Race for supply chain 2020

Race for Supply Chain 2020

Lora Cecere – Supply Chain Insights

April 2013

Supply Chain Insights LLC Copyright © 2013, p. 2

Supply Chain Insights is focused on delivering independent, actionable and objective advice for supply chain leaders. A company dedicated to research, turn to us when you want the latest insights on supply chain trends, technologies to know and metrics that matter.

About Supply Chain Insights


Presenting Today:The Race for Supply Chain 2020

Fran O’SullivanIBM

Lora CecereSupply Chain Insights

Neil Stout Colgate-Palmolive


The Supply Chain of the Future

World Population

Source: “The World at Six Billion” United Nations, 2004; The World UN Population Assessment 2006; “Unsustainable World,” 04/15/08, BBC

North America

2007 2020339M 342M

Europe

2007 2020731M 722M

Asia

2007 20204.0B 4.6B

L America

2007 2020572M 660M

Africa

2007 2020965M 1.3B

Oceania

2007 202034M 40M


Outside-In

Value-Based OutcomesDelivered by Value Networks

Supply Chain Excellence =

Supply Chain 2020 Tipping Points

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Talent Shortage

Compliance on Safe & Secure

Orchestration

Big Data Supply Chains

Internet of Things

Learning Supply Chains

Digital Manufacturing

Supply Chain Insights LLC Copyright © 2013, p. 6Supply Chain Insights LLC Copyright 2013

Current State


Current State


Source: Supply Chain Insights, Corporate Annual Reports 2000-2011

Inventory Performance

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Consumer Packaged Goods

59 57 62 64 67 67 68 70 70 64 64 67

Chemical

71.5 71.9 78.2 75.1 62 70.3 68.1 64.3 64.3 78.6 72.9 72.8

Pharma

122.236691097

87

133.699100562

175

190.147616165

968

170.986522478

989

184.342617399

859

175.550260476

877

167.799951139

247

149.815153981

283

154.915781882

591

198.663134119

976

154.313480863

244

131.819794240

294

High Tech

93.1 57.6 46.5 48.5 35.9 37.3 43.8 36.8 34.6 41.3 34.8 30.4

Average

86.4591727744

674

80.0497751405

437

94.2119040414

919

89.6466306197

473

87.3106543499

647

87.5375651192

192

86.9249877848

117

80.2287884953

207

80.9539454706

477

95.6407835299

941

81.5033702158

109

75.5049485600

736

25.0

75.0

125.0

175.0

225.0

Da

ys

o

f In

ve

nto

ry


Evolving Practices


Evolution


Current State


Definition

Challenges:• Transactional• Time phased data

Structured Data

• Social• Channel• Customer Service• Warranty

• Temperature• RFID• QR codes• GPS

• Mapping and GPS• Video• Voice• Digital Images

Unstructured Data

SensorData

NewDataTypes

Volume

Velocity

Variability


Analytics Evolution


Listening Post Strategy


IBM Supply Chain in 2020

© 2013 IBM Corporation


Colgate Perspective

Neil StoutColgate-Palmolive


Colgate Palmolive Company Supply Chain Overview

• $17B global consumer products company, founded in 1806 (25% sales in NA)

• 22,000+ people in supply chain

• Products supplied to 223 countries, mfg from 32 countries

• Four focused core categories

– Oral Care – Personal Care

– Pet Nutrition – Home Care


Evolution of Supply Chain Process Excellence

Align

ResilientReliable

Adapt

Efficient

Building Horizontal Process Connectors

ContinuousTesting

LearningImprovingIn Market

OrchestrateDemand and Supply

Sense Demand

and Supply

Shape Demand andSupply based

on Market

DemandVolatility

Supply Volatility

Right Product

Right Place

Right Time

Right Cost

Cost

Procure to pay/order to

cash


Funding The Growth Program

• Colgate’s long standing Global Continuous Improvement Program

• FTG Teams at every function and level

• Over 5000 savings projects annually

• Culturally Driven

• Over 20 years contributing --doubling the % of sales contribution in last 7 yrs


Service Cost

ProfitableGrowth

ProductQuality

Flexible, Reliable &

ResponsiveSustainability

Enable

Assess

Diagnose

Improve

Hierarchy of Supply Chain KPIs


Questions?


Join Us

www.scicommunity.com


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Videos, Webinars, and Podcasts

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EDUCATE


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ENRICH


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EXPERT


ENGAGE

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Continue the Learning:Bricks Matter Public Training

Two-day public training classes focusing on accelerating the understanding of supply chain excellence. $1500 for two days of training.

– Dallas, TX – May 6-7– Princeton, NJ – June 24-25

For more information and to register, visit: www.supplychaininsights.com/services/training/

http://www.supplychaininsights.com/services/training/


• April 25th: Launch of the Supply Chain Index• May 9th: How Do We Heal the Healthcare Value Chain, Part II• June 13th: Sales and Operations Planning: State of the Union• July 11th: Big Data Supply Chains and the Future of Analytics• August 15th: State of Supply Chain Talent. Missing Link in the

Supply Chain• August 29th: Digital Manufacturing

Upcoming Webinars

Each webinar is based on new and relevant research and will feature 2-3 industry leaders


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.


Where Do You Find Lora?

Contact Information: [email protected]

Blog: www.supplychainshaman.com (4000 pageviews/month)

Twitter: lcecere 3770 followers. Rated as the top rated supply chain social network user.

LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (3560 in the network)

Race for supply chain 2020

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Transcript of Race for supply chain 2020