Post on 16-Apr-2017
Building the Customer-
Centric Supply Chain
Supply Chain Insights LLC Copyright © 2016, p. 1
Our Speakers Today
Mark Hersh, Director of
Supply Chain Strategy,
Clorox
Lora Cecere, Founder
of Supply Chain
Insights
Supply Chain Insights LLC Copyright © 2016, p. 3
Who Is Your Customer?
Patient
Hospital
What Is the Goal? Efficient Sickness?
Supply Chain Insights LLC Copyright © 2016, p. 4
Who Is Your Customer?
Patient
Hospital
What Is the Goal? Wellness?
Supply Chain Insights LLC Copyright © 2016, p. 5
Who Is Your Customer?
Supply Chain Insights LLC Copyright © 2016, p. 6
What Drives Your Service Issues?
Most Do Not Know….
Channel out-of-stock(s)
Supply Chain Insights LLC Copyright © 2016, p. 7
Collaboration: The Right Stuff
Supply Chain Insights LLC Copyright © 2016, p. 8
Retail Scorecards
Cost-to-serve analysis calculates
the profitability of products,
customers, and routes to market --
and to give a fact-based focus for
decision making -- on service mix
and operational changes for each
customer.
Supply Chain Insights LLC Copyright © 2016, p. 10
Cost to Serve in Consumer Products
Supply Chain Insights LLC Copyright © 2016, p. 11
Current State of Order Automation
Supply Chain Insights LLC Copyright © 2016, p. 12
1. Clarity of Purpose for the Consumer
2. Takes Ownership of the Channel: Drives Reliability and Excitement
3. Build Segmented Customer Strategies: Ties Strategy to
Policy/Execution
4. Cost-to-Serve with Data-Driven Discussions
5. The Supply Chain Has a Clear Focus on Outcomes
6. Alignment Between Operations and Commercial Teams
7. Scorecards used to Build Strong Relationships
8. Processes Built on Channel Data. Implemented Outside-in
Processes
9. Hands-free and Reliable Order Processes
10. Cross-Functional Listening
Ten Characteristics: Most Advanced Companies
Building the Customer-Centric
Supply Chain
Supply Chain Insights Webinar
August 17, 2016
Clorox Now
Sales of $5.8Billion
8,000 employees
Manufacture products in 24 countries
80% of businesses in USA
6 R&D facilities
Traded on
Sells products in more than 100 countries
PROPERTY OF THE CLOROX COMPANY
Copyright © 2016 The Clorox Company 14
Leading Brands
PROPERTY OF THE CLOROX COMPANY
Copyright © 2016 The Clorox Company 15
16
Many are extremely
value conscious
Multiculturalism
requires right
product designs
Aging population
in the U.S.
Technology gives
consumers access to
an incredible amount
of real time data
Consumers outside
of the U.S. have
different needs
Shopping patterns
and preferences
are becoming more
diverse
Serving our consumer base is challenging
PROPERTY OF THE CLOROX COMPANY
Copyright © 2016 The Clorox Company
17
Amazon
continues
to grow
exponentially
Retailers demanding lower working
capital, increased differentiation, and
improved profitability
Explosion in new
channels and
store formats
Clorox has
entered
several new
channels
Market place continually changes and adds complexity
PROPERTY OF THE CLOROX COMPANY
Copyright © 2016 The Clorox Company
Becoming Consumer-Centric
18
Consumer needs are the inspiration for everything we do, and
everyone does their work through that lens.
Employees use our products and our competitors’ products and
are immersed with consumers every day (e.g., start and end
every meeting with a consumer-related topic).
Employees routinely listen to, read about, and interact with
consumers through internal and external channels.
Employees are so knowledgeable about our products that they
are confident and capable of engaging with a consumer online,
in the store or in market.
The company continuously embraces and acts on consumer
feedback.
Success is measured from the consumer’s perspective.
We give consumers what they want, when they want and where
they want it.
We delivered customized responses to consumer needs –
offerings, messaging, packaging.
PROPERTY OF THE CLOROX COMPANY
Copyright © 2016 The Clorox Company
The Building Blocks of the Journey
19
Sales / Supply
Chain
Partnership
Retailer
Segmentation /
SC Services
Voice of the
Customer
Value Chain
Segmentation
Fulfillment
Models
Demand Mgt. &
Planning
Capability
Manufacturing
Flexibility /
Cycle Times
Collaboration
for Scale &
Efficiency
Select
Customization
&
Postponement
PROPERTY OF THE CLOROX COMPANY
Copyright © 2016 The Clorox Company
20
Voice of the Customer
Ask/Listen/Learn Voice of our Customer
• Strategic Direction
• Objectives & Priorities
• Capability Needs – Now & Future
• Clorox Gap vs. Needs
Assess Model Analytics to identify ways to improve performance – cost, efficiency, growth
Activate via Planning Process Build & Create Operationalize Measure
Refresh & Recap Accountable for continuous improvement
Why Is VOC Important?
• Listen to hear and understand Customer’s Voice
• Learn from all voices: Consumer, Shopper, Customer, Supplier, Competition
• Incorporate wants/needs into business rhythm for plans/resources
PROPERTY OF THE CLOROX COMPANY
Copyright © 2016 The Clorox Company
Techniques to Drive Joint Value with Retailers
21
Supply Chain
Advisory Services
Agile Inventory
Value Stream
Mapping “Lite”
One Supply Chain
View
Growth Planning Process Peanut Butter Approach
Suppliers
Clorox
Customer
Trusted
Partners
Base
Operations
Transformational
Change
Proactive
Analytics
Improvement
Services
Suppliers
+
Clorox
+
Customer
Value Chain Segmentation – translating Product, Market, Customer
and Business Unit requirements into the right supply chain construct
Better Good Best
Balancing Response & Efficiency
Disruptive Innovation
Promotion Related
Efficient & Low Cost
Performance:
A
B
C
D
Service Cost Speed Value Chain
Type
Bu
siness R
equ
iremen
t
Responsive
Efficient
A G
I L I T
Y
Product
Market/
Channel
Customer/
Consumer
Business
Unit ‘Fact
Base’ (learnings,
trends, financial
performance,
emerging
opportunities,
competitive
intelligence)
Strategic
Portfolio
View by
Product
(6-Box Model)
22 PROPERTY OF THE CLOROX COMPANY
Copyright © 2016 The Clorox Company
Defined and differentiated capabilities by Value Chain type
23
We have been defining the differentiated capabilities specific to the 4 value chain types for
the key elements in the E2E supply chain. Elements include (but not comprehensive):
Manufacturing
Location
Assets
Ownership
Assets
Flexibility
E2E
Collaboration
Sourcing
Agreements
Design for
Manufacturability
Capacity
Utilization
Capital
Guidelines
Unit Cost
Information
Sharing / Flow
Demand
Visibility
Cycle
Times
Product / Pkg.
Customization
Innovation
Speed
Metrics
Leader
Skillsets
PROPERTY OF THE CLOROX COMPANY Copyright © 2016 The Clorox Company
What we have learned
Voice of the Customer is the cornerstone for success.
View Value Chain Segmentation (VCS) in the context
of business objectives and company strategy.
VCS is one piece of the overall process to create the
right supply chain strategy.
Success requires leaders who think and act with an
end-to-end mindset.
Use terminology the business leaders understand.
Refresh supply chain designs continuously using the
VCS. It is a “team sport”.
PROPERTY OF THE CLOROX COMPANY Copyright © 2016 The Clorox Company
24
Where we are going
Currently defining the next wave of capabilities and roadmap to
deliver the Company’s 2020 growth strategy.
Embedding ‘Put the Consumer First’ across the enterprise and
building the desired behaviors and actions. Driving the other four
Calls to Action as part of our Growth Culture work:
Continually employing ‘Voice of the Customer’ with both our external
and internal customers to define requirements and create plans.
25 PROPERTY OF THE CLOROX COMPANY Copyright © 2016 The Clorox Company
Questions
Questions
26
Supply Chain Insights LLC Copyright © 2016, p. 27
Fit with Demand Driven
Supply Chain Insights LLC Copyright © 2016, p. 28
Where Does Customer-Centric Fit?
Visit Us Online
www.supplychaininsights.com
www.supplychainshaman.com
www.beetfusion.com
www.linkedin.com/company/supply-chain-insights
www.slideshare.com/loracecere
Follow Us on Twitter
@scinsightsllc
@lcecere
Attend a Live Event
www.supplychaininsightsglobalsummit.com
www.supplychaininsights.com/the-shamans-circle
Run Ahead of the Pack
Build a Guiding Coalition: Online Learning
Benchmarking, Research, Social Engagement, Ideation Tournaments,
and Innovative Case Studies in One Week Sprints
For more information: www. supplychaininsights.com/corpu-training/
Supply Chain Insights LLC Copyright © 2016, p. 34
About Lora Cecere
• Founder of Supply Chain Insights
• “LinkedIn Influencer”
• Guest blog for Forbes
• Author of 5 books: Bricks Matter (2012), Shaman’s Journal (2014),
Supply Chain Metrics That Matter (2014), Shaman’s Journal (2015),
Shaman’s Journal (2016)
• 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 (15,000 pageviews/month)
• Forbes: www.forbes.com/sites/loracecere
• Twitter: twitter.com/lcecere (7,700 followers)
• LinkedIn: www.linkedin.com/in/loracecere (110,000 followers)
• LinkedIn Influencer: www.linkedin.com/today/author/446631