from source to consumer€¦ · • consumer engagement and experience driven by digital...

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From Source to Consumer:A Value Chain Powered by Watson

Al McClainCEO, Co-founder, RetailWire

Al McClain has spent 30+ years in the retail, tech, and CPG spaces. Al's career highlights include sales and management stints with Luzianne-Blue Plate Foods, Bestfoods, Red Rose Tea, and

Progressive Grocer (Trade Dimensions and Retail Insights divisions).

Al has also spoken extensively at industry events for the National Grocers Association, the Institute for International Research, the Magazine Publishers Association, and the Category Management

Association. He has written for publications such as Nielsen Wire, Loyalty Management, and Forbes.com.

MODERATING

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ABOUT RETAILWIRE

TODAY'S AGENDA

Intros (5 min)

PRESENTATION: From Source to Consumer (25 min)• Steve Leng, Solution Portfolio Leader, IBM Global Consumer Industry

• Chris Davin, VP, GBS Cognitive Supply Chain, IBM

PANEL DISCUSSION (20 min)

• Steve Leng, Solution Portfolio Leader, IBM Global Consumer Industry• Chris Davin, VP, GBS Cognitive Supply Chain, IBM• Eric Smith, Supply Chain Management, Information Systems, Business

Statistics and Mathematics Instructor at Iowa State University• Al McClain, RetailWire - Moderating

Q&A (10 min)• Panelists, Audience

Steve LengSolution Portfolio Leader, IBM Global Consumer Industry

Steve is responsible for IBM's end-to-end supply chain solution portfolio in its Global Consumer Industry team, combining IBM's

solutions, partner solutions and emerging disruptive technologies to help clients differentiate in the consumer industry marketplace.

Steve has over 25 years of industry and consulting experience working in Europe, the U.S. and Asia in a combination of consulting services and business development roles. Over the last five years,

he has focused increasingly on helping clients on their multi channel transformation journey, and building digital end-to-end supply chain capabilities.

FEATURED PRESENTER

Chris DavinVP, GBS Cognitive Supply Chain, IBM

Chris is currently a Global Consumer Industry Vice President responsible for growing IBM's “Cognitive Supply Chain” business.

Prior to taking on this role, Chris led IBM's Global Business Services team at Walmart, Inc.

For the past 2 decades Chris has focused on uncovering new uses for analytics in driving retail and consumer performance improvement and process reinvention. He has led partnerships

with multiple retailers in driving true cross-functional transformation – including a multi-year supply chain transformation at a major category killer format in the U.S.

FEATURED PRESENTER

IBM RetailWire Webinar

From Source to Consumer: A Supply Chain

Powered by Watson

Steve Leng

Solution Portfolio Leader – IBM Global Consumer Industry

Chris Davin

VP, GBS Cognitive Supply Chain – IBM

External forces are disrupting the industry,

creating challenges in most brands’ business models

8

Consumer Competition MacroTechnology

• “Empowered”

• Hyper-Fragmented

• Always On; Mobile-

First

• Active and Involved

• Services > Goods

• “Digitization”

• Platforms + Apps

• Cloud / SaaS

Delivery

• Cognitive / AI and

Data Science

• Omni-present

• Blurred lines

• No barriers to entry

• Brand Value diffused

across

Products/Stores to

Solutions/Services

• Traditional vs.

disruptive

• Secular stagnation

• Income Inequality

• Globalization

backlash

• Frequent “jolts”

• Regulatory

uncertainty

The pace of change has accelerated, driven by digitization

Efficiency Transparency Visibility Insight

• Consumer engagement and experience

driven by digital capabilities

• Supply chain increasingly a key part of

the customer experience

• Traditional structures and linear

‘thinking’ – today’s challenge

• Digitizing the end to end supply chain a

huge opportunity to

• Meet increasing customer needs

• To take significant cost out and

drive new levels of efficiency

• Provide a platform for supply chain

transformation

It’s Lead or Lag -

Fast followers will not win

Three behind the scenes capabilities can drive enormous value

for the supply chain

10

Supply Chain Transparency &

Provenance IOT Forecasting & Localisation with

Deep Learning

Cognitive by

Watson

ANALYTIC S COGNITIVEINFOR MATIO N KNOWLEDGEDATASENSORS

Connected together in a journey to drive greater transparency, trust, and efficiency

The Internet of Things – Revealing the true Supply Chain

“It’s not so much about the emergence of new

technology, it’s the convergence – the ability to use

sensors for everything in the world to basically be a

computer”

Harriet Green. IBM GM Watson IoT

Solutions

Enabling new

business

models with

integrated

solutions for

industry

Applications

Optimizing

operations for

business impact

Platform

Everything you

need to innovate

with IoT

Powered by

IBM

Watson

Local

Deployment

Enabled

by IBM

Cloud

Connecting

the

data that matters

BusinessTransformation

• Billions of sensors embedded in the

supply chain by 2020

• Tracking and reporting on activity at

every level of product and asset

• Collected in the cloud enabled by

wireless connectivity

• Value will come from

• Identifying issues in real time,

• creating new levels of visibility

and accuracy

• Reshaping the supply chain

• Automation and decision support

• Optimise operations

• Enable new business models

• Create new customer

experiences

Cognitive & Watson – Augmenting Human Capabilities in the

Supply Chain

12

REASONUNDERSTAND LEARN INTERACT

Cognitive Systems

Watson is now a set of Cognitive Services and Building Blocks

Developer

CloudPartner EcosystemSolutions

Personality Insights

Alchemy Language

Conversation DocumentConversion

Language Translator

Natural Language Classifier

Retrieve & Rank

Tone Analyzer

Language

Speech to Text

Text to Speech

Speech

Visual Recognition

Vision

Tradeoff Analytics

Alchemy Data News

Data Insights

13

Watson - Applying Deep Learning to Forecasting

Explain the

gap

Outperform

alternatives

Deliver

improvement

Use data &

learning

• Much cheaper to add new kinds

of data

• Helps to explain how an

algorithm is working

• Gives insight about what kinds of

data to focus on

Results

• More effective at forecasting high volume sku’s and highly volatile sku’s

• Responds better to seasonal events and where selling periods move

due to weather conditions

14Page© 2017 IBM Corporation

Challenges exist in predicting demand, but hyper-local

demand indicators can assist

Industry out-of-stocksRange 8-12%

63% of CPGsCite that they need better

planning

2/3 of promotionsdon’t break even

Store level executionHundreds of millions of benefit

Dynamic and hyper-local demand

indicators are abundant to help…

Example challenges

Localized planning to more accurately predict and manage

demand

15

Geo-spatial analytics platform leveraging hyper-local external

and internal client data to provide performance insights and

recommendations at the neighborhood/point of sales level

▪ Unlock pockets of growth by de-averaging

performance

▪ Understand how time sensitive external forces

affect demand

▪ Gain deeper insight on preferences and

purchasing behavior to better serve customers

▪ Action through role based recommendations

Solution

Strategy, planning and execution are

designed at an aggregated and averaged

out level making it difficult to see and act

to what is really happening at the local

level

The real dynamics are masked

Business

Problem

Limited understanding of the outside forces

Typical analysis cannot always

sufficiently explain the business

landscape as it is difficult to see

and act to what is shaping

behavior at the local level

Reveal what’s really happening Role based use cases to drive action


Blockchain … Is a digital, shared, distributed ledger of transactions. It enables a step change in levels of

trust, accountability and transparency throughout the end to end supply chain while streamlining business

processes. It has the potential to vastly reduce the cost and complexity of getting things done.

Blockchain will emerge as a significant “inter-enterprise

application” market

• Business Network - Businesses cannot operate effectively

in isolation. They benefit from pervasive connectivity.

• Participants are customers, suppliers, transport providers,

banks, partners, auditors, government agencies

• Cross geography & regulatory boundary

• Assets - ownership pass across the network in return for

payments. Assets can be tangible and intangible (car,

boat, loan, bonds, music etc)

• Transaction - an asset transfer onto or off the ledger

• Contract - conditions for transaction to occur

Using Blockchain virtually anything of value can be tracked and traded, without requiring a central point of control

Blockchain

“terms”

Blockchain Defined

Blockchain

ecosystem


Blockchain in the Consumer Industry Supply Chain


Practical examples where this is playing out…

Walmart: Food Safety

Provenance of Luxury Goods

Maersk: Global Trade

Dispute Resolution

In order to transform their supply chains, companies must….

IoT

Cognitive

Blockchain

Leverage new

technology

Continue on the

digital continuum

Put the Customer

First. Fast !

• Put the customer experience at the heart of the supply chain

• “Explore with passion” the opportunities new technology gives; to change, then

transform the supply chain

• Embrace digitization to build the sustainable and transparent supply chain of the

future

Design

Thinking

PANEL DISCUSSION – From Source to Consumer

Steve LengIBM

Chris DavinIBM

Eric SmithIowa State University

Al McClainRetailWire

Eric SmithSupply Chain Management, Information Systems, Business

Statistics and Mathematics Instructor at Iowa State University

Eric teaches purchasing for Iowa State University's Supply Chain

Management degree. He also assists companies with point-of-sale information integration, and with his wife Diana, owns and operates Simple Life Farms, an agroecological dairy farm.

Earlier in his career, Eric worked in a number of roles for Hy-Vee, at one point leading the retailer's point of sale based forecasting

efforts, and changing retail and wholesale procurement methods. His final position at Hy-Vee was as their VP of MIS in which he continued to expand the demand based supply chain

program.

FEATURED PRESENTER

Which of these areas do you see as having the greatest potential to positively change retail value chains in the next 5 years?

AUDIENCE POLL QUESTION #1


QUESTION #1: WEAK LINKS

What are the biggest pain points for traditional retailers as they try to compete with Amazon and other efficient e-commerce supply chains? What weaknesses make them most vulnerable to online competition?

Which supply chain challenge concerns you the most these days?



QUESTION #2: DIRECT-TO-CONSUMER

Some of the biggest disrupters in retail — Dollar Shave Club, for example — are cutting out retail middlemen. How do you see new supply chain technologies fueling the direct-to-consumer trend?

Which is most responsible for holding back progress in creating competitive value chains?



QUESTION #3: PROMISING DATA SOURCES

When you look at the newer forms of data being generated today — digital interactions, social media, external science data, etc. —what looks most promising in helping to make forecasting more accurate?

How important a role will supply chain innovation have in reinvigorating the physical store channel in retail?



Steve LengIBM

Chris DavinIBM

Eric SmithIowa State University

Al McClainRetailWire

YOUR QUESTIONS FOR THE PANEL...

MORE INFORMATION

For IBM:

To learn more about this webinar topic:

Steve Leng – [email protected] Bamonte – [email protected]

Also please visit:www-935.ibm.com/industries/retail/supply-chain

For RetailWire:

Al McClain – [email protected] – (561) 627-4974

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