WEBVTT

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Welcome to the session
on supply chain innovation.

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In this session, we will look
at some examples of supply chain

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innovation, and also what
are the underlying drivers

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of supply chain innovation.

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Supply chain
innovation really is

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about all kinds of changes
in the way you work,

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the way the supply
chain is structured,

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your processes, your
competencies in the supply

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chain, really to make
things work better,

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or even to do
completely new things--

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new really innovative things.

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All of these kind of
innovation typically

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require extensive use
of ICT, extensive change

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of your processes, business
models, competencies

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of your people, and also
they require collaboration

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with your supply chain partners.

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Let's look at some examples.

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For example, the
doll industry, where

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we have some companies
that for a long time

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were very successful
in producing

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all kinds of standard
dolls modelled

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after popular movie stars,
popular cartoon figures,

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and so on.

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This model has worked
for many decades,

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but recently we see
that it's challenged,

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facilitated by new
types of supply chains,

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new technologies.

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Here, for example,
you see that a company

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called Minime introduced
a complete customised way

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to build your own doll.

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You can upload your
photograph, and then they

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have artists working in
studios around the world

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to build a statue based
on that photograph.

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More recently, you see a
company called Twinkind--

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and several others--
that engineer

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a complete customised doll
modelled after a 3D scan made

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of your body.

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So you can go to a
3D scanning studio,

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have a very precise
scan made, and then you

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get your completely customised
statue of your own self.

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Again, you see these
are very new models that

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can only happen because of
very extensive technology

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innovation.

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And the supply
chain is structured

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in these examples completely
different than in the past,

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from make-to-order to
engineered-to-order,

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and from just having mass
stocks of standardised products

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to having no stocks at
all of the end product.

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Similar example you could
see in other industries,

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like in the furniture industry.

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We used to go to a furniture
shop, look at furniture.

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If we like a shelf or a desk,
we would buy it, and then

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probably wait for
many, many weeks

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before it was
delivered to our house.

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Or if the store would
have large stocks,

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then we could
immediately buy it.

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But the stock would
really have high risks

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in having all this
furniture in stock.

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New models, they have this
global standardisation,

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the same products all over the
world, big warehouses where

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you can go and
buy your furniture

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at very competitive prices.

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But these stores
typically lacked

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the variety, the customisation
that you would really like.

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More recently, we
saw e-commerce models

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that match supply and demand.

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But also more recently--
and maybe more

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interestingly-- we
see products that

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can be mass customised
by downloading

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software and designing
your own furniture.

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And then you directly
instruct the production

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robotics production floor to
build the furniture for you.

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We also see 3D printing
coming into this space.

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So you design, maybe together
with a furniture designer,

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your unique furniture.

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And it'll be 3D printed for you.

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Again, all these models have
big innovations and big change

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in working for the supply chain

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As a third example, you can
look at the food industry.

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We used to go to
the supermarket,

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and we still go to supermarkets.

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Supermarkets have
some big challenges.

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Large product
variety, big challenge

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to manage the stock, to
manage fresh products.

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We see innovations,
also e-commerce entering

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this market, where
you order online,

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and it will be
delivered to your home.

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But more recently, these models
have become much more advanced.

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So you see mobile
apps that help you

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to buy certain recipes
completely tailored

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to your taste.

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We see home deliveries
where boxes of food

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are produced for a large
group of customers,

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and contain exactly what you
need for the family for a week.

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These models have again a big
impact on the current supply

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chain.

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They reduce all these challenges
of managing stock, managing

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deliveries to the stores,
managing the shelves

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in the stores.

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And they really make
it much more manageable

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to reduce waste, and to
service the customer,

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and compile the meals
in a way that really

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are fit to a family situation.

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Also here we see 3D printing.

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3D printing your own food, maybe
a bit further in the future.

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But if that's going to
happen, again the supply chain

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will change a lot.

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So all these examples-- and
you can find similar examples

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in almost every industry-- show
that technology and business

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models innovations
go hand-in-hand,

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and really enable
completely new ways

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of working that ask for a new
way of organising the supply

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chain, new way of collaboration
between the partners,

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and also new competencies
in the supply chain.

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This is all part of continuous
supply chain innovation.

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And next we will look into
some of the underlying

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drivers for these innovations.