CSCMP India 2012 Conference
1-2 June
Mumbai, India
ITC Maratha MUMBAI
Creative Approaches to Supply Chain Profitability:
A Global Perspective from India
Sales, Inventory, and Operations Planning:
Fueling Your Companys Growth
Jeff Metersky Vice President, Sales, Inventory & Operations Planning
Chainalytics
Agenda
Who is Chainalytics?
Asia Market Growth and Implications
Sales & Operations Planning Introduction
Analytical Enablers for Effective S&OP
Who is Chainalytics?
4
TODAY
Over 80 FTEs Worldwide
Our Clients
More Than 180 Unique Clients
14 of AMRs Top 25 Supply Chains
57 Fortune 500 Companies
5 of Top 10 Retailers
7 of Top 10 Food & Beverage Manufacturers
5 of Top 10 CPG Companies
6 of Top 10 Forest, Paper and Packaging Companies
Our Experience
More Than 375 Engagements
1st Named to 100 Great Supply Chain Partners List by SupplyChainBrain; Recognized for 8 Years Running
Launch of Freight Market Intelligence Consortium (FMIC)
2001
2002
2003
2004
2005
2006
2007
2009
2010
2011
2008
Our Genesis
Market Lacked Proven, Focused Supply Chain Analytics Competence
Best Analytical Minds in Supply Chain
Empowering Fact-Based Decisions
Across Your Supply Chain
Launch of Sales & Operations Variability Consortium (S&OVC)
Mike Kilgore named a Pro to Know by Supply & Demand Chain Executive; Steve Ellet, Gary Girotti, Irv Grossman, Jeff Metersky, Matt Harding, and Kevin Zweier also named Pros to Know
Established Chainalytics India Private Limited in Bangalore
2012
Strategic Growth via Mergers & Acquisitions
Supply Chain Operations (Chainnovations)
Packaging Optimization (Adalis Packaging Solutions Group)
FMIC named Top Supply Chain Innovation by Supply & Demand Chain Executive
Named to ARC Advisorys 10 Coolest Supply Chain Boutiques
Years
Quarters
Months
Weeks
Planning
Horizon
Value-Driven Supply Chain Decisions
5
At what service
level can we
profitably satisfy
demand?
How should
we transport
product through
the supply
chain?
How much and
where should
inventory be
positioned in the
supply chain?
Can we reduce our
transport and
logistics costs by
improving cube
utilization?
Should our
warehousing
and material
operations be
insourced
or outsourced?
When should
we buy or make
product to make
the best use of
our capacity?
What is the
best flowpath? How well do
our current
operations
mitigate repair
and warranty
costs?
How can we
increase
visibility to
stakeholders?
Transportation
Service Supply Chain
Logistics Operations
Sales, Inventory & Operations Planning
Packaging Optimization
Supply Chain Design
Agenda
Who is Chainalytics?
Asia Market Growth and Implications
Sales & Operations Planning Introduction
Analytical Enablers for Effective S&OP
3%
24%
2%
16%
0%
5%
10%
15%
20%
25%
1975 2010 % W
orl
dw
ide
Mid
dle
Cla
ss
Asian Population Asian Purchasing Power
Asia's middle class
is expected to
continue its growth
trajectory to reach
2 Billion by 2020.
(More than double
current figure.)
By 2030, middle
class Asians will be
the next global
consumers and
assume the role of
US & European
middle classes
1 Historical Data Excludes Japan
Source: Rise of middle classes in India, China key to growth in Asia, The Economic Times, April 4, 2012
1 1
Rapid Rise in Asian Middle Class Population
160
267
0
50
100
150
200
250
300
2011 2016
Mill
ion
s
Indian Middle Class Population
Rapid Rise in Indian Middle Class Population
Indias middle class
is projected to reach
267 Million by 2016.
Source: India's middle class population to touch 267 million in 5 yrs, Hindustan Times, February 6, 2011
Significant Expenditure on Food in Emerging Markets
Food Share of Household Expenditures
33%CHINA
NIGERIA
40%
RUSSIA
28%
MEXICO
24%
PAKISTAN
46%
INDIA
35%
ITALY
14%
EGYPT
38%
BRAZIL
25%
JAPAN14%
KENYA
45%
INDONESIA
43%
CHILE
23%FRANCE
14%
SPAINAUSTRALIA13%
11%GERMANY
11%
CANADA9% U.S.
7%
UK9%
Source: Nielson Emerging Markets Global Forces White Paper March 2012
New Product Introductions
From 1992 2009 in the USA
there were only 10 times were
new product introduction
declined for CPG products (1)
2009 India ranked 6th Globally
for Personal Care product
introductions (2)
2010 FMCG Companies
introduced 10,000+ New SKUs
in India (3)
Sources: (1) Datamonitor; (2) Personal Care in India Research and Markets May 2010; (3) Eat, pray, love innovations
Business Today India June 12, 2011
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
1992 1994 1996 1998 2000 2002 2004 2006 2008
New
Pro
duct
Intr
oduc
tion
sFood and Beverage Nonfood
United States
Boundaries
Supply Economy Traditional Media
Brick & Mortar Set Pricing
FIXED MODEL FLEXIBLE MODEL
Varied Distribution Points + Traditional and New Media
$
@
Negotiated Pricing Boundless
+ Demand Economy
New Economy Based on Information Age
Source: Nielson Emerging Markets Global Forces White Paper March 2012
Challenge for Asian FMCG Companies and Retailers Build and Maintain Brand Loyalty Under
Rapid Pace of New Product Introduction
Associated SKU Proliferation
Demand Uncertainty and Volatility
Expanded Supply Chains with Global
Coordination and Local Execution
Multi-Channel Fulfillment Designed for:
Flexibility, Responsiveness, Adaptability
Agenda
Who is Chainalytics?
Asia Market Growth and Implications
Sales & Operations Planning Introduction
Analytical Enablers for Effective S&OP
Sales & Operations Planning is Crucial for Success
14
Business Strategy
Competitive
Differentiation
Geo Strategy
Financial Targets
Financial Planning
Revenue Forecast
Budgeting
Capital Plans
Cost Control
Market Planning
Prod Forecast
Promo Plans
Brand/Channel
Strategy & Pricing
R & DCategory Mgmt
New Prod Into
Prod Lifecycle Plan
Prod Mix/ Pricing /
Placement
Sales Planning
Sales Forecasts
Customer Business
Policies/Plans
Demand Planning
Historical Demand
Stat Forecasts
SUPPLY
DEMAND
CORPORATE
Supply Planning
Prod Forecast
Promo Plans
Brand/Channel
Strategy & Pricing
Demand Management
Product Allocation
Operations Planning
Sales Forecasts
Customer Business
Plans
Product Allocation
Logistics Planning
Historical Demand
Stat Forecasts
Selected S&OP Objectives
15
Increase Profits
Free Up Capacity
Focus Resources
Increase Flexibility
Manage Complexity
Business Strategy
Competitive
Differentiation
Geo Strategy
Financial Targets
Financial Planning
Revenue Forecast
Budgeting
Capital Plans
Cost Control
Market Planning
Prod Forecast
Promo Plans
Brand/Channel
Strategy & Pricing
R & DCategory Mgmt
New Prod Into
Prod Lifecycle Plan
Prod Mix/ Pricing /
Placement
Sales Planning
Sales Forecasts
Customer Business
Policies/Plans
Demand Planning
Historical Demand
Stat Forecasts
SUPPLY
DEMAND
CORPORATE
Supply Planning
Prod Forecast
Promo Plans
Brand/Channel
Strategy & Pricing
Demand Management
Product Allocation
Operations Planning
Sales Forecasts
Customer Business
Plans
Product Allocation
Logistics Planning
Historical Demand
Stat Forecasts
Effective S&OP Enhances Company Performance
Performance Drivers
Sales
Price
COGS
SG&A
Working
Capital
Fixed Assets
Revenue
Growth
Cost
Reduction
Asset
Utilization
Return on
Capital
Employed
Value Chain Solutions
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