Supply Chain Management – Increase Profit ContributionKevin Beidelman & Gary Lenik, Principals, Bolero Associates

Pursue Supply Chain Excellence! Why?Service Speed ROI

Faster response to Customer demand

Competitive advantage

Increased inventory turns (velocity)

Reduced risk

Real-time visibility/communication (all stakeholders)

Improves Total Quality (Lean-Six Sigma extended…)

Time to market – Effective NPI integration

Single plan/execution focused on Customer

Improved margins for all partners

ROI

Supply Chain Disruptions Are Costly

Margin erosion is the most common outcome of supply chain disruptions – sudden demand changes is most costly contributor

53% of Supply Chain Leaders say disruptions have become more costly since 2010

71% of Corporate Executives believe supply chain risk is an important factor in strategic decision-making and 64% claim to have a risk management program in place

41% of Supply Chain leaders lack confidence in their risk-management programs

Deloitte Survey – Executives Face Growing Supply Chain Threats

$$$$$$

Reducing Supply Chain Costs

A.K. Kearney Study: Results from companies pursuing supply chain improvements

10-15% of Revenue

$500M = $50M Supply Chain Costs

Opportunity = $50M x 42% =

$21M Savings

Supply Chain Improvement

SC Savings42%

Remaining Costs58%

Customer serviceInventory costsPlanning Change managementTransportation (in/out)DepreciationProduct managementWarranty/returns

Order managementSupply chain financeProcurementSupply chain ITDistributionWarehouseRework

Supply Chain Costs

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TOP 25 SUPPLY CHAIN COMPANIES - 2015

* Apple* Procter & Gamble1 Amazon.com2 McDonald's3 Unilever4 Intel5 Inditex6 Cisco Systems7 H&M8 Samsung Electronics9 Colgate-Palmolive

10 Nike11 Coca-Cola Company12 Starbucks

13 Wal-Mart Stores14 3M15 Pepsico16 Seagate Technologies17 Nestle18 Lenovo

19 Qualcomm20 Kimberly-Clark21 Johnson & Johnson

22 L'Oreal23 Cummins 24 Toyota Motor

25 Home Depot• = masters category for

long term top 25 firmSource: Gartner Research

Competitive Advantage/Benefits Where the top Supply Chain companies excel: Supplier Development

Collaborative Product Development

Demand-Driven Value Chains

Lean Manufacturing

Demand Capture

Supply Chain Design & Network integration

Brand Leverage

Strong Customer Collaboration

Performance-Based Metrics

ROI

Enable ‘Real Time’ ActionsSpeed > Enterprise Flows

• Products & Services Information Financial

• Zero Latency Simple, tailored workflows Automate routine transactions Accelerate decisions

• Leaner Processes Specific intent Focused action

Enterprise enablers• Visibility• Flexibility• Collaboration• Control

To Learn More

• Visit us: www.BoleroAssociates.com• Contact us: 1-800-634-1843

Kevin Beidelman Gary Lenikkevinb@boleroassociates.com garyl@boleroassociates.com

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