Weitere ähnliche Inhalte Ähnlich wie Presentation at CSCMP Chicago Roundtable event on April 8, 2014 (20) Mehr von Lora Cecere (20) Kürzlich hochgeladen (20) Presentation at CSCMP Chicago Roundtable event on April 8, 20142. Supply Chain Insights LLC Copyright © 2013, p. 2
Supply Chain Insights is focused on delivering
independent, actionable and objective
advice for supply chain leaders.
A company dedicated to research,
turn to us when you want the latest insights
on supply chain trends, technologies to know
and metrics that matter.
About Us
3. Supply Chain Insights LLC Copyright © 2013, p. 3
• To Launch in May 2014
– All industries
– All company sizes
– Three ratios: Strength, Resiliency, and Balance
– Augmented by Peer Input
Supply Chain Index
4. Supply Chain Insights LLC Copyright © 2013, p. 4
Supply Chain Index= .33(Strength Ranking)+.33(Resiliency
Ranking)+.33(Balance Ranking)+.10 (Peer Assessment Ranking)
Calculation
NAICS
Code
Strength
Ratio
Strength
Ranking
Resiliency
Ratio
Resiliency
Ranking
Balance
Ratio
Balance
Ranking
Peer
Rating
Peer
Ranking
Total
Score
6. Supply Chain Insights LLC Copyright © 2013, p. 6
A Supply Chain
is a Complex System
with Complex Processes
with Increasing Complexity
8. Supply Chain Insights LLC Copyright © 2013, p. 8
Source: Supply Chain Insights 2012
Average Days of Inventory by Year
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Consumer Packaged Goods 59.0 57.0 62.0 64.0 67.0 67.0 68.0 70.0 70.0 64.0 64.0 67.0
Chemical 71.5 71.9 78.2 75.1 62.0 70.3 68.1 64.3 64.3 78.6 72.9 72.8
Pharma 122.2 133.7 190.1 171.0 184.3 175.6 167.8 149.8 154.9 198.7 154.3 131.8
High Tech 93.1 57.6 46.5 48.5 35.9 37.3 43.8 36.8 34.6 41.3 34.8 30.4
Average 86.5 80.0 94.2 89.6 87.3 87.5 86.9 80.2 81.0 95.6 81.5 75.5
0.0
50.0
100.0
150.0
200.0
250.0
DaysofInventory
10. Supply Chain Insights LLC Copyright © 2013, p. 10
Perform better than peer group
Improve year-over-year results
Align internally on metrics
Deliver against the business strategy
Demonstrate consistency in results
Use innovation in supply chain processes
Balance. Be leaders in managing trade-offs
Our Point of View:
Definition of Supply Chain Excellence
11. Supply Chain Insights LLC Copyright © 2013, p. 11
In a way that is:
Resilient and predictable
Balanced across the set of metrics to
maximize value
Showing year-over-year improvement
against peer group
To Drive Corporate Performance
13. Supply Chain Insights LLC Copyright © 2013, p. 13
Most Interesting Patterns
• Cash-to-Cash Cycle versus Inventory Turns
• Revenue per Employee versus Inventory Turns
• Operating Margin versus Inventory Turns
14. Supply Chain Insights LLC Copyright © 2013, p. 14
What Have We Learned?
• Each industry has a different pattern of
trade-offs of balancing growth, profitability,
cycles and complexity.
• Companies that are supply chain leaders
have very small movement with a balanced
portfolio of metrics.
• It is about MUCH more than Return on
Assets (ROA), growth and inventory.
20. Supply Chain Insights LLC Copyright © 2013, p. 20
2002 2012
0
3
6
9
12
15
0 250 500 750 1,000 1,250
InventoryTurns
Revenue per Employee (K$)
The Dow Chemical Company
Visualizing the Patterns
Source: Supply Chain Insights LLC, Corporate Annual Reports 2002-2012 from One Source
Best Scenario
DOW
999, 6.7
Trace the line from
2002 point to 2012
point to follow the
performance over
time.
The diamond shows the company’s average over the period.
Ex: The Dow Chemical Company (DOW) has an average of 999
K$ for revenue per employee and 6.7 for inventory turns.
Ideally, companies are increasing
inventory turns and revenue per
employee, moving towards the upper
right corner of the graph over time.
Here, we plot inventory turns (y-axis)
vs. revenue per employee (x-axis).
Average (Revenue per Employee, Inventory Turns)
22. Supply Chain Insights LLC Copyright © 2013, p. 22
Inventory Turns vs. Revenue per
Employee (2002-2012)
24. Supply Chain Insights LLC Copyright © 2013, p. 24
Operating Margin vs. Revenue per
Employee (2002-2012)
26. Supply Chain Insights LLC Copyright © 2013, p. 26
Operating Margin vs. Revenue per
Employee (2002-2012)
27. Supply Chain Insights LLC Copyright © 2013, p. 27
Inventory Turns vs. Revenue per
Employee (2002-2012)
29. Supply Chain Insights LLC Copyright © 2013, p. 29
Inventory Turns vs. Revenue per
Employee (2002-2012)
33. Supply Chain Insights LLC Copyright © 2013, p. 33
Inventory Turns vs.
Revenue per Employee (2003-2012)
37. Supply Chain Insights LLC Copyright © 2013, p. 37
Inventory Turns vs. Revenue per Employee
(2002-2012)
43. Supply Chain Insights LLC Copyright © 2013, p. 43
• Supply chain is a complex system with
increasing complexity.
• Different industries have different patterns,
but the cash-to-cash metrics have the
highest correlation to market capitalization
with some of the poorest performance.
Wrap-up
44. Supply Chain Insights LLC Copyright © 2013, p. 44
1. Finish the work on the Supply Chain Index
2. Place the rankings on balance, strength and
resilience into the Supply Chain Insights
Community for Shaman Circle members to
vote on supply chain excellence
3. Final analysis of companies to be revealed
at the 2014 Supply Chain Insights Global
Summit
Next Steps
45. Supply Chain Insights LLC Copyright © 2013, p. 45
PAST WEBINARS: ON DEMAND
• From August 29, 2013: Supply Chain Index,
Overview
• From August 15, 2013: Supply Chain Talent: The
Missing Link
• From July 25, 2013: What is the Role of the
Store
Webinars
www.supplychaininsights.com/upcoming-webinars
UPCOMING WEBINARS
• November 13, 2013: Shaman’s Circle
• November 14, 2013: Healthcare Value Chain
• December 12, 2013: Digital Manufacturing & 3D
Printing
• January 23, 2014: Voice of the Supply Chain
46. Supply Chain Insights LLC Copyright © 2013, p. 46
Global Summit 2014
Registration is Now Open
Supply Chain Insights Global Summit 2014
September 10-11, 2014
The Phoenician – Scottsdale, AZ USA
www.supplychaininsightsglobalsummit.com
47. Supply Chain Insights LLC Copyright © 2013, p. 47
Upcoming Corporate Training
Chicago, IL and Atlanta, GA
November 11-12, 2013
Chicago, IL USA
January 16-17, 2014
Atlanta, GA USA
www.supplychaininsights.com/training
49. Supply Chain Insights LLC Copyright © 2013, p. 49
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.
50. Supply Chain Insights LLC Copyright © 2013, p. 50
Where Do You Find Lora?
Contact Information:
lora.cecere@supplychaininsights.com
Blog: www.supplychainshaman.com
(5000 pageviews/month)
Twitter: lcecere 5200 followers.
LinkedIn: linkedin.com/pub/lora-
cecere/0/196/573 (5450 in the network)