Finding Opportunity in Supply Chain Complexity
•
5 gostaram•976 visualizações
Today's global supply chains and hyper-connected consumers create unprecedented challenges for businesses in every industry, from food service to high tech to CPG to retail. RedPrairie CEO recently delivered this presentation to the 1,200 attendees of the Georgia Logistics Summit, where he described the challenges inherent in the ecosystem and highlighted opportunities within these challenges to earn competitive advantage.
Recomendados
Recomendados
Mais conteúdo relacionado
Destaque
Destaque (20)
Semelhante a Finding Opportunity in Supply Chain Complexity
Semelhante a Finding Opportunity in Supply Chain Complexity (20)
Mais de RedPrairie
Mais de RedPrairie (11)
Último
Último (20)
Finding Opportunity in Supply Chain Complexity
- 1. Thriving in a Changing Ecosystem Finding Opportunity in Complexity
- 2. Source: Aberdeen Group, February 2011 Our Rapidly Evolving Ecosystem Global, Volatile, Unpredictable
- 3. And CEO’s Expect it to Get Tougher… Source: 2010 IBM Global CEO Study Source: Aberdeen Group, February 2011 Our Rapidly Evolving Ecosystem Global, Volatile, Unpredictable
- 4. Where There is Chaos…Opportunity
- 5. Caldwell’s 28% of 2011 US holiday sales will include Smartphones in the shopping journey Source: Logistics Viewpoints Source: IDC Retail Insights Consumers Expect Mobile Options Unprecedented Opportunities for those that Can Adapt Quickly to Changing Shopping Patterns
- 8. Video Demos
- 9. Deal of the Day
- 10. Store Locator
- 11. Order HistorySource: Logistics Viewpoints Source: IDC Retail Insights Consumers Expect Mobile Options Unprecedented Opportunities for those that Can Adapt Quickly to Changing Shopping Patterns
- 12. the top ten Facebook brands added 115 MILLION FANS Source: Logistics Viewpoints in 2010 Source: IDC Retail Insights Consumers Expect Social Options Unprecedented Opportunities for those that Can Adapt Quickly to Changing Shopping Patterns
- 13. Case in Point: Late last year, Proctor & Gamble began selling Pampers directly through Facebook… Technology Enabler All-Channel Platform 31,913 fans/month 1,000 orders/day the top ten Facebook brands added 115 MILLION FANS …and the results were impressive Source: Logistics Viewpoints in 2010 Source: IDC Retail Insights Consumers Expect Social Options Unprecedented Opportunities for those that Can Adapt Quickly to Changing Shopping Patterns
- 14. “I’ll have a medium triple-shot, half-caff, no whip mocha… extra hot.” Consumers Expect Personalization From Coffee to Tennis Shoes, Everyone Wants to Express their Own Sense of Style
- 16. Collaboration Consumers Expect Personalization From Coffee to Tennis Shoes, Everyone Wants to Express their Own Sense of Style
- 17. Relentless Globalization Technology Enabler All-Channel Platform 70M People cross the threshold to the middle class each year,and virtually all are in emerging economies Source: Goldman Sachs More Countries, More Complexity…More Customers
- 18. Consumer Responsiveness: 1958 Lag Time for Significant Changes in Store Demand to Cascade Across the Extended Supply Chain? 6 Months 8-10% Typical Out of Stocks at the Retail Shelf? Source: Logistics Viewpoints The Need for Speed -- and Accuracy While Velocity has Improved, Unprecedented Opportunities Exist for those that Can Anticipate Demand Accurately
- 20. CPFRSource: Logistics Viewpoints Typical Out of Stocks at the Retail Shelf? The Need for Speed -- and Accuracy Still 8-10% While Velocity has Improved, Unprecedented Opportunities Exist for those that Can Anticipate Demand Accurately
- 22. Data Integration PortalsManufacturers who diligently optimize their global supply networks are 73% more profitable than their peers Source: Deloitte Manufacturers, Suppliers, Transporters, Wholesalers, Retailers, Consumers, Lenders…
- 23. Supply Chain “Masters”Manage 75% of their Supply Base througha Formal Process Source: Accenture A Proliferation of Partners and Outsourcers More Complexity, and (Possibly) More Stability through Better Processes
- 24. 84% Employ a Supply-BaseSegmentation Approach 83% Automate Tracking/Reporting of Supplier Performance 80% Centrally Log and ProactivelyManage Supplier Contracts Source: Accenture A Proliferation of Partners and Outsourcers More Complexity, and (Possibly) More Stability through Better Processes
- 26. ScorecardsA Proliferation of Partners and Outsourcers More Complexity, and (Possibly) More Stability through Better Processes
- 27. Supply Chain Shocks: Mother Nature Highlighting the Importance of Planning for the Unplanned “The damage to production facilities and on export goods themselves will likely continue for the next several months.”
- 30. CEO’s of Companies with “Operational Dexterity” are 23% more intent on achieving an optimal balance between global and local markets Source: IBM CEO Study 2010 Supply Chain Shocks: Geo-Political Turmoil Striking a Balance between Global Integration and Local Relevance Leads to Agility
- 31. 5,678,000 The 124M product recalls in 2010 included… pounds of beef Supply Chain Shocks: Product Recalls Consumer Product Safety Improvement Act (2008), Food Safety Modernization Act (2011) Indicate Compliance and Recovery Plans are Now Table Stakes
- 32. 93% of consumers believe that recalls indicate whether companies care more about their own profits than they do about customer safety Source: Princeton University Supply Chain Shocks: Product Recalls Consumer Product Safety Improvement Act (2008), Food Safety Modernization Act (2011) Indicate Compliance and Recovery Plans are Now Table Stakes
- 34. Track and RecoverSource: Princeton University Supply Chain Shocks: Product Recalls Consumer Product Safety Improvement Act (2008), Food Safety Modernization Act (2011) Indicate Compliance and Recovery Plans are Now Table Stakes
- 35. The Mandate for Sustainability 93% 25% of CEO’s View Sustainabilityas Critical to Success of Consumers WouldSwitch Brands Givenan Ethical Alternative Source: Accenture Source: IBM Institute for Business Value Future Guardianship, Risk Mitigation, Competitive Opportunity
- 36. The Mandate for Sustainability However… 32% Conserving to Reduce Needfor Natural Resources Technology Enabler Green Dashboards 30% Innovating to Shift Needfor Natural Resources 30% Are Doing Nothing Source: McKinsey Quarterly Future Guardianship, Risk Mitigation, Competitive Opportunity
- 37. Collaboration, Workforce Management, Workflow, All-Channel Commerce Logistics Technologies Are Critical to Thriving in Today’s Ecosystem
- 39. 5,000 Trucks
- 40. 182 Warehouses
- 41. 1.1B Cubic FT
- 42. 2,500 Outlets
- 45. 30 Countries
- 46. 500 Sites
- 47. 15 Countries
- 48. 1,000 Stores
- 50. Greatest Positive Impact on Profits Next 5 Years? 51% 64% Growth of Consumersin Emerging Economies Shift of EconomicActivity Between Regions 63% 50% Technologies that EmpowerConsumers & Communities Increasingly GlobalMarkets for Labor/Talent 32% 52% Consumer Demand for Corporate Responsibility Increased Labor Productivityin Developing Markets Source: McKinsey Quarterly, January 2011 Where There is Chaos…Opportunity
- 51. RedPrairie At-a-Glance Largest supply chain and retail optimization company in the world Facilitating the flow of trillions of dollars of goods through the world’s most expansive supply chains 60,000 client sites/50 countries Warehouse Management, Workforce, Inventory, Transportation, Logistics and e-Commerce solutions
- 52. Thank You Michael MayorasCEO, RedPrairie
Notas do Editor
- KEY TALKING POINTS-Recent events in the Middle East have also highlighted the need for flexible, agile supply chains that give us options when geopolitical turmoil interrupts the flow of goods -Egypt was one of the first countries this year to experience political unrest that eventually led to dramatic change in the government-Earlier widespread concerns were centered around the Suez Canal and the flow of oil out of the Middle East, but anyone in the apparel industry also had to keep a watchful eye on the flow of Egyptian cotton, as many brands/retailers depend on Egyptian cotton for high-end garments and textiles -Shortly after the crisis unfolded, cotton futures rose to prices 171% higher than one year prior -As most analysts don’t expect consumers to pay double for items made from cotton, will this signify a fundamental shift in the market, and if so, who will be there to take advantage of the shift?THE OPPORTUNITY-How do we find opportunity in a world where unrest appears to be a permanent part of the geopolitical landscape?-We must strive for agility and flexibility and look to balance our network between local and global resources -We must constantly monitor and evaluate geopolitical situations in geographies that are part of our ecosystem -We must develop networks and plans that build in contingency plans and potentially even safety stocks for mission critical components -We must strive for a manageable balance of global and local operations that manage both costs and risks-In short, we must strive for operational dexterity. Because that is where we can find competitive advantage and opportunity-The best-run supply chains already recognize the importance of finding the right balance -A recent CEO Survey found that companies that were found to have “operational dexterity” have a commitment to striking the right balance, and manage that balance as a daily part of their operations****ADD SECOND RESULT/PAYBACK DATA POINT FROM CEO STUDYBACKGROUNDhttp://public.dhe.ibm.com/common/ssi/ecm/en/gbe03297usen/GBE03297USEN.PDFGeo-Political Turmoil is another reality in today’s supply chains.Recent events in the middle east have highlighted the need for flexible, agile supply chains that give us options when the flow of goods is interrupted or prices move beyond tolerable fluctuation points. It is important to plan contingencies and strike the right balance between local, regional and global dependencies and resources. DHL (one of our customers) in February was impacted like everyone else in region, but services were only interrupted for one day.