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![Supply Chain Insights LLC Copyright © 2016, p. 41
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Canada
-Customer A calls about a blue screen on a Yoga
-Customer B posts on Facebook about his X220’s AC/DC adapter issues
Large Enterprise Client experiences 5 keyboard malfunctions in their latest
shipment. Complaints received through account executive
[Critical Situation]
Brazil
-Customer F submits a service from on
esupport.lenovo.com regarding
their W530 hard drive
Morocco
-Customers G & H comment on their
X220’s electrical issues on Twitter.com
-Customer I called about Yoga screen
issues
Australia
-Customer J write a review on
NewEgg.com about AC/DC adapter
issues on X220
-Customer K had an eChat with Lenovo
about Yoga screen issues
China
-Customer L wrote on Weibo about
Yoga screen issues
-Customer M calls about a Tablet 8
battery issues
Voice of Customer Comes in Many Forms
USA
-Customers C & D write X220 product
reviews on amazon.com and mention
issues with AC/DC adapters
-Customer E posts on
forums.lenovo.com that they are
experiencing blue screens on their Yoga](https://image.slidesharecdn.com/presentationforperu2-160623042719/75/Big-Data-Analytics-and-the-Supply-Chain-Opportunity-41-2048.jpg)
Uploaded byLora Cecere
Big Data Analytics and the Supply Chain Opportunity
The document discusses the challenges and changes within supply chains, referencing a significant number of Fortune 500 companies that have failed since the year 2000. It emphasizes the evolving technologies and the need for better supply chain visibility and talent, highlighting the pressure on organizations to adapt. The author, Lora Cecere, outlines a vision for future supply chains that learn and evolve continuously through advanced analytics and networked services.
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Big Data Analytics and the Supply Chain Opportunity
- 1. Using New Formsof Analytics
- 2. Supply Chain InsightsLLC Copyright © 2016, p. 2 Disclaimer: I am a Skeptic
- 3. Supply Chain InsightsLLC Copyright © 2016, p. 3 A Social Scientist
- 4. Supply Chain InsightsLLC Copyright © 2016, p. 4 A Fortune-teller of Sorts….
- 5. Supply Chain InsightsLLC Copyright © 2016, p. 5 I Write for the Supply Chain Leader
- 6.
- 7. Supply Chain InsightsLLC Copyright © 2016, p. 7 Descriptors Used by Leaders
- 8. Supply Chain InsightsLLC Copyright © 2016, p. 8 Today’s Risks
- 9. Supply Chain InsightsLLC Copyright © 2016, p. 9 Since 2000, 52 percent of the companies in the Fortune 500 have either gone bankrupt, been acquired, ceased to exist, or dropped out of the Fortune 500. Activist campaigns against companies with a market cap greater than $10 billion has more than doubled since 2010. Activists won, partially won or settled 73% of proxy fights in 2014, up from 55% in 2010. Increasing Pressure on Operations
- 10. Supply Chain InsightsLLC Copyright © 2016, p. 10 Productivity
- 11. Supply Chain InsightsLLC Copyright © 2016, p. 11 Technology Evolution ERP SRM APS PLM CRM Operational Investments Workforce ProductivityAnalytics
- 12.
- 13. Supply Chain InsightsLLC Copyright © 2016, p. 13 Right Stuff?
- 14. Supply Chain InsightsLLC Copyright © 2016, p. 14 Middle Management Has Greatest Shortage of Supply Chain Talent
- 15. Supply Chain InsightsLLC Copyright © 2016, p. 15 Growing Talent Gap
- 16.
- 17. Supply Chain InsightsLLC Copyright © 2016, p. 17 What We Expected
- 18. Supply Chain InsightsLLC Copyright © 2016, p. 18 Functional Silos an Issue
- 19. Supply Chain InsightsLLC Copyright © 2016, p. 19 Alignment Issues
- 20. Supply Chain InsightsLLC Copyright © 2016, p. 20 The Supply Chain Effective Frontier
- 21. Supply Chain InsightsLLC Copyright © 2016, p. 21 Orbit Charts: Dow Chemical Company and DuPont
- 22. Supply Chain InsightsLLC Copyright © 2016, p. 22 Automotive
- 23. Supply Chain InsightsLLC Copyright © 2016, p. 23 Orbit Chart: Pharmaceutical (Inventory Turns and Operating Margin)
- 24. Supply Chain InsightsLLC Copyright © 2016, p. 24 Eli Lilly and Novo Nordisk
- 25. Supply Chain InsightsLLC Copyright © 2016, p. 25 P&G and Kimberly-Clark
- 26. Supply Chain InsightsLLC Copyright © 2016, p. 26 2006 2015 2006 2015 6 7 8 9 10 0.12 0.13 0.14 0.15 0.16 0.17 0.18 0.19 0.20 0.21 InventoryTurns Operating Margin Church & Dwight The Clorox Company Best Scenario CLX 0.17, 8.36 CHD 0.17, 6.93 Average (Operating Margin, Inventory Turns) Source: Supply Chain Insights LLC, Corporate Annual Reports 2006-2015 from YCharts Consumer Products Clorox and Church & Dwight
- 28. Supply Chain InsightsLLC Copyright © 2016, p. 28 • Lack of clarity on supply chain excellence • Focus on functional excellence • Isolated projects with a ROI rationalization • Lack of supply chain design • Not managing the metrics holistically across the organization Why?
- 29.
- 30. Supply Chain InsightsLLC Copyright © 2016, p. 30 The Evolution of the Long Tail
- 31. Supply Chain InsightsLLC Copyright © 2016, p. 31 Increase in Outsourcing
- 32. Supply Chain InsightsLLC Copyright © 2016, p. 32 Bullwhip Effect
- 33. Supply Chain InsightsLLC Copyright © 2016, p. 33 Gaps in Supply Chain Visibility
- 34. Supply Chain InsightsLLC Copyright © 2016, p. 34 A Closer Look at Today’s Effectiveness
- 35. Supply Chain InsightsLLC Copyright © 2016, p. 35 Build Horizontal Processes
- 36. Supply Chain InsightsLLC Copyright © 2016, p. 36 Evolution of Horizontal Processes
- 37. Supply Chain InsightsLLC Copyright © 2016, p. 37 Current State
- 38. Supply Chain InsightsLLC Copyright © 2016, p. 38 Need for Network Ownership
- 39. Supply Chain InsightsLLC Copyright © 2016, p. 39 Future State
- 40. Supply Chain InsightsLLC Copyright © 2016, p. 40 Listening: Lenovo
- 41. Supply Chain InsightsLLC Copyright © 2016, p. 41 0 0 0 0 0 0 0 Canada -Customer A calls about a blue screen on a Yoga -Customer B posts on Facebook about his X220’s AC/DC adapter issues Large Enterprise Client experiences 5 keyboard malfunctions in their latest shipment. Complaints received through account executive [Critical Situation] Brazil -Customer F submits a service from on esupport.lenovo.com regarding their W530 hard drive Morocco -Customers G & H comment on their X220’s electrical issues on Twitter.com -Customer I called about Yoga screen issues Australia -Customer J write a review on NewEgg.com about AC/DC adapter issues on X220 -Customer K had an eChat with Lenovo about Yoga screen issues China -Customer L wrote on Weibo about Yoga screen issues -Customer M calls about a Tablet 8 battery issues Voice of Customer Comes in Many Forms USA -Customers C & D write X220 product reviews on amazon.com and mention issues with AC/DC adapters -Customer E posts on forums.lenovo.com that they are experiencing blue screens on their Yoga
- 42. Supply Chain InsightsLLC Copyright © 2016, p. 42 0 0 0 0 0 0 0 Lenovo - 6 recorded issues about X220’s AC/DC adapter - 5 recorded issues about keyboard issues on X1 Carbon - 5 recoded issues about Yoga screen - 1 recorded issue about W530 hard-drive - 1 recorded issue about Tablet 8 battery One Voice – A Single View of Perceptual Quality
- 43. Making the DigitalPivot
- 44. Supply Chain InsightsLLC Copyright © 2016, p. 44 • Supply chains that learn as we sleep • Network of networks • Digital manufacturing • Redefinition of Service Supply Chains • Interactive UI • New business models Looking Forward
- 45. Supply Chain InsightsLLC Copyright © 2016, p. 45 Confluence of Technologies
- 46. Supply Chain InsightsLLC Copyright © 2016, p. 46 Evolution of Analytics
- 47. Supply Chain InsightsLLC Copyright © 2016, p. 47 Data Strategy for…. Clouds? Streams? Lakes?
- 48. Supply Chain InsightsLLC Copyright © 2016, p. 48 Big Data Supply Chains are Evolving 48 Challenges: • Transactional • Time phased data Structured Data • Social • Channel • Customer Service • Warranty • Temperature • RFID • QR codes • GPS • Mapping and GPS • Video • Voice • Digital Images Unstructured Data Sensor Data New Data Types Volume Velocity Variability
- 49. Supply Chain InsightsLLC Copyright © 2016, p. 49 Analytics Maturity
- 50. Supply Chain InsightsLLC Copyright © 2016, p. 50 Data Types
- 51. Supply Chain InsightsLLC Copyright © 2016, p. 51 Supply Chains Don’t Play by the Rules 51 But, what if they could?
- 52. Case Study: Internetof Things Demand-Driven Replenishment
- 53. Supply Chain InsightsLLC Copyright © 2016, p. 53 2:00am Emergency Drug Call
- 54.
- 55.
- 56. Opportunity • 1/3 ofshipped produce wasted: $34B in annual global waste from perishable foods • 50% is due to temperature variations from the farm to retail shelf • Reducing temperature related shrink by half is approx. $9B opportunity. Perishable Produce – A Closer Look 1% reduction in Shrink Increase in profit of $1,173,555 6% reduction in Shrink Increase in profit of $7,378,830 Case Study on Shelf life Perishable Products: RFID Cold Chain Opportunity
- 57. Group by FirstIn or Shelf Life? 15+ 14+ 13+ 11+ 15+ 15+ 15+ 10+ <10 12+ 12+ <10 12+ 15+ 14+ 12+ 11+ 14+ 13+ 12+ 12+ 10+ <10 <10 15+ 15+ 15+ 15+ 15+ 15+ 15+ 15+ 15+ 15+15+ ALL GOOD BERRIES, BUT - they have different remaining shelf life when received from growers If we can group berries by shelf life, we avoid problems on multiple pallets – and send pallets to the right destination…
- 58. Evolution of 3DPrinting of Human Organs
- 59.
- 60. Supply Chain InsightsLLC Copyright © 2016, p. 60 The Conundrum
- 61. Supply Chain InsightsLLC Copyright © 2016, p. 61 Wrap-up • Supply chains are five years away from learning as we sleep. Stabilize legacy spending. • We must learn from the past to unlearn, and then rethink supply chain processes. The starting point is rewiring our brains. • Value network automation has great promise: welcome the Network of Networks.
- 65. Supply Chain InsightsLLC Copyright © 2016, p. 65 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 (7,700 followers) • LinkedIn: www.linkedin.com/in/loracecere (100,000 followers) • LinkedIn Influencer: www.linkedin.com/today/author/446631
Editor's Notes
- #43 Synchronize/organize all comments/complains into one voice
- #53 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 waste Our ‘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)