Supporting New Product Launches  With Your Supply Chain Drew Forte Director Supply Chain Improvement
Supply Chain and New Product  Introduction Trends and Challenges <ul><li>What business process is designed to ensure that ...
Supply Chain and New Product  Introduction Trends and Challenges <ul><li>Product Lifecycle Management (PLM)  is focused mo...
Supply Chain and New Product  Introduction Trends and Challenges <ul><li>Sales & Operations Planning  concerns itself with...
Supply Chain and New Product  Introduction Trends and Challenges <ul><li>Supply Chain Management  often is in reactionary ...
Supply Chain and New Product  Introduction Trends and Challenges <ul><li>… and poor ability to react quickly. </li></ul>|
Supply Chain and New Product Introduction Trends and Challenges <ul><li>To support new product introduction more effective...
Improved Cross-Functional Planning: <ul><ul><li>Package Design </li></ul></ul>|   Load building Storage density Conveyabil...
Improved Cross-Functional Planning: <ul><ul><li>Transportation Modeling </li></ul></ul>|   What-if scenarios Community ben...
Improved Cross-Functional Planning: <ul><ul><li>Total Landed Cost Calculation </li></ul></ul>|   True cost to serve Determ...
Agile Execution <ul><ul><li>Postponement: </li></ul></ul>|   Postponed Differentiation •  Ship WIP to staging points in bu...
Agile Execution <ul><li>Improved Demand Visibility </li></ul>|   Multi-enterprise collaboration Demand signal repositories...
Agile Execution <ul><li>Distributed Order Management </li></ul>|
Agile Execution <ul><li>Slotting </li></ul>|   •  Ability to incorporate blended demand forecasting •  Allocate enough spa...
Agile Execution <ul><li>Put-Systems </li></ul>|   •  Draw from a small SKU set of fast moving new products •  Put to store...
Agile Execution <ul><li>Intuitive Fulfillment Technology </li></ul>|   •  Short learning curve •  Well-suited to temp or s...
In conclusion… <ul><li>Successful companies employ strategies that link cross functional  planning with agile execution to...
Supporting New Product Launches  With Your Supply Chain Drew Forte Director Supply Chain Improvement, FORTE [email_address]
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Supporting New Products In The Supply Chain

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Supporting New Products In The Supply Chain

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Supporting New Products In The Supply Chain

  1. 1. Supporting New Product Launches With Your Supply Chain Drew Forte Director Supply Chain Improvement
  2. 2. Supply Chain and New Product Introduction Trends and Challenges <ul><li>What business process is designed to ensure that the supply chain will be able to execute against new product launch strategies? </li></ul>| Coordinated New Product Launches Product Lifecycle Management S&OP Planning Supply Chain Management
  3. 3. Supply Chain and New Product Introduction Trends and Challenges <ul><li>Product Lifecycle Management (PLM) is focused most heavily on new product introduction, but the tools are not centered around supply chain execution </li></ul>| “ While corporate resources are understandably weighted toward R&D, engineering and sourcing on the front end of new product development, the back end of the supply chain can be equally critical to success.” -Jean Murphy, Global Logistics & Supply Chain Strategies
  4. 4. Supply Chain and New Product Introduction Trends and Challenges <ul><li>Sales & Operations Planning concerns itself with new product introduction at the supply chain planning level, but it does not address tactical execution </li></ul>| “ The primary reason for this is the highly siloed nature of the organizations as well as the software solutions. Product information management, ERP, Master Data Management (MDM), and demand management are all involved in some aspect of product introduction processes but are un-integrated and worse when it comes to replicating business processes.” -Nari Viswanathan, Research Director, Supply Chain Planning, The AberdeenGroup
  5. 5. Supply Chain and New Product Introduction Trends and Challenges <ul><li>Supply Chain Management often is in reactionary mode due to poor internal communication… </li></ul>| Distribution Transportation Retail Manufacturing Product Design
  6. 6. Supply Chain and New Product Introduction Trends and Challenges <ul><li>… and poor ability to react quickly. </li></ul>|
  7. 7. Supply Chain and New Product Introduction Trends and Challenges <ul><li>To support new product introduction more effectively, supply chains must adapt in two ways: </li></ul><ul><ul><li>Improved cross-functional planning </li></ul></ul><ul><ul><li>Agile execution </li></ul></ul>|
  8. 8. Improved Cross-Functional Planning: <ul><ul><li>Package Design </li></ul></ul>| Load building Storage density Conveyability
  9. 9. Improved Cross-Functional Planning: <ul><ul><li>Transportation Modeling </li></ul></ul>| What-if scenarios Community benchmarking Mode analysis
  10. 10. Improved Cross-Functional Planning: <ul><ul><li>Total Landed Cost Calculation </li></ul></ul>| True cost to serve Determine price points Determine optimal staging areas for inventory Source: i2 Technologies Purchase price Transportation Interest Insurance Handling Quality Risks Total Landed Cost Customs & Tax Inventory
  11. 11. Agile Execution <ul><ul><li>Postponement: </li></ul></ul>| Postponed Differentiation • Ship WIP to staging points in bulk • Perform kitting, final assembly, personalization closer to demand Postponed Allocation • Line-item visibility • Divert-in-transit
  12. 12. Agile Execution <ul><li>Improved Demand Visibility </li></ul>| Multi-enterprise collaboration Demand signal repositories Predictive analytics
  13. 13. Agile Execution <ul><li>Distributed Order Management </li></ul>|
  14. 14. Agile Execution <ul><li>Slotting </li></ul>| • Ability to incorporate blended demand forecasting • Allocate enough space in the warehouse • Allocate the RIGHT space in the warehouse Source: Rubiks.com
  15. 15. Agile Execution <ul><li>Put-Systems </li></ul>| • Draw from a small SKU set of fast moving new products • Put to store or consumer order • Dynamic forward pick areas Source: FKI Logistex Source: Remstar Source: Kiva Systems Source: Remstar
  16. 16. Agile Execution <ul><li>Intuitive Fulfillment Technology </li></ul>| • Short learning curve • Well-suited to temp or seasonal workers • Flexible Source: Lightning Pick
  17. 17. In conclusion… <ul><li>Successful companies employ strategies that link cross functional planning with agile execution to support new product introductions. </li></ul>|
  18. 18. Supporting New Product Launches With Your Supply Chain Drew Forte Director Supply Chain Improvement, FORTE [email_address]

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