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SCG Introduction Slides
- 3. ©SupplyChainGroup-2011
Introduction
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Underlying today’s supply chain are increasingly
complex and at times costly business needs.
• “Flows” can include products, services, integrated information,
financial transactions, global legal requirements…
• “Customers” may be consumers, returns, stores, customer’s-
customers, government agencies, third party, back hauls…
• Asset utilization is key objective in today’s economy
• Business and regulatory changes are altering the dynamics of
supply chain processes in many industries
• Improving SC Sustainability is becoming a board requirement
Our focus is to support your supply chain project needs
in strategy, analysis, design, build, and implementation,
with:
• Innovative thinking
• Right talent for your project, we have a deeply skilled core team
and ecosystem of alliance consultants
• Flexibility in working with you as augmentation to your team or
project lead or subject matter advisor
• World class project approach and methods, that include
comparative benchmarking and best practices insights
• Very competitive rate structure based on low overhead
- 4. ©SupplyChainGroup-2011
How We Work
• We bring best practice, process expertise
and thought leadership to support new and
innovative thinking for your project across
business and technology domains
• We have managed supply chain
operations and program offices, led
implementation of capabilities, defined
strategy and directional analyses, and
supported business planning and cross
functional coordination.
• We work with you to provide a team-based
environment, combining our design and
operations experience with distribution and
systems expertise with your organizational and
business knowledge
• We Leverage our project experience to help
you focus on the keys for project success:
commitment to understood objectives,
management to project plans and scope, the
right methods, skills and resources for project
activities, benefit areas are measured, and
risks mitigated.
• Utilizing past successes for your projects
we apply templates, best practices, lessons
learned, and methods
Our focus is supporting clients in
defining supply chain direction and
achieving measureable benefits…
•The Supply Chain Group is a 3 year old
firm consisting of senior level consultants with
an average of 20 years of supply
chain consulting experience.
•Core team formerly held senior positions with
Deloitte, SAP, IBM, PWC, and AT Kearney.
•In our focus areas we have best practice tools,
lean/six sigma and other proven methods,
technology templates, and deep staff experience
to improve:
• Supply Chain Strategy and Assessment
• Network Optimization
• Transportation Negotiations and Fleet Management
• DC Operations, Warehousing and Fulfillment
• Demand Planning, Forecasting, and Inventory
• Technology Selection & Implementation (WMS, TMS,
APS, OMS, ERP)
• Strategic Sourcing, Procurement, Spend Analysis
• Sustainable Supply Chain Practices
- 5. ©SupplyChainGroup-2011
SCG Value To You
• We have managed supply chain program offices, led implementation of
capabilities, defined strategy and directional analyses, and supported
business planning and cross functional coordination.
• We work with you to provide a team-based environment, combining our
design experience and distribution operations and systems expertise with
your organizational and business knowledge
• For some of our clients we have quickly identified current initiatives,
capability gaps, and process disconnects then assessed these against short-
term goals and the operating
• Having worked on many projects we focus with you on some keys for project
success, these are: commitment to understood objectives, project plan in
place and followed, scope is defined, right method/right skill/right resource
for project activities, benefit areas are measured, and risks are being
mitigated.
• Utilizing past successes on future projects we apply templates, lessons
learned, best practices, and methods
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We bring best practice process expertise and thought leadership that
supports new and innovative thinking for your project across business
and technology domains
- 6. ©SupplyChainGroup-2011
• Deeply experienced retail, E-commerce, consumer products and
industrial supply chain project resources
• We improve performance
Some of our team’s clients
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Supply Chain Group Project Experience
- 7. ©SupplyChainGroup-2011
Key Success Factors for De-centralized Projects
1. Living Architecture and Application Templates - (TMS, WMOS, OMS, ASN ) defined
blueprints and templates that address functional, technical, architecture, integration,
and operational methods are put in place early. These are updated as releases
incorporate legacy migration. Can’t keep tweaking design if moving forward.
2. User Support - Team of both operations and IT floor support personnel with back-
office technical SME as needed.
3. Formalized SOP & Training Program – Formalized SOP’s at detailed level
accompanied by process compliance audit program. SOP version control tied to #2
above. .
4. Separation of Teams and Responsibilities – Separate staff may be required to address
new release development, DC roll-out / go-live, and on-going production support. Part
time staff may also required for related support teams such as HR, Supplier On-
boarding, Facility Engineering, etc.
5. Measurement & Tollgates – measurement based tollgates to confirm go-live
readiness, monitor production ramp-up, process compliance, and operational
sustainability (i.e. take the subjectivity out of the decision making to reduce risk)
Supply Chain Lessons Learned
- 8. ©SupplyChainGroup-2011
Synchronizing Supply Chain with Marketplace
• Improving “fit for purpose” merchandise flows:
Temperature, Global, Mechanized, DSD, Flow-through, Slow
moving, Promotional, and In-house Manufacturing
• Better integrating suppliers for improved freshness:
Field to Table, Ready to Eat, Local, and Green SC
• Reducing store labor through store friendly sortation
based on Categories and Shelf plans
• Adding global sourcing and Product Lifecycle
Management (PLM) functionality that supports tracking,
visibility, Country of Origin and Lot Control
• Rapidly supporting new items and retail concepts: new
merchandise types such as apparel, new concepts and
channels, all driving more SKU’s, UOM’s, and case-packs
• Optimizing transportation: Global, Inbound And Outbound,
Parcel, LTL, TL, Air, Ocean, Fleet Operations, B2B and B2C
- 9. ©SupplyChainGroup-2011
Leveraging Electronic Demand to Synchronize the Supply Chain
Shorter Lead
Times for Greater
Freshness
POS-based
Customer
Demand with
Forecasting
Supply Chain
Consolidation
and Flow
Optimization
Better
Consumer
Service and
Product
Availability
Local and
Global
Sourcing
Store Friendly
•Containers and
Greater Productivity
- 10. ©SupplyChainGroup-2011 9
Application Implementation Cycle
Conceptual Supply Chain Application Cycle
Strategy &
Objectives
•-Bus
Requirements
•- IT Strategy/Arch
- LMS Selection
- Cost/Benefit
- Approvals
Design
•Blueprint
- Functional Flow
- To Be Process
- CRP’s
- Integration
- Specifications
•Build & Test
- Configuration
- Coding
- Test Scripts
- Installation
- Test Execution
Go-Live/
Stabilize
- Final user
acceptance
- Go-live exec
- Issue Resolution
- System tuning
- Monitoring
Realization/
Rollout
- Operations Audit
- KPI’s/Metrics
- Bus Case Review
- Rollout template
- Next site /project
- 11. ©SupplyChainGroup-2011
What does “Change” Look Like
“Start” “Project Completion”
Reactive and opportunistic supply chain projects
Legacy supply chain network
Operations view of costs
Reactive use of outsourcing
Manual and reactive scheduling
Legacy material handling equipment and processes
Category product slotting
Decentralized Freight Procurement
Separate domestic/international transportation
Load planning based on carrier availability
Delivery status updates are manual and reactive
Fleets resources are under utilized
Product is received and staged
Provide limited visibility to cross-docking opportunities set-
up manually
Manually process rush and special orders creating less
productive picking assignments
ASNs cover a few vendors and are not utilized by WMS for
DC execution
Returns processing involves multiple manual steps and
keying of product and cost information
Multi-year roadmap for migration with KPI’s in place
Forward-looking and analytics based supply chain design
Complete understanding of Total Cost to Deliver
Outsourcing when total cost justified
Centralized planning using forecasting technology
Streamlined product flow
Dynamic and volumetric based slotting
Core Carrier Management Program
Centralized planning for all transportation needs
Load plans based on optimal least cost solutions
Proactive status messaging to alert right arties
Fleets are optimized to improve utilization
System directed door to door optimal material movement
System direct some or all of receipt to cross-dock
opportunities and merges for fluid loading
Capability to handle rush and special orders through tasking
and inclusion in waves
Utilize EDI/ASN to process receiving’s and in support of
internal/external cross docks & merge in transit
Scan Returned Authorization for process automation start
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- 12. ©SupplyChainGroup-2011
Our Leadership Team
• Jeff Kazanow, Partner Supply Chain Improvement Strategic Sourcing Supply Chain IT Solutions
Jeff offers 25 years of senior logistics, distribution and supply chain improvement expertise across the
retail and distribution industry sectors. He utilizes strong methodologies and best practices from his
consulting roles with IBM, AT Kearney, SAP, and Deloitte. His areas of expertise include strategic
development and implementation of supply chain networks, transportation, warehousing, strategic
sourcing, operations improvement, change management, and accelerated IT project implementations.
Jeff has supported multiple WMS and TMS projects. Jeff brings extensive value to clients in the
management of supply chain systems, including their design and implementation. Throughout his
career he has defined and implemented cost saving and service enhancing business solutions. Jeff is
Six Sigma certified and holds an MBA in Materials and Logistics Management from Michigan State
University.
• Jonathan Kates, Partner Supply Chain Transformation SC Strategy Supply Chain IT Solutions
Jonathan has over 20 years experience in supply chain and business transformation; defining direction,
developing and translating client goals, building consensus, and, coaching staff at all levels and from
differing cultures to deliver results. Jonathan is a recognized as a consultant with a predisposition
toward action. His leadership, communication, technical expertise, and problem-solving capabilities,
draw on deep industry best practice knowledge and supply chain, operations, and technology project
experience to drive client initiatives. Focus areas comprise: strategy, financial modeling, organizational
change, supply chain operations, process transformation, lean, strategic sourcing, business
turnarounds, and IT implementations. In IT projects he has supported successful design and
implementation projects across WMS, TMS, and ERP applications. Prior to joining our group he has had
consulting roles for IBM, PWC, and Rath & Strong and was a Retail Supply Chain executive. Jonathan is
an author on supply chain and sustainability topics and a graduate of McGill University
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