Presentation given at Kinexions12

  • 594 views
Uploaded on

Mainstage presentation given at the Kinaxis conference Kinaxions on October 18, 2012

Mainstage presentation given at the Kinaxis conference Kinaxions on October 18, 2012

More in: Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
594
On Slideshare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
15
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Bricks Matter October 2012
  • 2. BRICKS Book Publishes Matter December 2012 The Role of Supply Chains in Building Market-Driven Differentiation LORA M. CECERE CHARLES W. CHASE JR.
  • 3. Right Use Expansion into Supply Chainof Assets BRIC Countries Process (Brazil, Russia, Knowledge India and China)
  • 4. 1 Truth 3 Lies
  • 5. Agenda Supply Chain Insights LLC Copyright © 2012, p. 5
  • 6. Evolving Practices
  • 7. Days of InventorySource: Supply Chain Insights LLC, Corporate Annual Reports 2000-2011 Supply Chain Insights LLC Copyright © 2012, p. 7
  • 8. Data Latency and Distortion Retailer DC Manufacturer DC Suppliers Store Demand Signal Accurate Almost WeeklyTrivial Easy Difficult Impossible Forecasting is ...Instant 3-10 Days 10-20 Days Delay from 20-50 Days 20-45 Days Purchase toVariable 7-20 Days 45-80 Days Signal Red Represents Emerging Economies with Distributor Trade Supply Chain Insights LLC Copyright © 2012, p. 8
  • 9. Building End-to-End Value NetworksToday Manufacturer True collaboration only happens when there is a sustaining win/win value proposition. Supply Chain Insights LLC Copyright © 2012, p. 9
  • 10. Collaboration: The Right Stuff SHARED VISION + SKILLS + INCENTIVE + RESOURCES + PLAN + LEADERSHIP = CHANGE SKILLS + INCENTIVE + RESOURCES + PLAN = CONFUSION SHARED VISION + INCENTIVE + RESOURCES + PLAN + LEADERSHIP = ANXIETY SHARED FALSE + SKILLS + INCENTIVE + RESOURCES + LEADERSHIP = VISION STARTS SHARED VISION + SKILLS + INCENTIVE + PLAN + LEADERSHIP = FRUSTRATION SHARED GRADUAL + SKILLS + RESOURCES + PLAN + LEADERSHIP = VISION CHANGESource: J.P. Kotter Supply Chain Insights LLC Copyright © 2012, p. 10
  • 11. Agenda Supply Chain Insights LLC Copyright © 2012, p. 11
  • 12. Supply Chain Management:Top 3 Elements of Pain for Respondent Supply Chain Insights LLC Copyright © 2012, p. 12
  • 13. Evolution of Supply Chain Process ExcellenceAlign: 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. 13
  • 14. Supply Chain “Excellence” Definition Supply Chain Insights LLC Copyright © 2012, p. 14
  • 15. A Supply Chain is a Complex System with Complex Processeswith Increasing Complexity
  • 16. 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. 16
  • 17. Useful Ratios Supply Chain Insights LLC Copyright © 2012, p. 17
  • 18. What is Best in Class?• Performance better than peer group• Year-over-year improvements• Consistency in results• Leadership in managing trade-offs Supply Chain Insights LLC Copyright © 2012, p. 18
  • 19. Cash-to-Cash Cycle vs. Gross Margin (2000-2011) SUMMARY SLIDE Supply Chain Insights LLC Copyright © 2012, p. 19
  • 20. Metric Equations Supply Chain Insights LLC Copyright © 2012, p. 20
  • 21. Corporate Summary Supply Chain Insights LLC Copyright © 2012, p. 21
  • 22. Cash-to-Cash Cycle vs. Gross Margin (2000-2009) SUMMARY SLIDE Supply Chain Insights LLC Copyright © 2012, p. 22
  • 23. Corporate Summary Supply Chain Insights LLC Copyright © 2012, p. 23
  • 24. Cash-to-Cash Cycle vs. Gross Margin (2000-2010) SUMMARY SLIDE Supply Chain Insights LLC Copyright © 2012, p. 24
  • 25. Inventory Turns vs. Revenue per Employee (2000-2010) SUMMARY SLIDE Supply Chain Insights LLC Copyright © 2012, p. 25
  • 26. Value Network Strategy Business Strategy What are the right things to do to increase company value? Value-network Supply Chain Strategy What are the right ways to support the business strategy? What are the right trade-offs between value drivers for each value network? Align demand Right product Design the Build Align supply Supply chain strategy relationships platforms supply organizational relationships response systems and manage talent Effective Supply Demand Networks Design Networks Continuous Networks Improvement Joint Value Creation Innovation Supply Chain Execution of buy- Strategies Methodologies Network Design Capabilities Required side strategies Business Process How do I do the right things right?Source: Supply Chain Insights, LLC Supply Chain Insights LLC Copyright © 2012, p. 26
  • 27. Agenda Supply Chain Insights LLC Copyright © 2012, p. 27
  • 28. 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. 28
  • 29. Supply Chain Tipping Points1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 JIT Supply Chain Internet/Email RFID Organization Evolution of eProcurement the PC Re-Engineering the Total Quality S&OP Organization Management Theory of Constraints (Michael Hammer)Supply Chain Excellence = Supply Chain Excellence = Islands of Manufacturing Vertical Silo Efficient Order to + + Excellence Excellence Excellence Cash Processes Inside-Out Inside-Out Supply Chain Insights LLC Copyright © 2012, p. 29
  • 30. Supply Chain Tipping Points 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 .com Social Responsibility Y2K Demand Driven Concepts CSCO Lean Six Sigma Market-Driven Value NetworksSupply Chain Excellence = Supply Chain Excellence = Vertical Silo Outsourcing Value-Based Outcomes + Excellence Effectiveness Delivered by Horizontal Processes Inside-Out Outside-In Supply Chain Insights LLC Copyright © 2012, p. 30
  • 31. 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. 31 Supply Chain Insights LLC Copyright © 2012, p. 31
  • 32. 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. 32
  • 33. Supply Chain Insights LLC Copyright © 2012, p. 33
  • 34. Current State of Planning Supply Chain Insights LLC Copyright © 2012, p. 34
  • 35. Future State of Planning Supply Chain Insights LLC Copyright © 2012, p. 35
  • 36. Ease of Getting Total Supply Chain Costs: Manufacturers, Retailers & Distributors USERS: Ease of Getting Total Supply Chain Costs Extremely/very easy 5 Neutral 3 Extremely/very difficultUsers 12% 12% 24% 24% 29% 24% EASY 53% DIFFICULT ___________________________________________________________ Source: Supply Chain Insights LLC, Transportation (Aug-Oct 2012) Base: Transportation Users (Manufacturers, Retailers and Distributors) (n=34) Q18. How easy is it for your company to get total supply chain costs for your operations? Supply Chain Insights LLC Copyright © 2012, p. 36
  • 37. Scenario Planning Supply Chain Insights LLC Copyright © 2012, p. 37
  • 38. IT Trends Excited About (Top 3) Supply Chain Insights LLC Copyright © 2012, p. 38
  • 39. 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 39 Supply Chain Insights LLC Copyright © 2012, p. 39
  • 40. Big Data: What is it all About? Downstream Data EDI Sentiment TextCold Chain Call Analysis Analytics Center LogseCommerce Social What-if Models Hadoop Learning Systems Geolocation Data VisualizationRatings &Reviews RFID Facebook Scorecards Rules-Based Photographs Map Reduce Ontology Video T-Log Data Twitter R ForecastingWeblogs Warranty Returns Digital Path To Constraint- InformationSensors Mobile Applications Purchase based Planning Data Mining Supply Chain Insights LLC Copyright © 2012, p. 40
  • 41. Evolution of VisibilityValue Networks Value Network Sense/Act/Response Supply Chain Supply Chain Visualization Single Function Visibility Vertical Functions Where is My Stuff? Please Alert me of a Early Warning Learn a Better Way Track and Trace Problem Predictive Analytics Query Advanced Analytics Supply Chain Insights LLC Copyright © 2012, p. 41
  • 42. Connecting the Extended Supply Chain 42 Supply Chain Insights LLC Copyright © 2012, p. 42
  • 43. Connecting the Extended Supply Chain Supply Chain Insights LLC Copyright © 2012, p. 43
  • 44. Opportunityat the Intersectionof the Social and Interest Graph(s) Supply Chain Insights LLC Copyright © 2012, p. 44
  • 45. More than Just “Like” Supply Chain Insights LLC Copyright © 2012, p. 45
  • 46. Newell Rubbermaid Gets IT! • Newell Rubbermaid#Future15SB @bwdumars Supply Chain Insights LLC Copyright © 2012, p. 46
  • 47. Newell Rubbermaid Gets IT! #Future15SB @bwdumars Supply Chain Insights LLC Copyright © 2012, p. 47
  • 48. Historically, We Have…• Tried to get precise on inaccurate data.• Been sales-driven or marketing-driven not market- driven• Believed that the most efficient supply chain is the most effective supply chain.• Built efficient chains, but not effective networks.• Focused inside-out, not outside-in.• Rewarded the urgent, not the important.In the end, Bricks Matter. Processes are Evolving, butit Matters More than Ever. Supply Chain Insights LLC Copyright © 2012, p. 48
  • 49. ENRICHConsulting Technology NEW Supply Chain Insights LLC Copyright © 2012, p. 50
  • 50. EDUCATESCI Research Supply Chain Index Ask a Supply Chain Wizard Supply Chain Wiki Blogs Videos, Webinars, and Share Your Own Podcasts Supply Chain Insights LLC Copyright © 2012, p. 51
  • 51. EVOLVE Job Postings EventsSalary Information Help Board NEW Supply Chain Insights LLC Copyright © 2012, p. 52
  • 52. Supply Chain Super HeroesIncreasingKnowledge Titanium Titan Shaman Ivy Insights Researcher Community Badges Facilitation Digital Atlas Community Facilitator S-Men Good Karma Supply Chain Insights LLC Copyright © 2012, p. 53
  • 53. Meet the Superheroes
  • 54. Where is Your Opportunity? Supply Chain Insights LLC Copyright © 2012, p. 55
  • 55. 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. 56
  • 56. Where Do You Find Lora? Contact Information: lora.cecere@supplychaininsights.com Blog: www.supplychainshaman.com (4000 pageviews/month) Twitter: lcecere 3350 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. 57