General Business Concept of EY – Present Challenges for Organizations:
Need to sell more to maintain the level of profit
It is very difficult to predict demand because the ability to purchase from anyone around the world is increasing. So there is no customers’ loyalty. This effect flows through the supply chain “I will firm my supplier’s purchase orders at the last minute, and so on.” Increases the demand for short-term planning, ie, flexible planning and supply chain responsiveness challenge.
The supply chain challenge becomes more important
Because the capacity / speed of transport has not improved much in many years (cruising speed container ships, and cargo aircraft the same).
On the other hand, the entire issue of information underwent a revolution.
That’s why you need good planning to improve performance.
Jesper Waaben & Andrea Ricciarelli,
Jesper Waaben – SAP EMEA
The enormous impact of using smartphones to do work in SAP.
Personalization = Custom Products. For example, Harley-Davidson used to be able to provide a custom motorcycle in 22 days. Today – 6 hours.
Andrea Ricciarelli – SAP EMEA
Leonardo – The Digital Supply-Chain:
1. Italian railway company underwent maintenance project. Instead of maintenance according to fixed times, to maintenance according to sensors input from trains. Reduced maintenance costs by 10% – Part of the savings are also increasing trains availability.
Hamburg Port: Increasing output without increasing the area of loading/unloading containers that have physical limitations. Install IoT in all trucks and other elements to reach the situation that a truck arrives and waits only 5 minutes and thus produce more output with the same storage areas.
financial calculations/considerations within the Supply Chain
The financial calculations within the Supply Chain are very important, for example, the ability to include tax considerations in deciding where and how to deliver.
After changes in regulation, real work content should be poured into the “tax shelter”
Thus, for example, ICL, which received low taxes benefits in the Netherlands, relocated managers and performers a substantial work there.
An example of how COO CFO and COO manages issues is similar to the relief of creating an office in Cyprus where IP is held, and where most of the profits are recorded. tax-low in Cyprus remain.
CEOs want CFOs to invest more time in value creation by financializing the Supply Chain as above.