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Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
Metrics That Matter Webinar -October 10, 2013
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Metrics That Matter Webinar -October 10, 2013

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Presentation given on the Supply Chain Insights Metrics that Matter webinar on October 10th.

Presentation given on the Supply Chain Insights Metrics that Matter webinar on October 10th.

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  • 1. Metrics That Matter Lora Cecere Webinar October 2013
  • 2. Supply Chain Insights LLC Copyright © 2013, p. 2
  • 3. Supply Chain Insights LLC Copyright © 2013, p. 3 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
  • 4. Supply Chain Insights LLC Copyright © 2013, p. 4 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 Second Printing of Bricks Matter: 17 Five-Star Reviews on Amazon Book can be ordered from Amazon.com in hardcopy or digital format
  • 5. Supply Chain Insights LLC Copyright © 2013, p. 5 September 2014 Publication
  • 6. Supply Chain Insights LLC Copyright © 2013, p. 6 Current State
  • 7. Supply Chain Insights LLC Copyright © 2013, p. 7 A Supply Chain is a Complex System with Complex Processes with Increasing Complexity
  • 8. Supply Chain Insights LLC Copyright © 2013, p. 8 The Supply Chain Effective Frontier
  • 9. Supply Chain Insights LLC Copyright © 2013, p. 9 Which Metrics Matter?
  • 10. Supply Chain Insights LLC Copyright © 2013, p. 10 A Look at the Last Decade
  • 11. Supply Chain Insights LLC Copyright © 2013, p. 11 Progress in Manufacturing Productivity
  • 12. Supply Chain Insights LLC Copyright © 2013, p. 12 Productivity in Retail
  • 13. Supply Chain Insights LLC Copyright © 2013, p. 13 Industry Progress
  • 14. Supply Chain Insights LLC Copyright © 2013, p. 14  Perform better than peer group  Improve year-over-year results  Align internally on metrics  Deliver against the business strategy  Demonstrate consistency in results  Use innovation in supply chain processes  Balance. Be leaders in managing trade-offs Our Point of View: Definition of Supply Chain Excellence
  • 15. Supply Chain Insights LLC Copyright © 2013, p. 15 In a way that is:  Resilient and predictable  Balanced across the set of metrics to maximize value  Showing year-over-year improvement against peer group To Drive Corporate Performance
  • 16. Supply Chain Insights LLC Copyright © 2013, p. 16 Mining 20 Years of Financial Data
  • 17. Supply Chain Insights LLC Copyright © 2013, p. 17 Most Interesting Patterns • Revenue per Employee versus Inventory Turns • Operating Margin versus Inventory Turns • Cash-to-Cash Cycle versus Inventory Turns
  • 18. Supply Chain Insights LLC Copyright © 2013, p. 18 Progress in Inventory Turns and Operating Margin
  • 19. Supply Chain Insights LLC Copyright © 2013, p. 19 Impact of A Recession
  • 20. Supply Chain Insights LLC Copyright © 2013, p. 20 What Have We Learned? • Each industry has a different pattern of trade-offs of balancing growth, profitability, cycles and complexity. • Companies that are supply chain leaders have very small movement with a balanced portfolio of metrics. • It is about MUCH more than Return on Assets (ROA), growth and inventory.
  • 21. Supply Chain Insights LLC Copyright © 2013, p. 21 2002 2012 0 3 6 9 12 15 0 250 500 750 1,000 1,250 InventoryTurns Revenue per Employee (K$) The Dow Chemical Company Visualizing the Patterns Source: Supply Chain Insights LLC, Corporate Annual Reports 2002-2012 from One Source Best Scenario DOW 999, 6.7 Trace the line from 2002 point to 2012 point to follow the performance over time. The diamond shows the company’s average over the period. Ex: The Dow Chemical Company (DOW) has an average of 999 K$ for revenue per employee and 6.7 for inventory turns. Ideally, companies are increasing inventory turns and revenue per employee, moving towards the upper right corner of the graph over time. Here, we plot inventory turns (y-axis) vs. revenue per employee (x-axis). Average (Revenue per Employee, Inventory Turns)
  • 22. Supply Chain Insights LLC Copyright © 2013, p. 22 Corporate Summary
  • 23. Supply Chain Insights LLC Copyright © 2013, p. 23 Inventory Turns vs. Revenue per Employee (2002-2012)
  • 24. Supply Chain Insights LLC Copyright © 2013, p. 24 Corporate Summary
  • 25. Supply Chain Insights LLC Copyright © 2013, p. 25 Operating Margin vs. Revenue per Employee (2002-2012)
  • 26. Supply Chain Insights LLC Copyright © 2013, p. 26 Corporate Summary
  • 27. Supply Chain Insights LLC Copyright © 2013, p. 27 Operating Margin vs. Revenue per Employee (2002-2012)
  • 28. Supply Chain Insights LLC Copyright © 2013, p. 28 Inventory Turns vs. Revenue per Employee (2002-2012)
  • 29. Supply Chain Insights LLC Copyright © 2013, p. 29 Corporate Summary
  • 30. Supply Chain Insights LLC Copyright © 2013, p. 30 Inventory Turns vs. Revenue per Employee (2003-2012)
  • 31. Supply Chain Insights LLC Copyright © 2013, p. 31 Inventory Turns vs. Operating Margin (2000-2012)
  • 32. Supply Chain Insights LLC Copyright © 2013, p. 32 Cash-to-Cash Cycle vs. Inventory Turns (2000-2012)
  • 33. Supply Chain Insights LLC Copyright © 2013, p. 33 Corporate Summary
  • 34. Supply Chain Insights LLC Copyright © 2013, p. 34 Cash-to-Cash Cycle (2000-2012)
  • 35. Supply Chain Insights LLC Copyright © 2013, p. 35 Inventory Turns vs. Revenue per Employee (2002-2012)
  • 36. Supply Chain Insights LLC Copyright © 2013, p. 36 Inventory Turns vs. Operating Margin (2000-2012)
  • 37. Supply Chain Insights LLC Copyright © 2013, p. 37 Cash-to-Cash Cycle vs. Inventory Turns (2000-2012)
  • 38. Supply Chain Insights LLC Copyright © 2013, p. 38 Case Study
  • 39. Supply Chain Insights LLC Copyright © 2013, p. 39 Inventory Turns vs. Operating Margin (2000-2012)
  • 40. A formulaic representation of how companies are trading off growth, profitability, cycle and complexity performance on selected supply chain financial metrics against market valuation.
  • 41. Supply Chain Insights LLC Copyright © 2013, p. 42
  • 42. Supply Chain Insights LLC Copyright © 2013, p. 43 • Supply chain is a complex system with increasing complexity. • Different industries have different patterns, but the cash-to-cash metrics have the highest correlation to market capitalization with some of the poorest performance. Wrap-up
  • 43. Supply Chain Insights LLC Copyright © 2013, p. 44 1. Finish the work on the Supply Chain Index 2. Place the rankings on balance, strength and resilience into the Supply Chain Insights Community for Shaman Circle members to vote on supply chain excellence 3. Final analysis of companies to be revealed at the 2014 Supply Chain Insights Global Summit Next Steps
  • 44. Supply Chain Insights LLC Copyright © 2013, p. 45 PAST WEBINARS: ON DEMAND • From August 29, 2013: Supply Chain Index, Overview • From August 15, 2013: Supply Chain Talent: The Missing Link • From July 25, 2013: What is the Role of the Store Webinars www.supplychaininsights.com/upcoming-webinars UPCOMING WEBINARS • November 13, 2013: Shaman’s Circle • November 14, 2013: Healthcare Value Chain • December 12, 2013: Digital Manufacturing & 3D Printing • January 23, 2014: Voice of the Supply Chain
  • 45. Supply Chain Insights LLC Copyright © 2013, p. 46 Global Summit 2014 Registration is Now Open Supply Chain Insights Global Summit 2014 September 10-11, 2014 The Phoenician – Scottsdale, AZ USA www.supplychaininsightsglobalsummit.com
  • 46. Supply Chain Insights LLC Copyright © 2013, p. 47 Upcoming Corporate Training Chicago, IL and Atlanta, GA November 11-12, 2013 Chicago, IL USA January 16-17, 2014 Atlanta, GA USA www.supplychaininsights.com/training
  • 47. Supply Chain Insights LLC Copyright © 2013, p. 48 Questions?
  • 48. Supply Chain Insights LLC Copyright © 2013, p. 49 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.
  • 49. Supply Chain Insights LLC Copyright © 2013, p. 50 Where Do You Find Lora? Contact Information: lora.cecere@supplychaininsights.com Blog: www.supplychainshaman.com (5000 pageviews/month) Twitter: lcecere 5200 followers. LinkedIn: linkedin.com/pub/lora- cecere/0/196/573 (5200 in the network)

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