Downloaded 55 times
Uploaded byLora Cecere
Ibf presentation
This document discusses supply chain insights and excellence. It provides information on how supply chains have evolved over time from isolated silos to more connected and market-driven networks. Key points discussed include the changing definition of supply chain excellence, historical tipping points in supply chain management, increasing commodity price pressures, and the need for supply chains to sense and respond to market changes in near real-time. Examples are given of how leading companies have adapted their supply chains to deliver value-based outcomes.
More Related Content
Ibf presentation
- 1. Supply Chain Insights DeliveringInsights to Line of Business Leaders Supply Chain Insights, LLC © 2012
- 2. BRICKS Book Publishes Matter in August 2012 The Role of Supply Chains in Building Market-Driven Differentiation LORA M. CECERE CHARLES W. CHASE JR.
- 3. Who does itBest? Dell Toyota Procter & Gamble 3 Supply Chain Insights, LLC © 2012
- 4. 4 Who does it Best? SC Excellence 38% 21% 17% 4% 4% P&G Apple Dell Wal-Mart Toyota Supply Chain Insights, LLC © 2012
- 5. 5 What were theTipping Points? Tipping Points 52% 36% 20% 16% 8% Supply Chain Insights, LLC © 2012
- 6. What is SupplyChain Excellence? Supply Chain Insights, LLC © 2012
- 7. Supply Chain A supplychain is a complex system with complex processes with increasing complexity. Supply Chain Insights, LLC © 2012
- 8. Alignment to Strategy Business strategy What are the right things to do to increase company value? Value-network Supply Chain Strategy What are the right ways to support the business strategy? What are the right trade-offs between value drivers for each value network? Align Demand Right Product Design the Build Align Supply Relationships Platforms Supply Organizational Relationships Supply chain strategy Response Systems and Manage Talent Effective Supply Demand Networks Design Networks Continuous Networks Improvement Joint Value Innovation Supply Chain Execution of buy- Creation Strategies Methodologies Network Design Capabilities Required side strategies Business Process How do I do the right things right? Supply Chain Insights, LLC © 2012
- 9. 9 Typical Organization CEO Chief Customer COO Officer Chief VP of Supply VP of Marketing Sales CFO Chain Manufacturing Officer Account Customer Procurement Logistics CIO Quality Teams Service Growth Volume Cost Supply Chain Insights, LLC © 2012
- 10. A Look Back Supply Chain Insights, LLC © 2012
- 11. Supply Chain TippingPoints 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 JIT Supply Chain Internet/Email RFID Organization Evolution of eProcurement the PC Re-Engineering the Total Quality S&OP Organization Management Theory of Constraints (Michael Hammer) Supply Chain Excellence = Supply Chain Excellence = Islands of Manufacturing Vertical Silo Efficient Order to + + Excellence Excellence Excellence Cash Processes Inside-Out Inside-Out Supply Chain Insights, LLC © 2012
- 12. Supply Chain TippingPoints 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 .com Social Responsibility Y2K Demand Driven Concepts CSCO Lean Six Sigma Market-Driven Value Networks Supply Chain Excellence = Supply Chain Excellence = Vertical Silo Outsourcing Value-Based Outcomes + Excellence Effectiveness Delivered by Horizontal Processes Inside-Out Outside-In Supply Chain Insights, LLC © 2012
- 13. The Long Tail:Growing Complexity Volume Level of Predictability Predictability based on forecast accuracy vs Actual Order Profiles Supply Chain Insights, LLC © 2012
- 14. Commodity Price Pressure 400.00 350.00 300.00 250.00 Corn (metric Ton) Wheat (metric Ton) 200.00 $/LB Coffee, Robusta (Pound) 150.00 Sugar (Pound) 100.00 Beef (Pound) Crude Oil (Barrel) 50.00 0.00 Source: Index Mundi 14 Supply Chain Insights, LLC © 2012
- 15. Days of Inventory 65 60 55 50 45 40 35 30 2002 2003 2004 2005 2006 2007 2008 2009 2010 Household Products Chemical Pharma Average Data Source: CFO Magazine Supply Chain Insights, LLC © 2012
- 16. Days of WorkingCapital 95 85 75 65 55 45 35 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Household Products Chemical Pharma Average Data Source: CFO Magazine Supply Chain Insights, LLC © 2012
- 17. Evolution of SupplyChain Excellence Continuous Align Building Horizontal Connector Testing Learning Orchestrate Improving Adapt Resilient Reliable Right Product Efficient Sense Demand Demand Volatility and Supply Right Place Cost Shape Right Time Procure to Demand and Supply pay/order to Supply based Volatility cash on Market Right Cost Supply Chain Insights, LLC © 2012
- 18. What is aMarket-driven Value Network? An adaptive network focused on a value- based outcome that senses and translates market changes (buy and sell-side markets) bi-directionally with near-real time data latency to align sell, deliver, make and sourcing operations. 18 Supply Chain Insights, LLC © 2012
- 19. Great Recession: Leaders sensedMarket Changes 5x Faster Supply Chain Insights, LLC © 2012
- 20. What is aValue-based Outcome? Industry Today Tomorrow Airspace and Selling aircraft Performance- Defense based logistics Automotive Efficiency: sale and Safe transportation life of a car Consumer Right product, right Effectiveness at Products time, right place the moments of truth Healthcare Efficient sickness Long life and wellness 20 Supply Chain Insights, LLC © 2012
- 21. Sales and OperationsPlanning Supply Chain Insights, LLC © 2012
- 22. In 2011… Supply chains are grappling with 90% skyrocketing costs and supply volatility. Struggling with the integration of business 87% planning and supply chain planning technologies. 85% Supply chains experienced a disruption. 62% Companies have multiple S&OP processes. ! Industry progress on working capital has stalled. Source: Supply Chain Resilience 2011 © 2011 The Business Continuity Institute. All Rights Reserved. Supply Chain Insights, LLC © 2012
- 23. S&OP Evolution Greater Benefit Business- • Growth Sales Driven • Resilience planning Driven Match Demand • Efficiency Coordination with Supply of Plans Manufacturing- Demand Market Driven Driven Driven Orchestrate Deliver a Feasible Sense and Demand Plan for Operations Shape Demand Market to Market Supply Chain Insights, LLC © 2012
- 24. 24 Aligning for Balance S: Go-to- OP: Demand Market Strategies & Orchestration Goal Supply Chain Insights, LLC © 2012
- 25. Image by felixjused with Attribution as directed by Creative Commons http://www.flickr.com/photos/felixj/462022653 Where we are Headed © 2011 Altimeter Group Supply Chain Insights, LLC © 2012
- 26. Historically, we have: • Tried to get precise on inaccurate data • Believed that the most efficient supply chain is the most effective supply chain • Built efficient chains, but not effective or adaptive networks • Wrongly defined the “R”s • Focused inside-out, not outside-in. • Rewarded the urgent, not the important • Responded without sensing. 26 Supply Chain Insights, LLC © 2012
- 27. Supply Chain Insights,LLC © 2012
- 28. Supply Chains Don’tPlay by the Rules But, wh at if they could? 28 Supply Chain Insights, LLC © 2012
- 29. Big Data SupplyChains are Evolving Challenges: Structured • Transactional Data • Time phased data Volume • Social Unstructured • Channel Data • Customer Service • Warranty Velocity • Temperature Sensor • RFID Data • QR codes • GPS Variability New • Mapping and GPS • Video Data • Voice Types • Digital Images 29 Supply Chain Insights, LLC © 2012
- 30. Connecting the ExtendedSupply Chain Transactional Transactional Transactional Applications Applications Applications Trading Partner Trading Partner Trading Partner 1 2 3 30 Supply Chain Insights, LLC © 2012
- 31. Evolving Supply ChainArchitectures Collaborative Collaborative Collaborative Layer Layer Layer Transactional Transactional Transactional Applications Applications Applications Enterprise Data Enterprise Data Enterprise Data Warehouse Warehouse Warehouse Trading Partner Trading Partner Trading Partner 1 2 3 Key: Supplier Signal Predictive Analytics Repository Demand Signal Transactional Adapters Repository and Intelligent Rule Sets 31 Supply Chain Insights, LLC © 2012
- 32. Wrap-up Move thepuck. Supply chain excellence is about more than supply and cost. Make it about value and growth. Invest in new technologies to harness growth: make it count. For manufacturers and retailers, supply chain is business. 32 Supply Chain Insights, LLC © 2012
- 33. 33 Thank you! Lora Cecere lora@altimetergroup.com Blog: www.supplychainshaman.com Twitter: lcecere Linkedin: linkedin.com/pub/loracecere/0/196/573 Supply Chain Insights, LLC © 2012