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The Medical Device Supply Chain

Supply Chain Insights LLC Copyright © 2013, p. 2

Supply Chain Insights is focused on delivering independent, actionable and objective

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.

About Us

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Healthcare Value Chain


Components of Cash to Cash


Today’s Supply Chain

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Supply Chain Metrics That Matter Reports


Growth has Slowed


A Supply Chain is a Complex System

with Complex Processes

with Increasing Complexity

Our Belief

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Resilient and predictable

Balanced across the set of metrics to maximize value

Showing year-over-year strength against peer group

Desired Corporate Performance

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The Supply Chain Effective Frontier: Second Representation

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In most supply chains, complexity has risen throwing the supply chain out of balance. We find that nine out of ten companies are stuck at the intersection of inventory turns and operating margin.


Supply Chain FinanceIs a Barrier for Most

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A Business Continuity Risk

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The Efficient Supply Chain is not Effective


Mining 20 Years of Financial Data

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How to Read an Orbit Chart

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Resiliency

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Corporate Summary


Metric Equations


Inventory Turns vs. Revenue per Employee (2002-2012)


Inventory Turns vs. Operating Margin (2000-2012)


Revenue Growth vs. Return on Invested Capital (2001-2012)


Cash-to-Cash Cycle Components


Medical Device Company Resiliency

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Overall Ranking per Company• Strength: Inventory Turns & Operating Margin Vector Trajectory (30%)• Balance: Return on Invested Capital & Revenue Growth Vector Trajectory (30%)• Resiliency: Inventory Turns & Operating Margin Mean Distance (30%)• Peer: Peer Rankings by Industry (10%)

The Supply Chain IndexA new way to measure relative supply chain performance by industry, based on 4 components: strength, balance, resiliency and peer rankings.

Supply Chain Index

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Supply Chain Index= .3(Ranking on Growth/ROIC)+.3(Ranking on Operating Margin/Inventory)+.3(Resiliency Ranking)+.1 (Peer Assessment Ranking)

Supply Chain Index Calculation

For the period of 2006-2013

Lora

make this nicer, but include this chart


• Benchmark against peers.• Improve reliability of inventory turns &

operating margin performance.• Understand that industries with high variability

pose risk to your supply chain.• Measure progress in centimeters, not

kilometers.

What Can You Do?

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Metrics That Matter

• Lora Cecere’s 2nd book: Metrics That Matter

• To publish in Fall 2014

http://tinyurl.com/metricsthatmatter

Pre-orders available on Amazon:

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What’s Happening at Supply Chain Insights?

www.supplychaininsights.com

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About Lora Cecere

• Founder of Supply Chain Insights

• Invited to be a “LinkedIn Influencer”

• Invited to write a guest blog for Forbes

• Author of 2 books: Bricks Matter (2012) and Metrics That Matter (to publish Fall of 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 (4800 followers)• LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (7000 in the network)

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Questions?

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