A Functional View into Supply Chain Response Management: What does response management mean from a capabilities perspective?

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Presented by Trevor Miles, VP thought leadership, Kinaxis

Presented by Trevor Miles, VP thought leadership, Kinaxis

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  • 1. Copyright © 2011 Kinaxis Inc. All Rights Reserved. 1
  • 2. A Functional View into Supply Ch i R S l Chain Response M Management t Trevor Miles, Thought Leader g Bill Dubois, Business consultantCopyright © 2011 Kinaxis Inc. All Rights Reserved.
  • 3. Introduction Copyright © 2011 Kinaxis Inc. All Rights Reserved. 3Copyright © 2010 Kinaxis Inc. All Rights Reserved.
  • 4. Today’s (& Tomorrow’s) Dilemma Profitable Response in a Demand-Driven EnterpriseA new era of surprise and compromise requires integrated demand-supply planning, monitoring, and profitable response capabilities Copyright © 2011 Kinaxis Inc. All Rights Reserved. 4
  • 5. Companies can’t p p predict thefuture,…build organizations that willsurvive and flourish under i d fl i h…any possible future any future.Source: McKinsey Quarterly, Dynamic management: Better decisions in uncertain times, December 2009 Copyright © 2011 Kinaxis Inc. All Rights Reserved. 5
  • 6. Market Dynamics• Top CPG companies forecast performance Forecasting Performance Benchmarking Study, Terra Technologies, March 2011 – MAPE for a one month lag was 31% + 12%. • Forecast Accuracy Range: 57% - 81% – Eight years ago: 36% + 10% MAPE• High-Tech/Electronics – anecdotal g – Struggle to get better than 50% MAPE• Where will breakthrough performance come from? – Learning to forecast and plan better? – Learning to respond profitably to plan variance? Copyright © 2011 Kinaxis Inc. All Rights Reserved. 6
  • 7. Traditional Planning Process Segmentation Assumes Execution happens appe s flawlesslyCopyright © 2011 Kinaxis Inc. All Rights Reserved. 7
  • 8. The Merging of Planning and Execution• In many areas, planning and execution should be blurring, but whether they are or not in most companies is still a question• Need organizations to become flatter, and operate in more of a true team environment• A flatter organization has more people taking action rather than building plans or giving orders• As a result, operational planning and even some tactical planning processes start to merge with actual execution Next Generation Supply Chain Management – The Integration of Planning and Execution CSCO Insights Thought Leadership Series, Supply Chain Digest, 2009 Copyright © 2011 Kinaxis Inc. All Rights Reserved. 8
  • 9. Intelligent Event Management Systems are an Important Component of the Real-Time Supply Chain Does the Event Impact other Processes/Goals? Next Generation Supply Chain Management – The Integration of Planning and Execution CSCO Insights Thought Leadership Series, I i ht Th ht L d hi S i Supply Chain Digest, 2009 Copyright © 2011 Kinaxis Inc. All Rights Reserved. 9
  • 10. SCM is a “team” sport• Visibility is necessary but insufficient requirement• Event severity determined by impact on others 10 10 10 8 8 8 6 6 6 4 4 4 2 2 2 0 0 0 1 3 5 7 9 11 1 3 5 7 9 11 Supplier 1 3 5 CM 9 7 11 Customer – Are these events significant? – Are th A these events related? t l t d? – How can you tell? – If they are, who can help? Copyright © 2011 Kinaxis Inc. All Rights Reserved. 10
  • 11. Response Management Dynamic Supply Chain AlignmentVolume/Revenue 120 100 80 Shipped Shi d 60 Backlog Demand Affected? Supply Affected? Forecast 40 20 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Time What? Wh t? Capacity Constraint Why? Inventory Buffer Who? What-If analysis to y resolve the issue Copyright © 2011 Kinaxis Inc. All Rights Reserved. 11
  • 12. Demonstration Copyright © 2011 Kinaxis Inc. All Rights Reserved. 12Copyright © 2010 Kinaxis Inc. All Rights Reserved.
  • 13. Q&A Copyright © 2011 Kinaxis Inc. All Rights Reserved. 13Copyright © 2010 Kinaxis Inc. All Rights Reserved.
  • 14. Copyright © 2011 Kinaxis Inc. All Rights Reserved. 14
  • 15. Thank you! Trevor Miles | tmiles@kinaxis.com | +1.647.248.6269 | @milesahead Bill Dubois | bdubois@kinaxis com | +1 613 324 4037 bdubois@kinaxis.com +1.613.324.4037 Copyright © 2011 Kinaxis Inc. All Rights Reserved. 15Copyright © 2011 Kinaxis Inc. All Rights Reserved.
  • 16. Copyright © 2011 Kinaxis Inc. All Rights Reserved. 16