Manufacturers. Retailers. Logistics / transport providers. SMEs. The New Reality is driven by the New Supply Chain. Are you aligned where supply chain management is going? This can be defined as: Threats, Your Business Model, Supply Chain Management as Innovative Disruption, Your Future.

1. Are You Aligned Where Supply
Chain Management Is Going?
Tom Craig
tomc@ltdmgmt.com

2. Introducing LTD
Management
Supply chain management /
logistics
Consulting
Advisor
Real world experience
Analyze AND implement
Actionable
Solutions that work
2

3. 3

4. What We May Be Discussing
 Threats
 Your business model
 Supply chain management
as innovative disruption
 Your future
4

5. New Reality
 Selling duality
 E-commerce
 Disruption/change
 Customer power
 Customer expectations
 Customer convenience
 Drives customer expectation success
 Not stopping at B2C/DTC
 Across industries, markets, global
 Supply chain duality
 New supply chain management
 End to end
 Velocity
 Complexity
 Visibility
 Structure
 Integration
 4 wall myopia
 Reverse outsourcing
 New logistics
5
Selling Revolution Supply Chain Revolution

6. What Does It Mean Now and
Going Forward for ERP,
Manufacturers, Retailers, &
Logistics Providers?
6

7. STATISTA SLIDE????
7

8. 8

9. 9

10. 10

11. Duality—Store vs Online
1) Stores
2) Cases
3) Warehouse layout for
cases/ pallets (Height &
Labor)
4) Warehouse alignment—
fewer
5) Stop and start
6) Standard use of outside
logistics providers
1) Individual customers
2) Eaches
3) Warehouse layout for
eaches (Horizontal & Tech)
4) Warehouse alignment—
more
5) Flow
6) New role with velocity &
bring logistics in-house
(Reverse Outsourcing)
11

12. New Supply Chain Management
 Strategic
 Weaponized
 Drives selling success
 Metrics
 Perfect order
 Inventory turns
 Inventory Rich
 Out of stock
 Not logistics costs
12

13. End-to-End
 Upstream where supply of supply chain begins
 Less attention
 Blend purchasing/procurement & logistics/transport
 Downstream & more than fulfillment
 Starts with purchase order
 Ends with customer or store
 And everything in between
 15 players in international trade & supply chain
13

14. Velocity
 Order delivery velocity
driven by inventory velocity
driven by supply chain
velocity
 Time compression
 Uncertainty
 Increased inventory
 Inventory buffer reduction
 Speed need increasing
 Think velocity2
 Lean—value stream mapping
 Flow vs nodes & links
14

15. Complexity
 Supply chains within supply
chains
 Non linear
 Upstream & downstream
 Number of participants
 Integration
 Network alignment
15

16. Warehouse
Network &
Alignment
 What is objective of
these?
 Where located?
 How many?
 How managed?
 How replenished?
16

17. Visibility
 End to end
 Players/participants
 Locations
 Different technologies
 External
 Internal
 Inherent risks without it
 Blind spots
 Redundancies
17

18. Structure
 Process
 Organization
 Technology
 More than track
and trace
18

19. Technology
 End-to-end integrated visibility (more than track and trace)
 New techs impact supply chain management and logistics
 Drones, driverless trucks, digitalization, blockchain,
augmented reality/virtual reality /3D, IoT, analytics
 How to do it—new reality needs new organization: Meld SCM
and tech, not project teams
19

20. Integration
 Not optional
 End-to-end
 Visibility
 Structure
 Process
 Structure
 Technology
20

21. 4 Wall Myopia
21
 Four walls
 Distribution centers
 Factories
 Stores
 Much SCM is outside
 Missing a lot?

22. Reverse outsourcing
 Bring in house
 Amazon & logistics
 Walmart & food
 Disintermediation
 Velocity
 Control
 Complexity
22

23. New Logistics
• Redefine role in end-to-end
supply chain with velocity
• Performance metrics
• Usual suspects or new breed of
providers?
• 3PSCM
• SCMaaS
23

24. Manufacturers vs retailers
Manufacturers
 CPG/FMCG vs Rest
 Lack of robust e-commerce
familiarity
 Factory/inside vs supply
chain management/outside
 Velocity/flow vs stop &
start
 End to end concept
 Inventory rich & stockouts
Retailers
 Conflict of store vs online
 Tiers of inventory & size of
network where inventory is
placed—DCs & stores
 Fulfill from DCs vs stores
24

25. Challenges and
Questions
The points I discussed—what if I
am right?
How to change
How do ERP systems handle
omnichannel with its supply
chain duality that drives success?
How do ERP systems deal with
the new business reality of end-
to-end velocity?
25

26. Rate of Change & More Ahead
 Velocity2 to Velocity3
 Digitization
 Blockchain
 Cryptocurrencies
 Artificial intelligence
 Augmented reality/Virtual
reality
 Analytics
 Driverless vehicles
 Robotics—warehouse and
delivery
 Drones
 Platform businesses
 3D printing
 Internet of Things
26

27. What We May Be Discussing
 Threats
 Your business model
 Supply chain management
as innovative disruption
 Your future
27

28. The Future
28

29. 29