imagine the supply chain of the future

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Imagine the Supply Chain of the Future

Lora CecereSupply Chain Insights

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Today’s Supply Chain

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A Business Continuity Risk

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Functional Excellence Is Not the Answer

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Our Belief

A Supply Chain Is a Complex System

with Complex Processes with Increasing Complexity

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Do you manage the supply chain as a system?

a) Yes, we holistically manage metrics

b) We try, but there are constant distractions

c) No, we manage metrics in isolation

To respond, go to www.scisummitpolling.cnf.io, select current session name and choose your response. Aggregated responses will be shared at the end!

Polling sponsored by

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Desired Corporate Performance

• Resilient and predictable

• Balanced across the set of metrics to maximize value

• Showing year-over-year strength against peer group

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A Balancing Act

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The Supply Chain Effective Frontier

In most supply chains, complexity has risen, throwing the supply chain out of balance. We find that nine out of ten companies are stuck at the

intersection of inventory turns and operating margin.

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Industry Overview

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A Project Approach Does Not Work

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Companies Get More Serious with a Recession

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Correlations to Market Capitalization

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The Promise

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Orbit Chart: Walmart (Inventory Turns Vs. Operating Margin)

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Orbit Chart: Apple (Inventory Turns Vs. Operating Margin)

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Orbit Chart: Dow Chemical (Inventory Turns Vs. Operating Margin)

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Orbit Chart: Procter & Gamble (Inventory Turns Vs. Operating Margin)

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Orbit Chart: Mattel, Inc. (Inventory Turns Vs. Operating Margin)

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Overall Network: Inventory Turns Vs. Operating Margin (2006-13)

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Supply Chain Metrics That Matter Reports

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Our Answer? For Supply Chain Excellence?

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Supply Chain Index: A Measure of Supply Chain Improvement

Overall Ranking per Company• Balance: Return on Invested Capital & Revenue Growth Vector Trajectory• Strength: Inventory Turns & Operating Margin Vector Trajectory• Resiliency: Inventory Turns & Operating Margin Mean Distance

A new way to measure relative supply chain performance by industry, based on the components of balance, strength and resiliency.

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Mining 20 Years of Financial Data

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Supply Chain Index: A Measure of Supply Chain Improvement

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Supply Chain Index Ranking Table

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Supply Chain Industry Performance Factors

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What Is Resiliency?

Resiliency =Tightness of the pattern on the orbit chart for operating margin and inventory turns

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Resiliency 2000-2012

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BEST PRACTICES

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EMERGINGPRACTICES

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IMAGINE

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Changing the Paradigms

Traditional Approach What Works

Best Practices Redefinition of the Organization

A Project-based Approach Alignment

The Forecast is Demand Planning

Vertical Excellence Design

Transactional Efficiency Clear Operating Strategy

Throwing the Supply Chain Out of Balance A Balanced Portfolio of Metrics

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Sales-Operations Team Alignment Drives Better Inventory Turns

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End-to-End Reporting Improves Resiliency

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Supply Chains to Admire

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Supply Chain Excellence

• Supply chain excellence happens with consistent, balanced and focused leadership.

• Complexity requires consistent management. The organization has good and bad complexity that eats away at the Effective Frontier.

• It is a journey, not a sprint, requiring focus over time.

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Annual Event: Same Time, Same Place

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Meet the Supply Chain Insights Team

Regina Denman Client Services Director

Naomi Frye Client Services Manager

Jill Smith Operations Manager

Heather Hart Research Director

Abby Mayer Research Associate

Michael Hambrick System Administrator

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Keynote Sponsors Broadcast Sponsors

Shaman’s Circle Reception Opening Reception Day One Reception

Afternoon Breaks Pre/Post Event Webinars

Golf Outing 5K Run Book Giveaway

General Sponsors

Thank You to Our Sponsors

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Financial Benchmarking Form