MANUFACTURING ADVISORY SERVICE
Intelligent Cities Conference 2014
Manufacturing and Collaborative Supply Chains
Don McCombe.
AGENDA
• Who are MAS?
• English Manufacturing
• Manufacturing in Bradford
• Investment in Manufacturing in Bradford
• Re-shoring
• Bradford “Producer City”
• Supply Chain Collaboration
WHO ARE MAS?
Manufacturing Advisory Service:-
•
Only works with Manufacturing
•
90 advisors within England
•
99% of advisors are from
Manufacturing Industry.
•
90% of work with SME’s
MAS UK INFORMATION
•
MAS core work is to improve
manufacturing in England and
promote growth
•
Also run “GROW” (off shore
wind within Humber estuary)
•
Partnership with UKTI on
“Re-Shore” bringing
manufacturing back to UK
•
Local Opt in from LEP to work on
“Supply chains”
•
Working Partner on Bradford
Council “Producer City”
•
Matched funding available for
eligible companies and projects
AGENDA
• Who are MAS?
• English Manufacturing
• Manufacturing in Bradford
• Investment in Manufacturing in Bradford
• Re-shoring
• Bradford “Producer City”
• Supply Chain Collaboration
MAS ENGLAND MANUFACTURER DATA
90,000
8,000
Number of manufacturers in
business in the UK known to MAS
Number of projects undertaken
by MAS since Jan 2012
22,000
Number jobs created from
projects sponsored by MAS
56,000
Number of jobs safeguarded by
MAS following intervention.
2,500
New Apprentice roles created
since 2012
AGENDA
• Who are MAS?
• English Manufacturing
• Manufacturing in Bradford
• Investment in Manufacturing in Bradford
• Re-shoring
• Bradford “Producer City”
• Supply Chain Collaboration
MAS BRADFORD DATA
911
120
Number of projects undertaken
by MAS since Jan 2012 in BRADFORD
Number of manufacturers in
BRADFORD known to MAS
397
Number jobs created in BRADFORD
from projects sponsored by MAS
1,350
Number of jobs safeguarded in
BRADFORD following MAS intervention.
38
New Apprentice roles created
since 2012 in BRADFORD
AGENDA
• Who are MAS?
• English Manufacturing
• Manufacturing in Bradford
• Investment in Manufacturing in Bradford
• Re-shoring
• Bradford “Producer City”
• Supply Chain Collaboration
LEEDS CITY RGF GRANTS TO BRADFORD
£4.89M
233
Number of businesses in
BRADFORD enquired to LCRGF
Value of Grants awarded to BRADFORD
730
Number jobs created in BRADFORD
from grants awarded by LCRGF
80%
Of all awards within BRADFORD goes
to the manufacturing sector.
£34.6M
Matched Private investment in
BRADFORD
AGENDA
• Who are MAS?
• English Manufacturing
• Manufacturing in Bradford
• Investment in Manufacturing in Bradford
• Re-shoring
• Bradford “Producer City”
• Supply Chain Collaboration
RESHORE UK
• Jan 2014: Prime Minister announces new Re-shoreUK service
• Collaboration between MAS and UK Trade & Investment (UKTI)
• ‘one stop shop’ service to take advantage of business opportunities
created by re-shoring:
•
expert strategic and technical advice
• help to develop the business case for
reshoring
• visibility of high-value supply chain
opportunities
• access to funding to support your goals
RE-SHORE UK / SUPPLY CHAIN
• Jul-Sep 2013 MAS Barometer identified:
AGENDA
• Who are MAS?
• English Manufacturing
• Manufacturing in Bradford
• Investment in Manufacturing in Bradford
• Re-shoring
• Bradford “Producer City”
• Supply Chain Collaboration
BRADFORD PRODUCER CITY
• Bradford MDC commissioned a report looking at the future of Advanced
Engineering & Materials (AE&M) in Bradford.
• Highlights from Report show that:– Bradford has a higher proportion of it’s workforce in the AE&M sector than other
regions in the area around Leeds, and is one of the most active AE&M UK regions.
– There is chronic under-investment in plant & equipment by Bradford AE&M
companies
– There is also under investment in R&D and in new products by the Bradford AE&M
companies
– Bradford has a large resource of people with AE&M skills and sufficient to allow for
significant growth
Source; AE&M sector report Lamberhurst corporation
BRADFORD PRODUCER CITY
• The final report identified some key areas of recommendations that will be
required to continue the manufacturing growth in Bradford
• From the key areas of concern the following projects have been adopted: Establish an Advanced Materials and R&D Manufacturing Centre
 Investment in New Product development
 Export Support for Manufacturers
 Industrial Automation and Robotics
 Sector Business Collaboration Networks
 Manufacturing Supply Chain Initiative
The last three of these key areas fall within MAS core skills
AGENDA
• Who are MAS?
• English Manufacturing
• Manufacturing in Bradford
• Investment in Manufacturing in Bradford
• Re-shoring
• Bradford “Producer City”
• Supply Chain Collaboration
SUPPLY CHAIN
• When we think of Supply Chain many may agree that it is
viewed from a hierarchical point of view following the links in
a chain:-
• Whilst we are continuing the initiative to “Re-Shore” suitable
manufacturing, in order to stay competitive we need to address the
dated issues of traditional supply chain constraint and remove the
problem that the supply chain is only as strong as the weakest link.
• Many companies spend many man hours and labour cost on
‘Vendor Management’ and ‘key supplier performance,’ whilst this
cannot be all wrong perhaps we could look to a step change?
MOVE FROM A SUPPLY “CHAIN” TO A SUPPLY “COMMUNITY”
Move from
supply “chain”
to a
supply “community”
SUPPLY CHAIN COLLABORATION
•
From our work with Re-shore and Supply Chain
across the region it is becoming more apparent that
Tenders and big business can be won by SME
companies that collaborate together and work in
partnership to meet the clients needs.
•
This is no easy feat though,
•
Communication is of paramount importance but the
rewards can be tremendous.
•
Companies that collaborate effectively across the
supply chain can enjoy dramatic reductions in
inventory and costs, together with improvements in
speed, service levels and customer satisfaction
SIX STEPS TO COLLABORATION
Source Mckinsey & Company 2012
STEP 1
COLLABORATE IN AREAS WHERE YOU HAVE A SOLID FOOTING
•
Manufacturers may feel tempted to use collaboration as a way to fill a gap in their
own capabilities. In practice, the most successful collaborations will build on
strengths rather than weaknesses.
Step 2
Turn win – lose into win-win opportunities with the right benefit sharing model
•
Some collaborations promise equal benefits for each party. If, for example a
manufacturer and a retailer collaborate to optimise product mix, both could expect
to benefit from the resulting increase in sales. In other cases however the
collaboration might create as much value overall but the benefit could fall more to
one partner than the other.
SUPPLY CHAIN COMMUNITIES
Step 3
Select partners based on capability, strategic goals and value potential.
•
As in some other cases the biggest potential partner may not be the best one.
Many companies aim to collaborate with their largest suppliers or customers
because they assume that the greatest value is to be found there. In many cases
however this turns out not to be true, Collaboration may be more of an interest to
a smaller partner which may invest more time and effort in the program than a
very large one that is already juggling other initiatives
Step 4
Invest in the right Infrastructure and people.
•
One of the top three reasons for the failure of collaboration efforts is the lack of
dedicated resources. Companies frequently underestimate the resources
required to make collaborations work, assuming they can leave it up to staff in
various functions to do what’s required in addition to their other responsibilities
SUPPLY CHAIN COMMUNITIES
Step 5
Establish a robust, joint performance-management system.
•
Much akin to a stakeholder plan the KPI’s for your project should be common to
all parties and jointly monitoring the progress, this should avoid the misaligned
incentives that damage so many collaboration efforts.
•
As in most business try to keep it simple picking the smallest possible number of
metrics required to judge the overall performance.
Step 6
Collaborate for the long term
•
It may take time and effort to overcome the initial roadblocks and hurdles to make
a collaboration work. All parties need to recognise this and build an appropriate
long term perspective into their goals and expectations.
•
From the start this means going well beyond the first year this will allow for
greater longer term objective setting to take place and the relationship should
grow as you become ‘comfortable’ in the collaboration.
SUMMARY
Where to Collaborate
1. In areas where you have a solid footing
2. Turn win- lose, into win-win opportunities with the right benefit sharing models.
3. Select Partners based on capability and strategic alignment, not just size
How to Collaborate
4. Invest in the right infrastructure and people
5. Jointly manage performance and measure impact
6. Collaborate for the long term
Source Mckinsey & Company 2012
BRINGING IT ALL TOGETHER
From MAS Latest
Barometer 52% of
companies surveyed
will be investing in
new technology in
the next 6 months
From MAS Latest
Barometer 54% of
companies surveyed
will be investing in
new employees in the
next 6 months
From MAS Latest
Barometer 59% of
companies surveyed
will be investing capital
equipment or premises
in next 6 months
Figures based on average response of 864 manufacturers
MANY THANKS FOR YOUR TIME AND ATTENTION
We look forward to meeting you again soon
www.mymas.org