Kevin Beidelman & Gary Lenik, Principals, Bolero Associates · Kevin Beidelman & Gary Lenik,...
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Supply Chain Management – Increase Profit Contribution Kevin Beidelman & Gary Lenik, Principals, Bolero Associates
Transcript of Kevin Beidelman & Gary Lenik, Principals, Bolero Associates · Kevin Beidelman & Gary Lenik,...
Supply Chain Management – Increase Profit ContributionKevin Beidelman & Gary Lenik, Principals, Bolero Associates
Pursue Supply Chain Excellence! Why?Service Speed ROI
Faster response to Customer demand
Competitive advantage
Increased inventory turns (velocity)
Reduced risk
Real-time visibility/communication (all stakeholders)
Improves Total Quality (Lean-Six Sigma extended…)
Time to market – Effective NPI integration
Single plan/execution focused on Customer
Improved margins for all partners
ROI
Supply Chain Disruptions Are Costly
Margin erosion is the most common outcome of supply chain disruptions – sudden demand changes is most costly contributor
53% of Supply Chain Leaders say disruptions have become more costly since 2010
71% of Corporate Executives believe supply chain risk is an important factor in strategic decision-making and 64% claim to have a risk management program in place
41% of Supply Chain leaders lack confidence in their risk-management programs
Deloitte Survey – Executives Face Growing Supply Chain Threats
$$$$$$
Reducing Supply Chain Costs
A.K. Kearney Study: Results from companies pursuing supply chain improvements
10-15% of Revenue
$500M = $50M Supply Chain Costs
Opportunity = $50M x 42% =
$21M Savings
Supply Chain Improvement
SC Savings42%
Remaining Costs58%
Customer serviceInventory costsPlanning Change managementTransportation (in/out)DepreciationProduct managementWarranty/returns
Order managementSupply chain financeProcurementSupply chain ITDistributionWarehouseRework
Supply Chain Costs
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TOP 25 SUPPLY CHAIN COMPANIES - 2015
* Apple* Procter & Gamble1 Amazon.com2 McDonald's3 Unilever4 Intel5 Inditex6 Cisco Systems7 H&M8 Samsung Electronics9 Colgate-Palmolive
10 Nike11 Coca-Cola Company12 Starbucks
13 Wal-Mart Stores14 3M15 Pepsico16 Seagate Technologies17 Nestle18 Lenovo
19 Qualcomm20 Kimberly-Clark21 Johnson & Johnson
22 L'Oreal23 Cummins 24 Toyota Motor
25 Home Depot• = masters category for
long term top 25 firmSource: Gartner Research
Competitive Advantage/Benefits Where the top Supply Chain companies excel: Supplier Development
Collaborative Product Development
Demand-Driven Value Chains
Lean Manufacturing
Demand Capture
Supply Chain Design & Network integration
Brand Leverage
Strong Customer Collaboration
Performance-Based Metrics
ROI
Enable ‘Real Time’ ActionsSpeed > Enterprise Flows
• Products & Services Information Financial
• Zero Latency Simple, tailored workflows Automate routine transactions Accelerate decisions
• Leaner Processes Specific intent Focused action
Enterprise enablers• Visibility• Flexibility• Collaboration• Control
To Learn More
• Visit us: www.BoleroAssociates.com• Contact us: 1-800-634-1843
Kevin Beidelman Gary [email protected] [email protected]
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