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Presentation given on the European tour for the book Bricks Matter.

Presentation given on the European tour for the book Bricks Matter.

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  • 1. Bricks Matter Lora Cecere
  • 2. About UsSupply Chain Insights is focused on deliveringindependent, actionable and objectiveadvice for supply chain leaders. A companydedicated to research, turn to us when youwant the latest insights on supply chain trends,technologies to know and metrics that matter. Supply Chain Insights LLC Copyright © 2012, p. 2
  • 3. Second Printing of Bricks Matter:12 Five-Star Reviews on Amazon This is the new bible for all supply chain executives. It provides an insider’s perspective that will prove incredibly valuable to even the most grizzled supply chain veteran. This is the next must-have business book. --Bruce Richardson, Chief Enterprise Strategist, Salesforce.com Today, the worlds of social business and supply chain management have many degrees of separation. I enjoyed working with Lora to understand what the future transformation of digital marketing to digital business could look like. --Jeremiah Owyang, Research Director, Altimeter Supply Chain Insights LLC Copyright © 2012, p. 3
  • 4. 18 Reports in 2012 Supply Chain Insights LLC Copyright © 2012, p. 4
  • 5. 35 Reports Planned for 2013 Supply Chain Metrics: Apparel/Footwear Automotive Outsourced Manuf’g SC Index: Corp. Perf. Survey-Based: Continuous Impr’mt Digital Manufacturing Risk Management Supply Chain Finance Supply Chain Mobility Digital Path to Purch. Master Data Mgmt Omnichannel Fulfillmt Tracking Surveys: S&OP and Agility #2 Integrated Demand #2 Big Data #2 SCTalent #2 Transportation #2 Voice of SC #3 Other: Software Market-share Consumer Value Chain Cool Technologies Supply Chain Insights LLC Copyright © 2012, p. 5
  • 6. The Supply Chain Pioneers Supply Chain Insights LLC Copyright © 2012, p. 6
  • 7. Supply Chain Management:Top 3 Elements of Pain for Respondent Supply Chain Insights LLC Copyright © 2012, p. 7
  • 8. A Supply Chain is a Complex System with Complex Processeswith Increasing Complexity Supply Chain Insights LLC Copyright © 2012, p. 8
  • 9. The Effective Frontier Profitable Growth Revenue Cost of Goods Working Capital Corporate Social ResponsibilityR&D Strategy and Investment Asset Strategy and InvestmentForecast Accuracy Customer Service InventoryChannel Strategy Product and Supplier Strategy Service Portfolio Sales Distribution Manufacturing Logistics ProcurementPolicies Policies Policies Policies PoliciesReturns Backorders First Pass Yield Empty Miles Material Yield Supply Chain Insights LLC Copyright © 2012, p. 9
  • 10. Useful RatiosGrowth Profitability Cycle ComplexityR&D Margin Cash on Hand C2C Cycle Altman Z Days of FinishedR&D to COGS Ratio Free Cash Flow Ratio Capital Turnover GoodsSGA Margin Gross Margin Days of Inventory Current Ratio Days of PayablesSGA/COGS Net Profit Quick Ratio OutstandingCOGS as Percent of Days of Raw Operating Margin Return on AssetsNet Sales Materials Days of Sales Pretax Margin (EBIT) Return on Equity Outstanding Days of Work in Return on Invested YoY Sales Growth Progress Capital Operating Margin DPO/DSO Return on Net Assets Inventory Turns Revenue/Employee Receivables Turns Cost of Sales Supply Chain Insights LLC Copyright © 2012, p. 10
  • 11. Cash-to-Cash Cycle vs. Gross Margin (2000-2011) SUMMARY SLIDE Supply Chain Insights LLC Copyright © 2012, p. 11
  • 12. Industry Averages Supply Chain Insights LLC Copyright © 2012, p. 12
  • 13. Chemical Supply Chain Insights LLC Copyright © 2012, p. 13
  • 14. Consumer Electronics Supply Chain Insights LLC Copyright © 2012, p. 14
  • 15. Consumer Packaged Goods Supply Chain Insights LLC Copyright © 2012, p. 15
  • 16. Colgate-Palmolive Company vs Unilever N.V. Supply Chain Insights LLC Copyright © 2012, p. 16
  • 17. Cash-to-Cash Cycle vs. Gross Margin (2000-2011) SUMMARY SLIDE Supply Chain Insights LLC Copyright © 2012, p. 17
  • 18. Food Supply Chain Insights LLC Copyright © 2012, p. 18
  • 19. Cash-to-Cash Cycle vs. Revenue per Employee (2000-2011) Supply Chain Insights LLC Copyright © 2012, p. 19
  • 20. Five Year Comparison Supply Chain Insights LLC Copyright © 2012, p. 20
  • 21. Pharmaceutical Supply Chain Insights LLC Copyright © 2012, p. 21
  • 22. Average Days of Inventory by Year 250.0 200.0Days of Inventory 150.0 100.0 50.0 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Consumer Packaged Goods 59.0 57.0 62.0 64.0 67.0 67.0 68.0 70.0 70.0 64.0 64.0 67.0 Chemical 71.5 71.9 78.2 75.1 62.0 70.3 68.1 64.3 64.3 78.6 72.9 72.8 Pharma 122.2 133.7 190.1 171.0 184.3 175.6 167.8 149.8 154.9 198.7 154.3 131.8 High Tech 93.1 57.6 46.5 48.5 35.9 37.3 43.8 36.8 34.6 41.3 34.8 30.4 Average 86.5 80.0 94.2 89.6 87.3 87.5 86.9 80.2 81.0 95.6 81.5 75.5 Source: Supply Chain Insights 2012 Supply Chain Insights LLC Copyright © 2012, p. 22
  • 23. EvolutionAlign: Continuous Building Horizontal Testing OrchestrateMarket Process Connectors Learning Improving Demand and SupplyDriven In Market Adapt: Demand Resilient Reliable Driven Right Product Efficient Absorb Sense Demand Demand Volatility Right Place Cost and Supply Right Time Procure to Shape Absorb Supply pay/order to Demand and Volatility cash Supply based Right Cost on Market Supply Chain Insights LLC Copyright © 2012, p. 23
  • 24. What is a Market-driven Value Network? An adaptive network focused on a value-based outcome that senses and translatesmarket changes (buy and sell-side markets) bi-directionally with near-real time data latency to align sell, deliver, make and sourcing operations. Supply Chain Insights LLC Copyright © 2012, p. 24
  • 25. Evolving Practices Supply Chain Insights LLC Copyright © 2012, p. 25
  • 26. Sustainability
  • 27. Corporate Sustainability Dilemma Supply Chain Insights LLC Copyright © 2012, p. 27
  • 28. Corporate Sustainability Alignment Supply Chain Insights LLC Copyright © 2012, p. 28
  • 29. Corporate Sustainability Alignment Supply Chain Insights LLC Copyright © 2012, p. 29
  • 30. Current Performance
  • 31. State of IT Systems Supply Chain Insights LLC Copyright © 2012, p. 31
  • 32. System Importance Supply Chain Insights LLC Copyright © 2012, p. 32
  • 33. Satisfaction with Technology Supply Chain Insights LLC Copyright © 2012, p. 33
  • 34. The Gap Supply Chain Insights LLC Copyright © 2012, p. 34
  • 35. The Path Forward
  • 36. The Supply Chain of the Future World Population North America Europe Asia 2007 2020 2007 2020 2007 2020 339M 342M 731M 722M 4.0B 4.6B L America 2007 2020 Africa Oceania 572M 660M 2007 2020 2007 2020 965M 1.3B 34M 40MSource: “The World at Six Billion” United Nations, 2004; The World UN Population Assessment 2006; “Unsustainable World,” 04/15/08, BBC MARCO TRENDS Supply Chain Insights LLC Copyright © 2012, p. 36
  • 37. Supply Chain 2020 Tipping Points 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Orchestration Internet of Things TalentShortage Big Data Learning Supply Chains Supply Chains Compliance on Safe & Secure Digital Manufacturing Supply Chain Excellence = Value-Based Outcomes Delivered by Value Networks Outside-In Supply Chain Insights LLC Copyright © 2012, p. 37
  • 38. Scenario Planning Supply Chain Insights LLC Copyright © 2012, p. 39
  • 39. Rethinking Analytics Supply Chain Insights LLC Copyright © 2012, p. 40
  • 40. Supply Chain Insights LLC Copyright © 2012, p. 41
  • 41. DefinitionStructured • Transactional Challenges: Data • Time phased data • Social VolumeUnstructured • Channel Data • Customer Service • Warranty • Temperature Velocity Sensor • RFID Data • QR codes • GPS Variability New • Mapping and GPS • Video Data • Voice Types • Digital Images 42 Supply Chain Insights LLC Copyright © 2012, p. 42
  • 42. Connecting the Extended Supply Chain 43 Supply Chain Insights LLC Copyright © 2012, p. 43
  • 43. Connecting the Extended Supply Chain Supply Chain Insights LLC Copyright © 2012, p. 44
  • 44. Training – Based on Bricks MatterTwo-day public training classes focusing on accelerating the understanding ofsupply chain excellence. $1500 for two days of training. – Chicago, IL – April 1-2 – Dallas, TX – May 6-7 – Princeton, NJ – June 24-25 For more information and to register visit: www.supplychaininsights.com/services/training/ Supply Chain Insights LLC Copyright © 2012, p. 45
  • 45. Where is Your Opportunity? Supply Chain Insights LLC Copyright © 2012, p. 46
  • 46. Who is Lora?• Founder of Supply Chain Insights• Partner at Altimeter Group (leader in open research)• 7 years of Management Experience leading Analyst Teams at Gartner and AMR Research• 8 years Experience in Marketing and Selling Supply Chain Software at Descartes Systems Group and Manugistics (now JDA)• 15 Years Leading teams in Manufacturing and Distribution operations for Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble. Supply Chain Insights LLC Copyright © 2012, p. 47
  • 47. Where Do You Find Lora? Contact Information: lora.cecere@supplychaininsights.com Blog: www.supplychainshaman.com (4000 pageviews/month) Twitter: lcecere 3700 followers. Rated as the top rated supply chain social network user. LinkedIn: linkedin.com/pub/lora- cecere/0/196/573 (2300 in the network) Supply Chain Insights LLC Copyright © 2012, p. 48