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Strategic directions for operations in 2021

Discover the results of the study conducted by Roland Berger & France Supply

The strategy consulting firm Roland Berger has joined forces with France Supply Chain to carry out a study aimed at identifying the main challenges and trends facing operations departments in 2021.

A large and representative sample

This study is based on a large and varied sample of more than 100 companies, representative of all sectors of the economy. Of the respondents, 82% hold a position in operations.

Three major strategic objectives... supported by priority projects

As a first step, the companies have set three major strategic goals for their operations in 2021:

Support for growth
57%*

Securing the risk of supply disruption
57%*

Improvement in operating performance
52%*

The priority projects that companies are thinking of launching to meet their current challenges focus on three main areas:

The reconfiguration of their logistics network
39%*

Redesigning their planning process
34%*

Integration of sustainable development
17%*

Percentage of survey respondents.


Achieving strategic objectives and priority projects by deploying its internal capabilities

In line with the priority projects, the capacities implemented by companies will be based on digital transformations and organizational adjustments to meet these new challenges of forecasting, planning and reorganization.

Yann de Feraudy, President of France Supply Chain, says: "This study, whose respondents cover all sectors of the economy, shows that companies are learning from the crisis and are actively preparing for the economic rebound without losing sight of the issues related to sustainable development. “

International air and maritime transport: what are the prospects?

Lack of capacity, soaring prices... To help supply chain players deal with the turmoil of international transport, France Supply Chain has brought together Bolloré Logistics, Essilor and Schneider Electric, along with Jérôme Bour, CEO of DDS Logistics. The objective? To understand and find avenues for action.


Since April 2020, air freight has been suffering: " The collapse of passenger supply has caused a significant drop in air freight, faced with cargo companies that are not able to compensate", underlines Philippe de Crecy, Vice President Air Freight Europe of Bolloré Logistics. Consequences? Today, the sector is down by 45%, massive charters have been made by the major forwarders, rates are rising... and new offers are emerging. Among them, Pax Freighter, "a Boeing 777 -300 where seats are removed and packages loaded by hand", explains Philippe de Crecy, or Air France KLM's SAF, which aims to develop a fuel that reduces CO2 emissions by up to 75%.

On the maritime side, from 2020 to 2021, Anne-Sophie Fribourg, director of ocean freight development at Bolloré Logistics describes having gone "from disruption to chaos": collapse in demand, rising freight, port congestion and container shortages... A situation that is likely to last until the middle of this year: "Capacity is being injected, import services are easing but the market remains tense in terms of congestion. Our challenge is to support our customers in their sourcing strategies and in the face of a major challenge: the decarbonisation of maritime transport by 2030", she concludes.


An agile and resilient supply chain posture

To meet these challenges, the principals are implementing a number of actions.

This is evidenced by the feedback from Éric Javellaud, Senior VP Global Supply Chain, Prescription Operations and Sourcing & Procurement at Essilor. The ophthalmic optics specialist has deployed an ambitious action plan: " To contain our transportation costs while continuing to reduce CO2 emissions, in line with our objectives, we have aAccelerated the switch between air and other transport alternatives, improved the location of our production and stock and reviewed our transport purchasing policy. Finally, we set up an almost daily monitoring of transport to avoid disruptions and strengthen our partnerships with forwarding agents. All this was accompanied by a PIC and steered by a weekly committee. All of these actions are still in progress", says Éric Javellaud.

At Schneider Electric, despite the crisis, the company has a turnover of 25 billion euros in 2020. According to Vincent Lamarche, vice president logistics strategy & e2e network design, the supply chain has made the difference, particularly through the STRIVE program developed by the company. The idea is to limit the number of steps, to work with network design tools to simplify and increase the resilience of the supply chain while meeting our sustainable development objectives," he explains.

Agility, resilience and durability. Words that resonate more than ever in the world of supply chain management in the face of the crisis and that are pushing professionals in the sector to adopt a common position to communicate with public authorities on the subject.


How is it that the container availability index does not reflect the lack of containers in recent weeks?

The situation is gradually improving as shipowners are repositioning CT 40 in large numbers from the USA (+ 125% vs. December on the Container x change platform) and are also injecting new CTs into their fleets. The situation has improved in recent weeks in Shanghai and Qingdao. Nevertheless, demand remains very strong.

What about sea transport on the France-Africa and France-DOM lines?

The market is very tense on what is new in particular because of congestion in the transhipment ports (Algeciras and Tangiers) and congestion in West African ports. There were record volumes between France and the West Indies in January and this continues in February. All the North-South markets are under capacity pressure and therefore bullish prices.

There is an imbalance between Asia and Europe. Why don't shipowners send the empty containers back to Asia? To keep the rates high and make a bigger margin?

It is cheaper for ship owners to repatriate empty boxes than to give them to customers to fill them up and send them back, so if they want boxes they pay surcharges which correspond to the extra costs of positioning in France.

FRANCE SUPPLY CHAIN DEPLOYS ITS NETWORK INTERNATIONALLY

Because its mission does not stop at the borders of its territory and because its sector has been expanding for many years, France Supply Chain naturally opens up to the international market. With passionate and involved members, the association launches France Supply Chain International with the ambition to build a worldwide network.

Anxious to enable its members to better understand the increasingly important global challenges, France Supply Chain has created its "International" division. By creating a network of professionals capable of identifying the major trends in the sector, disseminating them and sharing initiatives in each of the countries addressed, it intends to support companies wishing to develop sustainably abroad. "Our members include major groups with internationality in their DNA. We want to provide them with a global vision to feed their thinking in terms of culture, innovation and development, but also benefit from the wealth of their local knowledge to create a global network of supply chain players. To do this, we have imagined a decentralized governance and the creation of country chapters, drawing on each other's knowledge".This is how Jean-Michel Guarnieri, ex-president of Aslog and president of France Supply Chain International, explains.

Local strengths serving a global network

In order to best structure this vast international project, France Supply Chain relies on a central COPIL made up of supply chain managers from major groups and international logistics service providers. Their missions? To identify the countries eligible for the creation of chapters, to coordinate their actions while promoting exchanges. The development of around thirty chapters over 24 months has therefore been staggered by geographical area: the Americas and Africa in 2020, the Near and Middle East, Eastern Europe and Asia-Oceania in 2021 and finally, Western Europe in 2022. Locally, one COPIL per chapter will be in charge of identifying and federating local companies, members or non-members of the association, and of animating exchanges. "At the central level, we provide them with material via our labs and all our work, but it is then up to them to decide on an annual programme, to open up membership and to address subjects in line with local issues.This will be the first time that the association has been set up," emphasises Jean-Michel Guarneri.

A concrete organization in Morocco where the chapter Maroc Supply Chain was born, led by a COPIL composed of local experts. In this country positioned as a regional hub, the supply chain is driven by expanding infrastructures, a dynamic economy, the presence of world-class integrated operators and a growing desire for digitalization: "The logistics sector in Morocco represents 6% of GDP and employs about 500,000 people. More than 8,000 people are trained there every year".says Hicham Alami, associate director at GCL. The creation of Maroc Supply Chain is part of this promising context. Four major themes will be addressed by the chapter in 2021: human resources, the supply chain of SMEs and SMIs, digitalization and the place of Morocco in international supply chains.


Africa, a "priority market

Other chapters are also being set up in Africa: in Kenya, Côte d'Ivoire and South Africa. For Yves Biyah, partner at Africa Search Capital, the continent must be considered a "priority market" because of its dynamic population, its level of economic growth, its capacity to adopt new technologies and its increasingly peaceful nature. "Africa has a population of 1.2 billion. This figure is expected to double in the next 30 years. In one generation, we will therefore see a doubling of the need for consumer goods, roads, ports, housing.... This shock of demand will irrigate all the sectors of activity like nowhere else ".he analyses. And despite a lack of intra-regional connectivity and the need for investment in this area, this dynamism should also be boosted by the entry into force on1 January 2021 of the African Continental Free Trade Area (AFTA). As Sébastien Beuque, Deputy CEO Africa Sales & Development at Bolloré Transport & Logistics points out, "Inter-African trade represents only 10% of the trade of the African zone. By way of comparison, in Europe, intra-European business amounts to 70%. The continent therefore has an extraordinary potential".

KINGS OF THE SUPPLY CHAIN

Edition 2021

This year, due to the distance, the Kings of the Supply Chain took place in [digitized] mode, which allowed a strong participation of the Supply Chain community.


The Grand Prix 2021 is awarded to Casino O'Logistique: with this project, O'Logistique responds to the challenges of food e-commerce, amplified by the multiple confinements. With a " end-to-end " solution, the Casino Group has a service rate of 99%, a punctuality of 1 hour and an NPS of over 50%. O'Logistique is the industrialisation of logistics with a focus on CSR, from the warehouse to delivery.

For the 2nd consecutive year, France Supply Chain will make the French supply chain shine by accompanying the winner O'Logistique on the European stage for the trophy " Project of the Year " at the ELA Awards on November 09, 2021.

  • The Innovation Award goes to La Boule Obut and Boa Concept
  • The Coup de Coeur goes to the Don en Nature Agency and to Pôle Euralogistic

Discover all the projects in the special issue of Supply Chain Magazine

Live WEBINAR "France Supply Chain International", WELCOME TO AFRICA

Live WEBINAR " France Supply Chain International "
WELCOME TO AFRICA

JANUARY 21, 2021

5:30pm - 6:30pm


In a globalized economy, France Supply Chain and the companies it represents play a major role on the international scene. To do so, France Supply Chain must develop its network in the main economic regions of the world and maintain close links with major institutional players in these different territories.

WANT TO READ ON?

I CONNECT


This Live webinar " WELCOME TO AFRICA " is the first step in our international deployment.

Africa is often rightly cited as a land of opportunity and therefore a market to be questioned for any company seeking development. Nevertheless, the subject is difficult to qualify, because thebusiness and operational models are in reality quite unknown to the leaders.

African realities are known through common places provided by the media " classiques " or by the points of view, of organizations such as MEDEF Africa, CIAN, ..., very oriented macro-economics, regulatory environment and institutional strategies.

It is not so easy to find a balanced approach between an "Afro-optimism" often tinged with naivety and an "Afro-pessimism" too often tinged with arrogance.

All the players agree on one point: the deployment of B2C/B2B solutions is impossible at " copier/coller " from mature Western models. Their globalization dimension, based on the example of the development over the last 25 years of South East Asia, is inadequate.

Alongside the " stratégie development commercial " aspect, there is a real need to share very specific supply chain and logistics operation models.

The " chapters Afrique " will bring this dimension.

Sign up now

Live WEBINAR "France Supply Chain International", WELCOME TO AFRICA

Live WEBINAR " France Supply Chain International "

WELCOME TO AFRICA

JANUARY 21, 2021

5:30pm - 6:30pm


In a globalized economy, France Supply Chain and the companies it represents play a major role on the international scene. To do so, France Supply Chain must develop its network in the main economic regions of the world and maintain close links with major institutional players in these different territories.


This Live webinar " WELCOME TO AFRICA " is the first step in our international deployment.

Africa is often rightly cited as a land of opportunity and therefore a market to be questioned for any company seeking development. Nevertheless the subject is difficult to qualify, because business and operational models are in reality, quite unknown to managers.

African realities are known through commonplaces provided by the media " classiques " or by the viewpoints, of organisations such as MEDEF Africa, CIAN, ..., very oriented macro-economics, regulatory environment and institutional strategies.

It is not so easy to find a balanced approach between an "Afro-optimism" often tinged with naivety and an "Afro-pessimism" too often tinged with arrogance.

All the players agree on one point: the deployment of B2C/B2B solutions is impossible at " copier/coller " from mature Western models. Their globalization dimension, based on the example of the development over the last 25 years of South East Asia, is inadequate.

Next to the " stratégie development commercial " aspect, there is a real need to share very specific supply chain and logistics operation models.

The " chapters Afrique " will bring this dimension.

Sign up now

3rd edition of the barometer "Delivery Services: Realities about French Expectations".

A study SprintProjectin partnership with DB Schenker, FM Logistic, GS1-France, Savoye and produced by OpinionWay.

For the past 3 years, SprintProject, in partnership with DB Schenker, FM Logistic, GS1-France, Savoye and OpinionWay, has been conducting its annual barometer "Delivery Services: Realities about French people's expectations". This study, based on a sample of 2,000 people, provides a qualitative and quantitative analysis of the evolution of French people's uses and expectations in terms of delivery services.

This year, the barometer reflects the change in behaviour during the pandemic, particularly in online food purchasing, up 7 points compared to 2019. Stores also offered more home delivery to limit the risk of contamination, which impacted the frequency of orders, up 4 points compared to 2019.

The question now is this:

Will these new purchasing behaviours continue over time or will we return to pre-containment habits?

In line with previous years, the price of delivery remains the key criterion for online purchases, followed by the return period and return terms. With regard to the different modes of delivery, there has been an increase in the use of new modes of delivery such as mobile delivery, consignment or refrigerated crate delivery. Companies are also more transparent about real-time delivery tracking.

Note this year: bad delivery experiences are down significantly. 54% of respondents say they have experienced a delivery problem in the last 12 months. This is 8 points less than in 2019 and 13 points less than in 2018.

Finally, the majority of French people recognise the economic benefits of home delivery but this also raises 2 other points: urban congestion and the impact on the environment.


To find out more:

Sales Contact
Eymeric de Pelleport
VP Sales
e.depelleport@sprint-project.com
06 31 16 40 11

Communication Contact
Coralie LOUBOUTIN
Communication Manager
c.louboutin@sprint-project.com
07 88 17 88 05