Presentation from the Logimed Conference in May 2014. Medical device supply chains are resilient, but they are not strong. The focus of the presentation is on the progress of the medical device supply chain over the last decade compared with other industries.

1. The Medical Device
Supply Chain

2. Supply Chain Insights LLC Copyright © 2013, p. 2
Supply Chain Insights is focused on delivering
independent, actionable and objective
advice for supply chain leaders.
A company dedicated to research,
turn to us when you want the latest insights
on supply chain trends, technologies to know
and metrics that matter.
About Us
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3. Supply Chain Insights LLC Copyright © 2013, p. 3
Healthcare Value Chain

4. Supply Chain Insights LLC Copyright © 2013, p. 4
Components of Cash to Cash

5. Supply Chain Insights LLC Copyright © 2013, p. 5
Today’s Supply Chain
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6. Supply Chain Insights LLC Copyright © 2013, p. 6
Supply Chain Metrics That Matter Reports

7. Supply Chain Insights LLC Copyright © 2013, p. 7
Growth has Slowed

8. Supply Chain Insights LLC Copyright © 2013, p. 8
A Supply Chain
is a Complex System
with Complex
Processes
with Increasing
Complexity
Our Belief
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9. Supply Chain Insights LLC Copyright © 2013, p. 9
 Resilient and predictable
 Balanced across the set of metrics to
maximize value
 Showing year-over-year strength
against peer group
Desired Corporate Performance
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10. Supply Chain Insights LLC Copyright © 2013, p. 10
The Supply Chain Effective Frontier:
Second Representation
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In most supply chains, complexity has risen throwing the
supply chain out of balance. We find that nine out of ten
companies are stuck at the intersection of inventory turns
and operating margin.

11. Supply Chain Insights LLC Copyright © 2013, p. 11
Supply Chain Finance
Is a Barrier for Most
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12. Supply Chain Insights LLC Copyright © 2013, p. 12
A Business Continuity Risk
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13. Supply Chain Insights LLC Copyright © 2013, p. 13
The Efficient Supply Chain is not
Effective

14. Supply Chain Insights LLC Copyright © 2013, p. 14
Mining 20 Years of Financial Data
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15. Supply Chain Insights LLC Copyright © 2013, p. 15
How to Read an Orbit Chart
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16. Supply Chain Insights LLC Copyright © 2013, p. 16
Resiliency
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17. Supply Chain Insights LLC Copyright © 2013, p. 17
Corporate Summary

18. Supply Chain Insights LLC Copyright © 2013, p. 18
Metric Equations

19. Supply Chain Insights LLC Copyright © 2013, p. 19
Inventory Turns vs. Revenue per Employee
(2002-2012)

20. Supply Chain Insights LLC Copyright © 2013, p. 20
Inventory Turns vs. Operating Margin
(2000-2012)

21. Supply Chain Insights LLC Copyright © 2013, p. 21
Revenue Growth vs. Return on Invested Capital
(2001-2012)

22. Supply Chain Insights LLC Copyright © 2013, p. 22
Cash-to-Cash Cycle Components

23. Supply Chain Insights LLC Copyright © 2013, p. 23
Medical Device Company Resiliency
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24. Supply Chain Insights LLC Copyright © 2013, p. 24
Overall Ranking per Company
• Strength: Inventory Turns & Operating Margin Vector Trajectory (30%)
• Balance: Return on Invested Capital & Revenue Growth Vector Trajectory (30%)
• Resiliency: Inventory Turns & Operating Margin Mean Distance (30%)
• Peer: Peer Rankings by Industry (10%)
The Supply Chain Index
A new way to measure
relative supply chain
performance by
industry, based on 4
components:
strength, balance, resilien
cy and peer rankings.
Supply Chain Index
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25. Supply Chain Insights LLC Copyright © 2013, p. 25
Supply Chain Index= .3(Ranking on Growth/ROIC)+.3(Ranking on
Operating Margin/Inventory)+.3(Resiliency Ranking)+.1 (Peer Assessment
Ranking)
Supply Chain Index Calculation
For the period of 2006-2013

26. Supply Chain Insights LLC Copyright © 2013, p. 26
• Benchmark against peers.
• Improve reliability of inventory turns &
operating margin performance.
• Understand that industries with high
variability pose risk to your supply chain.
• Measure progress in centimeters, not
kilometers.
What Can You Do?
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27. Supply Chain Insights LLC Copyright © 2013, p. 27
Metrics That Matter
• Lora Cecere’s 2nd book:
Metrics That Matter
• To publish in Fall 2014
http://tinyurl.com/metricsthatmatter
Pre-orders available on Amazon:
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28. Supply Chain Insights LLC Copyright © 2013, p. 28
What’s Happening at
Supply Chain Insights?
www.supplychaininsights.com
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29. Supply Chain Insights LLC Copyright © 2013, p. 29
About Lora Cecere
• Founder of Supply Chain Insights
• Invited to be a “LinkedIn Influencer”
• Invited to write a guest blog for Forbes
• Author of 2 books: Bricks Matter (2012) and
Metrics That Matter (to publish Fall of 2014)
• 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.
Contact Information:
• Email: lora.cecere@supplychaininsights.com
• Blog: www.supplychainshaman.com (6000 pageviews/month)
• Forbes: http://www.forbes.com/search/?q=lora+cecere
• Twitter: lcecere (4800 followers)
• LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (7000 in the network)
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