2014 Investor & Analyst Day
Transcript of 2014 Investor & Analyst Day
2014 Investor & Analyst Day
Jim RowanChief Operating Officer, Dyson
May 21, 2014
RECALL ANALYST DAY 2013. . .
TRANSFORMING A GLOBAL FLOOR CARE COMPANY SUPPLY CHAIN
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Jim RowanChief Operating Officer
Dyson
Jim Rowan
The Complexity Equation
(u + m) x h
c= g
The Complexity Equation
• Understanding Complexity
• Managing Complexity
• Harnessing Complexity
The saying goes;
“The early bird catches the worm”, however “the second
mouse gets the cheese”.
“Designing a supply chain that is fast and effective, yet
protects against unforeseen risks is no longer a
differentiator, it’s now essential”
UNDERSTANDINGCOMPLEXITY
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Start with a fairly simple supply chain…
The eight V’s of Complexity
VICINITY
VOLUME
VARIATION
VELOCITY
VOLATILITY
VISIBILITY
VALUE
VIRTUE
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…Now increase Volume and Variation
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…increase Velocity and Vicinity
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…now Volatility, and Value
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I’m sure you get the picture
Com
ple
xity
8V’s
If we don’t understand and
managed complexity, then it will
manage us!
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May
21,
2014
MANAGINGCOMPLEXITY
Ash Clouds
Supply Constraints
People Skills
Quality
Reliability
Global Financial Crisis
Logistics
Product Mix
Mass Customisation
Legal & IP Issues
Bird Flu
Product Cycle
Time Reductions
Political Instability
Corporate
Social Responsibilities
Bull Whip EffectCurrency & FX Risk
Emerging Markets
Conflict Minerals
Retail vs. Online
Increased Competition
Floods
Tsunami
Commodity prices
Lets take a closer look at the eight V’s
VICINITY
VOLUME
VARIATION
VELOCITY
VOLATILITY
VISIBILITY
VALUE
VIRTUE
VOLUME
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VOLUME
MACHINES
COMPONENTS
OWNERS
DISTRIBUTORS2B
VARIATION
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VARIATION
PRODUCT MIX
DEMAND
TECHNOLOGY
PERSONALISATION`
VOLATILITY
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VOLATILITY
NATURE
INFLATION
MARKET
COSTS
VISIBILITY
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VISIBILITY
INFORMATION
TRENDING &FEEDBACK
DEMAND SUPPLY &CONSUMPTION
CONTINGENCYPLANNING
VALUE
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VALUE
QUALITY &RELIABILITY
TECHNOLOGY &PERFORMANCE
WARRANTY
AFTERMARKETSERVICE
VELOCITY
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VELOCITY
CAPACITY,RAMP SPEED
FEWERTOUCH POINTS
LIFECYCLE
TIME TOMARKET
NPI EOL
IN-LIFE
VICINITY
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VICINITY
RIGHT TIME
RIGHT PLACEPHYSICAL & VIRTUAL
VALUE DRIVERSIN EACH MARKET
RIGHT PEOPLE INTHE RIGHT PLACE
VIRTUE
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VIRTUE
PEOPLE
COMMUNITY
ENVIRONMENT
DESIGN
HARNESSINGCOMPLEXITY
Supply Chain Top 25 Proof Point
RANK COMPANY123
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10111213141516171819202122232425
AppleDellP&G
Research In MotionAmazon.comCisco SystemsWal-Mart StoresMcDonald’sPepsiCoSamsungThe Coca-Cola CompanyMicrosoftColgate-PalmoliveIBMUnileverIntelHPNestleInditexNikeJohnson & JohnsonStarbucksTesco3MKraft Foods
2010 2011
Source: Gartner, The Gartner Supply Chain Top 25 for 2010s & 2011s
RANK COMPANY12345678
910111213141516171819202122232425
AppleP&GCisco SystemsWal-Mart StoresDellPepsiCoSamsungIBM
Research In MotionAmazon.comMcDonald’sMicrosoftThe Coca-Cola CompanyJohnson & JohnsonHPNikeColgate-PalmoliveIntelNokiaTescoUnileverLockheed MartinInditexBest BuySchlumberger
Year 1 – Top 10Year 2 – Top 5
Now Even Better
Wireless
Better Info Integration
“Sense & Respond” not “Sense & Replan”
Virtual, Vertical & Physical
a final thought…
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Sales Finance Marketing Product Dev
Transportation Manufacturing Forward Logistics Reverse Logistics Customer Support
What if we moved from a backward looking fragmented process using outdated information………
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Sales Finance Marketing Product Dev
Transportation Manufacturing Forward Logistics Reverse Logistics Customer Support
Harnessing complexity to drive value?
…. To a real-time wireless world of sense and respond sharing one data set !
What If…
Rather than Supply Chain always pushing back on Complexity
We said …. We got you covered
…BRING IT ON!!!
TAKE EVERY ORDER OFF THE STREET!