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A Blink into Supply Chain of the Future Opportunities & Threats for Puerto Rico. Jose E. Quinones Quintana October 5 th , 2012 LASCE 2012, San Juan, PR. Agenda. Welcome and Intro Baseline The Institutions The New SC Relationships Technology Logistics Put it together Q&A’s. - PowerPoint PPT Presentation
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A Blink into Supply Chain of the Future
Opportunities & Threats for Puerto Rico
Jose E. Quinones QuintanaOctober 5th, 2012
LASCE 2012, San Juan, PR
Agenda
• Welcome and Intro• Baseline• The Institutions• The New SC
– Relationships– Technology– Logistics
• Put it together • Q&A’s
A Focused Private Sector
Source: www.weforum.org
A Focused Private Sector
Source: www.weforum.org
Fertile Ground
Source: www.estadisticas.gobierno.pr
A Solid Foundation
Act 73 of 2008
Source: www.puertoricodoesitbetter.com
Platform for Growth
Incentives for Puerto Rico Businesses Exporting Services
4% max corporate tax rate
100% tax exemption on dividends from export services businesses
60% exemption on municipal license taxes
Decree of 20 years, guaranteeing these rates
No federal taxes
Act 20 of 2012A Sample of Applicable Services:• R&D• Advertising and public relations • Consulting • Call centers • Shared services centers • Storage and distribution centers • Educational and training services • Architectural and engineering services and project management • Professional services, such as legal, tax and accounting • Centralized management services • Centers for electronic data processing • Any other service that is later decided to be treated as an eligible service because it is in the best interest of Puerto Rico
Source: www.puertoricodoesitbetter.com
Foreign Direct InvestmentAct 22 of 2012
Source: www.puertoricodoesitbetter.com
A History of Supply Chain
Demand
Source
Manage
Make
Deliver
Use
INFORMATION FLOW
MATERIAL FLOW
A New Supply Chain
Demand Source Make Deliver Use
INFORMATION FLOW
MATERIAL FLOW
Connect to the Customer
• Connect with the Customer (CRM)– Understand the needs of the Customer,
• Feedback your Supply Chain & Your Customer• Align or re-design your Supply Chain• Never ignore a return• Manage your Product Lifecycle
– Be Socially Responsible
Demand Use
An Integrated Supply in a Complex Environment
• Connect Your Supply Chain (incl. Suppliers)• Sustainable Sourcing• The World is flat
– Air – Ocean
• Foreign Trade Agreements• Inventory Management• Cargo Security
– Intermodal– Maritime Domain– Tracking Technology
Source Deliver
Supply Chain Strategy
• Maximize Your Tools (ERP, MRP, DRP)• In Source vs. Out Source• Control & Measure the process• Lean Manufacturing / Continuous Improvement
Driven by Customer Demand• Align Organizational Culture• Customer feedback is key
– Innovate
Make
Goals
Best Practices
Evolution of Supply Chain in the Future
Today
• Supply Chain professionals• Regulatory Agency• Unit Cost• Supplier Collaboration• Order Fill Rate• Order Management• Inventory Management• Improvements are opportunistic
Tomorrow
• Highly Specialized Supply Chain Professionals
• Complex Regulatory Environment• Total Cost of ownership• Supplier Integration• Customer Relationship
Management• New Technologies and
automation will drive additional efficiencies
• Continuous drive for improved efficiencies
Wrapping Up
• We have the Geographical Advantage• We have the People• We have the Business Environment• Foreign Investment will Drive Infrastructure• Access to Technology• We know the Risks• Put it together and we have…
The Manufacturing & Services Hub for the Americas
Source: www.puertoricodoesitbetter.com
Thanks
Jose E. Quinones Quintana