bricks matter webinar sponsored by kinaxis
DESCRIPTION
Sharing of Insights on the Book Bricks Matter. The book Bricks Matter is a chronology of three decades of supply chain management and outlines how supply chain processes have driven improvements in productivity. Today, three decades later, many industries are stuck on a supply chain plateau. Growth has slowed, inventories are climbing and costs are rising. How can we use new forms of analytics to reverse this trend?TRANSCRIPT
Bricks Matter
Supply Chain Insights LLC Copyright © 2012, p. 2
This is the new bible for all supply chain executives. It provides an insider’s perspective that will prove incredibly valuable to even the most grizzled supply chain veteran. This is the next must-have business book.
--Bruce Richardson, Chief Enterprise Strategist, Salesforce.com
The journey to build the outside-in end-to-end value network happens in stages and can only be led from the top based on value-based outcomes. This is a guidebook for leaders driving the transformation.
--Roddy Martin, Senior Vice President, CCI Best Practice Research and Consulting
This book is like no other that has been written about supply chain management. It is a must read for the supply chain leadership team.
--Marty Kisliuk, Global Operations Director, Agricultural Products Group, FMC Corporation
Lora Cecere has been a key driver of supply chain strategies that force companies to think differently about how they work with their customers, partners, and cross-functionally within their own organizations. Here she teaches us to take a bold step to change our thinking and turn the supply chain around to focus on the consumer.
--Ann Dozier, Vice-President, Fresh Dairy Direct IT, Dean Foods Company
Today, the worlds of social business and supply chain management have many degrees of separation. I enjoyed working with Lora to understand what the future transformation of digital marketing to digital business could look like.
--Jeremiah Owyang, Research Director, Altimeter• •
Back Cover
Supply Chain Insights LLC Copyright © 2012, p. 3
Bricks Matter Book Club on Linkedin
BRICKSRight Use of Assets
Expansion into BRIC Countries (Brazil, Russia, India and China)
Supply Chain Process Knowledge
Supply Chain Insights LLC Copyright © 2012, p. 5
Evolving Practices
Supply Chain Insights LLC Copyright © 2012, p. 6
The Supply Chain Pioneers
Supply Chain Insights LLC Copyright © 2012, p. 7
Industry Averages
Supply Chain Insights LLC Copyright © 2012, p. 8
Chemical
Supply Chain Insights LLC Copyright © 2012, p. 9
Consumer Electronics
Supply Chain Insights LLC Copyright © 2012, p. 10
Consumer Packaged Goods
Supply Chain Insights LLC Copyright © 2012, p. 11
Food
Supply Chain Insights LLC Copyright © 2012, p. 12
Pharmaceutical
Supply Chain Insights LLC Copyright © 2012, p. 14
Supply Chain Management: Top 3 Elements of Pain for Respondent
Supply Chain Insights LLC Copyright © 2012, p. 15
Evolution
Align:Market Driven
Building Horizontal Process Connectors
ContinuousTesting
LearningImprovingIn Market
OrchestrateDemand and Supply
ResilientReliable
Adapt: Demand Driven
EfficientSense
Demandand Supply
Shape Demand andSupply based
on Market
Absorb DemandVolatility
Absorb Supply Volatility
Right Product
Right Place
Right Time
Right Cost
Cost
Procure to pay/order to
cash
Supply Chain Insights LLC Copyright © 2012, p. 16
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.
What is a Market-driven Value Network?
Supply Chain Insights LLC Copyright © 2012, p. 17
Cash-to-Cash Cycle vs. Gross Margin (2000-2011)SUMMARY SLIDE
Supply Chain Insights LLC Copyright © 2012, p. 18
Supply Network: When the supply chain is extended to a network of trading partners, it is termed a supply network.
Value Chain: When the emphasis of this extended supply chain shifts from cost to value, it is called a value chain.
Value Network: When it becomes more strategic to the company, focused outside-in to drive value-based outcomes, it is termed a value network.
Definitions
Supply Chain Insights LLC Copyright © 2012, p. 19
Evolution
Align:Market Driven
Building Horizontal Process Connectors
ContinuousTesting
LearningImprovingIn Market
OrchestrateDemand and Supply
ResilientReliable
Adapt: Demand Driven
EfficientSense
Demandand Supply
Shape Demand andSupply based
on Market
Absorb DemandVolatility
Absorb Supply Volatility
Right Product
Right Place
Right Time
Right Cost
Cost
Procure to pay/order to
cash
Supply Chain Insights LLC Copyright © 2012, p. 20
A Supply Chain
is a Complex System
with Complex Processes
with Increasing Complexity
Supply Chain Insights LLC Copyright © 2012, p. 21
The Effective Frontier
Supply Chain Insights LLC Copyright © 2012, p. 22
Growth Profitability Cycle Complexity
R&D Margin Cash on Hand C2C Cycle Altman Z
R&D to COGS Ratio Free Cash Flow Ratio Days of Finished Goods Capital Turnover
SGA Margin Gross Margin Days of Inventory Current Ratio
SGA/COGS Net Profit Days of Payables Outstanding Quick Ratio
COGS as Percent of Net Sales Operating Margin Days of Raw
Materials Return on Assets
Pretax Margin (EBIT) Days of Sales Outstanding Return on Equity
YoY Sales Growth Days of Work in Progress
Return on Invested Capital
Operating Margin DPO/DSO Return on Net Assets
Inventory Turns Revenue/Employee
Receivables Turns Cost of Sales
Useful Ratios
Supply Chain Insights LLC Copyright © 2012, p. 23
• Performance better than peer group• Year-over-year improvements• Consistency in results• Leadership in managing trade-offs
What is Best in Class?
Supply Chain Insights LLC Copyright © 2012, p. 24
Five Year Comparison
Supply Chain Insights LLC Copyright © 2012, p. 25
Value Network Strategy
Supply chain strategy
Business StrategyWhat are the right things to do to increase company value?
Value-network Supply Chain StrategyWhat are the right ways to support the business strategy?
What are the right trade-offs between value drivers for each value network?
Right productplatforms
Design the supply
response
Build organizational systems and
manage talent
Align supply relationships
Align demandrelationships
Effective Supply Networks
Execution of buy-side strategies
Continuous Improvement
Capabilities RequiredSupply Chain
Network Design
Design Networks
Innovation Methodologies
Demand Networks
Joint Value Creation Strategies
Business ProcessHow do I do the right things right?
Source: Supply Chain Insights, LLC
The Path Forward
Supply Chain Insights LLC Copyright © 2012, p. 27
The Supply Chain of the Future
World Population
Source: “The World at Six Billion” United Nations, 2004; The World UN Population Assessment 2006; “Unsustainable World,” 04/15/08, BBC
North America
2007 2020339M 342M
Europe
2007 2020731M 722M
Asia
2007 20204.0B 4.6B
L America
2007 2020572M 660M
Africa
2007 2020965M 1.3B
Oceania
2007 202034M 40M
MARCO TRENDS
Supply Chain Insights LLC Copyright © 2012, p. 28
Outside-In
Value-Based OutcomesDelivered by Value Networks
Supply Chain Excellence =
Supply Chain 2020 Tipping Points
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Talent Shortage
Compliance on Safe & Secure
Orchestration
Big Data Supply Chains
Internet of Things
Learning Supply Chains
Digital Manufacturing
Supply Chain Insights LLC Copyright © 2012, p. 30
Scenario Planning
Supply Chain Insights LLC Copyright © 2012, p. 31
Rethinking Analytics
Supply Chain Insights LLC Copyright © 2012, p. 33
Definition
33
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
SensorData
NewDataTypes
Volume
Velocity
Variability
Supply Chain Insights LLC Copyright © 2012, p. 34
Connecting the Extended Supply Chain
34
Supply Chain Insights LLC Copyright © 2012, p. 35
Connecting the Extended Supply Chain
Supply Chain Insights LLC Copyright © 2012, p. 36
Two-day public training classes focusing on accelerating the understanding of supply chain excellence. $1500 for two days of training.
– Chicago, IL – April 1-2– Dallas, TX – May 6-7– Princeton, NJ – June 24-25
For more information and to register visit: www.supplychaininsights.com/services/training/
Training – Based on Bricks Matter
Supply Chain Insights LLC Copyright © 2012, p. 37
Where is Your Opportunity?
Supply Chain Insights LLC Copyright © 2012, p. 38
Who is Lora?
• Founder of Supply Chain Insights
• 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.
Supply Chain Insights LLC Copyright © 2012, p. 39
Where Do You Find Lora?
Contact Information: [email protected]
Blog: www.supplychainshaman.com (4000 pageviews/month)
Twitter: lcecere 3700 followers. Rated as the top rated supply chain social network user.
LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (2300 in the network)