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Infographics from Supply Chain Insights
- 1. Supply Chain Insights LLC Copyright © 2013, p. 1
Evolution of Supply Chain
Processes
Align:
Market
Driven
Building Horizontal
Process Connectors
Continuous
Testing
Learning
Improving
In Market
Orchestrate
Demand and Supply
Resilient
Reliable
Adapt:
Demand
Driven
Efficient
Sense
Demand
and Supply
Shape
Demand and
Supply based
on Market
Absorb
Demand
Volatility
Absorb Supply
Volatility
Right Product
Right Place
Right Time
Right Cost
Cost
Procure to
pay/order to
cash
- 3. Supply Chain Insights LLC Copyright © 2013, p. 3
S&OP Evolution
Manufacturing-
Driven
Deliver a Feasible
Plan for Operations
Match Demand
with Supply
Sales Driven
Match Demand
with Supply
Business-
Planning Driven
Maximize
Profitability
Demand Driven
Maximize
Opportunity
Sense and
Shape
Demand
Market Driven
Maximize
Opportunity and
Mitigate Risk.
Orchestrate
Demand
Market to Market
Greater Benefit
• Growth
• Resilience
• Efficiency
Source: Supply Chain Insights, LLC, 2012
- 7. Supply Chain Insights LLC Copyright © 2013, p. 7
• Supply Chain Index: A formulaic representation of
supply chain financial ratios correlated to stock
market capitalization valuation.
• Supply Chain Effective Frontier: The balance of
growth, profitability, cycle and complexity metrics to
deliver the supply chain strategy. It may or may not
maximize the company’s market valuation.
• Supply Chain Excellence: The behavior of
companies working to maximize value through the
setting of targets for supply chain financial ratios and
aligning metrics that matter (tied to value chain
strategy).
Definitions
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- 8. Supply Chain Insights LLC Copyright © 2013, p. 8
A Look at History: Progress in Productivity
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