Opening: Imagining the Supply Chain of 2030. Where Are We Now? What Is Possible?

9/12/2016 September 2016Supply Chain Insights Global Summit #Imagine2030

Lora CecereSupply Chain Insights

Founder

9/12/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 September 2016Supply Chain Insights Global Summit #Imagine2030

We’re Having a

GLOBAL Conversation

Live Streaming During the Event– Questions will be taken live

Twitter #imagine2030– Follow us at @scinsightsllc– https://live.hosted.events/

SupplyChain2030/ Life Streaming Sponsored by


Imagining the Supply Chain of 2030

Lora CecereSupply Chain Insights

Founder


Colgate


Chemical


Automotive


Pharmaceutical


Current State


Supply Chains to Admire


1. To have an objective measurement of supply chain excellence for our research.

2. To help supply chain leaders objectively benchmark and build balanced portfolios.

3. To gain an understanding of how fast supply chain actions translate to balance sheet performance.

4. To help supply chain leaders talk the language of finance, and to help finance teams understand what is possible in supply chain.

5. To develop an objective standard that is data-driven.

Why Do We Do This?


Methodology


• Divided 320 public companies into 31 industry peer groups based on NAICS codes.

• Evaluated the companies within industry peer groups for improvement, value, and performance.

• Examined two periods: 2006-2015 and 2009-2015.

Methodology


Improvement

Overall Ranking per Company• Balance: Return on Invested Capital & Revenue Growth Vector Trajectory • Strength: Inventory Turns & Operating Margin Vector Trajectory• Resiliency: Inventory Turns & Operating Margin Mean Distance

𝑺𝒖𝒑𝒑𝒍𝒚 𝑪𝒉𝒂𝒊𝒏 𝑰𝒏𝒅𝒆𝒙=𝟏𝟑𝑩𝒂𝒍𝒂𝒏𝒄𝒆 𝑭𝒂𝒄𝒕𝒐𝒓+

𝟏𝟑 𝑺𝒕𝒓𝒆𝒏𝒈𝒕𝒉 𝑭𝒂𝒄𝒕𝒐𝒓+

𝟏𝟑 𝑹𝒆𝒔𝒊𝒍𝒊𝒆𝒏𝒄𝒚 𝑭𝒂𝒄𝒕𝒐𝒓


Price to Tangible Book Value = Market Price/Tangible Book Value/Share

Value


Performance Factors:

Performance

Year-over-Year Growth

Operating Margin

Inventory Turns

Return on Invested Capital


What We Found


Supply Chains to Admire 2016

2006-2015 2009-2015

Winners Finalists Winners Finalists

17 17 16 21

Only 12% of Companies Are Driving Improvement and Performance


Congratulations!


WINNERS


WINNERS

FINALISTS


Why Do They Believe They Won?


THREE Insights


When Growth Declines, Balance Is Tougher

1


Process Industries Are Like a Frog

in a Beaker of Hot Water

2


Summit Registrants Survey Results

QUESTION Which three elements have the highest correlation with PRICE TO TANGIBLE

BOOK VALUE?Survey conducted among 60 registrants prior to the Summit


3What Is Value?


Supply Chain 2030


Let’s Think About Supply Chain 2030


Our Goal: Build a Guiding

Coalition

• Think Differently• Drive New Outcomes• Learn Together


Time to Take a Different Path?



QUESTION Which one

DISRUPTIVE TECHNOLOGY will have the greatest impact on supply

chain effectiveness? 2025 vs. 2030Survey conducted among 60 registrants prior to the Summit


Data Strategy for…

Clouds? Streams? Lakes?



QUESTION Which one

ANALYTIC TECHNIQUE is most important to drive supply

chain excellence by 2030?Survey conducted among 60 registrants prior to the Summit


FIVE Predictions

for 2030


Prediction #1: Outside-in Processes


Prediction #2: The Learning Supply Chain Supply

But, What if They Could?

Supply Chains Don’t Play by the Rules…


Prediction #3: The Socially Responsible Supply Chan

Consumers Will Vote

Brands with Their Feet

Increase in Activism


Prediction #4: A New Network of Networks for B2B



QUESTION

What is the biggest barrier for companies building a

NETWORK OF NETWORKS?

Survey conducted among 60 registrants prior to the Summit


Prediction #5: The Supply Chain as the Engine of Growth

• Adaptive Networks

• Cognitive Learning

• Market Sensing

• Outside-In Processes

• Test and Learn Strategies


Prediction #5: The Supply Chain as the Engine of Growth

• Adaptive Networks

• Cognitive Learning

• Market Sensing

• Outside-In Processes

• Test and Learn Strategies

New Business Models


Run from what's comfortable. Forget safety.

Live where you fear to live. Destroy your reputation.

Be notorious.~ Rumi


Let’s Imagine 2030 Together


Keynote Sponsor Live-Streamed Event Webcast

Digital Showcase Reception

Networking Reception

Book Giveaway

5K Run Post-Event Webinar

Morning and Afternoon Breaks

General Sponsors

Thank You to Our Sponsors


Meet the Supply Chain Insights Team

Lora CecereFounder

Alison CrawfordMarketing Director

Regina Denman Client Services Director

Michael Hambrick System Administrator

Heather Hart Research Director

Helen KingResearch Associate

Jill Smith Operations Manager


Switching Seats for Better Networking

How to read your NAME BADGE:

LoraLora Cecere

Supply Chain Insights

Cecere, Lora12 8 16 4

Table numbers by session: 12 8 16 4Wed PM Thur AM Thur PM Fri AM

To improve networking, we ask that everyone switch seats 1) BEFORE the Thursday morning session

2) BEFORE lunch on Thursday3) BEFORE the Friday morning session


Our Goal: Build a Guiding

Coalition

• Think Differently• Drive New Outcomes• Learn Together


IMAGINESUPPLY CHAIN2030

Opening: Imagining the Supply Chain of 2030. Where Are We Now? What Is Possible?

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Transcript of Opening: Imagining the Supply Chain of 2030. Where Are We Now? What Is Possible?