Presentation for the Demand-Driven Institute Conference on Friday

Metrics that Matter

Supply Chain Insights LLC Copyright © 2015, p. 2

Get Prepared


Books for Your Bookshelf

Self-publishedSeptember 2014

WileyDecember 2014

WileyDecember 2012


Today’s Supply Chain is Stuck


Industry Overview


Why?


Demand Signal

Accurate Weekly Forecasting is ...

Delay from Purchase to

Signal

What is Demand?

* Represents emerging markets


Fallacy #1: Functional Excellence

#sciwebinar


Fallacy #2: A Project-based Focus

#sciwebinar


Companies Get More Serious With A Recession: But Cannot Sustain It

#sciwebinar


What We Expected


A Supply Chain is a Complex System

with Complex Processes

with Increasing Complexity

What we Learned….

#sciwebinar


The Supply Chain Effective Frontier

#sciwebinar


Correlations to Market Capitalization

#sciwebinar


Orbit Chart: Wal-Mart(Inventory Turns and Operating Margin)

#sciwebinar


Orbit Chart: Apple (Inventory Turns and Operating Margin)

#sciwebinar


Orbit Charts: Dow Chemical Company

#sciwebinar


Orbit Charts: Mattel, Inc.(Inventory Turns versus Operating Margin)

#sciwebinar


Orbit Chart: Procter & Gamble(Inventory Turns and Operating Margin)

#sciwebinar


Overall Network: Inventory Turns versus Operating Margin 2006-2012

#sciwebinar


Measuring Supply Chain Improvement

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


Supply Chains to Admire Methodology

PerformanceBeats the industry

average for operating margin, inventory turns

and ROIC for 2006-2014 and 2009-2014

ImprovementRanks above peer group average on The Supply Chain

Index for 2006-2014 or 2009-2014

+


An Example: Food

#sciwebinar


Annual Study: Supply Chains To Admire

Supply Chains to Admire 2015 to be Announced at the Supply Chain Insights Global Summit on September 9th and 10th


Comparing Companies

Strong in turns … but unbalanced

Both 1 and 3 have balance … but company 1 knows how to rebound after the financial crisis resilience

Driving Results


• Leadership• Building of talent• Outside-in processes• Horizontal process focus• Active and intentional design• Supply chain planning

What Makes a Difference


Right Stuff?


Growing Talent Gap


Losing Ground


What does this Say to You?


State of IT Systems


The Role of ERP


IT Systems: Importance & Satisfaction by Role & Supply Chain


State of Planning


Get Prepared


• It is not an evolution• We are defining new practices• Learn, to unlearn, to relearn

Get Prepared


Questions?


Founder: Lora Cecere

• Founder of Supply Chain Insights

• “LinkedIn Influencer”

• Guest blog for Forbes

• Author of 3 books: Bricks Matter (2012), Shaman’s Journal (2014) and Supply Chain Metrics That Matter (December 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 (5750 followers)• LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (35,000 followers)

Presentation for the Demand-Driven Institute Conference on Friday

Business

Transcript of Presentation for the Demand-Driven Institute Conference on Friday