Skip to 0 minutes and 8 secondsZAKIAH SUHAIMI: Hello, everyone. Welcome to the round-up video of Week 2. I'm Zakiah Suhaimi, and with me is Professor Jan Godsell, the lead educator. Hi, Jan. How are you doing today?

Skip to 0 minutes and 20 secondsJAN GODSELL: Hey, Zakiah. I'm great. How are you?

Skip to 0 minutes and 23 secondsZAKIAH SUHAIMI: Good. Thank you. So today, this week we discuss about the planning. So we could see that very engaged discussion from the learners regarding the planning. So they are aware when talking about planning we're balancing supply and demand. So regarding the block one we talk about the fundamentals of planning, so let's talk a little about the first block..

Skip to 0 minutes and 47 secondsJAN GODSELL: So, Zakiah, I was really engaged right away from the start when somebody actually said just looking at the introductions of the week that they never realised just how important planning was. And they made the reference to-- they like the analogy of the global orchestra because it really puts into context that an orchestra couldn't actually work without a conductor. And this really is the point about planning. We need to have someone orchestrating the supply chain, and it's something that's very, very much forgotten about. One of the interesting things for learners to perhaps reflect upon in their own countries, in the UK, we have the Chartered Institute of Logistics and Transportation, CILT.

Skip to 1 minute and 28 secondsWe have the Chartered Institute of Procurement Purchasing and Supply, CIPPS. We have IET or the IMechE that deal with our more manufacturing-based disciplines. But we don't have anyone that's taken ownership specifically for planning. And I think moving forward, one of the biggest challenges, as we decide to either have a more local, regional, or global supply chain design, it's as Martin Christopher says, it's not companies that compete. It's supply chains that compete. And it really is going to be their ability to plan that enables them to compete. So it was heartening to see that. It was also heartening to see through the discussion, people beginning to think more specifically about some of the aspects of planning.

Skip to 2 minutes and 17 secondsWe saw some nice personal examples of the difference between the strategic, the tactical, and the operational. And some people worried that their ideas weren't necessarily good. But you know what? There's no right answer. So I encourage all learners to share their views because it's as much about peer to peer learning as it is about learning from ourselves. And we also had some interesting discussion about what motivates a publicly listed company. I particularly like the comment suggesting maybe that were we, actually even just looking at shareholder return, were we actually looking in some instances at the board members' return, because they're significant shareholders themselves, and their bonuses and things are very, very often closely linked.

Skip to 3 minutes and 4 secondsFor anyone who's interested, we can make available access to an article that we published called Fudging The Supply Chain To Hit The Number, which was about things that analysts should know, financial analysts should know, that are, I would say, not dodgy, but perhaps practices that go on in companies that are about maximising shareholder return, though don't actually maximise customer value, and indeed lead to more increased supply chain costs. So maybe I'd argue that actually to change this, we actually have to look at the way we value companies differently. And indeed, we would need our analysts to look at things differently. So lots going on in that first block and some really good discussion.

Skip to 3 minutes and 50 secondsZAKIAH SUHAIMI: Yeah. I agree because I could see that people try to reflect their own planning activities in the discussion. So moving forward to the block 2 regarding the planning for different types of events, so we did discuss about Aldi, Lidl and those. So what do you think? What do you think these companies can do to sustain a strategic alignment to ensure that balance with sales and supply chain?

Skip to 4 minutes and 19 secondsJAN GODSELL: So companies like Aldi and Lid--, so prep so this week was to look at different types of events, one of which was looking at why Aldi and Lidl are so successful. And really, that's because their supply chain strategy is to have this segmented approach where they keep a stable base and then they actually create consumer interest using quite an interesting promotional device called a WIGIG, or when it's gone, it's gone. And so, actually, they're almost running two supply chains. The critical thing for Aldi and Lidl is to stick-- we've got an expression in English, which is stick to your knitting, or stick to what you're good at.

Skip to 4 minutes and 54 secondsAnd I think they shouldn't get pulled away from doing different types of promotions. Interestingly in the UK-- and it would be interesting for learners to reflect on what's going on in their own countries-- we're seeing a big shift away from more buy one get one free or buy one get one, so what we call high/low promotions, because I think organisations are realising that they're fundamentally damaging to both customer value, and in the longer term, to shareholder value too, and more to the point they actually can be quite exploitative and create inequity along the length of the supply chain. But maybe I'll pick up on a different element for this week.

Skip to 5 minutes and 41 secondsA number of learners reflected upon the very, very serious incident and shocking incident that happened in Manchester earlier this week. And what we talked about in Block 2.13 was about humanitarian logistics, or disaster response. What we've actually had to see go into action this week in the UK, unfortunately, is that type of response to a disaster situation. In this case, it was a human created disaster, which makes it all the more shocking.

Skip to 6 minutes and 18 secondsBut I think what this really shows is what an important element of the supply chain this is, and how when these situations arise, we absolutely rely on rapid response the way that people have done the very, very upfront pre-planning and practised potentially scenarios, or their response to events like this so that when they can happen, they can get to people and to help them as quickly as they possibly can. So I might just like to share my thoughts for anybody that has been affected by those events this week, which are truly, truly shocking.

Skip to 7 minutes and 0 secondsZAKIAH SUHAIMI: Yeah, it was. Moving forward to the third block, so what struck you about this third block?

Skip to 7 minutes and 11 secondsJAN GODSELL: So the future is about much more data-driven supply chains. And I think it's really interesting in the case study where we saw Costa Coffee, which is a very successful business in its own right, actually creating another business model Costa Express, which was only really enabled through a very simple SIM chip that was not in a mobile phone, but that was in a coffee machine.

Skip to 7 minutes and 39 secondsAnd based off that SIM chip, we were able to do something that many, many companies try to do, which is something called vendor-managed inventory, but also, that in a way turns the provision of coffee into a service that is much more easy for companies or for outlets, like a service station, or other more distributed places to sell because Costa Express can put out exactly how many cups of coffee have been sold, and they can also work out exactly what-- I say raw ingredients, coffee, milk, et cetera, are required to actually make the coffee. So it's a really, really smart business model that makes sure that everyone's renumerated in a fair way and absolutely manages to minimise any inefficiency.

Skip to 8 minutes and 27 secondsI also think that perhaps our learners should reflect on where they are in their own-- if they have got a supply chain career, or maybe they've got family, or friends, or people that they know that are looking for job opportunities. Because as the block said, roles in analytics are really going from being geek to chic. And we have a huge opportunity in the supply chain space to really revolutionise both the effectiveness and the efficiency of our supply chain by taking more data-driven approaches. And that really is going to require people that have this data analytics background.

Skip to 9 minutes and 5 secondsAnd this means that potentially, some of the subjects like maths or physics that have previously not been the most attractive, it propels them right to those key skills that you could potentially need to be at the forefront of industry.

Skip to 9 minutes and 26 secondsZAKIAH SUHAIMI: Thank you, Jan, for this week. So what is your hope for the rest of the class?

Skip to 9 minutes and 34 secondsJAN GODSELL: So next week, I'm actually handing over to-- it's all about purchasing and buying, shop til you drop, something I'm quite enjoying myself. And Catherine Bowser is the lead educator next week. So I'm ducking out for a week. But I hope that you all have a good learning experience next week. I thank you very much for engaging in such a good discussion this week, and just please keep continuing to engage. Share-- use Padlets to do the cohort challenge from week one. And do participate, if you haven't done so already, in the personality and planning exercise this week.

Skip to 10 minutes and 15 secondsSo just to thank everyone for their great commitment, and to thank you too, Zakiah, for really being a good facilitator this week.

Skip to 10 minutes and 22 secondsZAKIAH SUHAIMI: Thank you, Jan.

Week 2 summary

Week 2 focused on the topic of the ‘global orchestra’’. Before immersing yourself in the domain of ‘shop til you drop’, take some time to consolidate your learning from last week by watching the summary video above.

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This video is from the free online course:

Supply Chains in Practice: How Things Get to You

The University of Warwick