Mais conteúdo relacionado Semelhante a Redefining the Supply Chain Opportunity (20) Redefining the Supply Chain Opportunity8. Supply Chain Insights LLC Copyright © 2016, p. 8
Since 2000, 52 percent of the companies in the
Fortune 500 have either gone bankrupt, been
acquired, ceased to exist, or dropped out of the
Fortune 500.
Activist campaigns against companies with a market
cap greater than $10 billion has more than doubled
since 2010. Activists won, partially won or settled
73% of proxy fights in 2014, up from 55% in 2010
Increasing Pressure on Operations
12. Supply Chain Insights LLC Copyright © 2016, p. 12
Annualized Growth Rates of Total Factor Productivity
0.46
1.89
0.57
1.03
0.4
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
1890-1920 1920-1970 1970-1994 1994-2004 2004-2014
PercentPerYear
Years 20 50 24 20 10
Second
Industrial
Revolution
Third
Industrial
Revolution
13. Supply Chain Insights LLC Copyright © 2016, p. 13
Technology
ERP
SRM
APS
PLM
CRM
Operational Investments Workforce ProductivityAnalytics
17. Supply Chain Insights LLC Copyright © 2016, p. 17
Middle Management Has Greatest
Shortage of Supply Chain Talent
21. Supply Chain Insights LLC Copyright © 2016, p. 21
Fallacy#1: Functional Excellence Drives the Fastest
Results
25. Supply Chain Insights LLC Copyright © 2016, p. 25
Fallacy #3: The Efficient Supply Chain is the Most
Effective
27. Supply Chain Insights LLC Copyright © 2016, p. 27
Fallacy #4: Integration is the Answer Beyond the
Firewall
32. Supply Chain Insights LLC Copyright © 2016, p. 32
A Supply Chain
is a Complex System
with Complex
Processes
with Increasing
Complexity
What We Learned….
35. Supply Chain Insights LLC Copyright © 2016, p. 35
Orbit Chart: Wal-Mart
(Inventory Turns and Operating Margin)
36. Supply Chain Insights LLC Copyright © 2016, p. 36
Orbit Chart: Apple
(Inventory Turns and Operating Margin)
37. Supply Chain Insights LLC Copyright © 2016, p. 37
Measuring Supply Chain Improvement
Overall Ranking per Company
• Balance: Return on Invested Capital & Revenue Growth Vector Trajectory (30%)
• Strength: Inventory Turns & Operating Margin Vector Trajectory (30% of score)
• Resiliency: Inventory Turns & Operating Margin Mean Distance (30%)
𝑺𝒖𝒑𝒑𝒍𝒚 𝑪𝒉𝒂𝒊𝒏 𝑰𝒏𝒅𝒆𝒙 =
𝟏
𝟑
𝑩𝒂𝒍𝒂𝒏𝒄𝒆 𝑭𝒂𝒄𝒕𝒐𝒓 +
𝟏
𝟑
𝑺𝒕𝒓𝒆𝒏𝒈𝒕𝒉 𝑭𝒂𝒄𝒕𝒐𝒓 +
𝟏
𝟑
𝑹𝒆𝒔𝒊𝒍𝒊𝒆𝒏𝒄𝒚 𝑭𝒂𝒄𝒕𝒐𝒓
38. Supply Chain Insights LLC Copyright © 2016, p. 38
Supply Chains to Admire Methodology
Performance
Beats the industry
average for operating
margin, inventory turns
and ROIC for 2006-
2014 and 2009-2014
Improvement
Ranks above peer
group average on
The Supply Chain
Index for 2006-
2014 or 2009-2014
+
42. Supply Chain Insights LLC Copyright © 2015, p. 42
2006
2014
6
7
8
9
0.10 0.11 0.12 0.13 0.14 0.15
InventoryTurns
Operating Margin
Schneider Electric SE
Best Scenario
SBGSY
0.13, 7.37
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2006-2014 from YCharts
2012
2013
2011
2010
2009
2008
2007
Ideally,
companies
are
increasing
inventory
turns and
operating
margin,
moving
towards the
upper right
corner of
the graph
over time.
The diamond shows the company’s
average over the period.
Here, we plot
inventory turns
(y-axis) vs.
operating margin
(x-axis).
Operating Margin vs. Inventory Turns
(2006 – 2014)
Trace the line from 2006 point
to 2014 point to follow the
performance over time.
43. Supply Chain Insights LLC Copyright © 2015, p. 43
2006
2014
2006
2014
6
7
8
9
10
11
12
13
0.09 0.10 0.11 0.12 0.13 0.14 0.15 0.16 0.17 0.18 0.19
InventoryTurns
Operating Margin
The Emerson Electric Company Schneider Electric SE
Best Scenario
SBGSY
0.13, 7.37
EMR
0.16, 10.95
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2006-2014 from YCharts
Operating Margin vs. Inventory Turns
(2006 – 2014)
45. Supply Chain Insights LLC Copyright © 2016, p. 45
• Which metrics matter?
– Growth, operating margin, inventory turns, ROIC, customer
service (in the eyes of the customer)
• How do we get unstuck?
– Focus cross-functionally on a balanced portfolio. Bonus
employees against the portfolio.
– Augment with functional metrics focused on improving
RELIABILITY.
• What are the functional reliability metrics?
– Examples include: Forecasting, first pass yield, OEE, on-time
delivery, orders shipped complete, hands-free orders, schedule
attainment, safety metrics, employee turnover
Insights
47. Supply Chain Insights LLC Copyright © 2016, p. 47
• Continuity of leadership
• Supply chain talent development
• Focus on a multi-year supply chain strategy
• Clear governance to guide cross-functional decision-making
• Strength in horizontal processes
• Excellence in supply chain planning, network design and inventory
management
What Drives Top Performance?
51. Supply Chain Insights LLC Copyright © 2016, p. 51
• How do you define Global?
– Business
– Region
– Corporate
• Where do you make the Right Pivots?
– Maximize asset utilization
– Drive value
• How do you define the Journey?
– Definition
– How do you best make decisions
– Communication
Key Questions
65. Supply Chain Insights LLC Copyright © 2016, p. 65
Big Data Supply Chains are Evolving
65
Challenges:
• Transactional
• Time phased data
Structured
Data
• Social
• Channel
• Customer Service
• Warranty
• Temperature
• RFID
• QR codes
• GPS
• Mapping and GPS
• Video
• Voice
• Digital Images
Unstructured
Data
Sensor
Data
New
Data
Types
Volume
Velocity
Variability
68. Supply Chain Insights LLC Copyright © 2016, p. 68
Supply Chains Don’t Play by the Rules
68
But,
what if
they
could?
72. Supply Chain Insights LLC Copyright © 2016, p. 72
Micro Demographic Analysis of Flavor Preference by
Demographics
74. Supply Chain Insights LLC Copyright © 2016, p. 74
Opportunity
at the Intersection
of the Social and Interest Graph(s)
75. Supply Chain Insights LLC Copyright © 2016, p. 75
• Newell Rubbermaid
Listening: Newell Rubbermaid
#Future15SB @bwdumars
78. Supply Chain Insights LLC Copyright © 2016, p. 78
0
0
0
0
0
0
0
Canada
-Customer A calls about a blue screen on a Yoga
-Customer B posts on Facebook about his X220’s AC/DC adapter issues
Large Enterprise Client experiences 5 keyboard malfunctions in their latest
shipment. Complaints received through account executive
[Critical Situation]
Brazil
-Customer F submits a service from on
esupport.lenovo.com regarding
their W530 hard drive
Morocco
-Customers G & H comment on their
X220’s electrical issues on Twitter.com
-Customer I called about Yoga screen
issues
Australia
-Customer J write a review on
NewEgg.com about AC/DC adapter
issues on X220
-Customer K had an eChat with Lenovo
about Yoga screen issues
China
-Customer L wrote on Weibo about
Yoga screen issues
-Customer M calls about a Tablet 8
battery issues
Voice of Customer Comes in Many Forms
USA
-Customers C & D write X220 product
reviews on amazon.com and mention
issues with AC/DC adapters
-Customer E posts on
forums.lenovo.com that they are
experiencing blue screens on their Yoga
79. Supply Chain Insights LLC Copyright © 2016, p. 79
0
0
0
0
0
0
0
Lenovo
- 6 recorded issues about X220’s
AC/DC adapter
- 5 recorded issues about
keyboard issues on X1 Carbon
- 5 recoded issues about Yoga
screen
- 1 recorded issue about W530
hard-drive
- 1 recorded issue about Tablet 8
battery
One Voice – A Single View of Perceptual Quality
80. Supply Chain Insights LLC Copyright © 2016, p. 80
Recommendations
• We must learn from the
past to unlearn, and then
rethink supply chain
processes.
• The starting point is
rewiring our brains.
• Value network automation
has great promise.
85. Supply Chain Insights LLC Copyright © 2016, p. 85
About Lora Cecere
• Founder of Supply Chain Insights
• “LinkedIn Influencer”
• Guest blog for Forbes
• Author of 4 books: Bricks Matter (2012), Shaman’s Journal (2014),
Supply Chain Metrics That Matter (2014), Shaman’s Journal (2015)
• Partner at Altimeter Group (leader in open research)
• 7 years of Management Experience leading Analyst Teams at Gartner
and AMR Research
• 8 years Experience in Marketing and Selling Supply Chain Software at
Descartes Systems Group and Manugistics (now JDA)
• 15 Years Leading teams in Manufacturing and Distribution operations for
Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and
Procter & Gamble.
Contact Information:
• Email: lora.cecere@supplychaininsights.com
• Blog: www.supplychainshaman.com (15,000 pageviews/month)
• Forbes: www.forbes.com/sites/loracecere
• Twitter: twitter.com/lcecere (6,800 followers)
• LinkedIn: www.linkedin.com/in/loracecere (66,724 followers)
• LinkedIn Influencer: www.linkedin.com/today/author/446631
86. Supply Chain Insights LLC Copyright © 2016, p. 86
Definition:
Metric Equations
Source: Supply Chain Insights LLC, Corporate Annual Reports (2000-2014)
Metric Equations
Cash-to-Cash Cycles = (Avg. Inventory/COGS + Avg. Accounts Receivable/Sales - Avg. Accounts
Payable/Purchases)*91.5
Days of Inventory = (Average Inventory/COGS)*91.5
Days of Payables = (Average Accounts Payables/Purchases)*91.5
Days of Receivables = (Average Accounts Receivable/Sales)*91.5
Inventory Turns = (Cost of Sales/Average Inventory)
Operating Margin = (Operating Income/Revenue)
Return on Invested Capital = (Net Income/Invested Capital)
Return on Net Assets = (Trailing 12 Month Net Income/Total Assets from the most recent quarter)
Revenue Growth = (Quarterly Revenuei/Quarterly Revenuei-4 -1)
Revenue per Employees = (Revenue/Average Annual Employee)
Notas do Editor Big Hairy Audacious Goals
Business goals/ challenges:
Scale the business
Increase the number of machines in operation from 900 to 3,000 by 2016
Expand internationally
Essentially we had to justify Whitbread’s £60 million acquisition!
While transforming the Supply Chain
Replace legacy spreadsheet system with new IT system:The legacy system could not pull in data from the coffee stations’ telemetry systems, so all this valuable data was going to wasteOur ‘brand guardians’ were effectively spending all their time poring over spreadsheets and manually replenishing stock
These processes were not scalable in line with our ambitions
We needed to transform other aspects of our supply chain and grow at the same time!
Change logistics / warehousing partner
Move to direct purchasing
Solution
ToolsGroup is at the heart of our successful supply chain transformation:
System access our telemetry data tap into our machine telemetry data and uses it to calculate replenishment orders for partner sites.
The data is used to forecast demand and optimise inventory levels
Some of the results (walk through the four figures on the left of the slide):
Also point out the new role of Brand Excellence Advisor
And we far exceeded our business goals!:
Blew away target to have 3,000 machines in place by 2016. We achieved this target in 2013, a full three years ahead of schedule!
Moving into new markets – Poland, Ireland and Dubai
Launched new CEM-200 "intelligent" coffee station concession
Next steps (only if there is time) Synchronize/organize all comments/complains into one voice