ibf panel on future of s&op

Supply Chain Insights

S&OP PanelOctober 2012

Supply Chain Insights LLC Copyright © 2012, p. 2

Agenda

Supply Chain has been Around for Thirty-two Years, why have we Not been Able to Make more Progress?

What Lessons have we Learned?

Does a Center of Excellence Help?

What is the Future of the Supply Chain? How will S&OP Programs Change? What is the Role of Talent?

Wrap-up


Supply Chain Management: Top 3 Elements of Pain for Respondent


Scenario Planning


Source: Supply Chain Insights 2012

Average Days of Inventory by Year

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Consumer Packaged Goods

59 57 62 64 67 67 68 70 70 64 64 67

Chemical

71.5 71.9 78.2 75.1 62 70.3 68.1 64.3 64.3 78.6 72.9 72.8

Pharma

122.2366910978

69

133.6991005621

75

190.1476161659

68

170.9865224789

89

184.3426173998

59

175.5502604768

77

167.7999511392

47

149.8151539812

83

154.9157818825

91

198.6631341199

76

154.3134808632

44

131.8197942402

94

High Tech

93.1 57.6 46.5 48.5 35.9 37.3 43.8 36.8 34.6 41.3 34.8 30.4

Average

86.45917277446

74

80.04977514054

37

94.21190404149

19

89.64663061974

72

87.31065434996

47

87.53756511921

92

86.92498778481

17

80.22878849532

07

80.95394547064

77

95.64078352999

41

81.50337021581

1

75.50494856007

36

25.0

75.0

125.0

175.0

225.0

Da

ys

of In

ve

nto

ry


Source: Supply Chain Insights 2012

Average Days of Working Capital by Industry

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Consumer Packaged Goods

-20 -8 -12 -2 -21 -23 -8 -18 -11 -10 -12 -13

Chemical

37.3 44.7 61.7 71.9 64.8 64.1 63.8 57 51.7 74.8 85.6 77

Pharma

64.1312232310

575

56.4017153199

571

48.4177907877

281

56.1915353741

853

71.8377359146

444

94.0630645718

506

92.6081805769

852

88.0542533521

94

87.1105878511

032

111.040082720

036

115.985297910

064

113.223926160

093

High Tech

231.5 290.3 283.5 243.5 173.5 138.9 109.4 103 92.4 131.9 138.9 140.9

Average

78.2328058077

644

95.8504288299

893

95.4044476969

32

92.3978838435

463

72.2844339786

611

68.5157661429

627

64.4520451442

463

57.5135633380

485

55.0526469627

758

76.9350206800

089

82.1213244775

161

79.5309815400

233

Series6

0 0 0 0 0 0 0 0 0 0 0 0

-25.0

25.0

75.0

125.0

175.0

225.0

275.0

325.0

Days o

f W

orkin

g C

ap

ital


S&OP ProcessExistence, Goals & Processes

• Multiple S&OP Processes

Executive S&OP

Regional S&OP

Processes

Supply Chain Planning

Processes with Key Suppliers

S&OP Processes With Key Customers


The Need for Balance


S&OP Balance


What is Agility?


Agility Importance vs. Performance


What-if Analysis


S&OP Evolution

Manufacturing-Driven

Deliver a Feasible Plan for Operations

Match Demand with Supply

Sales Driven

Match Demandwith Supply

Business-planning Driven

Maximize Profitability

Demand Driven

Maximize Opportunity Sense and

Shape Demand

Market Driven

Maximize Opportunity and Mitigate Risk. Orchestrate

DemandMarket to Market

Greater Benefit• Growth• Resilience• Efficiency

• Benefits Received from S&OP Processes

Source: Supply Chain Insights, 2012What benefits have you received from your work with S&OP processes?

Increasing revenue

Improving forecast accuracy

Reduction of inventory

Improving asset utilization

Determining outsourced manufacturing

Determining procurement requirements

Improving new product launch

Transportation and warehouse management

Capital planning and asset management

Improvements in the perfect order

59%

57%

50%

42%

38%

36%

34%

32%

32%

30%

▲ 2%

▲ 5-7%

▲ 3-7%

▲ 3-6%

▲ 3-6%

▼ 10-15%

▼ 2-8%


Agenda





Wrap-up


S&OP ProcessPlan Execution


S&OP Challenge


Agenda





Wrap-up


Center of Excellence


Functions of Center of Excellence


Center of ExcellenceImportance vs. Performance


Agenda





Wrap-up


Supply Chain Talent Today vs. In Five Years


Getting Talent


Employee Level with Greatest Talent Shortage


Cross-Functional Training


• What one thing would you like people to take-away from this conference based on this panel?

• What is the most critical thing that you have learned that you would like to share with the group? (Wisdom)

Wrap-up


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Who is Supply Chain Insights?

Supply Chain Insights is focused on delivering actionable advice for supply chain leaders. A company dedicated to research, turn to us when you want the latest insights on supply chain trends, technologies to know and metrics that matter.


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.


Where do you find Lora?

Contact Information: [email protected]

Blog: www.supplychainshaman.com (4000 pageviews/month)

Twitter: lcecere 3300 followers. Rated as the top rated supply chain social network user.

Linkedin: linkedin.com/pub/lora-cecere/0/196/573 (2300 in the network)