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Fireside Chat: Supply Chain Control Tower
 

Fireside Chat: Supply Chain Control Tower

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    Fireside Chat: Supply Chain Control Tower Fireside Chat: Supply Chain Control Tower Presentation Transcript

    • Fireside Chat: Control Tower Roddy Martin (CCI) – Supply Chain Thought Leader Trevor Miles (Kinaxis) – vp, thought leadershipCopyright © 2012 Kinaxis Inc. CONFIDENTIAL
    • Roddy Martin •  Roddy Martin •  SC Transformation Thought Leader •  Executive South African Breweries ( SABMiller) •  Engineering Leadership •  Manufacturing Strategy •  IT Leadership •  Change Management Leadership •  AMR Research SC leadership •  CCI SVP SCCopyright © 2012 Kinaxis Inc. CONFIDENTIAL 2
    • “Supply Chain” Starts with the Buyer Choice; Is Outside-In; End to End & An Interdependent Network …& Impacts Point of Starts here ….. Purchase Capabilities Here Stock Outs “Integrative ImprovementConsumers, Shoppers Actions & & Buyers Trade Offs”     Product Quality Make Choices     Demand   Supply   On The Shelf Product   Winning in New Costs to Serve Open Markets    Account Profitability     Innovation Complexity Costs or Embedded Risk Differentiates Risk Management Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 3
    • Bringing The Pieces Together Into A Demand-driven Value Network based Business Operating Strategy Is A Maturity-based Transformation Journey… Demand   Supply  Actual  Market  Demand   ? How         ng     shapi and   sing     sen   em and   D STICKY GLUE Product   Adapted  from    AMR  Research   Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 4
    • The Demand-driven Value Network Framework Adapted  from   Product  &  Service  Innova9on    AMR  Research   Demand  Visibility   Supply  Visibility   Customer    Consumer  back    Customers  ,  Buyers,  Users,       Integrated  Strategy,  Business   design     Sufficiency  &     Value  Network     Suppliers  &  Partners Planning   &  Consumers         Channel     User/        Reliable,     Demand     Demand     Profitable  Response   Consumer/   &   TranslaJon   from  Supply     Demand     Demand     &     Network  Based     Insights     Management   Trade  Offs     on  Demand       decoupling   Segmented  Pull   Segmented  Push   Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 5
    • The 5 Stages Performance-Improvement Maturity Leaders       ”The  Promise     Of  IT”    Impact Learning End-to-end Network Average     Integrative Improvement System Culture of Integrated Innovation and Functional Sharing Excellence Codified Expert (Situational, Led /Based Integrative Systemic and Projects Structured Improvement Strategic) Reactive Integration Within Fixes Implementation Core Functions (Situational and Stage  5     Systemic) of (Systemic – Limited Improvement Integrated of No Systemic Functions ) Stage  4     Continuous Projects led by Improvement ExpertsPlans or structure. (Ad Hoc - Projects) Stage  3     Fire Fighting Stage  2     Stage  1     Stages Of Performance Improvement Maturity Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 6   6
    • The Ultimate Goal… Sustainable, Anchored CapabilitiesUnsustainable  Performance     Sustainable  Business     Performance  Improvement   Excellence in Results • Balance    “silo  cost  focus  ”   • Capabili=es   • Processes     • Change  Leadership    “  lean  and  efficiency  improvements”   Necessary  but  not  Sufficient   Excellence in Work Practices Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 7
    • Layers of “Management Systems”…illustrative process examples only Stages  of  Process-­‐based  Opera4ng    &  Performance  Improvement  Maturity  to  Demand  Driven  Value  Network  Sufficiency      Business  Opera9ng     Improvement     Goals  &  Projects     FuncJonal   Process  IntegraJon     Demand-­‐driven  end-­‐  end  SC     process  integraJon     Value  driven  Business     tradeoffs  &  network    System  of  Venture     and   1   2   3   4   5   High     Sufficiency   Performance     Demand  Forecast  Accuracy  &  Planning   S  &  OP   Balancing     Business   The  end  to  end     Innova9on  &  Value  driven     Business     Process  &     Profitability     Sufficiency       Planning       Business  Tradeoffs       way  the  business     Supply  Reliability  &  Supply  Planning   Opera9ng     Analyses     actually  operates     System     Integra9ve  Improvement  System  Deployment  &  Capability  Development      Business  Opera9ng  Strategy,     Execu9on,  &  Culture     Performance  Maturity  –  based  Technology  Enabled  Work  Flow  Processes   context  of  data  &  informa9on    &  Data  Management     Integrated   High  Performance     RFID     S  &  OP       Quality   Informa9on     Traceability     &  compliance       ?   Technology     Technology  modeled  workflows  and   Logis9cs       Enabled  Work  Flow     business  processes    using  business  &   System  of     System    &  Business     VMI   Planning   Sourcing     &  Distribu9on   transac9onal  data     Process     &     Process   Management   CPFR     Procurement   Master  data  &  process-­‐ based  context  of  data     Systems  of     Applica9on,  Data  and  IT  Process  Architecture     High  Performance     CRM     PLM     Record       SRM     ?   Transac9on     Technology  based  applica9ons,  data   Processing     ERP     processing  &  data  management     Applica9on     SCM     Architecture     WHM     “MES”     Systems  of     Real  9me     &  Process  Control  Data     Process  and     High  Performance     Control     Automa9on  Architecture     Machines     Controls     Measurements       Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 8   8
    • Layers of “Management Systems”…illustrative process examples only Stages  of  Process-­‐based  Opera4ng    &  Performance  Improvement  Maturity  to  Demand  Driven  Value  Network  Sufficiency      Business  Opera9ng     Business  Opera9ng  System   Improvement     Goals  &  Projects     FuncJonal   Process  IntegraJon     Demand-­‐driven  end-­‐  end  SC     process  integraJon     Value  driven  Business     tradeoffs  &  network    System  of  Venture     and   Integra9ve  Improvement  System   5   1   2   3   4   High     Sufficiency   Performance     Demand  Forecast  Accuracy  &  Planning   S  &  OP   Balancing     Business   The  end  to  end     Innova9on  &  Value  driven     Business     Process  &     Profitability     Sufficiency       Planning       Business  Tradeoffs       way  the  business     Supply  Reliability  &  Supply  Planning   Opera9ng     Analyses     actually  operates     System     Flexible  Decoupling  Informa9on  ,  Collabora9on  Process  &    Business  Opera9ng  Strategy,     Integra9ve  Improvement  System  Deployment  &  Capability  Development       Analy9cs  Model  Layer    -­‐  “Control  Tower”     Execu9on,  &  Culture     Performance  Maturity  –  based  Technology  Enabled  Work  Flow  Processes   context  of  data  &  informa9on    &  Data  Management     Integrated   High  Performance     RFID     S  &  OP       Quality   Informa9on     Traceability     &  compliance       ?   Technology     Technology  modeled  workflows  and   Logis9cs       Enabled  Work  Flow     business  processes    using  business  &   System  of     System    &  Business     VMI   Planning   Sourcing     &  Distribu9on   transac9onal  data     Process     &     Process   Management   CPFR     Procurement   Master  data  &  process-­‐ based  context  of  data     Systems  of     Applica9on,  Data  and  IT  Process  Architecture     High  Performance     CRM     PLM     Record       SRM     ?   Transac9on     Technology  based  applica9ons,  data   Processing     ERP     processing  &  data  management     Applica9on     SCM     Architecture     WHM     “MES”     Systems  of     Real  9me     &  Process  Control  Data     Process  and     High  Performance     Control     Automa9on  Architecture     Machines     Controls     Measurements       Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 9   9
    • Transformation - Two Core Thrusts of Work; Today and Tomorrow! …Aligned Through a Transformation “Office” Vision Strategic Intent Leadership  Role     Managing The Change Business  Strategy,     Intent,  &   Focus  Areas     Business     Priori9zed   Management     Work     Future-­‐ize   Role     The  Business     Control    &     Build  Sustainable     Manage  the  Business   Improvement  &  Compliance     &  Compliance       CapabiliJes   Learning Integrative Network Improvement Functional System Stage  5     Co Vision difi Excellence ed Impact an d Culture of Innovation and Sharing of Production int Know How Stage  4     Str egr uct ate ure d (Situational, Systemic Expert based d im im ple and Strategic) Im Strategic Intent ple ple me me me nta Stage  3     nta No Cont. Imp. nta tio tio tio n n n ap ap (Si tua pro pro ac ac tio Stage  2     h h nal bas wit an No Co d ed hin Sy nti the nu on the fun ste Stage  1     ou cti cap mi on c) s Im abi lity s pro ve of (Sy me the loc ste nt mi al c) Pla ns ex or per str t (A uct d Compliant     ure . Ho c) Managing The Change Sustained     &     1950 2010 2013 &     Controlled   Sustainable  &  Compliant  Performance  Improvement  Culture           Compliant     Business   Agility  Performance       Change  Management     Capabili9es         &  Alignment  COE     Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 10
    • Executing the Business Operating Strategy Vision Supply   Strategichain      C Intent Supply  Network     Reliable  Supply     Talent  &  Skills     InnovaJon       Suppliers     Execu9ng  the  “Integra9ve  Challenge”   Customers    Strategic     Across  The  End  to  End  Extended  Supply  Chain     Focus     Areas   Prioritized Work Leading and Managing The Change - Transformation COE Alignment, Governance , Definition, Resourcing, Collaboration Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 11
    • The Integrative Performance Improvement System (IIS) Connects the Dots The  Execu9on  Challenge  !   Transforma9on     S  &  OP     COE     INTEGRATED  PROCESSES     Demand   Supply     A  Strategic     Enterprise     Projects     >   Processes   >   Demand-­‐driven  Value  Network  Ini9a9ve  to  Lead     1   2   3   4   5   Alignment     &  Develop     Capabili9es    Strategy   “Evolving  READINESS”     Using  IIS   Plaaorm      Metrics     Process  –based  Performance  Analy9cs        Organiza=on    IT         GOAL  ALIGNMENT     Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 12
    • Trevor Miles vp, thought leadership tmiles@kinaxis.com | @MilesAhead | +1.647.248.6269Copyright © 2012 Kinaxis Inc. CONFIDENTIAL
    • Supply Chain is an End-to-End “Team Sport” •  Cross-Functional = Collaborative •  Consensus = Compromise •  Alternatives = What-IfCopyright © 2012 Kinaxis Inc. CONFIDENTIAL 14
    • Source: Gartner, Delivering Business Value from S&OP, Todd Applebaum and Jan Kohler, Mar 29, 2012Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 15
    • Enables enterprises to dramatically compress the time to make profitable course correctionsCross-functional teamscan now use a singleproduct to plan, monitor,and respond to allaspects of supply anddemand balancing in Better businessminutes - not days or outcomes throughweeks reducing risk, increasing customer satisfaction and improving financial profitability Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 16
    • Improvement Actions & Trade Offs  Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 17
    • Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 18
    • Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 19
    • DiscussionCopyright © 2012 Kinaxis Inc. CONFIDENTIAL