Supply Chains to Admire Financial Results with Tables

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Details on the Supply Chains to Admire winners. Orbit charts and financial tables for all of the 2016 Supply Chains to Admire Winners.

Business

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Supply Chains to AdmireTM
Winners 2016
Lora Cecere
Supply Chain Insights

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SUPPLY CHAINS
TO ADMIRETM
2016
Supply Chain Insights

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PROCESS
Industries

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PROCESS: WINNERS

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WINNER

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Chemical Industry

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WINNER

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Household Products

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WINNER

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Beauty

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DISCRETE
Industries

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DISCRETE: WINNERS

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WINNER

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Consumer Electronics

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WINNER

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B2B Electronics

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WINNER

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Tires

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WINNER

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Heavy Equipment

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WINNER

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Medical Devices

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WINNER

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Furniture

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WINNER

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Semiconductor

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RETAIL
Industries

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RETAIL: WINNERS

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WINNER

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Apparel

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WINNER

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Mass Merchants

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WINNER

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WINNER

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WINNER

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WINNER

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Grocery Retail

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SUPPLY CHAINS
TO ADMIRETM
2016
Supply Chain Insights

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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.

What Drives Inventory Effectiveness in a Market-Driven World?

Lora Cecere

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.

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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.

Cross-Survey Analysis 2012-2015 - 28 Studies - Summary Charts - 17 MAR 2016

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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.

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Executive Summary No two supply chains are alike. While business is changing quickly, the supply chain processes are evolving slowly. The average supply chain organization is 14-years old, and as is shown in Figure 2, one out of three companies state that there is room for improvement in their supply chain. Figure 2. Descriptors Used by Supply Chain Leaders to Describe Their Supply Chains While companies desire a supply chain that is more aligned, fast, agile, and proactive, today the supply chain is controlled and becoming more global. In the building of today’s supply chain, as will be seen in this report, the tightly integrated IT infrastructure defined in the last two decades is an impediment to building an agile, proactive and aligned supply chain. In Figure 3 we contrast the current state of the supply chain with the desired state of supply chain leaders. Figure 3. Supply Chain Descriptors: Current State versus Desired Operation As shown in Figure 3, while supply chain leaders desire a more proactive, aligned and faster supply chain, these are areas for improvement. The current supply chain is controlled and global, but with significant opportunity for improvement. Ironically, despite the gaps in overall performance, many supply chain leaders term current practices as “best practices.” In this report we challenge the status quo. We do this by teasing out the data to understand business drivers. For example, in Table 1 we can see that a company which rates itself as “having a supply chain working well” is more likely to be in the process industry, and have a supply chain organization where manufacturing reports to the overall supply chain leader. In addition, within the organization there is a greater understanding of the supply chain by the executive leadership team, stronger alignment of metrics cross-functionally, stronger capabilities in supply chain visibility, and the organization is better at managing change. The companies that outperform are also better at accessing and using data. It is also significant to note that we do not find a correlation between “working well” and the presence of a Supply Chain Center of Excellence, fewer ERP instances, or maturity in Sales and Operations planning. The reason? These processes and practices are evolving.

In Search of Supply Chain Excellence - Report - 17 MAR 2016

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Network of Networks Webinar 2017

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Supply Chain Insights: Building the Customer-Centric Supply Chain - 17 AUG 2016

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Big Data Infographic - Supply Chain Insights - 2015

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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.

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

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Supplier Development Study - Feb-May 2016 - Summary Charts

Lora Cecere

Executive Overview Food and Beverage supply chains serve local markets. Regional taste buds drive localized assortment. While many are attempting to be global, they have strong regional governance drivers. As a result, growth agendas have driven an increase in items by 32% since 2010. Product complexity grew faster than growth. Average sales per item dropped 22% . This increase in complexity lengthened the long tail of the supply chain affecting both cost and inventory. We hope this report can be a guide to help companies understand what is possible to determine more accurate set points, and understand the relationship between supply chain metric performance and value. As will be seen, in the Food and Beverage industries we find most companies to be stuck on the critical metrics that drive value. 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 who 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. As will be shown in this report, this is not true. The analysis also demonstrates the importance of outside-in supply chain excellence programs. Who does the best? Hershey outperforms within the Food group and makes the Supply Chains to Admire list for 2016; and while AB/InBev drives the strongest performance in the Beverage category, it is not sufficient to make the list. The goal of this report is to enable benchmarking and to spark a new conversation on value in the definition of supply chain excellence.

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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.

Presentation on the Future of Supply Chain Technologies

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Report Details: The research for this report was conducted via an online survey from August 12 - October 14, 2016. Surveys were conducted among Manufacturers, Wholesalers/Distributors/Co-operatives and Third-Party Logistics Providers (n=56). Objective: To determine how companies build a customer-centric supply chain and how well it is working for them. Highlight: In this study, 80% of companies have a customer-centric strategy; yet the majority (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.

Driving a Customer-Centric Supply Chain - 7 NOV 2016

Lora Cecere

What’s the Impact of Open Source on the Future of Supply Chain Developments in open source software happen because of the power of community. Developers can access code and create functionality and applications that will drive improvements and opportunities along a supply chain. Many technology vendors are embracing this model to provide platforms to manage your business. But how do you proceed?

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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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Presentation given at the 2016 Supply Chain Insights Global Summit - 7-9 SEP 2016 at The Phoenician in Scottsdale, AZ The Internet of Things: Driving Automated Replenishment • Chris Clowes – Senior Supply Chain Development Manager, Walgreen's Boots Alliance (formerly at Costa Coffee) Costa Coffee had a choice. They could either make their current operation more efficient or redesign the process to drive an autonomous supply chain to leapfrog competition. They chose the latter. Through the use of machine signals, they were able to redesign distribution processes to drive automated replenishment and drive growth and improve supply chain results. To see the video go to http://supplychaininsightsglobalsummit.com/2016-summit-presentations/

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1. 8/19/2016 September 2016, p.1Supply Chain Insights Global Summit #ImagineSC Supply Chains to AdmireTM Winners 2016 Lora Cecere Supply Chain Insights

2. 8/19/2016 September 2016, p.2Supply Chain Insights Global Summit #ImagineSC SUPPLY CHAINS TO ADMIRETM 2016 Supply Chain Insights

3. 8/19/2016 September 2016, p.3Supply Chain Insights Global Summit #ImagineSC PROCESS Industries

4. 8/19/2016 September 2016, p.4Supply Chain Insights Global Summit #ImagineSC PROCESS: WINNERS

5. 8/19/2016 September 2016, p.5Supply Chain Insights Global Summit #ImagineSC WINNER

6. 8/19/2016 September 2016, p.6Supply Chain Insights Global Summit #ImagineSC Chemical Industry

7. 8/19/2016 September 2016, p.7Supply Chain Insights Global Summit #ImagineSC WINNER

8. 8/19/2016 September 2016, p.8Supply Chain Insights Global Summit #ImagineSC Household Products

9. 8/19/2016 September 2016, p.9Supply Chain Insights Global Summit #ImagineSC WINNER

10. 8/19/2016 September 2016, p.10Supply Chain Insights Global Summit #ImagineSC Beauty

11. 8/19/2016 September 2016, p.11Supply Chain Insights Global Summit #ImagineSC DISCRETE Industries

12. 8/19/2016 September 2016, p.12Supply Chain Insights Global Summit #ImagineSC DISCRETE: WINNERS

13. 8/19/2016 September 2016, p.13Supply Chain Insights Global Summit #ImagineSC WINNER

14. 8/19/2016 September 2016, p.14Supply Chain Insights Global Summit #ImagineSC Consumer Electronics

15. 8/19/2016 September 2016, p.15Supply Chain Insights Global Summit #ImagineSC WINNER

16. 8/19/2016 September 2016, p.16Supply Chain Insights Global Summit #ImagineSC B2B Electronics

17. 8/19/2016 September 2016, p.17Supply Chain Insights Global Summit #ImagineSC WINNER

18. 8/19/2016 September 2016, p.18Supply Chain Insights Global Summit #ImagineSC Tires

19. 8/19/2016 September 2016, p.19Supply Chain Insights Global Summit #ImagineSC WINNER

20. 8/19/2016 September 2016, p.20Supply Chain Insights Global Summit #ImagineSC Heavy Equipment

21. 8/19/2016 September 2016, p.21Supply Chain Insights Global Summit #ImagineSC WINNER

22. 8/19/2016 September 2016, p.22Supply Chain Insights Global Summit #ImagineSC Medical Devices

23. 8/19/2016 September 2016, p.23Supply Chain Insights Global Summit #ImagineSC WINNER

24. 8/19/2016 September 2016, p.24Supply Chain Insights Global Summit #ImagineSC Furniture

25. 8/19/2016 September 2016, p.25Supply Chain Insights Global Summit #ImagineSC WINNER

26. 8/19/2016 September 2016, p.26Supply Chain Insights Global Summit #ImagineSC Semiconductor

27. 8/19/2016 September 2016, p.27Supply Chain Insights Global Summit #ImagineSC RETAIL Industries

28. 8/19/2016 September 2016, p.28Supply Chain Insights Global Summit #ImagineSC RETAIL: WINNERS

29. 8/19/2016 September 2016, p.29Supply Chain Insights Global Summit #ImagineSC WINNER

30. 8/19/2016 September 2016, p.30Supply Chain Insights Global Summit #ImagineSC Apparel

31. 8/19/2016 September 2016, p.31Supply Chain Insights Global Summit #ImagineSC WINNER

32. 8/19/2016 September 2016, p.32Supply Chain Insights Global Summit #ImagineSC Mass Merchants

33. 8/19/2016 September 2016, p.33Supply Chain Insights Global Summit #ImagineSC WINNER

34. 8/19/2016 September 2016, p.34Supply Chain Insights Global Summit #ImagineSC WINNER

35. 8/19/2016 September 2016, p.35Supply Chain Insights Global Summit #ImagineSC WINNER

36. 8/19/2016 September 2016, p.36Supply Chain Insights Global Summit #ImagineSC WINNER

37. 8/19/2016 September 2016, p.37Supply Chain Insights Global Summit #ImagineSC Grocery Retail

38. 8/19/2016 September 2016, p.38Supply Chain Insights Global Summit #ImagineSC SUPPLY CHAINS TO ADMIRETM 2016 Supply Chain Insights

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