Presentation for the Demand-Driven Institute Conference on Friday

Supply Chain Insights LLC Copyright © 2015, p. 2
Get Prepared

Books for Your Bookshelf
Self-published
September 2014
Wiley
December 2014
Wiley
December 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
#sciwebinar

Orbit Charts: Dow Chemical Company
#sciwebinar

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

Orbit Chart: Procter & Gamble
#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
Performance
Beats the industry
average for operating
margin, inventory turns
and ROIC for 2006-
2014 and 2009-2014
Improvement
Ranks 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

• 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?

Presentation for the Demand-Driven Institute Conference on Friday

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: lora.cecere@supplychaininsights.com
• 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

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Presentation for the Demand-Driven Institute Conference on Friday