Sharing of Insights on the Book Bricks Matter. The book Bricks Matter is a chronology of three decades of supply chain management and outlines how supply chain processes have driven improvements in productivity. Today, three decades later, many industries are stuck on a supply chain plateau. Growth has slowed, inventories are climbing and costs are rising. How can we use new forms of analytics to reverse this trend?

1. Bricks Matter

2. Back Cover
This is the new bible for all supply chain executives. It provides an insider’s perspective that will prove
incredibly valuable to even the most grizzled supply chain veteran. This is the next must-have business
book.
--Bruce Richardson, Chief Enterprise Strategist, Salesforce.com
The journey to build the outside-in end-to-end value network happens in stages and can only be led from
the top based on value-based outcomes. This is a guidebook for leaders driving the transformation.
--Roddy Martin, Senior Vice President, CCI Best Practice Research and Consulting
This book is like no other that has been written about supply chain management. It is a must
read for the supply chain leadership team.
--Marty Kisliuk, Global Operations Director, Agricultural Products Group, FMC Corporation
Lora Cecere has been a key driver of supply chain strategies that force companies to think differently about
how they work with their customers, partners, and cross-functionally within their own organizations. Here
she teaches us to take a bold step to change our thinking and turn the supply chain around to focus on the
consumer.
--Ann Dozier, Vice-President, Fresh Dairy Direct IT, Dean Foods Company
Today, the worlds of social business and supply chain management have many degrees of separation. I
enjoyed working with Lora to understand what the future transformation of digital marketing to digital
business could look like.
--Jeremiah Owyang, Research Director, Altimeter
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Supply Chain Insights LLC Copyright © 2012, p. 2

3. Bricks Matter Book Club on Linkedin
Supply Chain Insights LLC Copyright © 2012, p. 3

4. Right Use Expansion into Supply Chain
of Assets BRIC Countries Process
(Brazil, Russia, Knowledge
India and China)

5. Evolving Practices
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6. The Supply Chain Pioneers
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7. Industry Averages
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8. Chemical
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9. Consumer Electronics
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10. Consumer Packaged Goods
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11. Food
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12. Pharmaceutical
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14. Supply Chain Management:
Top 3 Elements of Pain for Respondent
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15. Evolution
Align: Continuous
Building Horizontal Testing Orchestrate
Market Process Connectors Learning
Improving Demand and Supply
Driven In Market
Adapt:
Demand Resilient
Reliable
Driven
Right Product Efficient
Absorb
Sense Demand
Demand Volatility Right Place Cost
and Supply
Right Time
Procure to
Shape Absorb Supply pay/order to
Demand and Volatility cash
Supply based Right Cost
on Market
Supply Chain Insights LLC Copyright © 2012, p. 15

16. What is a Market-driven Value Network?
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.
Supply Chain Insights LLC Copyright © 2012, p. 16

17. Cash-to-Cash Cycle vs. Gross Margin (2000-2011)
SUMMARY SLIDE
Supply Chain Insights LLC Copyright © 2012, p. 17

18. Definitions
Supply Network: When the supply chain is extended to a
network of trading partners, it is termed a supply network.
Value Chain: When the emphasis of this extended supply
chain shifts from cost to value, it is called a value chain.
Value Network: When it becomes more strategic to the
company, focused outside-in to drive value-based outcomes, it
is termed a value network.
Supply Chain Insights LLC Copyright © 2012, p. 18

19. Evolution
Align: Continuous
Building Horizontal Testing Orchestrate
Market Process Connectors Learning
Improving Demand and Supply
Driven In Market
Adapt:
Demand Resilient
Reliable
Driven
Right Product Efficient
Absorb
Sense Demand
Demand Volatility Right Place Cost
and Supply
Right Time
Procure to
Shape Absorb Supply pay/order to
Demand and Volatility cash
Supply based Right Cost
on Market
Supply Chain Insights LLC Copyright © 2012, p. 19

20. A Supply Chain
is a Complex System
with Complex Processes
with Increasing Complexity
Supply Chain Insights LLC Copyright © 2012, p. 20

21. The Effective Frontier
Profitable Growth
Revenue Cost of Goods
Working Capital
Corporate Social Responsibility
R&D Strategy and Investment Asset Strategy and Investment
Forecast Accuracy Customer Service Inventory
Channel Strategy Product and Supplier Strategy
Service Portfolio
Sales Distribution Manufacturing Logistics Procurement
Policies Policies Policies Policies Policies
Returns Backorders First Pass Yield Empty Miles Material Yield
Supply Chain Insights LLC Copyright © 2012, p. 21

22. Useful Ratios
Growth Profitability Cycle Complexity
R&D Margin Cash on Hand C2C Cycle Altman Z
Days of Finished
R&D to COGS Ratio Free Cash Flow Ratio Capital Turnover
Goods
SGA Margin Gross Margin Days of Inventory Current Ratio
Days of Payables
SGA/COGS Net Profit Quick Ratio
Outstanding
COGS as Percent of Days of Raw
Operating Margin Return on Assets
Net Sales Materials
Days of Sales
Pretax Margin (EBIT) Return on Equity
Outstanding
Days of Work in Return on Invested
YoY Sales Growth
Progress Capital
Operating Margin DPO/DSO Return on Net Assets
Inventory Turns Revenue/Employee
Receivables Turns Cost of Sales
Supply Chain Insights LLC Copyright © 2012, p. 22

23. What is Best in Class?
• Performance better than peer group
• Year-over-year improvements
• Consistency in results
• Leadership in managing trade-offs
Supply Chain Insights LLC Copyright © 2012, p. 23

24. Five Year Comparison
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25. Value Network Strategy
Business Strategy
What are the right things to do to increase company value?
Value-network Supply Chain Strategy
What are the right ways to support the business strategy?
What are the right trade-offs between value drivers for each value network?
Align demand Right product Design the Build Align supply
Supply chain strategy
relationships platforms supply organizational relationships
response systems and
manage talent
Effective Supply
Demand Networks Design Networks Continuous Networks
Improvement
Joint Value Creation Innovation Supply Chain Execution of buy-
Strategies Methodologies Network Design Capabilities Required side strategies
Business Process
How do I do the right things right?
Source: Supply Chain Insights, LLC
Supply Chain Insights LLC Copyright © 2012, p. 25

26. The Path Forward

27. The Supply Chain of the Future
World
Population
North America Europe Asia
2007 2020 2007 2020 2007 2020
339M 342M 731M 722M 4.0B 4.6B
L America
2007 2020 Africa Oceania
572M 660M 2007 2020
2007 2020
965M 1.3B 34M 40M
Source: “The World at Six Billion” United Nations, 2004; The World UN Population Assessment 2006; “Unsustainable World,” 04/15/08, BBC
MARCO TRENDS
Supply Chain Insights LLC Copyright © 2012, p. 27

28. Supply Chain 2020 Tipping Points
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Orchestration Internet of Things
Talent
Shortage Big Data Learning
Supply Chains Supply Chains
Compliance on
Safe & Secure
Digital Manufacturing
Supply Chain Excellence =
Value-Based Outcomes
Delivered by Value Networks
Outside-In
Supply Chain Insights LLC Copyright © 2012, p. 28

30. Scenario Planning
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31. Rethinking Analytics
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33. Definition
Structured • Transactional
Challenges:
Data • Time phased data
• Social Volume
Unstructured • Channel
Data • Customer Service
• Warranty
• Temperature Velocity
Sensor • RFID
Data • QR codes
• GPS
Variability
New • Mapping and GPS
• Video
Data • Voice
Types • Digital Images
33
Supply Chain Insights LLC Copyright © 2012, p. 33

34. Connecting the Extended Supply Chain
34
Supply Chain Insights LLC Copyright © 2012, p. 34

35. Connecting the Extended Supply Chain
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36. Training – Based on Bricks Matter
Two-day public training classes focusing on accelerating the understanding of
supply chain excellence. $1500 for two days of training.
– Chicago, IL – April 1-2
– Dallas, TX – May 6-7
– Princeton, NJ – June 24-25
For more information and to register visit:
www.supplychaininsights.com/services/training/
Supply Chain Insights LLC Copyright © 2012, p. 36

37. Where is Your Opportunity?
Supply Chain Insights LLC Copyright © 2012, p. 37

38. 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.
Supply Chain Insights LLC Copyright © 2012, p. 38

39. Where Do You Find Lora?
Contact Information:
lora.cecere@supplychaininsights.com
Blog: www.supplychainshaman.com
(4000 pageviews/month)
Twitter: lcecere 3700 followers. Rated as the
top rated supply chain social network user.
LinkedIn: linkedin.com/pub/lora-
cecere/0/196/573 (2300 in the network)
Supply Chain Insights LLC Copyright © 2012, p. 39