9 - davis - supply chain strategy for performance and risk

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  • 8/12/2019 9 - Davis - Supply Chain Strategy for Performance and Risk

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    This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other

    authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. 2011 Gartner, Inc. and/or its affiliates. All rights reserved.

    Matt Davis

    Supply Chain Strategy and RiskManagement

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    End-to-End Volatility Has ExponentialImpacts on Value Chain Networks

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    Risk A Priority?

    3%

    3%

    9%

    9%

    12%

    18%

    23%

    25%

    28%

    29%

    39%

    42%

    59%

    Compliance with government mandates

    Other

    Supply chain risk

    Moving from domestic to global supply chain

    Transportation and Logistics Performance

    Lack of external cross functional collaboration and visibility

    Supplier performance, "supply variability"

    Volatile and uncontrollable supply chain costs

    Cost and or length of time to deploy applications

    Inability to coordinate and synchronize end-to-end supplychain processes

    Lack of internal cross functional collaboration and visibility

    Supply chain network complexity

    Forecast accuracy, "demand variability"

    Obstacles to Achieving SCM Goals

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  • 8/12/2019 9 - Davis - Supply Chain Strategy for Performance and Risk

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    Supply Chain Strategy is Built Upon theRight Foundation of Basics

    End-to-EndSC Process

    Outside-InView

    Technology

    CostOptimized

    RiskManagement

    Global NetworkManagement

    DemandManagement

    ProfitableTradeoffs

    Align toCustomer Value

    ServicesSustainability

    AlignedX-FunctionalObjectives

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    Tomorrow's Profitability and InnovationRequire New Capabilities

    End-to-EndSC Process

    Outside-InView

    AlignedX-FunctionalObjectives

    Technology

    CostOptimized

    RiskManagement

    Global NetworkManagement

    DemandManagement

    SegmentationCost to Serve ResiliencyPredictiveAnalysis

    End-to-EndVisibility

    TalentManagement Integrated PLM

    Downstream DataManagement

    ProfitableTradeoffs

    ServicesSustainabilityAlign to

    Customer Value

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    Supply Chain Resiliency is Based on Multiple Factors

    MULTI-TIERSUPPLY CHAIN

    VISIBILITY

    RISKMANAGEMENT

    SUPPLYNETWORK

    DESIGN

    SUPPLY CHAINAGILITY

    Balanced

    Supply Chain

    Resilience

    Strong Focus onTier n Supplier

    Quality

    Supply/ DemandCollaboration with

    Tier n Suppliers

    Respond toVarying Demand

    At SameQuantity,

    Quality, Cost

    Robust RiskSensing for Tier n

    Suppliers

    Segmented Mfgand Logistics

    Networks

    Design forExtended Supply

    Chain

    Reduced SoleSourcing with Tier

    n Suppliers

    ConsciouslyPlaced Inventory

    Buffers

    Geo-DiverseSupply Footprint

    Mature BizContinuity RiskMgmt: People.

    Process & Tools

    Risk MitigationCost-Benefit

    Navigating the Uncertain Waters ..Becoming Resilient

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    Vision. Plan. Execution.