More Related Content Similar to Supply Chain Index Webinar May 19, 2014 (20) More from Lora Cecere (20) Supply Chain Index Webinar May 19, 20142. 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
#sciwebinar
3. Supply Chain Insights LLC Copyright © 2013, p. 3
Presenters
Abby Mayer
Research Associate
Lora Cecere
Founder and CEO
#sciwebinar
Dr. George Runger
Professor, CIDSE, ASU
5. Supply Chain Insights LLC Copyright © 2013, p. 5
A Supply Chain
is a Complex System
with Complex
Processes
with Increasing
Complexity
Our Belief
#sciwebinar
6. Supply Chain Insights LLC Copyright © 2013, p. 6
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
#sciwebinar
7. Supply Chain Insights LLC Copyright © 2013, p. 7
Resilient and predictable
Balanced across the set of metrics to
maximize value
Showing year-over-year strength
against peer group
Desired Corporate Performance
#sciwebinar
8. Supply Chain Insights LLC Copyright © 2013, p. 8
The Supply Chain Effective Frontier:
First Representation
#sciwebinar
9. Supply Chain Insights LLC Copyright © 2013, p. 9
The Supply Chain Effective Frontier:
Second Representation
#sciwebinar
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.
10. Supply Chain Insights LLC Copyright © 2013, p. 10
Supply Chain Finance
Is a Barrier for Most
#sciwebinar
13. Supply Chain Insights LLC Copyright © 2013, p. 13
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, resiliency and
peer rankings.
Supply Chain Index
#sciwebinar
14. Supply Chain Insights LLC Copyright © 2013, p. 14
Supply Chain Index Calculation
For the period of 2006-2012
#sciwebinar
18. Supply Chain Insights LLC Copyright © 2013, p. 18
Available at
www.supplychaininsights.com/report-
archives
Supply Chain Metrics That Matter Reports
#sciwebinar
* Reports look at industry
performance of a small peer
group on growth, profitability,
cycle and complexity metrics
* Includes cross industry analysis
of cash-to-cash cycle, operating
margin and resiliency
*19 reports to date
19. Supply Chain Insights LLC Copyright © 2013, p. 19
Supply Chain Metrics That Matter Reports
#sciwebinar
21. Supply Chain Insights LLC Copyright © 2013, p. 21
Strength, Balance and Resiliency
#sciwebinar
30%
Inventory Turns &
Operating Margin
Trajectory
30%
Return on Invested
Capital & Revenue
Growth Trajectory
30%
Inventory Turns &
Operating Margin
Mean Distance
Strength Balance Resiliency
26. Supply Chain Insights LLC Copyright © 2013, p. 26
Results for Consumer
Packaged Goods Industry
#sciwebinar
27. Supply Chain Insights LLC Copyright © 2013, p. 27
Consumer Packaged Goods
Industry Orbit Chart
#sciwebinar
28. Supply Chain Insights LLC Copyright © 2013, p. 28
Consumer Packaged Goods
Industry Orbit Chart
#sciwebinar
33. Supply Chain Insights LLC Copyright © 2013, p. 33
Why It Matters
Company Average
Operating
Margin
Average
Inventory
Turns
Average
Days of
Payables
Resiliency
Ranking
BASF SE 0.10 5.3 39 .0.55
E. I. du Pont de
Nemours and Co.
0.10 4.0 56 .0.67
Company Average
Operating
Margin
Average
Inventory
Turns
Average
Days of
Payables
Resiliency
Ranking
Samsung Electronics
Co., Ltd.
0.11 8.3 35 0.59
LG Electronics Inc. 0.04 6.7 49 1.13
Company Average
Operating
Margin
Average
Inventory
Turns
Average
Days of
Payables
Resiliency
Ranking
Procter & Gamble Co. 0.18 5.6 55 0.52
Unilever N.V. 0.13 5.3 93 0.74
#sciwebinar
34. Supply Chain Insights LLC Copyright © 2013, p. 34
• Supply Chain Index:
Improving Strength,
Balance and Resiliency
• Our May 2014 research report examines the
three industries and the methodology in great
detail.
• Find it here: www.supplychaininsights.com/the-
supply-chain-index
Index Research Report
#sciwebinar
35. Supply Chain Insights LLC Copyright © 2013, p. 35
• Read the report
• 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?
#sciwebinar
37. Supply Chain Insights LLC Copyright © 2013, p. 37
1. Consumer, Healthcare and Industrial Value
Network reports through the summer
2. Final analysis of companies to be revealed
at the 2014 Supply Chain Insights Global
Summit
Next Steps
#sciwebinar
38. Supply Chain Insights LLC Copyright © 2013, p. 38
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:
#sciwebinar
39. Supply Chain Insights LLC Copyright © 2013, p. 39
What’s Happening at
Supply Chain Insights?
www.supplychaininsights.com
#sciwebinar
40. Supply Chain Insights LLC Copyright © 2013, p. 40
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)
#sciwebinar