Downloaded 43 times
Uploaded byLora Cecere
Presentation at the Terra Technology conference march 27
This document discusses supply chain insights and the evolution of supply chain excellence. It summarizes that supply chains are complex systems that are becoming increasingly more complex. It also reviews what some of the tipping points were that changed supply chain excellence from focusing on vertical silos to more horizontal processes that deliver value-based outcomes. Finally, it discusses how supply chains are evolving to leverage big data from various sources and the need for supply chains to become more market-driven and orchestrate demand and supply based on changing market conditions.
More Related Content
Similar to Presentation at the Terra Technology conference march 27
![[BDD 2025 - Artificial Intelligence] Building AI Systems That Users (and Comp...](https://cdn.slidesharecdn.com/ss_thumbnails/ai-buildingaisystemsthatusersandcompanieslove-251124030845-038f7732-thumbnail.jpg?width=640&height=640&fit=bounds)
![[BDD 2025 - Mobile Development] Mobile Engineer and Software Engineer: Are we...](https://cdn.slidesharecdn.com/ss_thumbnails/md-mobileengineerandsoftwareengineerarewestillrelevantsidiqpermana-251127010650-55224ef1-thumbnail.jpg?width=640&height=640&fit=bounds)
![[DevFest Strasbourg 2025] - NodeJs Can do that !!](https://cdn.slidesharecdn.com/ss_thumbnails/devfeststrasbourg2025-nodejscandothat-251127142731-da65b6fd-thumbnail.jpg?width=640&height=640&fit=bounds)
![[BDD 2025 - Full-Stack Development] PHP in AI Age: The Laravel Way. (Rizqy Hi...](https://cdn.slidesharecdn.com/ss_thumbnails/fs-phpinaiagethelaravelway-251125012602-ef9d330e-thumbnail.jpg?width=640&height=640&fit=bounds)
Presentation at the Terra Technology conference march 27
- 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. Supply Chain A supplychain is a complex system with complex processes with increasing complexity. 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 wereTipping PointsPoints? the Tipping 52% 36% 20% 16% 8% Supply Chain Insights, LLC © 2012
- 6. 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
- 7. 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
- 8. 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. 8 Supply Chain Insights, LLC © 2012
- 9. What is SupplyChain Excellence? Supply Chain Insights, LLC © 2012
- 10. Revenue/Employee in ConsumerProducts P&G Colgate Unilever Kimberly Clark 700 600 500 400 300 200 100 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Supply Chain Insights, LLC © 2012
- 11. EBIT/Employee P&G Colgate Unilever 140.0 Earnings Before Interest and Taxes 120.0 100.0 80.0 60.0 40.0 20.0 0.0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Supply Chain Insights, LLC © 2012
- 12. Comparison of EBIT/EmployeePlotted Against Days of Inventory for P&G/Unilever for the Period of 2002-2010 P&G DOI P&G EBIT/Employee Unilever DOI Unilever EBIT/Employee 140 120 100 80 60 40 20 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 Supply Chain Insights, LLC © 2012
- 13. Cost of Salesas a Percent of Revenue Kellogg Kraft General Mills Campbell Hershey P&G 70% 65% Cost of Sales a Percentage of Revenue 60% 55% 50% 45% 40% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Supply Chain Insights, LLC © 2012
- 14. Where are weHeaded? Supply Chain Insights, LLC © 2012
- 15. Supply Chain Insights,LLC © 2012
- 16. Supply Chains Don’tPlay by the Rules But, wh at if they could? 16 Supply Chain Insights, LLC © 2012
- 17. 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 17 Supply Chain Insights, LLC © 2012
- 18. 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
- 19. 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
- 20. Connecting the ExtendedSupply Chain Transactional Transactional Transactional Applications Applications Applications Trading Partner 1 Trading Partner 2 Trading Partner 3 20 Supply Chain Insights, LLC © 2012
- 21. 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 1 Trading Partner 2 Trading Partner 3 Key: Supplier Signal Predictive Analytics Repository Demand Signal Transactional Adapters Repository and Intelligent Rule Sets 21 Supply Chain Insights, LLC © 2012
- 22. 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 networks • Wrongly defined the “R”s • Focused inside-out, not outside-in. • Rewarded the urgent, not the important • Responded without sensing. 22 Supply Chain Insights, LLC © 2012
- 23. 23 Thank you! Lora Cecere [email protected] Blog: www.supplychainshaman.com Twitter: lcecere Linkedin: linkedin.com/pub/loracecere/0/196/573 Supply Chain Insights, LLC © 2012