Making the Digital Pivot. Imagining the Supply Chain That Could Be. Slide Deck

Supply Chain Insights LLC Copyright © 2015, p. 1
Making the Digital Pivot
October 21, 2015

Our Goal is to Help the Average Joe

Evolution of Digital Processes

Tapping Insights From:
Clouds?
Streams?
Lakes?

First Step: Define and Align

Right Stuff?

The Supply Chain of the Future
World
Population
Source: “The World at Six Billion” United Nations, 2004; The World UN Population Assessment 2006; “Unsustainable World,” 04/15/08, BBC
North America
2007 2020
339M 342M
Europe
2007 2020
731M 722M
Asia
2007 2020
4.0B 4.6B
L America
2007 2020
572M 660M
Africa
2007 2020
965M 1.3B
Oceania
2007 2020
34M 40M
MARCO TRENDS

Descriptors Used by Leaders

Why? The Long Tail of the Supply Chain:
Growing Complexity

Horizontal Team Alignment

A Shift in First Order Processes

Confluence of Technologies

Step Two: Use Analytics

Data Types

Analytics Maturity

Current Focus

Have You Ever Thought?

Opportunity
at the Intersection
of the Social and Interest Graph(s)

Simple Example of Test and Learn

Current Focus

• Newell Rubbermaid
Listening: Newell Rubbermaid
#Future15SB @bwdumars

#Future15SB @bwdumars
Newell Rubbermaid

Listening: Lenovo

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Canada
-Customer A calls about a blue screen on a Yoga
-Customer B posts on Facebook about his X220’s AC/DC adapter issues
Large Enterprise Client experiences 5 keyboard malfunctions in their latest
shipment. Complaints received through account executive
[Critical Situation]
Brazil
-Customer F submits a service from on
esupport.lenovo.com regarding
their W530 hard drive
Morocco
-Customers G & H comment on their
X220’s electrical issues on Twitter.com
-Customer I called about Yoga screen
issues
Australia
-Customer J write a review on
NewEgg.com about AC/DC adapter
issues on X220
-Customer K had an eChat with Lenovo
about Yoga screen issues
China
-Customer L wrote on Weibo about
Yoga screen issues
-Customer M calls about a Tablet 8
battery issues
Voice of Customer Comes in Many Forms
USA
-Customers C & D write X220 product
reviews on amazon.com and mention
issues with AC/DC adapters
-Customer E posts on
forums.lenovo.com that they are
experiencing blue screens on their Yoga

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Lenovo
- 6 recorded issues about X220’s
AC/DC adapter
- 5 recorded issues about
keyboard issues on X1 Carbon
- 5 recoded issues about Yoga
screen
- 1 recorded issue about W530
hard-drive
- 1 recorded issue about Tablet 8
battery
One Voice – A Single View of Perceptual Quality

The Entire Value Chain Benefits from VOC
Product Definition, Design
“I Wish this came with more
USB ports”
Sourcing, Supplier Quality
“The screen is so much easier to
clean than on my old machine.”
Sales Experience
“Why can’t I build a PC like I can
build a phone on Moto Maker?”
Logistics, Order-to-Delivery
“I got it on time—after they changed the
promise date 4 times!”
Product Quality & Performance
“The power fails every time I undock…”
Support
“The agent I had was knowledgeable,
but I waited so long.”
Brand Marketing, Advertising
“I loved that vine!”

Supply Chains Don’t Play by the Rules
32
But,
what if
they
could?

Only 9% Are Considering Adopting Cognitive Learning

Test and Learn Cross-Channel

Top Challenge for Cognitive Computing:
Actionable Insights

Step Three: Build Outside-In
Processes

Four Moments of Truth
The List:
• Digital
Recipe
• Digital
Coupons
• Online
Rating and
Reviews
The Basket:
• Shelf-sensing
• QR Codes
• In-store
coupons
• IP Address
Sensing
• Localized
assortment
The Check-out
• Downstream
Data
• Loyalty Data
Usage
• Sentiment Data
• Ratings and
Reviews

Emergence of Digital Path to Purchase

Funding for the Digital Path to Purchase

Thank you for letting
BudHunters know
about your beer being
out of stock.
We’re working to get
your Bud Light for you.
If you’re in a hurry, why
not grab some Bud
Select?
“Where’s My Bud!” – The Process Flow
New text
message to
612-961-
7802:
A customer
at Denny
and Doug’s
Liquor …

Where’s my Bud?
Finally make it to the aisle, and…
Where’s My Bud?
Use your mobile phone to snap the tag
above to get your Bud!
http://demos.dennyboynton.com/RetailLocation
OutOfStock.aspx

Thank you for letting BudHunters know about your beer
being out of stock.
It looks like Denny and Doug's Liquor Emporium is out of Bud
Light. Why not grab some Bud Select and take $2.00 off on
your purchase on us? Just bring the code below with yout to
the register.
ABBL12456

Retailer Experience
New text message to
612-961-7802:
A customer at Denny
and Doug’s Liquor
Emporium has just
snapped a tag. You’re
out of stock on Bud
Light.
Please contact your
wholesaler.

Step 4: Imagine and Redesign
Using the Confluence of
Technologies

Evolution of 3-D Printing of Human
Organs

Ultimate Ear

3D Printing

Internet of Things

Maturity on the Internet of Things

Costa Express Vision 2020
1. A digital platform for customers, partners,
distributors & suppliers
• Drive better interaction and efficiency
• Foundation Portal to empower different user groups
and built next generation services
2. Unlocking the power of data
• Real time and intraday information fundamental to the
backbone
• Exploit operating metrics servicing data, sales and
prognostic information
3. Enhanced end consumer experience
• Improved telemetry and digital platform open up new
possibilities for end customers
• Combine top down consumer and bottom up business
approaches

Automation of Replenishment

Alerts & Reports
• PAR Level Alert
• Temperature Alert
• Expiration Report
• Inventory Report
• Usage Report

11:1811:22

11:1811:26

11:1811:45

CUSTOMER PATH ANALYTICS

KINETIC HEAT MAPS

SHM PowerPoint Template Guidelines 03.15.10
Intelleflex Confidential
•Opportunity
• 1/3 of shipped produce wasted: $34B in annual
global waste from perishable foods
• 50% is due to temperature variations from the farm
to retail shelf
• Reducing temperature related shrink by half is
approx. $9B opportunity.
Perishable Produce – A Closer Look
1% reduction in Shrink
Increase in profit of
$1,173,555
6% reduction in Shrink
Increase in profit of
$7,378,830
One Commodity: Strawberries
(based on data from pilot with retail grocer)

SHM PowerPoint Template Guidelines 03.15.10
Intelleflex Confidential
• Leading berry brand owner
averaged 7% internal
shrink in 2010 for
blackberries shipping from
Mexico.
• This 7% Internal shrink
equates to approx. 2 pallets
for every truckload (27
pallets per load).
• So approx. 2 pallets, or
5,760 6oz clamshells, in
every truckload were not
sold to the retailer
customer.
Perishable Produce:
Putting Shrink Numbers in Perspective
Approx. 2 pallets on every truckload did not make it to the retailer.

Building Export Pallets – Group by
First In or Shelf Life?
Having different remaining shelf life mixed on pallets, causes problems later. Sending short shelf life berries on
longer delivery cycles turns Good Berries into BAD Berries for the retailer and others. More yellow & red pallets in
Philadelphia & Southern California ~ More shrink at the retailer ~ Lower customer satisfaction
15+ 14+
13+
11+
15+ 15+ 15+
10+
<10
12+
12+
<10
12+
15+
14+
12+
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12+
12+
10+
<10
<10
15+
15+
15+
15+
15+
15+
15+
15+
15+
15+15+
Currently berries come in from growers, pass QC, and are put on export pallets on a First In Basis (traceability control)
WHICH RESULTS IN MIXED SHELF LIFE ON MULTIPLE PALLETS….
ALL GOOD BERRIES, BUT - they have different remaining shelf life when received from growers
If we can group berries by shelf life, we avoid problems on multiple pallets – and send pallets to the right destination…

Network of Networks

• Role based. Get data to people who need to make the decisions when
they need it.
• The So What? When it comes to network partners. Answer the
question of "Do we know what you know? When we need to know?"
• The What. Within the Enterprise. "When did you know it? When should
you know it? Who should know it?"
• The Timing? Visibility with the right cadence. "How does the visibility of
data tie to decisions within the organization? What is the right cadence
and granularity?"
• Clarity. Get the language right. The belief is that sometimes we try to "get
too fancy and lose the basics." The group discussion focus was that
sometimes we get into a tool driven discussion versus the basic blocking
and tackling. For example, a packaging company discussed demand
data. When people say demand data, they automatically think of sharing
forecasts. However, for the supplier, the best source of demand data was
not the forecast, or the MRP run. Instead, it was the downstream partners
production schedules.
There is No One Definition of Visibility

Supply Chain Visibility

Vision: Network of Networks

Wrap-up

Traditional Digital
Project definition Large projects with
known outcomes
Small projects that evolve
Funding Licensed deployments Cloud deployments
Type of data Structured transactional
data
Unstructured and
structured data
Data characteristics Data with low velocity Data with high velocity
Leadership Led by IT Led by the business
Process focus Inside-out Outside-in
Capabilities Better response Test and learn
Technologies Large, established
vendors
Small and evolving
technology sources
Shifts

• The digital supply chain is a great opportunity to drive growth.
However, do not push digital for the sake of digital. Instead, define a
business problem, and attack it in a new way.
– First analyze the data and look at new forms of analytics
What data should be used?
Can you listen? Test and learn?
Adapt?
– Step 2. Analyze the opportunity from the confluence of technologies
What is possible in a redesign?
What does an outside-in process look like?
-Step 3. What is possible in the design of digital processes?
Imagine the supply chain of the future.
-Step 4. How do you evolve?
Be open to the outcome.
Summary

See You Next Year on
September 8 & 9, 2016

Founder: Lora Cecere
• Founder of Supply Chain Insights
• “LinkedIn Influencer”
• Guest blogger for Forbes
• Author of 4 books: Bricks Matter (2012), Shaman’s Journal (2014)
and Supply Chain Metrics That Matter (December 2014), Shaman’s Journal (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 (10,000 pageviews/month)
• Forbes: http://www.forbes.com/search/?q=lora+cecere
• Twitter: lcecere (6500 followers)
• LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (50,000 followers)

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Making the Digital Pivot. Imagining the Supply Chain That Could Be. Slide Deck