Metrics that Matter

Supply Chain Insights LLC Copyright © 2015, p. 2

Get Prepared

Supply Chain Insights LLC Copyright © 2015, p. 3

Books for Your Bookshelf

Self-publishedSeptember 2014

WileyDecember 2014

WileyDecember 2012

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Today’s Supply Chain is Stuck

Supply Chain Insights LLC Copyright © 2015, p. 5

Industry Overview

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Why?

Supply Chain Insights LLC Copyright © 2015, p. 7

Demand Signal

Accurate Weekly Forecasting is ...

Delay from Purchase to

Signal

What is Demand?

* Represents emerging markets

Supply Chain Insights LLC Copyright © 2015, p. 8

Fallacy #1: Functional Excellence

#sciwebinar

Supply Chain Insights LLC Copyright © 2015, p. 9

Fallacy #2: A Project-based Focus

#sciwebinar

Supply Chain Insights LLC Copyright © 2015, p. 10

Companies Get More Serious With A Recession: But Cannot Sustain It

#sciwebinar

Supply Chain Insights LLC Copyright © 2015, p. 11

What We Expected

Supply Chain Insights LLC Copyright © 2015, p. 12

A Supply Chain is a Complex System

with Complex Processes

with Increasing Complexity

What we Learned….

#sciwebinar

Supply Chain Insights LLC Copyright © 2015, p. 13

The Supply Chain Effective Frontier

#sciwebinar

Supply Chain Insights LLC Copyright © 2015, p. 14

Correlations to Market Capitalization

#sciwebinar

Supply Chain Insights LLC Copyright © 2015, p. 15

Orbit Chart: Wal-Mart(Inventory Turns and Operating Margin)

#sciwebinar

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Orbit Chart: Apple (Inventory Turns and Operating Margin)

#sciwebinar

Supply Chain Insights LLC Copyright © 2015, p. 17

Orbit Charts: Dow Chemical Company

#sciwebinar

Supply Chain Insights LLC Copyright © 2015, p. 18

Orbit Charts: Mattel, Inc.(Inventory Turns versus Operating Margin)

#sciwebinar

Supply Chain Insights LLC Copyright © 2015, p. 19

Orbit Chart: Procter & Gamble(Inventory Turns and Operating Margin)

#sciwebinar

Supply Chain Insights LLC Copyright © 2015, p. 20

Overall Network: Inventory Turns versus Operating Margin 2006-2012

#sciwebinar

Supply Chain Insights LLC Copyright © 2015, p. 21

Measuring Supply Chain Improvement

Overall Ranking per Company• Balance: Return on Invested Capital & Revenue Growth Vector Trajectory (30%)• Strength: Inventory Turns & Operating Margin Vector Trajectory (30% of score)• Resiliency: Inventory Turns & Operating Margin Mean Distance (30%)

Supply Chain Insights LLC Copyright © 2015, p. 22

Supply Chains to Admire Methodology

PerformanceBeats the industry

average for operating margin, inventory turns

and ROIC for 2006-2014 and 2009-2014

ImprovementRanks above peer group average on The Supply Chain

Index for 2006-2014 or 2009-2014

+

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An Example: Food

#sciwebinar

Supply Chain Insights LLC Copyright © 2015, p. 24

Annual Study: Supply Chains To Admire

Supply Chains to Admire 2015 to be Announced at the Supply Chain Insights Global Summit on September 9th and 10th

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Comparing Companies

Strong in turns … but unbalanced

Both 1 and 3 have balance … but company 1 knows how to rebound after the financial crisis resilience

Driving Results

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• Leadership• Building of talent• Outside-in processes• Horizontal process focus• Active and intentional design• Supply chain planning

What Makes a Difference

Supply Chain Insights LLC Copyright © 2015, p. 28

Right Stuff?

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Growing Talent Gap

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Losing Ground

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What does this Say to You?

Supply Chain Insights LLC Copyright © 2015, p. 32

State of IT Systems

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The Role of ERP

Supply Chain Insights LLC Copyright © 2015, p. 34

IT Systems: Importance & Satisfaction by Role & Supply Chain

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State of Planning

Supply Chain Insights LLC Copyright © 2015, p. 36

Get Prepared

Supply Chain Insights LLC Copyright © 2015, p. 37

Supply Chain Insights LLC Copyright © 2015, p. 38

• It is not an evolution• We are defining new practices• Learn, to unlearn, to relearn

Get Prepared

Supply Chain Insights LLC Copyright © 2015, p. 39

Questions?

Supply Chain Insights LLC Copyright © 2015, p. 42

Founder: Lora Cecere

• Founder of Supply Chain Insights

• “LinkedIn Influencer”

• Guest blog for Forbes

• Author of 3 books: Bricks Matter (2012), Shaman’s Journal (2014) and Supply Chain Metrics That Matter (December 2014)

• 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.

Contact Information: • Email: lora.cecere@supplychaininsights.com• Blog: www.supplychainshaman.com (6000 pageviews/month)• Forbes: http://www.forbes.com/search/?q=lora+cecere• Twitter: lcecere (5750 followers)• LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (35,000 followers)