Big Data Analytics and the Supply Chain Opportunity
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Transcript of Big Data Analytics and the Supply Chain Opportunity
PowerPoint Presentation
Using New Forms of Analytics
Supply Chain Insights LLC Copyright 2016, p. #
Disclaimer: I am a Skeptic
Supply Chain Insights LLC Copyright 2016, p. #
A Social Scientist
Supply Chain Insights LLC Copyright 2016, p. #
A Fortune-teller of Sorts.
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I Write for the Supply Chain Leader
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Pressure Is On!
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Descriptors Used by Leaders
Supply Chain Insights LLC Copyright 2016, p. #
Todays Risks
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Since 2000, 52 percent of the companies in the Fortune 500 have either gone bankrupt, been acquired, ceased to exist, or dropped out of the Fortune 500.
Activist campaigns against companies with a market cap greater than $10 billion has more than doubled since 2010. Activists won, partially won or settled 73% of proxy fights in 2014, up from 55% in 2010. Increasing Pressure on Operations
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Productivity
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Technology Evolution
Operational Investments
Workforce Productivity
Analytics
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Understanding the Organization
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Right Stuff?
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Middle Management Has Greatest Shortage of Supply Chain Talent
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Growing Talent Gap
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Metrics That Matter
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What We Expected
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Functional Silos an Issue
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Alignment Issues
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The Supply Chain Effective Frontier
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Orbit Charts: Dow Chemical Company and DuPont
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Automotive
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Orbit Chart: Pharmaceutical(Inventory Turns and Operating Margin)
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Eli Lilly and Novo Nordisk
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P&G and Kimberly-Clark
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Consumer ProductsClorox and Church & Dwight
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Lack of clarity on supply chain excellenceFocus on functional excellenceIsolated projects with a ROI rationalizationLack of supply chain designNot managing the metrics holistically across the organizationWhy?
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Evolution of Visibility
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The Evolution of the Long Tail
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Increase in Outsourcing
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Bullwhip Effect
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Gaps in Supply Chain Visibility
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A Closer Look at Todays Effectiveness
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Build Horizontal Processes
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Evolution of Horizontal Processes
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Current State
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Need for Network Ownership
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Future State
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Listening: Lenovo
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0000000CanadaCustomer A calls about a blue screen on a YogaCustomer B posts on Facebook about his X220s AC/DC adapter issuesLarge Enterprise Client experiences 5 keyboard malfunctions in their latest shipment. Complaints received through account executive[Critical Situation]BrazilCustomer F submits a service from on esupport.lenovo.com regarding their W530 hard driveMoroccoCustomers G & H comment on their X220s electrical issues on Twitter.comCustomer I called about Yoga screen issues AustraliaCustomer J write a review on NewEgg.com about AC/DC adapter issues on X220Customer K had an eChat with Lenovo about Yoga screen issuesChinaCustomer L wrote on Weibo about Yoga screen issuesCustomer M calls about a Tablet 8 battery issuesVoice of Customer Comes in Many Forms
USACustomers C & D write X220 product reviews on amazon.com and mention issues with AC/DC adaptersCustomer E posts on forums.lenovo.com that they are experiencing blue screens on their Yoga
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0000000Lenovo
6 recorded issues about X220s AC/DC adapter
5 recorded issues about keyboard issues on X1 Carbon
5 recoded issues about Yoga screen
1 recorded issue about W530 hard-drive
1 recorded issue about Tablet 8 batteryOne Voice A Single View of Perceptual Quality
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Synchronize/organize all comments/complains into one voice42
Making the Digital Pivot
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Supply chains that learn as we sleepNetwork of networksDigital manufacturingRedefinition of Service Supply ChainsInteractive UINew business modelsLooking Forward
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Confluence of Technologies
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Evolution of Analytics
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Data Strategy for.
Clouds?Streams?Lakes?
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Big Data Supply Chains are Evolving48Challenges:TransactionalTime phased dataStructured Data
SocialChannelCustomer ServiceWarrantyTemperatureRFIDQR codesGPSMapping and GPSVideoVoiceDigital ImagesUnstructured DataSensorDataNewDataTypesVolumeVelocityVariability
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Analytics Maturity
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Data Types
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Supply Chains Dont Play by the Rules51
But, what if they could?
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Case Study: Internet of Things
Demand-Driven Replenishment
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Big Hairy Audacious Goals
Business goals/ challenges:Scale the businessIncrease the number of machines in operation from 900 to 3,000 by 2016Expand internationally
Essentially we had to justify Whitbreads 60 million acquisition!
While transforming the Supply Chain
Replace legacy spreadsheet system with new IT system:The legacy system could not pull in data from the coffee stations telemetry systems, so all this valuable data was going to wasteOur brand guardians were effectively spending all their time poring over spreadsheets and manually replenishing stock
These processes were not scalable in line with our ambitions
We needed to transform other aspects of our supply chain and grow at the same time!Change logistics / warehousing partnerMove to direct purchasing
Solution
ToolsGroup is at the heart of our successful supply chain transformation:
System access our telemetry data tap into our machine telemetry data and uses it to calculate replenishment orders for partner sites.The data is used to forecast demand and optimise inventory levels
Some of the results (walk through the four figures on the left of the slide):
Also point out the new role of Brand Excellence Advisor
And we far exceeded our business goals!:
Blew away target to have 3,000 machines in place by 2016. We achieved this target in 2013, a full three years ahead of schedule!Moving into new markets Poland, Ireland and DubaiLaunched new CEM-200 "intelligent" coffee station concession
Next steps (only if there is time)52
2:00am Emergency Drug Call
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11:02
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11:1811:22
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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.
Perishable Produce A Closer Look1% reduction in Shrink Increase in profit of $1,173,5556% reduction in Shrink Increase in profit of $7,378,830
Case Study on Shelf lifePerishable Products: RFID Cold Chain Opportunity
SHM PowerPoint Template Guidelines03.15.10Intelleflex Confidential
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Group by First In or Shelf Life?
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