Supply Chain Executive’s       Agenda 2010: Key Trends and Strategies               Nari Viswanathan            Vice Presi...
Business Context: Integrated Demand-Supply    Networks                     Demand Network - Buyer of                      ...
Session Agenda    Mandate    for the CSCO: Aligning Business     Goals with Supply Chain Strategies    Priorities for th...
Top Business Goals of 2010                                                                            Mis-alignment    n=3...
Top 2 Challenges in Meeting 2010 Goals                                                                            Supply c...
Top 2 Strategic Actions Being Taken in 2010    n=350 for Executive Management ; n=226 for Supply Chain Professionals    Ab...
Session Agenda    Mandate    for the CSCO: Aligning Business     Goals with Supply Chain Strategies    Priorities for th...
Priorities of the Chief Supply Chain Officer    Gaining Supply Chain Visibility &     Responsiveness is key requirement  ...
Why Should Companies Focus on Supply   Chain Visibility?        Customer Service Advantage                 Best-in-Class...
Priorities of the Chief Supply Chain Officer    Gaining Supply Chain Visibility &     Responsiveness is key requirement  ...
Role Based BI Approaches             High-level / KPI reporting (or "overlay") tools - most relevant to C-              l...
Supply Chain BI Capabilities – Key to Success in   Multi-Enterprise Demand-Supply Networks             100%               ...
Priorities of the Chief Supply Chain Officer        Gaining Supply Chain Visibility & Responsiveness is key         requi...
Elements of Integrated Business Planning© AberdeenGroup 2009                          14
Traditional S&OP                                   Integrated Business Planning (S&OP 2.0)        Volumetric supply demand...
Priorities of the Chief Supply Chain Officer    Gaining Supply Chain Visibility &     Responsiveness is key requirement  ...
Process Steps Associated with Trading   Community Management© AberdeenGroup 2009                       17
Priorities of the Chief Supply Chain Officer    Gaining Supply Chain Visibility &     Responsiveness is key requirement  ...
Highest Adoption Rates for SaaS in   Supply Chain Execution© AberdeenGroup 2009                    19
Key Takeaways        Chief Supply Chain Officer role is becoming a reality        Lowered workforce – 63% of companies i...
© AberdeenGroup 2009   21
Upcoming SlideShare
Loading in …5
×

Nari Viswanathan from Aberdeen Group on ‘The Supply Chain Executive's Strategic Agenda for 2010’

848 views

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
848
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
34
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Nari Viswanathan from Aberdeen Group on ‘The Supply Chain Executive's Strategic Agenda for 2010’

  1. 1. Supply Chain Executive’s Agenda 2010: Key Trends and Strategies Nari Viswanathan Vice President/Principal Analyst Aberdeen Group© AberdeenGroup 2009
  2. 2. Business Context: Integrated Demand-Supply Networks Demand Network - Buyer of services and products Supply Network – Suppliers, For e.g: Retailers, Distributors, Contract Manufacturers, ODMs, Value Added Resellers (VARs), 3PLs Component Factory Customers Enterprise – Sales, Marketing, Raw Material Retail Store System Factory Operations, Manufacturing, Procurement Enterprise Suppliers Logistics Network – 3PLs, Shippers, Carriers Financial Network – Banks, Supply Chain Finance Providers© AberdeenGroup 2009 2
  3. 3. Session Agenda  Mandate for the CSCO: Aligning Business Goals with Supply Chain Strategies  Priorities for the CSCO: Key Trends  Action Plan for the CSCO: Key Takeaways© AberdeenGroup 2009 3
  4. 4. Top Business Goals of 2010 Mis-alignment n=350 for Executive Management ; n=226 for Supply Chain Professionals Aberdeen Business Review© AberdeenGroup 2009 4
  5. 5. Top 2 Challenges in Meeting 2010 Goals Supply chain and management agree on need for execution of strategy n=350 for Executive Management ; n=226 for Supply Chain Professionals Aberdeen Business Review© AberdeenGroup 2009 5
  6. 6. Top 2 Strategic Actions Being Taken in 2010 n=350 for Executive Management ; n=226 for Supply Chain Professionals Aberdeen Business Review© AberdeenGroup 2009 6
  7. 7. Session Agenda  Mandate for the CSCO: Aligning Business Goals with Supply Chain Strategies  Priorities for the CSCO: Key Trends  Action Plan for the CSCO: Key Takeaways© AberdeenGroup 2009 7
  8. 8. Priorities of the Chief Supply Chain Officer  Gaining Supply Chain Visibility & Responsiveness is key requirement  BI is becoming more focused on Operational Issues  Sales and Operations Planning is evolving into Integrated Business Planning  Collaboration is back: Trading Community Management  Cloud & SaaS approaches are ideally suited to enable Integrated Demand-Supply Networks© AberdeenGroup 2009 8
  9. 9. Why Should Companies Focus on Supply Chain Visibility?  Customer Service Advantage  Best-in-Class versus Laggards - their percentage of complete and on time orders delivered to customers is 15 percentage points higher  A large gap in today’s customer driven environment  Landed Cost Advantage  Best-in-Class versus Laggards - more successful in reducing their year-over-year landed costs per unit (an almost 13 percentage point gap with Laggards)  A big achievement in todays cost-conscious business climate© AberdeenGroup 2009 9
  10. 10. Priorities of the Chief Supply Chain Officer  Gaining Supply Chain Visibility & Responsiveness is key requirement  BI is becoming more focused on Operational Issues  Sales and Operations Planning is evolving into Integrated Business Planning  Collaboration is back: Trading Community Management  Cloud & SaaS approaches are ideally suited to enable Integrated Demand-Supply Networks© AberdeenGroup 2009 10
  11. 11. Role Based BI Approaches  High-level / KPI reporting (or "overlay") tools - most relevant to C- level executives and top-level directors.  Analytics / data-intensive analytical reports - most relevant to specialized data analysts. These applications should provide advanced analytics capabilities (including historical analysis and forward-looking estimates) for supply chain specialists, with the ability to perform root cause analysis and to drill down into specific business areas. More focused on historical data  Embedded analytics / SCI tools incorporated into other functional applications (e.g. S&OP, procurement, transportation, manufacturing shop floor etc), business analysts or mid-level supply chain / operations managers for which BI is not a primary job responsibility (operational users). More focused on real-time data Analytics & Operational BI: Enablers of Visibility and Responsiveness© AberdeenGroup 2009 11
  12. 12. Supply Chain BI Capabilities – Key to Success in Multi-Enterprise Demand-Supply Networks 100% Best-in-Class Average Laggards 78% 75% 65% 55% 51% 47% 51% 50% 45% 37% 36% 36% 30% 28% 22% 19% 25% 7% 0% Internal supply External supply Reports Analytics Supply chain chain performance chain performance (statistical modeling (e.g. dashboards scorecards analysis, trending, what-if scenarios, route cause network design, analysis etc) etc.)© AberdeenGroup 2009 12
  13. 13. Priorities of the Chief Supply Chain Officer  Gaining Supply Chain Visibility & Responsiveness is key requirement  BI is becoming more focused on Operational Issues  Sales and Operations Planning is evolving into Integrated Business Planning  Collaboration is back: Trading Community Management  Transportation and warehousing needs to be Integrated with overall supply chain  Cloud & SaaS approaches are ideally suited to enable Integrated Demand-Supply Networks© AberdeenGroup 2009 13
  14. 14. Elements of Integrated Business Planning© AberdeenGroup 2009 14
  15. 15. Traditional S&OP Integrated Business Planning (S&OP 2.0) Volumetric supply demand balancing only. Profitable alignment of supply, demand, product and service. Risk management an important part of the process. Tactical process with limited linkage to overall Strategic technology-enabled process aligned and business goals. integrated with financial and corporate goals and metrics (C-Suite). Primarily spearheaded by Sales or Operations Balanced process with equitable participation from organizations. key stakeholders: Sales, Operations, Product development, Finance and Service. Financial planning and budgeting process integrates with S&OP process Limited sponsorship via LOB management. Primarily driven by top executive-level sponsorship (C-Suite). Internal process—no customer, partner Engages players in the value chain—active engagement strategic customer and partner engagement. Typically monthly or bi-weekly static process Dynamic, global, even event-driven based on focused on tactical exception management. frequently scheduled and on ad hoc basis. Some technology enablers to support the process. Advanced technology enablers covering analytics, Typically, spreadsheet oriented or a standalone collaboration, optimization, simulation and what-if solution. analysis. Global and local capabilities with real- time visibility to demand, supply, and product status. Integrated with ERP.© AberdeenGroup 2009 15
  16. 16. Priorities of the Chief Supply Chain Officer  Gaining Supply Chain Visibility & Responsiveness is key requirement  BI is becoming more focused on Operational Issues  Sales and Operations Planning is evolving into Integrated Business Planning  Collaboration is back: Trading Community Management  Cloud & SaaS approaches are ideally suited to enable Integrated Demand-Supply Networks© AberdeenGroup 2009 16
  17. 17. Process Steps Associated with Trading Community Management© AberdeenGroup 2009 17
  18. 18. Priorities of the Chief Supply Chain Officer  Gaining Supply Chain Visibility & Responsiveness is key requirement  BI is becoming more focused on Operational Issues  Sales and Operations Planning is evolving into Integrated Business Planning  Collaboration is back: Trading Community Management  Cloud & SaaS approaches are ideally suited to enable Integrated Demand-Supply Networks© AberdeenGroup 2009 18
  19. 19. Highest Adoption Rates for SaaS in Supply Chain Execution© AberdeenGroup 2009 19
  20. 20. Key Takeaways  Chief Supply Chain Officer role is becoming a reality  Lowered workforce – 63% of companies indicate that they are not going to hire in 2010  However 38% indicate an increase in technology spend in 2010  50% of companies indicate that sustainability has been incorporated into some of the SCM processes and 25% indicate that it has been incorporated into ALL SCM processes  Improved energy management and changing transportation strategy are top two approaches towards making supply chain more environment friendly  Now more than ever, supply chain processes needs to be customer facing© AberdeenGroup 2009 20
  21. 21. © AberdeenGroup 2009 21

×