Demand Driven Value Networks                                                               Redesigning the Supply Chain fo...
Gartner delivers the supply chain and   technology-related insight necessary to   help clients make the right decisions,  ...
Quick Overview of a Complex Topic• Legacy of evolution – critical change agents• The new approach – how DDVN is different•...
Industrial Revolution• Asset heavy• Efficiency focus• Make it, Sell it© 2009 Gartner, Inc. and/or its affiliates. All righ...
Major changes in the last 10-15 years• Asset heavy• Efficiency focus• Make it, Sell it© 2009 Gartner, Inc. and/or its affi...
Customer Profile Changes• Consumer buying patterns have changed, increasing  demand volatility• More options and variants ...
Traditional SC operates in silos                                                                        “I Think I Can Sel...
Demand-driven Value Network (DDVN)                                                                          Demand        ...
Why Does It Matter? Cause the Leaders:                                     Deliver 20% More                    Leaders    ...
Demand Translation for balancedPush/Pull Matching                                                                    Produ...
The transformation to DDVN                                                                                                ...
2009                            1.            Apple                                                                       ...
The Future of Value Network Management Personalized interaction with customers across multiple channels The power of the...
Getting out of Neutral – Why is it so hard?                            Barriers to Value Chain Excellence       Lack of g...
Demand Driven Value Networks                                                     Redesigning the Supply Chain for the 21st...
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Greg Aimi from AMR Research on ‘Achieving a Demand-Driven Supply Chain: Redesigning your supply chain to meet customer and business needs in a changing economic environment’

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Greg Aimi from AMR Research on ‘Achieving a Demand-Driven Supply Chain: Redesigning your supply chain to meet customer and business needs in a changing economic environment’

  1. 1. Demand Driven Value Networks Redesigning the Supply Chain for the 21st Century Greg Aimi Supply Chain Research DirectorThis presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartneraudience or other authorized recipients. This presentation may contain information that is confidential, proprietary or other wise legally protected,and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.6/29/2010
  2. 2. Gartner delivers the supply chain and technology-related insight necessary to help clients make the right decisions, every day.© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author> 26/29/2010
  3. 3. Quick Overview of a Complex Topic• Legacy of evolution – critical change agents• The new approach – how DDVN is different• Why change?• A Framework for the model• Top things to consider• Challenges from the field© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author> 36/29/2010
  4. 4. Industrial Revolution• Asset heavy• Efficiency focus• Make it, Sell it© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author> 46/29/2010
  5. 5. Major changes in the last 10-15 years• Asset heavy• Efficiency focus• Make it, Sell it© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author> 56/29/2010
  6. 6. Customer Profile Changes• Consumer buying patterns have changed, increasing demand volatility• More options and variants to choose from• Web based research has become the norm• Online buying will increase• Green starting to have an impact• Services become more important• Emerging market trends create a shift in volume• The channel model must change accordingly, improving the overall experience© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author> 66/29/2010
  7. 7. Traditional SC operates in silos “I Think I Can Sell…” Demand Supply Plan, Source, Attract, Sell, Service “Here It Is, Sell It” Make, Deliver Product “Here’s a New Define, Design, Product – Figure Out Promote, Supply, How to Make It” Support© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author> 76/29/2010
  8. 8. Demand-driven Value Network (DDVN) Demand Supply Capability Insights & Risk Profitable Sense Shape Response Innovation Product Opportunities© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author>
  9. 9. Why Does It Matter? Cause the Leaders: Deliver 20% More Leaders 90% Perfect Orders… Laggards 68% Leaders …while holding a third 54 Days less inventory… Laggards 72 Days Leaders 21% …with lower SCM costs equal to 5% of revenue Laggards 26%© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author>
  10. 10. Demand Translation for balancedPush/Pull Matching Product & Service Innovation Demand Visibility Supply Visibility Segmented Customers , Buyers, Integrated Strategy, Suppliers & Partners Users, & Consumers Business & Planning w/ Trade-offs User/ Reliable, Channel Profitable Consumer/ Demand Demand Response from Demand Translation Supply Based on & Demand Insights Demand Management decoupling Pull Push© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author> 106/29/2010
  11. 11. The transformation to DDVN Network design Agile Manufacturing Demand Supply Manufacturing IntelligenceNew revenue streams Supplier IntegrationSegmentation Demand Mgmt & Translation Quality / RiskMulti-Channel Management Profitable Sense Shape VisibilityDemand Management Response Materials ManagementThe Digital Customer Product ComplianceMobility and connectivity Logistics EffectivenessPremium service and aftermarket Cost Management / EfficiencyWarranty/Recalls Product Lifecycle – Design for Supply Platform Management and Reuse Voice of the Customer Supplier Innovation Remote diagnostics © 2009 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. <docname>_<date>_<author>
  12. 12. 2009 1. Apple 14. Nike 2. Dell 15. Tesco 3. Procter & Gamble 16. Walt Disney 4. IBM 17. Hewlett-Packard 5. Cisco Systems 18. Texas Instruments 6. Nokia 19. Lockheed Martin 7. Wal-Mart Stores 20. Colgate Palmolive 8. Samsung Electronics 21. Best Buy 9. PepsiCo 22. Unilever 10. Toyota Motor 23. Publix Super Markets 11. Schlumberger 24. SonyEricsson 12. Johnson & Johnson 25. Intel 13. The Coca-Cola Company • Outside-in focus Supply chains that are… • Embedded innovation • Predictable and reliable • Extended supply chains • Flexible • Balanced excellence …and have: Outcome • Attitude • Profitable demand response • Metrics • Sustainable growth© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author> • Supply chain talent • Satisfied customers
  13. 13. The Future of Value Network Management Personalized interaction with customers across multiple channels The power of the “digital customer” Growth in expectations for green, mobile, connected solutions Innovation to achieve a new price point for new markets Service as a differentiator Better alignment and visibility from customer through to supplier Demand-driven planning and translation of demand (pull vs push) Standardized business processes to improve costs, quality and agility Supply chain velocity improve in core products and parts Redesigned sourcing and logistics networks – integrating LSPs Value talent and supply chain as enabler and differentiator© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author> 136/29/2010
  14. 14. Getting out of Neutral – Why is it so hard? Barriers to Value Chain Excellence  Lack of goal clarity  Little alignment to business strategy 60% Change Management  Poor connection of planning to execution 30% Process  Misaligned metrics and reward systems 10% Technology  Confusion over what is a good decision  Not all constituents participate / buy-in  Reactive, do not value demand management© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author>
  15. 15. Demand Driven Value Networks Redesigning the Supply Chain for the 21st Century Greg Aimi Director of Supply Chain Research 125 Summer Street Boston, MA 02110 USA 617 542 6600 gaimi@amrresearch.com© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author> 156/29/2010

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