Summit2015demand drivenjourneypaneldiscussion-150914033903-lva1-app6891

1. Lora Cecere - Founder
of Supply Chain
Insights
Carol Ptak –
Founder of Demand
Driven Institute
Referee/Judge
Welcome to…..

2. Ground Rules
 “How did we get here”
 Perspective on Barriers to Progress
 Panelist View of our Current State
 Your Take on the State of Affairs
 Closing thoughts
The Great Debate - September 2015

3. Story of the $1Billion Dollar Brand
How to Deliver Game Changing Value
at the Two Moments of Truth
How Did We Get Here?
Deliver superior consumer value
cheaper/better/faster

4. Business Driver Translation
Leaving Revenue/Margin on Table
• Despite technically BIC Service
Limiting speed of growth - not agile
• Need for more sku’s/channels/markets
• Differentiated Retail/Customer Requirements
• Segmentation of the supply chain for cost/cash
Cash/Cost Intensive
• We needed to be the bank for growth
Couldn’t Productively Scale
• Needed new approach
Supply Chain Dysfunction/Visibility
WhyChange?

5. Vision
Make the Supply Chain a
Competitive Weapon by
Synchronizing the
Cadence from Shopper
through Supplier

6. Supply
Network
DailyDaily
DemandDemand
Replenishmen
t
CustomerCustomer
HeadquartersHeadquarters
Planning
P&G/
Partners
& Suppliers
Deployment
OOS
Visibility
Merchandising

7. Roadmap to Progress
Synchronization of Processes/Stds
New Age Metrics/Rewards
Eliminate Technology silos
New “Skills”/New Talent

8. Consumer-driven Supply Networks: Defined by P&G in the
1990s as a shelf-driven, outside-in process defined by successful
execution of the two moments of truth. (The two moments of truth
are: Was the product in stock? Was the customer delighted?)
Demand-driven Supply Networks: As defined by AMR Research
in 2004: a supply chain that senses and translates market signals
in real time.
Demand-driven Value Networks: As defined by AMR Research in
2007: A network that senses demand with minimal latency to drive
a near-real time response to shape and translate demand.
Market-driven Value Networks: As defined by Supply Chain
Insights in 2010: an adaptive network focused on a value-based
outcomes that senses, translates, and orchestrates market
changes (buy and sell-side markets) bi-directionally with near-real
time data to align sell, deliver, make and sourcing organizations
outside-in.
Definitions

10. Definition
Does not mean
Make to order everything
Simple pull
Inventory everywhere
Does mean
Sensing changing customer demand, then
adapting planning and production while
pulling from suppliers – all in real time!
All material and content © copyright 2015 Demand Driven Institute. All rights reserved.

11. Demand Driven MRP?
Material Requirements
Planning
(MRP)
Distribution
Requirements Planning
(DRP)
Lean
Theory of
Constraints
Innovation
Demand Driven MRP
(DDMRP)
A multi-echelon materials and inventory
planning and execution solution.
Six Sigma
All material and content © copyright 2015 Demand Driven Institute. All rights reserved.

12. Crawl/Walk/Run
It’s a Continuous Journey
Reliable/Predictable Supply
Supply Chain Visibility
Connecting external flows
Control Tower/Network Orchestrators
Concurrent Demand/Supply Scenarios
Rinse-Recycle-Repeat

13. Real Time Operations
Seamless E2E Synchronization
Synchronize the cadenced supply chain From
Shopper Consumption through Suppliers
Digital Integration of POS
Data as key source for
shopper behavior and shelf-
offtake. Scaled Integration
into forecast.
Real time, Digitized Supply
Network Capacity Planning
Agile Digital Scheduling and
sequencing of factory floor ops
driving real time supply response
Segmentation of Demand Info
Flow to fully automate turn
planning and focus high value
touches on events/merchandising
integration
Real Time, What-If Scenario Modeling and
Simulation, together with integrated target
setting and tracking.
1
2
3
4
Have We Come Far Enough? - No!

14. Sum it Up:
Why Haven’t We Seem More Breakthrough
Three GAPS:
Process
Technology
Organization
Culture

15. Panelist’s Perspective
Initial Thoughts on:
Level Set – What’s Your Definition of Demand Driven
Demand Driven – Dead or Alive?
What is behind the lack of broad scale success given
the potential offered?
What are some practical interventions or
advancements that would significantly change the
game here?
How do we deal with driving the improvement in the
crossover of source, make, deliver?
Compelling thought you want to leave the audience with.

16. Demand Driven Success?
Creation of Roadmap – Maturity Model
Top 25 Ranking Benchmarks
Breakthroughs in SC Technology
Created “outside in” network design
Initiated review of Gaps in SC Talent
Triggered new process monitoring &
measurement processes