Supply Chain Insights Global Summit 2013 - Supply Chain Excellence with Lora Cecere
 

Supply Chain Insights Global Summit 2013 - Supply Chain Excellence with Lora Cecere

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What Is Supply Chain Excellence? What can we learn? What does it mean? Why should you care? Who did it best? How does supply chain performance effect corporate performance? Where are we on the ...

What Is Supply Chain Excellence? What can we learn? What does it mean? Why should you care? Who did it best? How does supply chain performance effect corporate performance? Where are we on the evolution of Supply Chain Excellence?

A presentation by Lora Cecere, Founder of Supply Chain Insights on which metrics matter by industry, along with an assessment on where the industry subgroups are on improving performance on the Supply Chain Effective Frontier (the ability to drive growth, manage costs, and inventories while balancing complexity).
Lora Cecere, Founder of Supply Chain Insights LLC

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    Supply Chain Insights Global Summit 2013 - Supply Chain Excellence with Lora Cecere Supply Chain Insights Global Summit 2013 - Supply Chain Excellence with Lora Cecere Presentation Transcript

    • Supply Chain Insights Global Summit #SCISummit September 2013, p.1TM
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.2TM
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.3TM
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.4TM September 2013, p.4TM Supply Chain Insights Global Summit #SCISummit
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.5TM Supply Chain Insights Global Summit #SCISummit September 2013, p.5TM • Defining Supply Chain Excellence • Conquering the Effective Frontier • The Supply Chain Index • Imagine Agenda
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.6TM September 2013, p.6TM Supply Chain Insights Global Summit #SCISummit
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.7TM Current State
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.8TM Agility
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.9TM Need for Strategy
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.10TM Process Evolution Align: Market Driven Build Horizontal Process Connectors Continuously Test, Learn & Improve in Market Orchestrate Demand and Supply Source: Supply Chain Insights LLC Adapt: Demand Driven Sense Demand and Supply Shape Demand and Supply Based on Market Resilient Absorb Demand Volatility Absorb Supply Volatility Reliable Right Product Right Place Right Time Right Cost Efficient Cost Procure to pay/ order to cash
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.11TM What Is Supply Chain Excellence? • 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
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.12TM Supply Chain Insights Global Summit #SCISummit September 2013, p.12TM • Defining Supply Chain Excellence • Conquering the Effective Frontier • The Supply Chain Index • Imagine Agenda
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.13TM Definitions • Supply Chain Excellence: The behavior of companies working to maximize value through the setting of targets for supply chain financial ratios and aligning metrics that matter (tied to value chain strategy). • Supply Chain Effective Frontier: The balance of growth, profitability, cycle and complexity metrics to deliver the supply chain strategy. It may or may not maximize the company’s market valuation. • Supply Chain Index: A formulaic representation of supply chain financial ratios correlated to stock market capitalization valuation.
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.14TM The Supply Chain Effective Frontier
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.15TM Mining 20 Years of Financial Data
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.16TM Most Interesting Patterns • Cash to Cash versus Inventory Turns • Revenue per Employee versus Inventory Turns • Operating Margin versus Inventory Turns
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.17TM 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.
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.18TM Productivity in Manufacturing
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.19TM Productivity in Retail
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.20TM Progress in Inventory Turns and Operating Margin (2000-2012)
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.21TM Impact of A Recession
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.22TM 2002 2012 0 3 6 9 12 15 0 250 500 750 1,000 1,250 InventoryTurns Revenue per Employee (K$) The Dow Chemical Company Visualizing the Patterns Source: Supply Chain Insights LLC, Corporate Annual Reports 2002-2012 from One Source Best Scenario DOW 999, 6.7 Trace the line from 2002 point to 2012 point to follow the performance over time. The diamond shows the company’s average over the period. Ex: The Dow Chemical Company (DOW) has an average of 461 K$ for revenue per employee and 4.0 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)
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.23TM Beverage
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.24TM Cereal
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.25TM Household Products
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.26TM A Closer Look
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.27TM Another View
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.28TM Comparison Chart (2000-2006, 2007-2009, 2010-2012)
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.29TM Supply Chain Insights Global Summit #SCISummit September 2013, p.29TM • Defining Supply Chain Excellence • Conquering the Effective Frontier • The Supply Chain Index • Imagine Agenda
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.30TM September 2013, p.30TM Supply Chain Insights Global Summit #SCISummit A formulaic representation of how companies are trading off growth, profitability, cycle and complexity performance on selected supply chain financial metrics against market valuation.
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.31TM Household & Personal Products Equation Y = 2.93 – 0.01(DOI) + 0.02(DPO) + 0.01(DSO) + 3.07(FCF) – 0.93(ROIC) + 0.28(SGAC) – 4.10(WC) Household & Personal Products Equation
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.32TM CPG Ranking 2012
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.33TM
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.34TM
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.35TM Supply Chain Insights Global Summit #SCISummit September 2013, p.35TM • Defining Supply Chain Excellence • Conquering the Effective Frontier • The Supply Chain Index • Imagine Agenda
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.36TM Supply Chain Insights Global Summit #SCISummit September 2013, p.36TM Digital Manufacturing Internet of Things Big Data Digital Path to Purchase CSR as a Brand Advantage New Forms of Analytics Business Networks Inter-Enterprise Systems of Record 3D Printing Collaborative Economy
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.37TM imagine
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.38TM Imagine
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.39TM Conventional Manufacturing
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.40TM Use of 3-D Printing
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.41TM Yelling Listening Functional Silos T-Shaped ManagersFunctional Silos BREADTH DEPTH Re-aligning Process & People
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.42TM
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.43TM September 2013, p.43TM Supply Chain Insights Global Summit #SCISummit
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.44TM Thanks to Our Sponsors!
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.45TM Visit the Supply Chain Insights Global Summit website for all conference content: Continue the Discussion www.supplychaininsightsglobalsummit.com
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.46TM Save the Date! Supply Chain Insights Global Summit 2014 September 10-11, 2014 The Phoenician – Scottsdale, AZ USA
    • Supply Chain Insights Global Summit #SCISummit September 2013, p.47TM