Post on 15-Dec-2014
description
Bricks Matter
Lora Cecere
Supply Chain Insights LLC Copyright © 2012, 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 Us
Supply Chain Insights LLC Copyright © 2012, p. 3
This is the new bible for all supply chain executives. It provides an insider’s perspective that will prove incredibly valuable to even the most grizzled supply chain veteran. This is the next must-have business book.
--Bruce Richardson, Chief Enterprise Strategist, Salesforce.com
Today, the worlds of social business and supply chain management have many degrees of separation. I enjoyed working with Lora to understand what the future transformation of digital marketing to digital business could look like.
--Jeremiah Owyang, Research Director, Altimeter
Second Printing of Bricks Matter: 12 Five-Star Reviews on Amazon
Supply Chain Insights LLC Copyright © 2012, p. 4
18 Reports in 2012
Supply Chain Insights LLC Copyright © 2012, p. 5
35 Reports Planned for 2013
Supply Chain Metrics:
Apparel/FootwearOutsourced Manuf’g
AutomotiveSC Index: Corp. Perf.
Survey-Based:
Continuous Impr’mtRisk Management
Supply Chain MobilityMaster Data Mgmt
Digital ManufacturingSupply Chain FinanceDigital Path to Purch.Omnichannel Fulfillmt
Tracking Surveys:
S&OP and Agility #2Big Data #2
Transportation #2
Integrated Demand #2SCTalent #2
Voice of SC #3
Other:
Software Market-shareCool Technologies
Consumer Value Chain
Supply Chain Insights LLC Copyright © 2012, p. 6
The Supply Chain Pioneers
Supply Chain Insights LLC Copyright © 2012, p. 7
Supply Chain Management: Top 3 Elements of Pain for Respondent
Supply Chain Insights LLC Copyright © 2012, p. 8
A Supply Chain
is a Complex System
with Complex Processes
with Increasing Complexity
Supply Chain Insights LLC Copyright © 2012, p. 9
The Effective Frontier
Supply Chain Insights LLC Copyright © 2012, p. 10
Growth Profitability Cycle Complexity
R&D Margin Cash on Hand C2C Cycle Altman Z
R&D to COGS Ratio Free Cash Flow Ratio Days of Finished Goods Capital Turnover
SGA Margin Gross Margin Days of Inventory Current Ratio
SGA/COGS Net Profit Days of Payables Outstanding Quick Ratio
COGS as Percent of Net Sales Operating Margin Days of Raw
Materials Return on Assets
Pretax Margin (EBIT) Days of Sales Outstanding Return on Equity
YoY Sales Growth Days of Work in Progress
Return on Invested Capital
Operating Margin DPO/DSO Return on Net Assets
Inventory Turns Revenue/Employee
Receivables Turns Cost of Sales
Useful Ratios
Supply Chain Insights LLC Copyright © 2012, p. 11
Cash-to-Cash Cycle vs. Gross Margin (2000-2011)SUMMARY SLIDE
Supply Chain Insights LLC Copyright © 2012, p. 12
Industry Averages
Supply Chain Insights LLC Copyright © 2012, p. 13
Chemical
Supply Chain Insights LLC Copyright © 2012, p. 14
Consumer Electronics
Supply Chain Insights LLC Copyright © 2012, p. 15
Consumer Packaged Goods
Supply Chain Insights LLC Copyright © 2012, p. 16
Colgate-Palmolive Company vs Unilever N.V.
Supply Chain Insights LLC Copyright © 2012, p. 17
Cash-to-Cash Cycle vs. Gross Margin (2000-2011)SUMMARY SLIDE
Supply Chain Insights LLC Copyright © 2012, p. 18
Food
Supply Chain Insights LLC Copyright © 2012, p. 19
Cash-to-Cash Cycle vs. Revenue per Employee (2000-2011)
Supply Chain Insights LLC Copyright © 2012, p. 20
Five Year Comparison
Supply Chain Insights LLC Copyright © 2012, p. 21
Pharmaceutical
Supply Chain Insights LLC Copyright © 2012, p. 22
Source: Supply Chain Insights 2012
Average Days of Inventory by Year
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
869
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
472
87.3106543499
647
87.5375651192
192
86.9249877848
117
80.2287884953
207
80.9539454706
477
95.6407835299
941
81.5033702158
11
75.5049485600
736
25.0
75.0
125.0
175.0
225.0
Da
ys
o
f In
ve
nto
ry
Supply Chain Insights LLC Copyright © 2012, p. 23
Evolution
Align:Market Driven
Building Horizontal Process Connectors
ContinuousTesting
LearningImprovingIn Market
OrchestrateDemand and Supply
ResilientReliable
Adapt: Demand Driven
EfficientSense
Demandand Supply
Shape Demand andSupply based
on Market
Absorb DemandVolatility
Absorb Supply Volatility
Right Product
Right Place
Right Time
Right Cost
Cost
Procure to pay/order to
cash
Supply Chain Insights LLC Copyright © 2012, p. 24
An adaptive network focused on a value-based outcome that senses and translates
market changes (buy and sell-side markets) bi-directionally with near-real time data latency to align sell, deliver, make and
sourcing operations.
What is a Market-driven Value Network?
Supply Chain Insights LLC Copyright © 2012, p. 25
Evolving Practices
Sustainability
Supply Chain Insights LLC Copyright © 2012, p. 27
Corporate Sustainability Dilemma
Supply Chain Insights LLC Copyright © 2012, p. 28
Corporate Sustainability Alignment
Supply Chain Insights LLC Copyright © 2012, p. 29
Corporate Sustainability Alignment
Current Performance
Supply Chain Insights LLC Copyright © 2012, p. 31
State of IT Systems
Supply Chain Insights LLC Copyright © 2012, p. 32
System Importance
Supply Chain Insights LLC Copyright © 2012, p. 33
Satisfaction with Technology
Supply Chain Insights LLC Copyright © 2012, p. 34
The Gap
The Path Forward
Supply Chain Insights LLC Copyright © 2012, p. 36
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
MARCO TRENDS
Supply Chain Insights LLC Copyright © 2012, p. 37
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 © 2012, p. 39
Scenario Planning
Supply Chain Insights LLC Copyright © 2012, p. 40
Rethinking Analytics
Supply Chain Insights LLC Copyright © 2012, p. 41
Supply Chain Insights LLC Copyright © 2012, p. 42
Definition
42
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
Supply Chain Insights LLC Copyright © 2012, p. 43
Connecting the Extended Supply Chain
43
Supply Chain Insights LLC Copyright © 2012, p. 44
Connecting the Extended Supply Chain
Supply Chain Insights LLC Copyright © 2012, p. 45
Two-day public training classes focusing on accelerating the understanding of supply chain excellence. $1500 for two days of training.
– Chicago, IL – April 1-2– Dallas, TX – May 6-7– Princeton, NJ – June 24-25
For more information and to register visit: www.supplychaininsights.com/services/training/
Training – Based on Bricks Matter
Supply Chain Insights LLC Copyright © 2012, p. 46
Where is Your Opportunity?
Supply Chain Insights LLC Copyright © 2012, p. 47
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.
Supply Chain Insights LLC Copyright © 2012, p. 48
Where Do You Find Lora?
Contact Information: lora.cecere@supplychaininsights.com
Blog: www.supplychainshaman.com (4000 pageviews/month)
Twitter: lcecere 3700 followers. Rated as the top rated supply chain social network user.
LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (2300 in the network)