Autonomous webinar final deck

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The supply chain of the future will accelerate due to assistance from autonomous technologies and processes. These are slides from our webinar Supply Chain and the Autonomous World webinar featuring special guests Jim Lawton, Chief Product and Marketing Officer, Rethink Robotics and Andy Souders, SVP Products and Strategy IoT/Big Data, Savi Technology, as they join Lora to discuss the impact of technologies such as robotics, self-driving vehicles, wearable devices, cognitive learning, 3-D printing and other evolutions on current and future supply chains.

Technology

Supply Chain Insights LLC Copyright © 2016, p. 2
Supply Chain and the Autonomous World
Lora Cecere
Founder and CEO, Supply Chain Insights
Jim Lawton
Chief Product and Marketing Officer, Rethink Robotics
Andy Souders
SVP Products and Strategy IoT/Big Data, Savi Technology
Your Panel for Today

Supply Chain Insights LLC Copyright © 2016, p. 3
Current State

Supply Chain Insights LLC Copyright © 2016, p. 4
Descriptors Used by Leaders

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Who Has a Supply Chain That Is Working Well?

Technology Evolution
ERP
SRM
APS
PLM
CRM
Operational Investments Workforce ProductivityAnalytics

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Analytics Maturity

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Data Types

Supply Chains Don’t Play by the Rules
9
But,
what if
they
could?

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Case Study: Internet of Things
Rethinking Supply
Chain Execution
Closed Loop
Replenishment

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Gaps in Supply Chain Visibility

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Vision: Network of Networks

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Confluence of Technologies

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April 14, 2016
Autonomous Supply
Chain of the Future
Andy Souders
Senior Vice President
14 April 2016
Savi Technology Proprietary and Confidential

Supply Chain Insights LLC Copyright © 2016, p. 15Savi Technology Proprietary and Confidential April 14, 2016 1
To look forward, first we need to look back

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1999
Kevin Ashton coins the term “Internet of Things”

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The Idea:
Put RFID tags on products and
containers and connect them to the
internet

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Simple, right?

Supply Chain Insights LLC Copyright © 2016, p. 19Savi Technology Proprietary and Confidential April 14, 2016 1
One big issue…
RFID Tags: $150+
Data Plans: $10/MB/Month
IT Costs: $10M+/annually
100,000+ Products/Containers

Supply Chain Insights LLC Copyright © 2016, p. 20Savi Technology Proprietary and Confidential April 14, 2016 2
#goodluck.com
No one can afford that
well…except the US Department of Defense

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EDI Ain’t So Bad

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Today

Supply Chain Insights LLC Copyright © 2016, p. 23Savi Technology Proprietary and Confidential April 14, 2016 2
Tags: Cheap and getting cheaper
Data plans: Cheap and getting cheaper and
faster
IT Costs: Ok…I’ll say it…Hadoop

Supply Chain Insights LLC Copyright © 2016, p. 24Savi Technology Proprietary and Confidential April 14, 2016 2
#lightupmysupplychain

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Reference Architecture
Quickly ingest any kind of
data on the order of
thousands of transactions
per second
Cleanse and normalize the
data. Provide exception-
based notifications “on the
fly”
Continuously learn from
historical data and match
that against the real-time
data for additional event
processing, such as
estimated time of arrival
calculations. Machine
Learning moving to
Artificial Intelligence
Push data back
into other
systems based
upon end-user.
SAP, GT
Nexus, etc.
Use Savi’s
proprietary apps
either long-term
or as an interim
implementation
step
Data encrypted in transit
and at rest using an fully
compliant cloud facility

Supply Chain Insights LLC Copyright © 2016, p. 26Savi Technology Proprietary and Confidential April 14, 2016 2
1% >$100MCapacity Improvement Savings

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2030

Supply Chain Insights LLC Copyright © 2016, p. 28Savi Technology Proprietary and Confidential April 14, 2016 2
What we know at Savi:
Tags will get cheaper and smarter
Data will get bigger and faster
It’s all about analytics and specifically machine
learning…this is what enables the autonomous
supply chain of the future…

Supply Chain Insights LLC Copyright © 2014, p. 32
#sciwebinar
Visit Us Online
www.supplychaininsights.com
www.supplychainshaman.com
www.beetfusion.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

Supply Chain Insights LLC Copyright © 2016, p. 33
About Lora Cecere
• Founder of Supply Chain Insights
• “LinkedIn Influencer”
• Guest blog for Forbes
• Author of 4 books: Bricks Matter (2012), Shaman’s Journal (2014),
Supply Chain Metrics That Matter (2014), Shaman’s Journal (2015)
• 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 (7,200 followers)
• LinkedIn: www.linkedin.com/in/loracecere (89,724 followers)
• LinkedIn Influencer: www.linkedin.com/today/author/446631

From suppliers’ suppliers to customers’ customers, there are many nodes on an end-to-end journey. There is both an art and science to optimizing the end-to-end journey, and in this panel webinar we heard examples and strategies from Keith Nash, Vice President Process & Technology, Lennox Industries and Frank Vorrath, Vice President Global Supply Chain, Johnson Controls about how to improve the flow of a supply chain. Listen to this recording to understand how companies like yours have defined supply chain excellence and managed suppliers through production to provide a superior customer experience.

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Interoperability is a key to improving supply chain performance. As disparate systems silo information about specific processes, a holistic picture about corporate health and performance is lost. In a recent webinar we speak with Cindi Hane from Elemica and Rafal Porzucek from Procter and Gamble who attended the Shaman’s Circle on Amelia Islandto discuss solutions to close the gap on inter-enterprise visibility by creating greater connectivity through business networks. These slides are from that webinar.

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2016 Supply Chains to Admire - Slide Deck - 20 July 2016

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The 2016 Supply Chains to Admire Not all supply chains are equal. Similarly, not all rankings of supply chain performance are equal. In this webinar we will talk about the methodology used to rank the 2016 Supply Chains to Admire, and discuss the results with select winners from 2015 and 2016. Join us to understand how to improve your performance using quantitative methods and hear from winners how they have achieved their success.

Medical Device Supply Chain: An Analysis of the Supply Chain Metrics That Matter

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The Journey Towards Supply Chain Excellence. So What? Who Cares? It’s the nature of supply chain leaders to be competitive and improve processes, however it’s not always their nature to know how to start and progress on the journey. Often leaders think, “So What? Who Cares?” and accept the status quo. In this webinar we’ll discuss the reasons why this should be mission critical and how leaders can start on their journey towards improving performance. Webinar Slide Deck - 57 minutes - recorded on September 21, 2016.

Supply Chain Finance study - 25 APR 2017 summary charts

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Report Details: The research for this report was conducted via an online survey from January 16 – April 3, 2017. Surveys were conducted among a mix of manufacturers, retailers, and wholesalers/distributors/co-operatives (n=56). Objective: To understand the role of supply chain finance in determining supply chain strategy and gaining competitive advantage towards supply chain excellence. Highlight: Managing costs is a struggle for most companies. While 88% of companies have implemented Enterprise Resource Planning (ERP), the hard work of process evolution and maturity continues. In this report we share the current state of supply chains in managing costs, and then take a look at the processes and organizational design factors to evaluate the impact on cost management.

Network of Networks Study 2016-17 Summary Charts

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Report Details: The research for this report was conducted via an online survey from November 8, 2016 – April 3, 2017. Surveys were conducted among a mix of manufacturers, retailers, wholesalers/distributors/co-operatives, and third-party logistics providers (n=39). Objective: To understand the value proposition of the automation of the network of networks, which enables interoperability between networks. NOTE: A network is considered connectivity in any form between supply chain trading partners – one-to-one, one-to-many, or many-to-many. Highlight: While companies want to improve B2B processes, today’s technologies and processes are not equal to the challenge. To move forward and gain competitive advantage, map processes outside-in using strategic relationships with new forms of technologies and set realistic goals.

Presentation on the Future of Supply Chain Technologies

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Presentation given at the WTG group in Miami and the Eyeon conference in Rotterdam. By 2020, demand error will increase, corporate social responsibility becomes more important, and slow/steaming/larger ships undermine much of the manufacturing productivity gains of the last century. What should companies do? Embrace new forms of analytics, redesign based on the confluence of new technologies, and build a network of networks.

Using New Forms of Analytics - Slide Deck

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There is no debate that the amount of data collected by companies is increasing. By tracking transactions, customer data, supplier costs, and other business metrics companies can understand what’s really happening inside the organization. But how do you ensure you’re tracking the right data, and in the right way to create a winning strategy? In this webinar we spoke with Kyle Hamm, VP, Chief of Staff to CSCO and EVP GSC at Schneider Electric, where he shared his thoughts around maximizing the value of big data.

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The Supply Chains to Admire™ analysis is an annual study of supply chain excellence. Now in its fifth year of development, the focus of this research is to better understand supply chain performance and improvement of 655 publicly held companies in 28 peer groups for the period of 2010-2017. This year there are 31 winners! At the 2018 Supply Chain Insights Global Summit, winners from the analysis will share insights on driving supply chain excellence.

Supply Chain Talent Study - July 2017 - FINAL Summary Charts

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• Report Details: The research for this report was conducted via an online survey from February 20 - March 20, 2017. Surveys were conducted among all those working in or studying the supply chain industry -- including business, academia, and students (n=386). • Objective: To understand the generational differences among supply chain professionals in terms of what's important, where the gaps are, and satisfaction with their supply chain careers. • Highlight: While 70% of supply chain employees are satisfied with their careers, there are notable differences by generation in terms of job, satisfaction and what matters in their careers. For example, Generation X and Millennials want more work-life balance, fewer hours, and greater flexibility to work from home compared to Baby Boomers. In additional, Millennials are seeking more coaching and on-the-job training, suggesting an opportunity for employers seeking to recruit top talent. Check out the full report for more details, insights, and recommendations.

Customer-Centric Study 2016 - Summary Charts

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Executive Summary As growth slows, manufacturing companies struggle with rising complexity and increasing levels of demand error. The question is “Could companies decrease complexity and improve growth by building outside-in processes that are customer-centric?” We believe the answer to this question is a resounding “YES!” However, there is a problem. Across the industry there is no common definition of customer-centric supply chains. There is no clear and accepted methodology to build this core competency. As a result, most companies have forged their own paths. In this study, 80% of those surveyed have a customer-centric strategy; yet over half (54%) state that there is room for improvement to drive performance changes in their supply chain. Companies struggle to drive alignment and build constancy of purpose. The goal of this report is to fill this gap. State of the Industry Today 46% of respondents rate their supply chain as performing well on the delivery of a customer-centric supply chain strategy. The definition of a customer-centric supply chain used for this research is: one that is aligned with order management, product strategies and distribution processes to deliver/adapt to against customer segmentation strategies.

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Supplier Development Study - Feb-May 2016 - Summary Charts

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Executive Summary Trust, but verify. During the recession of 2007, trust in the extended supply chain was broken. As companies throttled-back production to adjust to falling demand, many suppliers who thought that they were strategic were left “holding the bag.” Risk was pushed backwards in the supply chain violating the tenants of many strategic relationships. As a result, shipments were refused and orders canceled. Payments were delayed and trust was violated. Many supplier companies never recovered, tightening the supply of materials in discrete value chains like automotive and high-tech. As growth slowed over last five years, the supply chain focused on an agenda to reduce costs. Commodity price volatility increased and procurement pressures to reduce costs resulted in transactional buying (a focus to minimize price variance). In many companies, strategic sourcing and commodity management through category buying programs took a “back seat.” Supplier programs become more reactive. In this environment, as shown in Figure 2, supplier viability—an environment for a supplier to manage a successful business—became a pressing risk issue. Sitting four and five levels back in the value network, suppliers experienced a double-whammy—pressure to reduce price along with the lengthening of Days of Payables. Ironically, while technology in supply chain finance progressively improved to enable a quick transfer of funds across industries, Days of Payables increased 30 and 60 days. The second irony is the cost of capital. While brand owners have a lower cost of capital than their suppliers, few companies extend their brand capabilities in supply chain finance to their suppliers. While companies talk supply chain finance, squeezing suppliers is the market reality. In parallel, economic uncertainty and demand volatility increased, also putting pressure on the supplier base. While the adoption of demand-driven processes could improve supplier alignment, demand-driven process adoption is slow. Few companies are taking ownership of demand signals to their supply base. Traditional processes dominate. Companies are strongly wedded to supply-centric processes based on traditional forecasting processes using order patterns. With the lengthening of order latency, and the lengthening of the long tail of the supply chain, the synchronization of suppliers into the value network is out-of-step, creating waste and obsolescence.

Revenue and Trade Promotion Management Survey Summary Charts - 9 OCT 2017

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Revenue Management: Rethinking the Digital Transformation Results of a Quantitative Study Report Details: The research for this report was conducted via an online survey from August 7, 2017 - September 14, 2017. Surveys were conducted among a mix of business users (manufacturers and wholesalers/distributors/co-operatives, n=55) and vendors (software providers, consultants, and analysts, n=64). This analysis focuses on a comparison of these two groups. All respondents were at least familiar with revenue management, trade promotion management, and/or price management. Objective: To understand the current future states of revenue and trade promotion management and how shifts in the consumer value chain train practices are affecting go-to-market strategies. Highlight: Technologists/consultants and business users are not aligned. Each group sees the problem and the usage of the technology differently. While the business user is satisfied with their current solutions, the technology provider and the ecosystem of consultants believe that there are gaps.

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Slide Deck from the webinar The odds of achieving successful outcomes when using enterprise demand management technology for supply chain planning are the same as a flip of the coin. Why? The programs are just too labor intensive and the engines are not fit for purpose. The odds improve when optimizers are added to increase the output from ERP systems like SAP and Oracle. In this webinar, we share insights on the benefits of using an optimizer for SAP. Gain insights from Lora Cecere, Founder of Supply Chain Insights, and Gerrott Faulkingham from ToolsGroup on the steps to take to reinvigorate your demand planning system.

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Research Overview: Details: The research for this report is based on twenty-eight surveys fielded during the period of January 2012 – December 2015. The research was a progressive set of studies to understand supply chain excellence. In the report, we use responses from over 2000 respondents to understand the characteristics of a supply chain that is working well.  Objective: To better understand the levers and actions that are the most impactful for supply chain leaders to take to improve supply chain excellence.  Highlights: While many claim that consolidation of ERP instances will improve supply chain excellence, we find in this report that companies that report that their supply chains are working well have designed organizations to centralize reporting with manufacturing reporting to the supply chain leader In addition, these leaders invested in supply chain visibility, have a clearer definition of supply chain strategy to improve alignment and agility, and are better at delivering on technology projects to deliver software usability.

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Executive Summary: Current State of the High-Tech Industry Globalization. Commodity inflation. Margin squeeze. Economic uncertainty. Warranty issues. Shortening product life cycles. Recalls. Labor arbitrage and outsourcing. The list of market pressures could go on and on, but one thing is clear: the high-tech industry was redefined over the course of the last decade. In Table 4 we show the progress of discrete industries for the periods of 2006-2014 and 2011- 2014. Notice there is more red (lack of progress) than green (progress) in the industry trends. Table 4. Supply Chain Performance by Industry within the Discrete Industries High-tech companies have the most advanced practices for inventory management, planning and analytics. They are just treading water (keeping slightly ahead of the market dynamics). The rate of change drives innovation. Within this industry there are more supply chain innovators taking a hard look and driving the adoption of prescriptive analytics and canonical value network infrastructures. Taking a closer view at the value chain of the sub-industries within high-tech, i.e. consumer electronics, B2B Electronics, and semiconductor industries, the impact of the industry drivers and the importance of supply chain performance becomes clearer. Table 5. Supply Chain Performance by Industry within the High-Tech Sector The entire value chain is struggling to maintain margins and improve inventory turns. For consumer electronics and B2B electronics, growth is down, operating margins are degrading and inventory turns worsening. Supply chain matters more than ever.

Supply Chain Risk Management Study slide deck - 18 NOV 2015

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Risks are higher in a global supply chain. To deal with these potential hazards, risk management has evolved beyond dealing with an issue when it’s about to happen to focus on prevention, early sensing, and coordinated execution to respond to an event. There are new strategies and technologies that can proactively formulate a plan to protect your business and operations from the storm of unforeseen events. But how do you get started? At Supply Chain Insights, it’s our mission to help you improve your operations. We tackled this issue in a panel based webinar on November 18, 2015 featuring Lora Cecere and Pierre Mitchell from Spend Matters to give you their perspective and answer your questions on how to include an effective risk management strategy. We are sharing the slides used as the foundation for this discussion between two distinguished experts to educate you about why this is important to your operations and how to prepare for an unknown future to safeguard your business from risk using business alignment and risk management tools.

Supply Chain Metrics That Matter: A Focus on Medical Device Companies – 2016

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Executive Overview Globalization. Compliance. Risk Management. Corporate Social Responsibility (CSR). Patient outcomes. Over the last decade the number and variety of supply chain initiatives exploded for the medical device leader. As a result, the supply chain group, and the related business imperatives, grew in importance. Overall the medical device supply chain fared better through the decade than other industries, despite the fact that they are smaller, more focused companies trying to become global. (see Table C in the appendix for company size). On average the industry performance on operating margin and inventory turns was better in 2006 than 2015. The reason? The medical device supply chain entered the decade as a supply chain laggard. Through focused supply chain programs they were able to catch up to the level of other industries. Table 6. Industry Snapshot of Performance We hope this report can be a guide to help companies understand what is possible, and how supply chain metrics drive value. In the medical device industry we find most companies to be stuck. They have either regressed in supply chain performance or they are at the same point they were a decade ago. For many supply chain leaders that attend conferences, this may seem unfathomable. There is an industry belief that companies have implemented new technologies, and evolved processes, and driven improved balance sheet results. The goal of this report is to enable benchmarking and to spark a new conversation on the definition of supply chain excellence.

Research in Review - 2015

Lora Cecere

Executive Summary Supply chain management it is now three decades old. The processes are maturing. With the increase in complexity in markets and new product launch, supply chain excellence matters more than ever. Manufacturing and distribution companies are looking for insights on how to parlay advances in supply chain management into balance sheet results. This is the goal of this report. This report is a summary of research conducted during 2015. It provides a short summary of the major insights gathered from six quantitative and four qualitative studies. For more in-depth analysis reference the full reports outlined in the appendix.

What Drives Inventory Effectiveness in a Market-Driven World?

Lora Cecere

Survey Details: The research for this report was conducted from February 12 - October 8, 2015. Surveys were conducted among Manufacturers, Retailers, and Wholesalers/Distributors/Co-operatives with $250M+ in revenue and who use (and are familiar with) inventory optimization software (n=64). Respondents were evenly split between those using basic (ERP or ERP+APS) and advanced (software in addition to ERP/APS) software. All surveys were conducted by Supply Chain Insights. Objective: To understand the impact of inventory optimization software on supply chain excellence. NOTE: inventory optimization software was defined as "any form of ERP (Enterprise Resource Planning), APS (Advanced Planned Software), or sophisticated inventory planning tools." Highlight: Companies who use advanced software are more likely to be satisfied with their software, to be effective at making inventory decisions and to drive a return on investment for their software.

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Autonomous webinar final deck

1. Supply Chain and the Autonomous World

2. Supply Chain Insights LLC Copyright © 2016, p. 2 Supply Chain and the Autonomous World Lora Cecere Founder and CEO, Supply Chain Insights Jim Lawton Chief Product and Marketing Officer, Rethink Robotics Andy Souders SVP Products and Strategy IoT/Big Data, Savi Technology Your Panel for Today

6. Technology Evolution ERP SRM APS PLM CRM Operational Investments Workforce ProductivityAnalytics

9. Supply Chains Don’t Play by the Rules 9 But, what if they could?

19. Supply Chain Insights LLC Copyright © 2016, p. 19Savi Technology Proprietary and Confidential April 14, 2016 1 One big issue… RFID Tags: $150+ Data Plans: $10/MB/Month IT Costs: $10M+/annually 100,000+ Products/Containers

23. Supply Chain Insights LLC Copyright © 2016, p. 23Savi Technology Proprietary and Confidential April 14, 2016 2 Tags: Cheap and getting cheaper Data plans: Cheap and getting cheaper and faster IT Costs: Ok…I’ll say it…Hadoop

25. Supply Chain Insights LLC Copyright © 2016, p. 25Savi Technology Proprietary and Confidential April 14, 2016 2 Reference Architecture Quickly ingest any kind of data on the order of thousands of transactions per second Cleanse and normalize the data. Provide exception- based notifications “on the fly” Continuously learn from historical data and match that against the real-time data for additional event processing, such as estimated time of arrival calculations. Machine Learning moving to Artificial Intelligence Push data back into other systems based upon end-user. SAP, GT Nexus, etc. Use Savi’s proprietary apps either long-term or as an interim implementation step Data encrypted in transit and at rest using an fully compliant cloud facility

28. Supply Chain Insights LLC Copyright © 2016, p. 28Savi Technology Proprietary and Confidential April 14, 2016 2 What we know at Savi: Tags will get cheaper and smarter Data will get bigger and faster It’s all about analytics and specifically machine learning…this is what enables the autonomous supply chain of the future…

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32. Supply Chain Insights LLC Copyright © 2014, p. 32 #sciwebinar Visit Us Online www.supplychaininsights.com www.supplychainshaman.com www.beetfusion.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

33. Supply Chain Insights LLC Copyright © 2016, p. 33 About Lora Cecere • Founder of Supply Chain Insights • “LinkedIn Influencer” • Guest blog for Forbes • Author of 4 books: Bricks Matter (2012), Shaman’s Journal (2014), Supply Chain Metrics That Matter (2014), Shaman’s Journal (2015) • 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 (7,200 followers) • LinkedIn: www.linkedin.com/in/loracecere (89,724 followers) • LinkedIn Influencer: www.linkedin.com/today/author/446631

Editor's Notes

Big Hairy Audacious Goals Business goals/ challenges: Scale the business Increase the number of machines in operation from 900 to 3,000 by 2016 Expand internationally Essentially we had to justify Whitbread’s £60 million acquisition! While transforming the Supply Chain Replace legacy spreadsheet system with new IT system:The legacy system could not pull in data from the coffee stations’ telemetry systems, so all this valuable data was going to wasteOur ‘brand guardians’ were effectively spending all their time poring over spreadsheets and manually replenishing stock These processes were not scalable in line with our ambitions We needed to transform other aspects of our supply chain and grow at the same time! Change logistics / warehousing partner Move to direct purchasing Solution ToolsGroup is at the heart of our successful supply chain transformation: System access our telemetry data tap into our machine telemetry data and uses it to calculate replenishment orders for partner sites. The data is used to forecast demand and optimise inventory levels Some of the results (walk through the four figures on the left of the slide): Also point out the new role of Brand Excellence Advisor And we far exceeded our business goals!: Blew away target to have 3,000 machines in place by 2016. We achieved this target in 2013, a full three years ahead of schedule! Moving into new markets – Poland, Ireland and Dubai Launched new CEM-200 "intelligent" coffee station concession Next steps (only if there is time)

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