1. 1 Towards an integrated supply network Brainport Industries John Blankendaal Managing Director Brainport Industries

2. 2 Industrie 1.0…

3. 3 Industrie 2.0…

4. 4 Industrie 3.0…

5. 5 Industry 4.0…? Volume Complexity CD players Mobile phone s Cars Trucks Hightech Equipment Airplanes

6. 6 6 This high-tech world is changing … 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 6 Market share US: 2009: 50%, 2013: 2% Global market share: 2007: 50%, 2013: 3%

7. 7 The answer is to be found in the supply chain Value chains compete instead of individual companies Supply chain is designed to outsource non-core activities or functionalities Cooperation within high intelligent networks is the model for the future The supply chain opens itself and takes more responsibility Source: ASML Sustainability Report 2009

8. 8 8 Classic way of outsourcing 1. Research & Development 3. Prototyping & Industrialization 4. Component production 5. System integration 6. Sales & Service 2. Design & Engineering 1980: OEM VALUE CHAIN Subcontracting of component production only with different suppliers

9. 9 9 Recent development in outsourcing 1. Research & Development 4. Component production 6. Sales & Service 2. Design & Engineering 3. Prototyping & Industrialization 5. System integration Process Development Sub-Assemblies Components Supply Chain Management Sourcing & Life Cycle Mngt. 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

10. 10 The near future of outsourcing 1 st Tier 1. Research & Development 3. Prototyping & Industrialization 4. Component production 5. System integration 6. Sales & Service Sub-Assemblies Components Systems 2 nd Tier 3 rd Tier 2. Design & Engineering Process Development Project Management & Staffing Quality Assurance Business Model Development, Financing & Funding Sourcing & Life Cycle Management Supply Chain Management 2020: OPEN SUPPLY CHAIN OEM transform to lean companies

11. 11 Suppliers teamed up to create… Cooperative of 85 high tech suppliers working together to boost their competitive and innovative power by the development and execution of concrete activities on the themes people, business and technology, so the members can grow to the top of their markets.

12. 12 93 Members (turnover € 2 billion, 9000 fte)

13. 13 Market focus of Brainport Industries PHOTO VOLTAICPRINTINGANALYTICALMEDICALSEMICON High mix, low volume, high complexity

14. 14 Brainport Industries

15. 15 Charles Darwin Proudly stolen from the Origin of Species, 1859 It is not the strongest nor the most intelligent of the species that survives but the one that is the most adaptable to change.

16. 16 Smart Industry Early supplier involvement Working with OEM’s in joint development teams Sharing CAD systems Model based engineering Using PLM systems in life cycle Sustaining engineering during life cycle Full transparency in the chain Suppliers working together in pre competitive projects

17. 17 Addlab (shared metal print facility) KMWE NTS Group Frencken Europe Machinefabriek De Valk FMI MTA Philips Innovation Services De Lage Landen

18. 18 34 Thank you for your attention