Email's Power & Responsibility: Fireside Chat with Return Path
Fireside Chat: Supply Chain Control Tower
description
Transcript of Fireside Chat: Supply Chain Control Tower
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL
Fireside Chat: Control Tower
Roddy Martin (CCI) – Supply Chain Thought Leader Trevor Miles (Kinaxis) – vp, thought leadership
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 2
Roddy Martin
• Roddy Martin • SC Transformation Thought
Leader • Executive South African
Breweries ( SABMiller) • Engineering Leadership • Manufacturing Strategy • IT Leadership • Change Management
Leadership • AMR Research SC
leadership • CCI SVP SC
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 3
Consumers, Shoppers & Buyers
Make Choices
Point of Purchase
Stock Outs
Product Quality On The Shelf
Costs to Serve Account Profitability
Winning in New Markets
Complexity Costs or
Differentiates
Demand Supply
Product
“Supply Chain” Starts with the Buyer Choice; Is Outside-In; End to End & An Interdependent Network
Risk
Embedded
Risk Management
“Integrative Improvement
Actions & Trade Offs”
…& Impacts Capabilities Here Starts here …..
Open Innovation
3
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 4
Bringing The Pieces Together Into A Demand-driven Value Network based Business Operating Strategy Is A Maturity-based Transformation Journey…
4
Ac
tual M
arket D
eman
d
STIC
KY
GLU
E
Product
Supply Demand
?
Demand sensin
g and shap
ing How
Adapted from AMR Research
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 5 5
The Demand-driven Value Network Framework
Product & Service Innova9on
Segmented Pull
Custom
ers , Buyers, Users,
& Con
sumers
Channel Demand
& Demand
Management
Demand Visibility
User/
Consumer/ Demand Insights
Suppliers & Partners
Segmented Push
Reliable, Profitable Response
from Supply Network Based on Demand
Supply Visibility
decoupling
Demand TranslaJon
& Trade Offs
Integrated Strategy, Business Sufficiency & Value Network
Planning
Adapted from AMR Research
Customer Consumer back design
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 6
No Systemic Continuous
Improvement Plans or structure.
Fire Fighting
The 5 Stages Performance-Improvement Maturity
6
Imp
act
Expert Led /Based
Projects
Implementation of
Improvement Projects led by
Experts
(Ad Hoc - Projects)
Integrated Functional Excellence
Structured Integration Within
Core Functions
(Systemic – Limited Integrated of Functions )
End-to-end Integrative
Improvement System
Codified
Integrative
Improvement
(Situational and Systemic)
Learning Network
Culture of Innovation and
Sharing
(Situational, Systemic and
Strategic) Reactive
Fixes
Stage 1 Stage 2
Stage 3
Stage 5
Stage 4
Average
Leaders ”The Promise
Of IT”
Stages Of Performance Improvement Maturity
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 7
The Ultimate Goal… Sustainable, Anchored Capabilities
Exce
llenc
e in
Res
ults
Excellence in Work Practices
Sustainable Business Performance Improvement
Necessary but not Sufficient
“ lean and efficiency improvements”
“silo cost fo
cus ”
• Balance • Capabili=es • Processes
• Change Leadership
Unsustainable Performance
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 8
Layers of “Management Systems”…illustrative process examples only
8
High Performance Transac9on Processing Applica9on Architecture
High Performance Informa9on Technology
Enabled Work Flow System & Business
Process Management
High Performance Business Opera9ng System
Integra9ve Improvement System Deployment & Capability Development
ERP
CRM
SCM
PLM
S & OP
CPFR
1 2 3 4 5
VMI
RFID Traceability
Planning
Stages of Process-‐based Opera4ng & Performance Improvement Maturity to Demand Driven Value Network Sufficiency
The end to end way the business actually operates
Technology modeled workflows and business processes using business &
transac9onal data
Technology based applica9ons, data processing & data management
Systems of Record
System of Process
Business Opera9ng System of Venture
and Sufficiency S & OP
Balancing Process & Profitability Analyses
Business Sufficiency Planning
Demand Forecast Accuracy & Planning
Innova9on & Value driven Business Tradeoffs
?
?
Technology Enabled Work Flow Processes & Data Management
Business Opera9ng Strategy, Execu9on, & Culture
Improvement Goals & Projects
FuncJonal Process IntegraJon
Demand-‐driven end-‐ end SC process integraJon
Value driven Business tradeoffs & network
“MES”
Supply Reliability & Supply Planning
Integrated Quality
& compliance
Performance Maturity – based context of data & informa9on
Master data & process-‐based context of data
Systems of Process and Control
Real 9me & Process Control Data
High Performance Automa9on Architecture Machines Controls Measurements
SRM
Sourcing &
Procurement
Logis9cs & Distribu9on
WHM
Applica9on, Data and IT Process Architecture
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 9
Layers of “Management Systems”…illustrative process examples only
9
High Performance Transac9on Processing Applica9on Architecture
High Performance Informa9on Technology
Enabled Work Flow System & Business
Process Management
High Performance Business Opera9ng System
Integra9ve Improvement System Deployment & Capability Development
ERP
CRM
SCM
PLM
S & OP
CPFR
1 2 3 4 5
VMI
RFID Traceability
Planning
Stages of Process-‐based Opera4ng & Performance Improvement Maturity to Demand Driven Value Network Sufficiency
The end to end way the business actually operates
Technology modeled workflows and business processes using business &
transac9onal data
Technology based applica9ons, data processing & data management
Systems of Record
System of Process
Business Opera9ng System of Venture
and Sufficiency S & OP
Balancing Process & Profitability Analyses
Business Sufficiency Planning
Demand Forecast Accuracy & Planning
Innova9on & Value driven Business Tradeoffs
?
?
Technology Enabled Work Flow Processes & Data Management
Business Opera9ng Strategy, Execu9on, & Culture
Improvement Goals & Projects
FuncJonal Process IntegraJon
Demand-‐driven end-‐ end SC process integraJon
Value driven Business tradeoffs & network
“MES”
Supply Reliability & Supply Planning
Integrated Quality
& compliance
Performance Maturity – based context of data & informa9on
Master data & process-‐based context of data
Systems of Process and Control
Real 9me & Process Control Data
High Performance Automa9on Architecture Machines Controls Measurements
SRM
Sourcing &
Procurement
Logis9cs & Distribu9on
WHM
Business Opera9ng System Integra9ve Improvement System
Applica9on, Data and IT Process Architecture
Flexible Decoupling Informa9on , Collabora9on Process & Analy9cs Model Layer -‐ “Control Tower”
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 10
Transformation - Two Core Thrusts of Work; Today and Tomorrow!
…Aligned Through a Transformation “Office”
Business Management
Role
Control & Manage the Business
& Compliance
Compliant &
Controlled Business
Performance
Leadership Role Business Strategy,
Intent, & Focus Areas
Priori9zed Work
Build Sustainable Improvement & Compliance
CapabiliJes
Sustained &
Compliant Agility
Capabili9es
Future-‐ize The Business
Sustainable & Compliant Performance Improvement Culture
Change Management & Alignment COE
Vision Strategic Intent
Managing The Change
Vision
Strategic Intent
Managing The Change
Imp
act
1950 2010
Expert based
Functional Excellence
Integrative Improvement
System
Learning Network
No Continuou
s Improvement
Plans or str
ucture.
Implementatio
n approach
bas
ed on the cap
ability of the loc
al expert
(Ad
Hoc)
Structured im
plementation ap
proach
wit
hin the function
s (Systemic)
Codified and
integrated imple
mentation
(Situa
tional and Sy
stemic)
Culture of Innovation and Sharing of Production
Know How
(Situational, Systemic and Strategic)
No Cont. Imp.
2013
Stage 1 Stage 2
Stage 3 Stage 4
Stage 5
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 11
Executing the Business Operating Strategy
Vision
Strategic Intent
Custom
ers
Inno
vaJo
n
Supp
ly Network
Reliable Supp
ly
Talent & Skills
Supp
liers
Prioritized Work
11
Strategic Focus Areas
Supply Chain
Leading and Managing The Change - Transformation COE
Alignment, Governance , Definition, Resourcing, Collaboration
Execu9ng the “Integra9ve Challenge” Across The End to End Extended Supply Chain
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 12
The Integrative Performance Improvement System (IIS) Connects the Dots
The Execu9on Challenge !
“Evolving READINESS”
1 2 3 4 5 Projects Processes Demand-‐driven Value Network > >
GOAL ALIGNMENT
Strategy
Metrics
Organiza=on
IT
INTEGRATED PROCESSES
Supply Demand
S & OP
A Strategic Enterprise
Ini9a9ve to Lead Alignment & Develop Capabili9es Using IIS Plaaorm
Transforma9on COE
Process –based Performance Analy9cs
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL
Trevor Miles
vp, thought leadership [email protected] | @MilesAhead | +1.647.248.6269
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 14
Supply Chain is an End-to-End “Team Sport”
• Cross-Functional = Collaborative • Consensus = Compromise • Alternatives = What-If
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 15
Source: Gartner, Delivering Business Value from S&OP, Todd Applebaum and Jan Kohler, Mar 29, 2012
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 16
Enables enterprises to dramatically compress the time to make profitable course corrections
Cross-functional teams can now use a single product to plan, monitor, and respond to all aspects of supply and demand balancing in minutes - not days or weeks
Better business outcomes through reducing risk, increasing customer satisfaction and improving financial profitability
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 17
Improvement Actions & Trade Offs
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 18
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 19
Copyright © 2012 Kinaxis Inc. CONFIDENTIAL
Discussion