Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Finding Opportunity in Complexity

491 views

Published on

"Finding Opportunity in Complexity" is a presentation I developed to describe the challenges inherent in today's global supply chain ecosystem and also to highlight the opportunities available to organizations that understand how to look for them.

Published in: Business

Finding Opportunity in Complexity

  1. 1. Thriving in a Changing Ecosystem<br />Finding Opportunity in Complexity<br />
  2. 2. Source: Aberdeen Group, February 2011<br />Our Rapidly Evolving Ecosystem<br />Global, Volatile, Unpredictable<br />
  3. 3. And CEO’s Expect it to Get Tougher…<br />Source: 2010 IBM Global CEO Study<br />Source: Aberdeen Group, February 2011<br />Our Rapidly Evolving Ecosystem<br />Global, Volatile, Unpredictable<br />
  4. 4. Where There is Chaos…Opportunity<br />
  5. 5. Caldwell’s<br />28%<br />of 2011 US holiday sales will include Smartphones in the shopping journey<br />Source: Logistics Viewpoints<br />Source: IDC Retail Insights<br />Consumers Expect Mobile Options <br />Unprecedented Opportunities for those that Can Adapt Quickly to Changing Shopping Patterns<br />
  6. 6. Case in Point:<br />J&R Music recently introduced a mobile app to support shopping on the go and enhance the store experience…<br />Caldwell’s<br />Technology Enabler<br />All-Channel Platform<br /><ul><li> 320,000 Items
  7. 7. Customer Reviews
  8. 8. Video Demos
  9. 9. Deal of the Day
  10. 10. Store Locator
  11. 11. Order History</li></ul>Source: Logistics Viewpoints<br />Source: IDC Retail Insights<br />Consumers Expect Mobile Options <br />Unprecedented Opportunities for those that Can Adapt Quickly to Changing Shopping Patterns<br />
  12. 12. the top ten Facebook brands added<br />115 MILLION FANS<br />Source: Logistics Viewpoints<br />in 2010<br />Source: IDC Retail Insights<br />Consumers Expect Social Options <br />Unprecedented Opportunities for those that Can Adapt Quickly to Changing Shopping Patterns<br />
  13. 13. Case in Point:<br />Late last year, Proctor & Gamble began selling Pampers directly through Facebook…<br />Technology Enabler<br />All-Channel Platform<br />31,913 fans/month<br />1,000 orders/day<br />the top ten Facebook brands added<br />115 MILLION FANS<br />…and the results were impressive<br />Source: Logistics Viewpoints<br />in 2010<br />Source: IDC Retail Insights<br />Consumers Expect Social Options <br />Unprecedented Opportunities for those that Can Adapt Quickly to Changing Shopping Patterns<br />
  14. 14. “I’ll have a medium triple-shot, half-caff, no whip mocha… extra hot.”<br />Consumers Expect Personalization<br />From Coffee to Tennis Shoes, Everyone Wants to Express their Own Sense of Style<br />
  15. 15. “I’ll have a medium triple-shot, half-caff, no whip mocha… extra hot.”<br />Technology Enablers<br /><ul><li> Configurable Workflows
  16. 16. Collaboration </li></ul>Consumers Expect Personalization<br />From Coffee to Tennis Shoes, Everyone Wants to Express their Own Sense of Style<br />
  17. 17. Relentless Globalization<br />Technology Enabler<br />All-Channel Platform<br />70M People<br />cross the threshold to the middle class each year,and virtually all are in emerging economies<br />Source: Goldman Sachs<br />More Countries, More Complexity…More Customers<br />
  18. 18. Consumer Responsiveness: 1958<br />Lag Time for Significant Changes in Store Demand to Cascade Across the Extended Supply Chain?<br />6 Months<br />8-10%<br />Typical Out of Stocks at the Retail Shelf?<br />Source: Logistics Viewpoints<br />The Need for Speed -- and Accuracy<br />While Velocity has Improved, Unprecedented Opportunities Exist for those that Can Anticipate Demand Accurately<br />
  19. 19. Consumer Responsiveness: Today<br />Lag Time for Significant Changes in Store Demand to Cascade Across the Extended Supply Chain?<br />3-6 Weeks<br />Technology Enablers<br /><ul><li> Collaborative Forecasts
  20. 20. CPFR</li></ul>Source: Logistics Viewpoints<br />Typical Out of Stocks at the Retail Shelf?<br />The Need for Speed -- and Accuracy<br />Still 8-10%<br />While Velocity has Improved, Unprecedented Opportunities Exist for those that Can Anticipate Demand Accurately<br />
  21. 21. More and More Links in the Chain<br />And still only<br />7%<br />of manufacturers diligently optimizetheir global supply chain networks<br />Technology Enablers<br /><ul><li> Visibility/Collaboration
  22. 22. Data Integration Portals</li></ul>Manufacturers who diligently optimize their global supply networks are<br />73%<br />more profitable than their peers<br />Source: Deloitte<br />Manufacturers, Suppliers, Transporters, Wholesalers, Retailers, Consumers, Lenders…<br />
  23. 23. Supply Chain “Masters”Manage <br />75%<br />of their Supply Base througha Formal Process<br />Source: Accenture<br />A Proliferation of Partners and Outsourcers<br />More Complexity, and (Possibly) More Stability through Better Processes<br />
  24. 24. 84%<br />Employ a Supply-BaseSegmentation Approach<br />83%<br />Automate Tracking/Reporting of Supplier Performance<br />80%<br />Centrally Log and ProactivelyManage Supplier Contracts<br />Source: Accenture<br />A Proliferation of Partners and Outsourcers<br />More Complexity, and (Possibly) More Stability through Better Processes<br />
  25. 25. Technology Enablers<br /><ul><li> Supplier Performance
  26. 26. Scorecards</li></ul>A Proliferation of Partners and Outsourcers<br />More Complexity, and (Possibly) More Stability through Better Processes<br />
  27. 27. Supply Chain Shocks: Mother Nature<br />Highlighting the Importance of Planning for the Unplanned<br />“The damage to production facilities and on export goods themselves will likely continue for the next several months.”<br />
  28. 28. Supply Chain Shocks: Mother Nature<br />Highlighting the Importance of Planning for the Unplanned<br />“Due to power supply constraints expected in the summer, a full pickup in exports is unlikely until at least the end of this year”<br />Technology Enablers<br /><ul><li> Contingency Planning
  29. 29. Configurable Workflow</li></li></ul><li>After the political unrest in Egypt, cotton prices were<br />171%<br />higher than the year prior<br />Source: Wall Street Journal<br />Supply Chain Shocks: Geo-Political Turmoil<br />Striking a Balance between Global Integration and Local Relevance Leads to Agility<br />
  30. 30. CEO’s of Companies with “Operational Dexterity” are<br />23%<br />more intent on achieving an optimal balance between global and local markets<br />Source: IBM CEO Study 2010<br />Supply Chain Shocks: Geo-Political Turmoil<br />Striking a Balance between Global Integration and Local Relevance Leads to Agility<br />
  31. 31. 5,678,000<br />The 124M product recalls in 2010 included…<br />pounds of beef<br />Supply Chain Shocks: Product Recalls<br />Consumer Product Safety Improvement Act (2008), Food Safety Modernization Act (2011) Indicate Compliance and Recovery Plans are Now Table Stakes<br />
  32. 32. 93%<br />of consumers believe that recalls indicate whether companies care more about their own profits than they do about customer safety<br />Source: Princeton University<br />Supply Chain Shocks: Product Recalls<br />Consumer Product Safety Improvement Act (2008), Food Safety Modernization Act (2011) Indicate Compliance and Recovery Plans are Now Table Stakes<br />
  33. 33. 87%<br />of consumers are more likely to purchase products from companies that manage recalls in an “honest and responsible” way<br />Technology Enablers<br /><ul><li> Supplier Segmentation
  34. 34. Track and Recover</li></ul>Source: Princeton University<br />Supply Chain Shocks: Product Recalls<br />Consumer Product Safety Improvement Act (2008), Food Safety Modernization Act (2011) Indicate Compliance and Recovery Plans are Now Table Stakes<br />
  35. 35. The Mandate for Sustainability<br />93%<br />25%<br />of CEO’s View Sustainabilityas Critical to Success<br />of Consumers WouldSwitch Brands Givenan Ethical Alternative<br />Source: Accenture<br />Source: IBM Institute for Business Value<br />Future Guardianship, Risk Mitigation, Competitive Opportunity<br />
  36. 36. The Mandate for Sustainability<br />However…<br />32%<br />Conserving to Reduce Needfor Natural Resources<br />Technology Enabler<br />Green Dashboards<br />30%<br />Innovating to Shift Needfor Natural Resources<br />30%<br />Are Doing Nothing<br />Source: McKinsey Quarterly<br />Future Guardianship, Risk Mitigation, Competitive Opportunity<br />
  37. 37. Collaboration, Workforce Management, Workflow, All-Channel Commerce<br />Logistics Technologies Are Critical to Thriving in Today’s Ecosystem<br />
  38. 38. Real-World Example: Integrating a Highly Complex Supply Chain – from Farm to Table…<br />WORLD’S LARGEST MEAT PRODUCER<br />LARGEST US THIRD-PARTY COLD STORAGE<br />SECOND-LARGEST U.S. WHOLESALE GROCER <br /><ul><li> 140 Facilities
  39. 39. 5,000 Trucks
  40. 40. 182 Warehouses
  41. 41. 1.1B Cubic FT
  42. 42. 2,500 Outlets
  43. 43. 24 States</li></li></ul><li>Real-World Example: Integrating a Highly Complex Supply Chain – from Farm to Table…<br />WORLD’S LARGEST MEAT PRODUCER<br />LARGEST US THIRD-PARTY COLD STORAGE<br />SECOND-LARGEST U.S. WHOLESALE GROCER <br />COLLABORATION & CONTROL<br />Raw material tracking<br />Finished goods tracking<br />Lot and batch control<br />Fresh Item Management<br />Inventory accuracy<br />Workforce Management<br />Workforce Management<br />3PL Billing<br />
  44. 44. Real-World Example: Minimizing Disruption in the High-Stakes World of High-Tech…<br />WORLD’S SECOND-LARGEST CONTRACT MANUFACTURER<br />WORLD’S LARGEST THIRD-PARTY LOGISTICS PROVIDER<br />WORLD’S LARGEST ELECTRONICS RETAILER<br /><ul><li> 48M SQ FT
  45. 45. 30 Countries
  46. 46. 500 Sites
  47. 47. 15 Countries
  48. 48. 1,000 Stores
  49. 49. 10 Retail Brands</li></li></ul><li>Real-World Example: Minimizing Disruption in the High-Stakes World of High-Tech…<br />WORLD’S SECOND-LARGEST CONTRACT MANUFACTURER<br />WORLD’S LARGEST THIRD-PARTY LOGISTICS PROVIDER<br />WORLD’S LARGEST ELECTRONICS RETAILER<br />VISIBILITY & COLLABORATION<br />Component leveltracking<br />Serialization<br />Store Execution<br />Value added services<br />Bill of material<br />TransportationManagement<br />Order accuracy<br />Inventory accuracy<br />Workforce Management<br />Workforce Management<br />3PL Billing<br />
  50. 50. Greatest Positive Impact on Profits Next 5 Years?<br />51%<br />64%<br />Growth of Consumersin Emerging Economies<br />Shift of EconomicActivity Between Regions<br />63%<br />50%<br />Technologies that EmpowerConsumers & Communities<br />Increasingly GlobalMarkets for Labor/Talent<br />32%<br />52%<br />Consumer Demand for Corporate Responsibility<br />Increased Labor Productivityin Developing Markets<br />Source: McKinsey Quarterly, January 2011<br />Where There is Chaos…Opportunity<br />
  51. 51. RedPrairie At-a-Glance<br />Largest supply chain and retail optimization company in the world<br />Facilitating the flow of trillions of dollars of goods through the world’s most expansive supply chains<br />60,000 client sites/50 countries<br />Warehouse Management, Workforce, Inventory, Transportation, Logistics and e-Commerce solutions<br />
  52. 52. Thank You<br />Michael MayorasCEO, RedPrairie<br />

×