Enhancing UK manufacturing productivity by enabling a value chain orientation

Supply - Demand mismatch is a continuous challenge among suppliers creating poor customer service levels and often leading to higher costs to the entire supply chain, to meet the demands of the customer. This research was carried out in the context of a steel supplier (TATA Steel) having supply issues with one of its premier automobile customers (JLR), due to difficulties in forecasting the appropriate demand from the customer. The outcome of the research was developing a framework for an integrated planning process that overlooks the entire demand planning and management of the customer. This particular research emphasises the application of demand profiling that enabled the researcher to build a novel future state Inventory model based on “Fixed Order Cycle” and “Fixed Order Quantity” methods that resulted in saving 24% of inventory across the value chain. In the course of this research, one case study at two companies were performed enabling to draw a big picture map of the current planning process between the two companies. In addition to designing a future state map based on demand, supply and inventory parameters of planning processes between the two companies. Additionally, a maturity assessment framework was developed based on an Enabler and Inhibitor analysis, which study structure and processes within and between firms and identify any business implications that affect the performance of these companies. The key innovations presented in this research led to new supply chain segmentation principles in an end-to end value chain involving two companies in a single business context, which has limited research to date. The segmentation methods addressed in this research provide companies significant business benefits in not only minimising inventory but also fostering new integrated planning activities by demand signals which are visible from the initial phase of planning and across the downstream processes in the SC. The impact of the research on one hand is that the supplier can market themselves to be a champion performer with higher customer service levels and lower failed delivery issues whilst, the customer has no production stoppages by optimal material availability that are available on time and in full