Presentation on Big Data
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The document discusses the transformative role of big data in supply chains, emphasizing a shift towards market-driven value networks that leverage near-real-time data to enhance operational responsiveness and efficiency. It highlights the evolving landscape of supply chain excellence, focusing on adaptability to market changes, resilience against volatility, and the need for advanced analytics and cloud solutions. The conclusion underscores the necessity for organizations to integrate big data strategies to stay competitive in the rapidly changing supply chain environment.
Presentation on Big Data
- 1. Big Data Supply Chains Go Big or Go Home!
- 2. Big Data will be the NEW Foundation of the Future Supply Chain
- 3. BRICKS Book Publishes Matter in August 2012 The Role of Supply Chains in Building Market-Driven Differentiation LORA M. CECERE CHARLES W. CHASE JR.
- 4. Agenda Current State What is a Big Data Supply Chain? How will Applications Change? Wrap-up p. 4 Supply Chain Insights, LLC © 2012
- 5. Supply Chain Tipping Points 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 JIT Supply Chain Internet/Email RFID Organization Evolution of eProcurement the PC Re-Engineering the Total Quality S&OP Organization Management Theory of Constraints (Michael Hammer) Supply Chain Excellence = Supply Chain Excellence = Islands of Manufacturing Vertical Silo Efficient Order to + + Excellence Excellence Excellence Cash Processes Inside-Out Inside-Out p. 5 Supply Chain Insights, LLC © 2012
- 6. Supply Chain Tipping Points 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 .com Social Responsibility Y2K Demand Driven Concepts CSCO Lean Six Sigma Market-Driven Value Networks Supply Chain Excellence = Supply Chain Excellence = Vertical Silo Outsourcing Value-Based Outcomes + Excellence Effectiveness Delivered by Horizontal Processes Inside-Out Outside-In p. 6 Supply Chain Insights, LLC © 2012
- 7. 7 What is a Market-driven Value Network? An adaptive network focused on a value- based outcome that senses and translates market changes (buy and sell-side markets) bi-directionally with near-real time data latency to align sell, deliver, make and sourcing operations. p. 7 Supply Chain Insights, LLC © 2012
- 8. Evolution of Supply Chain Process Excellence Align: Continuous Building Horizontal Testing Orchestrate Market Process Connectors Learning Improving Demand and Supply Driven In Market Adapt: Demand- Resilient Driven Reliable Right Product Efficient Sense Demand Demand Volatility and Supply Right Place Cost Shape Right Time Procure to Demand and Supply pay/order to Supply based Volatility cash on Market Right Cost p. 8 Supply Chain Insights, LLC © 2012
- 9. What is Supply Chain Excellence? How Define Supply Chain “Excellence” Right product, right place, right time at the right cost. 70% A responsive supply chain that can adapt as markets change. 57% Most Mature A resilient supply chain that can withstand the shocks of demand and supply volatility. 52% The Efficient Supply Chain. Lowest cost per unit. 38% Right product, right place, right time. 20% Base: Total Sample (61) Q14. How does your company define supply chain “excellence?” Please select all that apply. p. 9 Supply Chain Insights, LLC © 2012
- 10. The Effective Frontier Profitable Growth Revenue Cost of Goods Working Capital Corporate Social Responsibility R&D Strategy and Investment Asset Strategy and Investment Forecast Accuracy Customer Service Inventory Channel Strategy Product and Supplier Strategy Service Portfolio Sales Distribution Manufacturing Logistics Procurement Policies Policies Policies Policies Policies Returns Backorders First Pass Yield Empty Miles Material Yield p. 10 Supply Chain Insights, LLC © 2012
- 11. A Supply Chain is a Complex System with Complex Processes with Increasing Complexity p. 11 Supply Chain Insights, LLC © 2012
- 12. IT Systems: Quantity Operational IT Systems Any 1 System 2 Systems 3+ Systems Systems Order Management 61% 15% 23% 98% ERP (Enterprise Resource Planning) 64% 8% 25% 97% Demand Planning 39% 31% 23% 93% Production Planning 33% 25% 33% 90% Tactical Supply Planning 36% 18% 26% 80% Warehouse Management 30% 16% 33% 79% Manufacturing Execution Systems 34% 10% 28% 72% Transportation Planning 38% 20% 13% 70% Price Management 34% 13% 11% 59% Product Lifecycle Management 26% 8% 10% 44% Base: Total Sample (61) Q15. For each of the following IT systems, please indicate how many you currently have operational – 0 systems, 1 system, 2 systems or 3+ p. 12 systems. Supply Chain Insights, LLC © 2012
- 13. IT Systems: Importance & Satisfaction IT Importance vs. Satisfaction Importance (6-7) Satisfaction (6-7) Gap (Sat - Impt) 120% 100% 86% 83% 80% 76% 75% 73% 80% 65% 63% 59% 58% 60% 42% 38% 30% 35% 40% 24% 28% 25% 20% 15% 11% 20% 0% -21% -20% -23% -34% -40% -45% -47% -56% -55% -52% -59% -58% -60% -80% Demand Enterprise Order Tactical Supply Price Production Transportation Product Manufacturing Warehouse Planning Resource Management Planning Management Planning Planning Lifecycle Execution Management Planning Management Systems Base: Have 57 59 60 49 36 55 43 27* 44 48 System p. 13 Supply Chain Insights, LLC © 2012
- 14. Agenda Current State What is a Big Data Supply Chain? How will Applications Change? Wrap-up p. 14 Supply Chain Insights, LLC © 2012
- 15. IT Trends Excited About (Top 3) Other IT Trends Top 3 IT Trends Excited About Excited About (open-ended) Demand sensing 69% CLOUD SOLUTIONS • Cloud based solutions that can link value chain Sales and operations planning 57% partners with different ERP systems. • Cloud computing (not just storage) Data visualization 36% ANALYTICS Big data supply chains 31% • Predictive analytics • Predictive Analytics to address growing volatility • Business Intelligence - integrating massive eCommerce/social & mobile… 23% amounts of data into an actionable visual • Linear Program Models driving optimized plans Mobility 21% PROCESSES Supply sensing 15% • It's not about systems. It's about basic processes. Relying on systems to be the "solve" Social supply chains 7% is wrong. I'm being forced to choose an IT trend--I'd like to choose "none." Otherwise, it's always about the shiny new toy Corporate social responsibility 5% OTHER Machine learning 2% • Network optimization - maybe you would list in supply sensing, not sure. Base: Total Sample (61) Q20. Please select up to three IT trends below that you are most excited about. p. 15 Q21. Please list any other IT trends that you are excited about, if any, in addition to the ones mentioned above. OPEN-ENDED Supply Chain Insights, LLC © 2012
- 16. Big Data Plans & Expectations Current Initiative to Evaluate Big Data Yes Not sure 28% 29% No 43% Base: Preliminary Total Sample (21) Q7 - Does your company currently have an initiative in place to evaluate the opportunity with Big Data? p. 16 Q6a - How soon do you expect to have a database that equals a Petabyte? Supply Chain Insights, LLC © 2012
- 17. Definition Structured • Transactional Challenges: Data • Time phased data • Social Volume Unstructured • Channel Data • Customer Service • Warranty • Temperature Velocity Sensor • RFID Data • QR codes • GPS Variability New • Mapping and GPS • Video Data • Voice Types • Digital Images 17 p. 17 Supply Chain Insights, LLC © 2012
- 18. Big Data: What is it all About? Downstream Data EDI Sentiment Text Cold Chain Call Analysis Analytics Center Logs eCommerce Social What-if Models Hadoop Learning Systems Geolocation Data Visualization Ratings & Reviews RFID Facebook Scorecards Rules-Based Photographs Map Reduce Ontology Video T-Log Data Twitter R Forecasting Weblogs Warranty Returns Digital Path To Constraint- Information Sensors Mobile Applications Purchase based Planning Data Mining p. 18 Supply Chain Insights, LLC © 2012
- 19. Hallmark
- 20. Connecting the Extended Supply Chain Transactional Transactional Transactional Applications Applications Applications Trading Partner 1 Trading Partner 2 Trading Partner 3 20 p. 20 Supply Chain Insights, LLC © 2012
- 21. Connecting the Extended Supply Chain Collaborative Collaborative Collaborative Layer Layer Layer Transactional Transactional Transactional Applications Applications Applications Enterprise Data Enterprise Data Enterprise Data Warehouse Warehouse Warehouse Trading Partner 1 Trading Partner 2 Trading Partner 3 Key: Demand Signal Predictive Analytics Repository Supply Signal Transactional Adapters Repository and Intelligent Rule Sets p. 21 Supply Chain Insights, LLC © 2012
- 22. Supply Chain 2020 Tipping Points 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Orchestration Internet of Things Talent Shortage Big Data Learning Supply Chains Supply Chains Compliance on Safe & Secure Digital Manufacturing Supply Chain Excellence = Value-Based Outcomes Delivered by Value Networks Outside-In p. 22 Supply Chain Insights, LLC © 2012
- 23. Agenda Current State What is a Big Data Supply Chain? Case Studies Wrap-up p. 23 Supply Chain Insights, LLC © 2012
- 24. Fresh Express Defined a NEW Market YR 1 = $119.5 (launch FEB/20/1995 QUAD) (launch FEB/20/1995 QUAD) Latest YR09 = $1,201 (52 Wks MAY/17/2009 FDMX (52 Wks MAY/17/2009 FDMX CONVENIENCE, Ease of Serving New Unique Formula New Technology Distinctive Innovation Superior Process More Ingredients Dole Fresh “Experience Freshness ” Follower FRESH EXPRESS ’ priority benefit focus was about the convenience of serving all that you had previously cut and chopped. 9
- 25. Opportunity • 1/3 of shipped produce wasted: $34B in annual global waste from perishable foods • 50% is due to temperature variations from the farm to retail shelf • Reducing temperature related shrink by half is approx. $9B opportunity. Strawberries 1% Increase in reduction in profit of Shrink $1,173,555 Increase in 6% reduction profit of SHM PowerPoint Template Guidelines in Shrink 03.15.10 $7,378,830
- 26. Unit BuildingTemperatures MatterFirst Level Export Pallets – Group by In or Shelf Life? 11+ 14+ 15+ 15+ 15+ 15+ 12+ 12+ 15+ 15+ <10 <10 15+ 15+ 14+ 15+ 12+ 10+ 5+ Having different remaining shelf life mixed on pallets, causes problems later. Sending short shelf life 15+ 15+ berries on longer delivery cycles turns Good Berries into BAD Berries for the retailer and others. More yellow & red pallets in Philadelphia & Southern California ~ More shrink at the retailer ~ Lower customer satisfaction If we can group berries by shelf life, we avoid problems on multiple pallets – and send pallets to the right destination… <10 10+ 12+ 15+ 15+ 14+ 15+ 15+ <10 11+ 12+ 12+ 13+
- 27. “Where’s My Bud” Viral Campaign Campaign Objectives: Reduce Out of Stocks at targeted retailers by 5% Increase Shopper satisfaction and brand loyalty Validation: Identify a key leader or market that wants to pilot. 50/50 shared risk in effort and resources to pursue. Keep costs to a minimum for pilot, under $75K Concept: Execute a viral campaign focused on leveraging shoppers to identify out of stocks and potentially pricing compliance issues Leverage a combination of consumer, internet, and in- store technical capabilities p. 27 Supply Chain Insights, LLC © 2012
- 28. Retailer Experience New text message to 612-961-7802: A customer at Denny and Doug’s Liquor Emporium has just snapped a tag. You’re out of stock on Bud Light. Please contact your wholesaler. p. 28 Supply Chain Insights, LLC © 2012
- 29. Here are some locations near you where you can find Bud Light. Be sure to use this promotion code to get your discount: ABBL12456 p. 29 Supply Chain Insights, LLC © 2012
- 30. More than Just “Like” p. 30 Supply Chain Insights, LLC © 2012
- 31. Dell Dell’s Key Social Media Milestones
- 32. Redefine Customer Service? 32 p. p. 32 Supply Chain Insights, LLC © 2012
- 33. Social Coupons for Social Communities p. 33 33 Supply Chain Insights, LLC © 2012 p.
- 34. Newell Rubbermaid #Future15SB @bwdumars p. 34 Supply Chain Insights, LLC © 2012
- 35. Newell Rubbermaid #Future15SB @bwdumars p. 35 Supply Chain Insights, LLC © 2012
- 36. Best Buy How Best Buy created a social strategy p. 36 Supply Chain Insights, LLC © 2012
- 37. 37 p. 37 Supply Chain Insights, LLC © 2012
- 38. Summary • Today’s supply chains respond. They don’t sense. To be able to sense, the supply chain needs to be redefined by new data forms and applications. • The pace of the next decade will be quicker. It will be outside-in and it will make many of today’s applications obsolete. • Go Big DATA or GO HOME! p. 38 Supply Chain Insights, LLC © 2012
- 39. Big Data will be the NEW Foundation of the Future Supply Chain p. 39 Supply Chain Insights, LLC © 2012
- 40. Who is Lora? • Founder of Supply Chain Insights • 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. p. 40 Supply Chain Insights, LLC © 2012
- 41. Where do you find Lora? Contact Information: loracecere@gmail.com Blog: www.supplychainshaman.com (3500 pageviews/month) Twitter: lcecere 2900 followers. Rated as the top rated supply chain social network user. Linkedin: linkedin.com/pub/lora- cecere/0/196/573 (2300 in the network) p. 41 Supply Chain Insights, LLC © 2012
Editor's Notes
- #25: The first case history is the 1995 launch of Fresh Express salad kits, clearly an innovation that changed our lives.
- #37: - Having strategies, having a plan. align with a goal. - more than social for the sake of social
- #38: - Having strategies, having a plan. align with a goal. - more than social for the sake of social