / Toolmaking PCB Design / Manufacture / Assembly Other Activities S UPPLY N ETWORK S HANNON - Operating Sectors

GALWAY CORK DUBLIN LIMERICK BELFAST TRALEE ENNIS LIMERICK NENAGH BIRR SHANNON Limerick City Raheen Shannon Ind. Est. Smithstown Ind. Est. Over 80 Engineering & Electronics Sub-Supply Companies in the Region Sector Now Employing Over 4000 S UPPLY N ETWORK S HANNON - Industry Profile Turnover in excess of €200m Limited Export Activity Nationally or Internationally from Region Large Multinationals located in the Region Competitive threats from economic downturn and low labour cost regions

To Establish the Shannon Region As THE World Class Source of Sub-Supply Products and Services in Europe S UPPLY N ETWORK S HANNON - Objective By Representing, Promoting, Developing and Connecting Together Sub-Supply companies in the Shannon Region

Shannon Sub-Supply Sector Steering Committee - Meets Monthly Sub-committees Marketing - Branding and Image - Networking Events/Seminars/Plant Tours - Joint Exhibitions/Trade Shows - Joint Advertising/Direct Mail Training - Joint Training Activities Supply Chain - Cluster of complementary companies - Shared resources -National/European Funding S UPPLY N ETWORK S HANNON - Structure

Networking directly results in identifying business opportunities Effective Marketing Activities - Exhibitions/Advertising/Direct Mail Improved Purchasing Power resulting in reduced material costs Joint Staff Training Activities Shared resources – Marketing, Quality, IT Access to National/European Funding S UPPLY N ETWORK S HANNON - Benefits of networking

The benefits of using a network Using a network allows a company to focus on its core activity Effective supply chain management of your product Improved Purchasing Power resulting in reduced material costs Reduction of cycle time of development thru production Increased quality assurance as all companies in the network fully understand the requirements of the product Increase in profits for our customers

SME’S IN THE REGION 5%ADMIN 5% SALES 90% MANUFACTURING

Future SME’s in the Region 5% ADMIN 90% SALES 5% PRODUCTION

THE PROBLEM THE COMPANIES ARE RUN BY PRODUCTION PERSONELL THE COMPANIES ARE NOT FOCUSED ON CHANGE I.T. IS MORE OF A PROBLEM THAN A HELP

THE ANSWER REVIEW THE COMPANIES THAT ARE CHANGING. IDENTIFY WHAT SUCCESS THEY ARE HAVING AND WHY?. PUT A PROGRAM IN PLACE TO ALLOW THE SME’S TO BENEFIT FROM THE EXPERINCE TO DATE.

PIT FALLS THE MANAGEMENT MAY NOT BE ADAPTABLE THE COMPANY MAY NOT BE ABLE TO CHANGE THE STAFF REQUIRED WILL NOT BE THE SAME AS PRESENT THERE WILL BE A HIGH PRESENTAGE OF FALLOUT

Networking activities & plant tours/seminars – excellent feedback Joint Training works well Joint Marketing works well but difficult to coordinate Joint Purchasing – Very difficult to coordinate Passive website and electronic newsletters – no feedback Shared resources – Marketing, Quality, IT – early stages Clustering – Mixed results S UPPLY N ETWORK S HANNON - What works & what doesn’t

THE UP SIDE THE MID WEST COULD BECOME THE LEADING PROVIDER OF SUPPLY CHAIN MANAGEMENT IN EUROPE THE UNIVERSITY COULD PROVIDE HIGH CALIBRE PEOPLE FOR THE SYSTEM INDUSTRY WILL BE TRANSFORMED.