cecere insights

Metrics that Matter

Supply Chain Insights LLC Copyright © 2015, p. 2

Get Prepared


Books for Your Bookshelf

Self-published

September 2014

Wiley

December 2014

Wiley

December 2012


Today’s Supply Chain is Stuck


Industry Overview


Why?


Demand

Signal

Accurate Weekly

Forecasting is ...

Delay from

Purchase to

Signal

What is Demand?

* Represents emerging markets


Fallacy #1: Functional Excellence

#sciwebinar


Fallacy #2: A Project-based Focus

#sciwebinar


Companies Get More Serious

With A Recession: But Cannot Sustain It

#sciwebinar


What We Expected


A Supply Chain

is a Complex System

with Complex

Processes

with Increasing

Complexity

What we Learned….

#sciwebinar


The Supply Chain Effective Frontier

#sciwebinar


Correlations to Market Capitalization

#sciwebinar


Orbit Chart: Wal-Mart

(Inventory Turns and Operating Margin)

#sciwebinar


Orbit Chart: Apple


#sciwebinar


Orbit Charts: Dow Chemical Company

#sciwebinar


Orbit Charts: Mattel, Inc.

(Inventory Turns versus Operating Margin)

#sciwebinar


Orbit Chart: Procter & Gamble


#sciwebinar


Overall Network: Inventory Turns versus

Operating Margin 2006-2012

#sciwebinar


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 Chains to Admire Methodology

PerformanceBeats the industry

average for operating

margin, inventory turns

and ROIC for 2006-

2014 and 2009-2014

ImprovementRanks above peer

group average on

The Supply Chain

Index for 2006-

2014 or 2009-2014

+


An Example: Food

#sciwebinar


Annual Study: Supply Chains To Admire

Supply Chains to Admire 2015 to be Announced at the Supply

Chain Insights Global Summit on September 9th and 10th


Comparing Companies

Strong in turns

… but

unbalanced

Both 1 and 3 have balance … but

company 1 knows how to

rebound after the financial crisis

resilience

Driving Results


• Leadership

• Building of talent

• Outside-in processes

• Horizontal process focus

• Active and intentional design

• Supply chain planning

What Makes a Difference


Right Stuff?


Growing Talent Gap


Losing Ground


What does this Say to You?


State of IT Systems


The Role of ERP


IT Systems: Importance & Satisfaction by Role & Supply Chain


State of Planning


Get Prepared


• It is not an evolution

• We are defining new

practices

• Learn, to unlearn, to relearn

Get Prepared


Questions?


Founder: Lora Cecere

• Founder of Supply Chain Insights

• “LinkedIn Influencer”

• Guest blog for Forbes

• Author of 3 books: Bricks Matter (2012), Shaman’s Journal (2014)

and Supply Chain Metrics That Matter (December 2014)

• 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: [email protected]

• Blog: www.supplychainshaman.com (6000 pageviews/month)

• Forbes: http://www.forbes.com/search/?q=lora+cecere

• Twitter: lcecere (5750 followers)

• LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (35,000 followers)

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