Post on 27-Jan-2015
description
Big Data Supply Chains
Go Big or Go Home!
Big Data will be the NEW Foundation of the Future
Supply Chain
BRICKSMatterThe Role of Supply Chains in Building Market-Driven Differentiation
LORA M. CECERE CHARLES W. CHASE JR.
BookPublishes in August
2012
p. 4Supply Chain Insights, LLC © 2012
Agenda
Current State
What is a Big Data Supply Chain?
How will Applications Change?
Wrap-up
p. 5Supply Chain Insights, LLC © 2012
Inside-Out Inside-Out
Supply Chain Tipping Points
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
S&OP
Evolution of the PC
JIT
Theory ofConstraints
Supply Chain Organization
Re-Engineering the Organization
(Michael Hammer)
Internet/Email
eProcurement
Total QualityManagement
RFID
Vertical SiloExcellence
Efficient Order toCash Processes
+ Islands ofExcellence
ManufacturingExcellence
+
Supply Chain Excellence = Supply Chain Excellence =
p. 6Supply Chain Insights, LLC © 2012
Inside-Out Outside-In
Value-Based OutcomesDelivered by Horizontal Processes
+
Supply Chain Excellence = Supply Chain Excellence =
Supply Chain Tipping Points
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Y2K
Lean Six Sigma
.com
Demand Driven Concepts
Vertical SiloExcellence
Outsourcing Effectiveness
Social Responsibility
CSCO
Market-Driven Value Networks
p. 7Supply Chain Insights, LLC © 2012
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?7
p. 8Supply Chain Insights, LLC © 2012
Evolution of Supply Chain Process Excellence
Align:Market Driven
ResilientReliable
Adapt:Demand-Driven
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
p. 9Supply Chain Insights, LLC © 2012
What is Supply Chain Excellence?
Base: Total Sample (61)
Q14. How does your company define supply chain “excellence?” Please select all that apply.
Right product, right place, right time at the right cost.
A responsive supply chain that can adapt as markets change.
A resilient supply chain that can withstand the shocks of demand and supply volatility.
The Efficient Supply Chain. Lowest cost per unit.
Right product, right place, right time.
70%
57%
52%
38%
20%
How Define Supply Chain “Excellence”
Most Mature
p. 10Supply Chain Insights, LLC © 2012
The Effective Frontier
p. 11Supply Chain Insights, LLC © 2012
A Supply Chain
is a Complex System
with Complex Processes
with Increasing Complexity
p. 12Supply Chain Insights, LLC © 2012
98%
97%
93%
90%
80%
79%
72%
70%
59%
44%
Order Management
ERP (Enterprise Resource Planning)
Demand Planning
Production Planning
Tactical Supply Planning
Warehouse Management
Manufacturing Execution Systems
Transportation Planning
Price Management
Product Lifecycle Management
61%
64%
39%
33%
36%
30%
34%
38%
34%
26%
15%
8%
31%
25%
18%
16%
10%
20%
13%
8%
23%
25%
23%
33%
26%
33%
28%
13%
11%
10%
Operational IT Systems
1 System 2 Systems 3+ Systems
IT Systems:Quantity
Base: Total Sample (61)Q15. For each of the following IT systems, please indicate how many you currently have operational – 0 systems, 1 system, 2 systems or 3+ systems.
Any Systems
p. 13Supply Chain Insights, LLC © 2012
IT Systems: Importance & Satisfaction
Demand Planning
Enterprise Resource Planning
Order Manage-
ment
Tactical Supply
Planning
Price Manage-
ment
Production Planning
Transportation Planning
Product Lifecycle Manage-
ment
Manufacturing Execution Sys-
tems
Warehouse Management
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
86% 83%80%
76% 75% 73%
65% 63%59% 58%
30%24%
35%
20%28%
15%
42%
11%
25%
38%
-56%-59%
-45%
-55%
-47%
-58%
-23%
-52%
-34%
-21%
IT Importance vs. Satisfaction
Importance (6-7) Satisfaction (6-7) Gap (Sat - Impt)
Base: Have System
57 59 60 49 36 55 43 27* 44 48
p. 14Supply Chain Insights, LLC © 2012
Agenda
Current State
What is a Big Data Supply Chain?
How will Applications Change?
Wrap-up
p. 15Supply Chain Insights, LLC © 2012
IT Trends Excited About (Top 3)
Base: Total Sample (61)Q20. Please select up to three IT trends below that you are most excited about.Q21. Please list any other IT trends that you are excited about, if any, in addition to the ones mentioned above. OPEN-ENDED
Demand sensing
Sales and operations planning
Data visualization
Big data supply chains
eCommerce/social & mobile convergence
Mobility
Supply sensing
Social supply chains
Corporate social responsibility
Machine learning
69%
57%
36%
31%
23%
21%
15%
7%
5%
2%
Top 3 IT Trends Excited About
Other IT Trends Excited About
(open-ended)
CLOUD SOLUTIONS• Cloud based solutions that can link value chain
partners with different ERP systems.• Cloud computing (not just storage)
ANALYTICS• Predictive analytics• Predictive Analytics to address growing volatility• Business Intelligence - integrating massive
amounts of data into an actionable visual• Linear Program Models driving optimized plans
PROCESSES• It's not about systems. It's about basic
processes. Relying on systems to be the "solve" is wrong. I'm being forced to choose an IT trend--I'd like to choose "none." Otherwise, it's always about the shiny new toy
OTHER• Network optimization - maybe you would list in
supply sensing, not sure.
p. 16Supply Chain Insights, LLC © 2012
Big Data Plans & Expectations
Base: Preliminary Total Sample (21)Q7 - Does your company currently have an initiative in place to evaluate the opportunity with Big Data?Q6a - How soon do you expect to have a database that equals a Petabyte?
Yes29%
No43%
Not sure29%
Current Initiative to Evaluate Big Data
p. 17Supply Chain Insights, LLC © 2012
Definition
17
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
p. 18Supply Chain Insights, LLC © 2012
Big Data: What is it all About?
Downstream DataCold Chain
GeolocationRFID
Social
Ratings & Reviews
T-Log Data Twitter
Call Center Logs
VideoPhotographs
Warranty Information
ReturnsWeblogs
eCommerce
EDI
Data Mining
Forecasting
Sentiment Analysis
What-if Models Hadoop
Rules-Based Ontology
Constraint-based Planning
Data VisualizationLearning Systems
R
Text Analytics
Scorecards
Sensors
Map Reduce
Digital Path To Purchase
Mobile Applications
Hallmark
p. 20Supply Chain Insights, LLC © 2012
Connecting the Extended Supply Chain
20
Trading Partner 1 Trading Partner 2 Trading Partner 3
Transactional Applications
Transactional Applications
Transactional Applications
Store
p. 21Supply Chain Insights, LLC © 2012
Connecting the Extended Supply Chain
Collaborative Layer
Collaborative Layer
Collaborative Layer
Enterprise Data Warehouse
Enterprise Data Warehouse
Demand Signal Repository
Supply Signal Repository
Predictive Analytics
Key:
Transactional Adapters and Intelligent Rule Sets
Trading Partner 1 Trading Partner 2 Trading Partner 3
Transactional Applications
Transactional Applications
Transactional Applications
Enterprise Data Warehouse
Store
p. 22Supply Chain Insights, LLC © 2012
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
p. 23Supply Chain Insights, LLC © 2012
Agenda
Current State
What is a Big Data Supply Chain?
Case Studies
Wrap-up
Fresh Express Defined a NEW Market
9
CONVENIENCE,Ease of Serving
§ New Unique Formula§ New Technology§Distinctive Innovation§ Superior Process§ More Ingredients
YR 1 = $119.5YR 1 = $119.5(launch FEB/20/1995 QUAD)(launch FEB/20/1995 QUAD)
Latest YR09 = $1,201Latest YR09 = $1,201(52 Wks MAY/17/2009 FDMX(52 Wks MAY/17/2009 FDMX
FRESH EXPRESS ’ priority benefit focus was about the convenience of serving all that you had previously cut and chopped.
““ Experience FreshnessExperience Freshness””Dole Fresh
Follower
SHM PowerPoint Template Guidelines 03.15.10
Opportunity• 1/3 of shipped produce wasted: $34B in annual global waste from perishable
foods
• 50% is due to temperature variations from the farm to retail shelf
• Reducing temperature related shrink by half is approx. $9B opportunity.
1% reduction in Shrink
Increase in profit of $1,173,555
6% reduction in Shrink
Increase in profit of $7,378,830
Strawberries
Building Export Pallets – Group by First In or Shelf Life?
Having different remaining shelf life mixed on pallets, causes problems later. Sending short shelf life berries on longer delivery cycles turns Good Berries into BAD Berries for the retailer and others. More yellow & red pallets in Philadelphia & Southern California ~ More shrink at the retailer ~ Lower customer satisfaction
15+ 14+
13+
11+15+ 15+ 15+
10+
<10
12+12+
<1012+
15+
14+12+
11+14+
12+
12+
10+
<10
<1015+
15+
15+
15+
15+
15+
5+
15+
15+
15+15+
Unit Level Temperatures Matter
If we can group berries by shelf life, we avoid problems on multiple pallets – and send pallets to the right destination…
p. 27Supply Chain Insights, LLC © 2012
Campaign Objectives:
Reduce Out of Stocks at targeted retailers by
5%
Increase Shopper satisfaction and brand
loyalty
“Where’s My Bud” Viral Campaign
Concept:Execute a viral campaign
focused on leveraging shoppers to identify out of
stocks and potentially pricing compliance issues
Leverage a combination of consumer, internet, and in-store technical capabilities
Validation:Identify a key leader or market that wants to pilot. 50/50 shared risk in effort and resources to pursue. Keep costs to a minimum for pilot, under $75K
p. 28Supply Chain Insights, LLC © 2012
Retailer Experience
New text message to 612-961-7802:
A customer at Denny and Doug’s Liquor Emporium has just snapped a tag. You’re out of stock on Bud Light.
Please contact your wholesaler.
p. 29Supply Chain Insights, LLC © 2012
Here are some locations near you where you can find Bud Light. Be sure to use this promotion code to get your discount:
ABBL12456
p. 30Supply Chain Insights, LLC © 2012
More than Just “Like”
DellDell’s Key Social Media Milestones
p. 32Supply Chain Insights, LLC © 2012
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Redefine Customer Service?
p. 33Supply Chain Insights, LLC © 2012
Social Coupons for Social Communities
p. 33
p. 34Supply Chain Insights, LLC © 2012
Newell Rubbermaid
#Future15SB @bwdumars
p. 35Supply Chain Insights, LLC © 2012
#Future15SB @bwdumars
Newell Rubbermaid
p. 36Supply Chain Insights, LLC © 2012
How Best Buy created a social strategyBest Buy
p. 37Supply Chain Insights, LLC © 2012
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p. 38Supply Chain Insights, LLC © 2012
• Today’s supply chains respond. They don’t sense. To be able to sense, the supply chain needs to be redefined by new data forms and applications.
• The pace of the next decade will be quicker. It will be outside-in and it will make many of today’s applications obsolete.
• Go Big DATA or GO HOME!
Summary
p. 39Supply Chain Insights, LLC © 2012
Big Data will be the NEW Foundation of the Future
Supply Chain
p. 40Supply Chain Insights, LLC © 2012
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.
p. 41Supply Chain Insights, LLC © 2012
Where do you find Lora?
Contact Information: loracecere@gmail.com
Blog: www.supplychainshaman.com (3500 pageviews/month)
Twitter: lcecere 2900 followers. Rated as the top rated supply chain social network user.
Linkedin: linkedin.com/pub/lora-cecere/0/196/573 (2300 in the network)