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Digital Supply Chain: the start of a new era

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95% of Supply Chain leaders struggle with how to drive improvement in their Supply Chain and only 5% are making progress.

In this presentation, you'll get a market overview of emerging technologies and approaches you can apply to drive value. Are you ready to become part of that 5%?

Presented by Lora Cecere, Founder Supply Chain Insights on Supply Chain 4.0 : ready to operate in the digital era? (29 Nov, 2018)

Published in: Engineering
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Digital Supply Chain: the start of a new era

  1. 1. Learn from the Past, to Unlearn, and Rethink the Future
  2. 2. Supply Chain Insights LLC Copyright © 2018, p. 2 I Am A Social Scientist
  3. 3. Supply Chain Insights LLC Copyright © 2018, p. 3 I Write for the Supply Chain Leader
  4. 4. Supply Chain Insights LLC Copyright © 2018, p. 4 2012
  5. 5. Supply Chain Insights LLC Copyright © 2018, p. 5 What I Believed
  6. 6. The Manifesto for Change
  7. 7. Supply Chain Insights LLC Copyright © 2018, p. 7 Third Industrial Revolution Productivity Impact Stopped in 2004
  8. 8. Supply Chain Insights LLC Copyright © 2018, p. 8 Market Forces
  9. 9. Supply Chain Insights LLC Copyright © 2018, p. 9 2007 Recession
  10. 10. Supply Chain Insights LLC Copyright © 2018, p. 10 Do We Have Best Practices? Or Functional Excellence?
  11. 11. Supply Chain Insights LLC Copyright © 2018, p. 11 Today’s Supply Chain
  12. 12. Supply Chain Insights LLC Copyright © 2018, p. 12 Tomorrow’s Supply Chain
  13. 13. Supply Chain Insights LLC Copyright © 2018, p. 13 Risk Management Issues Growing
  14. 14. Supply Chain Insights LLC Copyright © 2018, p. 14 Unprecedented Commodity Pressures
  15. 15. Supply Chain Insights LLC Copyright © 2018, p. 15 Inventory Levels Burgeoning
  16. 16. Supply Chain Insights LLC Copyright © 2018, p. 16 Normal Distribution SKU/L SalesVolume Anything But Normal Complexity: The “Long Tail”
  17. 17. Supply Chain Insights LLC Copyright © 2018, p. 17 Normal Distribution SKU/L SalesVolume Anything But Normal Consistent and Forecastable: 874 items representing 77% of the volume and 74% net sales. 64% of the volume is forecastable with a 55% error. Inconsistent demand: 1723 items representing 23% of the volume and 26% net sales. Traditional Optimization Techniques Need for Machine Learning/Pattern Recognition: Inventory Strategy Not Forecastable by Conventional Means Client Case Study
  18. 18. Driving a Digital Transformation
  19. 19. Supply Chain Insights LLC Copyright © 2018, p. 19 Digital Supply Chain: Transforming the Atoms and Electrons of the Supply Chain through the Confluence of new Capabilities/Technologies. Digitization: Making signals and processes digital. What Does Digital Transformation Mean for You? There Is No One Definition
  20. 20. Supply Chain Insights LLC Copyright © 2018, p. 20 What Is Digital?
  21. 21. Supply Chain Insights LLC Copyright © 2018, p. 21 What Is Next-Generational Thinking?
  22. 22. Supply Chain Insights LLC Copyright © 2018, p. 22 Current Supply Chain Process Thinking Rows and Columns: Transactional Data Fixed Hierarchies with Structured Data One-to-One Enterprise Linear Flows Descriptive and Predictive Analytics
  23. 23. New Forms of Analytics
  24. 24. Supply Chain Insights LLC Copyright © 2018, p. 24 Data Needs to Move Securely Through Value Networks In… Clouds Streams Pools
  25. 25. Supply Chain Insights LLC Copyright © 2018, p. 25 Need for New Forms of Analytics
  26. 26. Supply Chain Insights LLC Copyright © 2018, p. 26 Evolution of Insights
  27. 27. Supply Chain Insights LLC Copyright © 2018, p. 27 Evolution of Cognitive Computing
  28. 28. Supply Chain Insights LLC Copyright © 2018, p. 28 Impact of Localized Assortment
  29. 29. Supply Chain Insights LLC Copyright © 2018, p. 29 Sentiment: The Need to Listen
  30. 30. Supply Chain Insights LLC Copyright © 2018, p. 30 Redefining Time
  31. 31. Supply Chain Insights LLC Copyright © 2018, p. 31 1.5M sku locations ~ 95% slow or intermittent Seasonal demand (at the item level) is identified down to a specific location. Simplified for clarity In reality, looks more like this •365 days •150+ local climates •Avg 3,000 items / location (165M) •15 year lifecycle changing amplitude Lennox International
  32. 32. Supply Chain Insights LLC Copyright © 2018, p. 32 •Replace •Compressor •Engines • Dealer gets service event • We get parts sales • Customer has non-event • Customer - Dealer & Brand loyalty Your compressor shows that it will fail within the next 30 days. What day would be good for us to come replace it? Redefining Service
  33. 33. Supply Chain Insights LLC Copyright © 2018, p. 33 Internet of Things
  34. 34. Supply Chain Insights LLC Copyright © 2018, p. 34
  35. 35. Supply Chain Insights LLC Copyright © 2018, p. 35 Rich user interface in full HD Evocative sound track with burring grinder and tinkling of spoons Memorable flavours and fragrances Cutting edge reliable / ultra efficient computer processing hardware Stunning curved design by Italian automotive designers Irresistible aromas of Costa’s coffee shops Innovative coffee-making system providers Redefining Replenishment
  36. 36. Supply Chain Insights LLC Copyright © 2018, p. 36 L’Oreal: Direct Communication with Customers New use cases Product Information Dialogue with smartphonesAutomated cash-out - Examples -
  37. 37. Supply Chain Insights LLC Copyright © 2018, p. 37 Transforming Inbound Logistics Mobile Device Apps AIS Vessel Location Sensors
  38. 38. Supply Chain Insights LLC Copyright © 2018, p. 38 Improved On-Time Delivery
  39. 39. Digital Manufacturing
  40. 40. Supply Chain Insights LLC Copyright © 2018, p. 40 What Is Digital Manufacturing? Additive Manufacturing Paperless Processes Robotics
  41. 41. AGCO Manufacturing Redefinition
  42. 42. Supply Chain Insights LLC Copyright © 2018, p. 42 L’Oreal: 3D PRINTING - PROTOTYPING 42 3D printed mold for simple pack S/T 3D printing : 15 days - 4 000 € 100 pieces S/T traditional machining : 60 days - 20 000 € 1000 pieces Mold proto standard simple & complex pack CCZ – 3D Lab
  43. 43. Supply Chain Insights LLC Copyright © 2018, p. 43 3D PRINTING - PRODUCTION 43 New design opportunities for our brands
  44. 44. Network of Networks
  45. 45. Supply Chain Insights LLC Copyright © 2018, p. 45 The adoption of distributed and open technology by the ecosystem of technology providers and business users to drive inter-operability in value networks to improve business outcomes. What Is the Network of Networks?
  46. 46. Supply Chain Insights LLC Copyright © 2018, p. 46 What Does Not Work
  47. 47. Supply Chain Insights LLC Copyright © 2018, p. 47 Future View
  48. 48. Supply Chain Insights LLC Copyright © 2018, p. 48 Write once and use company and contact information many times.Community Directory Reduce onboarding through once source of data. Blockchain redefines visibility and track and trace.Traceability Confluence of Blockchain and Spark/Internet of Things Redefine Lineage. Bitcoin and Blockchain disintermediate traditional banking.Supply Chain Finance Emergence of the supply chain digital wallet. An alternative to EDI. Cognitive computing eliminates the need for master data management and standards.Interoperability Data is mined through patterns and translated for context through cognitive computing. Shift from standards to process canonicals. What Could Change?
  49. 49. Talent
  50. 50. Supply Chain Insights LLC Copyright © 2018, p. 50 Baby Boomers, Vendors, Academics, and Remote Employees Are Most Satisfied with Their Jobs
  51. 51. Supply Chain Insights LLC Copyright © 2018, p. 52 Today’s Challenges
  52. 52. Supply Chain Insights LLC Copyright © 2018, p. 53 Wrap-up We must learn to unlearn to relearn. What got us here is not the answer for the future. Innovation makes much of what we have today legacy. Moving forward takes courage. The opportunities are great.
  53. 53. ENGAGE WITH US! Visit Us Online www.supplychaininsights.com www.supplychainshaman.com www.linkedin.com/company/supply-chain-insights www.slideshare.com/loracecere Follow Us on Twitter @scinsightsllc @lcecere Attend a Live Event www.supplychaininsightsglobalsummit.com www.supplychaininsights.com/the-shamans-circle
  54. 54. Supply Chain Insights LLC Copyright © 2018, p. 55 About Lora Cecere • Founder of Supply Chain Insights • “LinkedIn Influencer” • Guest blog for Forbes • Author of 5 books: Bricks Matter (2012), Shaman’s Journal (2014), Supply Chain Metrics That Matter (2014), Shaman’s Journal (2015), Shaman’s Journal (2016), Shaman’s Journal (2017) • 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 (15,000 pageviews/month) • Forbes: www.forbes.com/sites/loracecere • Twitter: twitter.com/lcecere (9,100 followers) • LinkedIn: www.linkedin.com/in/loracecere (290,000 followers) • LinkedIn Influencer: www.linkedin.com/today/author/446631

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