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Parallel Insight:
The Gartner Supply Chain
Executive Conference Day 1
September 20th , 2017 | London, United Kingdom
Internet of
Things
Digital
Business
Algorithmic
Business
Source: Gartner Supply Chain Summit, 2017
Macrotrends Affecting Supply Chain
Planning
Are you prepared for Digital Transformation into
Supply Chain with Blockchain?
ARTIFICIAL
INTELLIGENCE
BLOCKCHAIN
COGNITIVE
INTERNET OF
THINGS
NEXUS
3D PRINTING
DRONES
ALGORITHMS
API
MARKETPLACE
SMART
MACHINES
ROBOTICS
Products
Partners
Trucks
Facilities
Employees
Machines
Suppliers
Factories
Business
Cloud
Systems
Devices
Economics of
Connections:
Increasing Business
Value Through Network
Relationships
Source: Gartner, July 2016
The Forces That Will Change the Supply Chain
The Customer Is
One
Digitalisation
Global
Purchasing
Power
Uberisation
“Most leading supply chain
organisations consistently take a
maturity-based approach to
designing and executing strategy.”
- Gartner Supply Chain Summit, 2017
5 Stages of Logistics Maturity
• React — Siloed Autonomous OperationStage 1
• Anticipate — Functional Scale and EfficiencyStage 2
• Integrated With the Supply ChainStage 3
• Collaborate — Collaborating With the Value
Chain NetworkStage 4
• Orchestrate — Network Orchestrator of
Profitable Customer ValueStage 5
Best Practices to Improve Forecast
Accuracy
Measure Planner Forecast Value-Added
Contribution (FVA)
• Measures Planner Effectiveness
• Empower the Planner
Improve the Consensus Demand Planning
Process
• Established an Annual Cadence
• Conduct a Demand Profile Exercise
Build Accountability for the Forecast
• S&OP Measurement
• Performance Evaluation
Understand Sources of Error
• Measure All the Inputs
Establish a Baseline & Promoted
Volume Forecast
• Invest in a TPM Solution When Ready
• Manage Gaps vs Financial Plan
Shift from Sell-in to Sell-Through
• Measure Sales on Sell-Through
• Invest in Demand-Sensing Capability
Source: Steven Steutermann Insights To Invest In Demand Management at Tools Group UK
The Cognitive Supply Chain Journey
Retrieves data faster than
a human can
Connects relevant data
points & provides
predictive insights
Facilitates decision
making based on
playbooks
Drives automation using
trusted recommendations
Source: Gartner Supply Chain Summit, 2017
“By 2020, 10% of large enterprises in
supply-chain-dependent industries
will have a CRO position to oversee
the blending of human & robotic
workers.”
- Gartner Supply Chain Summit, 2017
How Will AI Impact
the Supply Chain?
- Gartner Supply Chain Summit, 2017
AI-Generated Cognitive Insights to Supply
Chain Users
Q: What is the Risk Exposure with Supplier A?
A: Based on social media, historical performance &
financial risk index, the risk is high
Q: Which Team Members to Notify?
A: Tom S. & Anand V.
Q: What Mitigation Strategies to Consider?
A: You could use Supplier X as an alternate
Artificial
Intelligence in
Managing
Data
Source: Gartner Supply Chain Summit, 2017
1
2
34
5
Harmonise Against Disparate Systems
Find Missing Data
Find Errors
Automatically Corrects Errors
Process Transactions
Artificial Intelligence is Not Strictly About
Automation…
• Upskill People Through “Advisors”
• Reduce Human Bias
• Simplify User Interactions With
Technology
• Perform Better & Faster Than Humans
In Specific Tasks
• Take Better Actions Over Time, Based
On Experience
• Improve Safety & Accessibility
VS
Augmentation Automation
Recommendations from Gartner
Source: Gartner Supply Chain Summit, 2017
• Plan for global demand shifting to emerging economies & supply shifting to
Africa & Southern Asia
• Expect a faster connected economy that must serve expanding customer
choice generated from more fragmented demand points
• Introducing digital technologies to allow your supply chain to differentiate on
its products, services & overall customer experience
• Shift to a talent & organisational strategy that injects new skills into supply
chain & for execution on today’s efficiency goals & experimentation with bold
new ideas for growth
• Anticipate that corporate social responsibility will become a greater factor
impacting shareholder assessment of value & risk

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Parallel Insight: Gartner Supply Chain Conference Day 1 2017

  • 1. Parallel Insight: The Gartner Supply Chain Executive Conference Day 1 September 20th , 2017 | London, United Kingdom
  • 2. Internet of Things Digital Business Algorithmic Business Source: Gartner Supply Chain Summit, 2017 Macrotrends Affecting Supply Chain Planning
  • 3. Are you prepared for Digital Transformation into Supply Chain with Blockchain? ARTIFICIAL INTELLIGENCE BLOCKCHAIN COGNITIVE INTERNET OF THINGS NEXUS 3D PRINTING DRONES ALGORITHMS API MARKETPLACE SMART MACHINES ROBOTICS
  • 4.
  • 6. The Forces That Will Change the Supply Chain The Customer Is One Digitalisation Global Purchasing Power Uberisation
  • 7. “Most leading supply chain organisations consistently take a maturity-based approach to designing and executing strategy.” - Gartner Supply Chain Summit, 2017
  • 8. 5 Stages of Logistics Maturity • React — Siloed Autonomous OperationStage 1 • Anticipate — Functional Scale and EfficiencyStage 2 • Integrated With the Supply ChainStage 3 • Collaborate — Collaborating With the Value Chain NetworkStage 4 • Orchestrate — Network Orchestrator of Profitable Customer ValueStage 5
  • 9. Best Practices to Improve Forecast Accuracy Measure Planner Forecast Value-Added Contribution (FVA) • Measures Planner Effectiveness • Empower the Planner Improve the Consensus Demand Planning Process • Established an Annual Cadence • Conduct a Demand Profile Exercise Build Accountability for the Forecast • S&OP Measurement • Performance Evaluation Understand Sources of Error • Measure All the Inputs Establish a Baseline & Promoted Volume Forecast • Invest in a TPM Solution When Ready • Manage Gaps vs Financial Plan Shift from Sell-in to Sell-Through • Measure Sales on Sell-Through • Invest in Demand-Sensing Capability Source: Steven Steutermann Insights To Invest In Demand Management at Tools Group UK
  • 10. The Cognitive Supply Chain Journey Retrieves data faster than a human can Connects relevant data points & provides predictive insights Facilitates decision making based on playbooks Drives automation using trusted recommendations Source: Gartner Supply Chain Summit, 2017
  • 11. “By 2020, 10% of large enterprises in supply-chain-dependent industries will have a CRO position to oversee the blending of human & robotic workers.” - Gartner Supply Chain Summit, 2017
  • 12. How Will AI Impact the Supply Chain? - Gartner Supply Chain Summit, 2017
  • 13. AI-Generated Cognitive Insights to Supply Chain Users Q: What is the Risk Exposure with Supplier A? A: Based on social media, historical performance & financial risk index, the risk is high Q: Which Team Members to Notify? A: Tom S. & Anand V. Q: What Mitigation Strategies to Consider? A: You could use Supplier X as an alternate
  • 14. Artificial Intelligence in Managing Data Source: Gartner Supply Chain Summit, 2017 1 2 34 5 Harmonise Against Disparate Systems Find Missing Data Find Errors Automatically Corrects Errors Process Transactions
  • 15. Artificial Intelligence is Not Strictly About Automation… • Upskill People Through “Advisors” • Reduce Human Bias • Simplify User Interactions With Technology • Perform Better & Faster Than Humans In Specific Tasks • Take Better Actions Over Time, Based On Experience • Improve Safety & Accessibility VS Augmentation Automation
  • 16. Recommendations from Gartner Source: Gartner Supply Chain Summit, 2017 • Plan for global demand shifting to emerging economies & supply shifting to Africa & Southern Asia • Expect a faster connected economy that must serve expanding customer choice generated from more fragmented demand points • Introducing digital technologies to allow your supply chain to differentiate on its products, services & overall customer experience • Shift to a talent & organisational strategy that injects new skills into supply chain & for execution on today’s efficiency goals & experimentation with bold new ideas for growth • Anticipate that corporate social responsibility will become a greater factor impacting shareholder assessment of value & risk