Jake Barr - CEOBlueWorld Supply Chain ConsultingRetired – Global Director – P&G

Where are We on The Demand Driven Journey?

Lora Cecere - Founder of Supply Chain Insights

Carol Ptak – Founder of Demand Driven Institute

Referee/Judge

Welcome to…..

“Qualifications to Incite the Riot”

• P&G Demand Driven Architect• Accenture/Gartner Recognized “Outside In” Expert

Ground Rules

“How did we get here” Perspective on Barriers to Progress Panelist View of our Current State Your Take on the State of Affairs Closing thoughts

The Great Debate - September 2015

Story of the $1Billion Dollar Brand How to Deliver Game Changing Value

at the Two Moments of Truth

How Did We Get Here?

Deliver superior consumer value cheaper/better/faster

Business Driver Translation Leaving Revenue/Margin on Table

• Despite technically BIC Service

Limiting speed of growth - not agile• Need for more sku’s/channels/markets• Differentiated Retail/Customer Requirements• Segmentation of the supply chain for cost/cash

Cash/Cost Intensive• We needed to be the bank for growth

Couldn’t Productively Scale• Needed new approach

Supply Chain Dysfunction/Visibility

Why

Cha

nge?

TM P&G

Vision

Make the Supply Chain a Competitive Weapon by

Synchronizing the Cadence from Shopper

through Supplier

Supply Network

Daily Daily DemandDemand

Replenishment

Customer Customer HeadquartersHeadquarters

Planning

P&G/Partners& Suppliers

Deployment

OOS Visibility

Merchandising

Roadmap to Progress

Synchronization of Processes/Stds New Age Metrics/Rewards Eliminate Technology silos

New “Skills”/New Talent

Consumer-driven Supply Networks: Defined by P&G in the 1990s as a shelf-driven, outside-in process defined by successful execution of the two moments of truth. (The two moments of truth are: Was the product in stock? Was the customer delighted?)

Demand-driven Supply Networks: As defined by AMR Research in 2004: a supply chain that senses and translates market signals in real time.

Demand-driven Value Networks: As defined by AMR Research in 2007: A network that senses demand with minimal latency to drive a near-real time response to shape and translate demand.

Market-driven Value Networks: As defined by Supply Chain Insights in 2010: an adaptive network focused on a value-based outcomes that senses, translates, and orchestrates market changes (buy and sell-side markets) bi-directionally with near-real time data to align sell, deliver, make and sourcing organizations outside-in.

Definitions

Definition

Does not meanMake to order everythingSimple pullInventory everywhere

Does meanSensing changing customer demand, then adapting planning and production while pulling from suppliers – all in real time!

All material and content © copyright 2015 Demand Driven Institute. All rights reserved.Certified Demand Driven Planner (CDDP) is a trademark of the ISCEA

Demand Driven MRP?

Material Requirements Planning(MRP)

Distribution Requirements Planning

(DRP)Lean Theory of

Constraints Innovation

Demand Driven MRP(DDMRP)

A multi-echelon materials and inventory planning and execution solution.

Six Sigma

All material and content © copyright 2015 Demand Driven Institute. All rights reserved.Certified Demand Driven Planner (CDDP) is a trademark of the ISCEA

Crawl/Walk/RunIt’s a Continuous Journey

Reliable/Predictable SupplySupply Chain VisibilityConnecting external flowsControl Tower/Network OrchestratorsConcurrent Demand/Supply ScenariosRinse-Recycle-Repeat

Real Time OperationsSeamless E2E Synchronization

Synchronize the cadenced supply chain From Shopper Consumption through Suppliers

Digital Integration of POS Data as key source for shopper behavior and shelf-offtake. Scaled Integration into forecast.

Real time, Digitized Supply Network Capacity Planning

Agile Digital Scheduling and sequencing of factory floor ops driving real time supply response

Segmentation of Demand Info Flow to fully automate turn planning and focus high value touches on events/merchandising integration

Real Time, What-If Scenario Modeling and Simulation, together with integrated target setting and tracking.

1

2

3

4

Have We Come Far Enough? - No!

Sum it Up:Why Haven’t We Seem More Breakthrough

Three GAPS:

Process

Technology

Organization

Culture

“End State”Business Sufficiency

• Supply chain – sustainable, scalable & synchronized driven by Real Time data

• Single Demand, Supply and Business Planning Environment

• Volume and Financial sufficiency evaluation concurrent and real time

• What-if and Scenario Management

2012The Procter & Gamble Company, All Rights Reserved.2012The Procter & Gamble Company, All Rights Reserved.

Panelist’s PerspectiveInitial Thoughts on:

Level Set – What’s Your Definition of Demand Driven

Demand Driven – Dead or Alive?

What is behind the lack of broad scale success given the potential offered?

What are some practical interventions or advancements that would significantly change the game here?

How do we deal with driving the improvement in the crossover of source, make, deliver?

Compelling thought you want to leave the audience with.

• Make the Supply Chain Visible – E2E

• Deliver Reliable Predictable Supply

• Drive off of Demand Visibility/Integration

• Agility to Shape/Predict Potential Failures – in advance

• Bring Supply Chain Options/Tradeoffs “Alive”

• Enable “Segmentation” of Service Non

-Neg

otia

bleBigger Picture – “End Game”

Demand Driven Success?

Creation of Roadmap – Maturity ModelTop 25 Ranking BenchmarksBreakthroughs in SC TechnologyCreated “outside in” network design Initiated review of Gaps in SC TalentTriggered new process monitoring & measurement processes

So …. Is Demand Driven Still Alive?