Presentation on building a demand-driven organization to be given this Friday at the Demand-driven Institute conference.

1. Metrics that Matter

2. Supply Chain Insights LLC Copyright © 2015, p. 2
Get Prepared

3. Supply Chain Insights LLC Copyright © 2015, p. 3
Books for Your Bookshelf
Self-published
September 2014
Wiley
December 2014
Wiley
December 2012

4. Supply Chain Insights LLC Copyright © 2015, p. 4
Today’s Supply Chain is Stuck

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Industry Overview

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Why?

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Demand
Signal
Accurate Weekly
Forecasting is ...
Delay from
Purchase to
Signal
What is Demand?
* Represents emerging markets

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Fallacy #1: Functional Excellence
#sciwebinar

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Fallacy #2: A Project-based Focus
#sciwebinar

10. Supply Chain Insights LLC Copyright © 2015, p. 10
Companies Get More Serious
With A Recession: But Cannot Sustain It
#sciwebinar

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What We Expected

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A Supply Chain
is a Complex System
with Complex
Processes
with Increasing
Complexity
What we Learned….
#sciwebinar

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The Supply Chain Effective Frontier
#sciwebinar

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Correlations to Market Capitalization
#sciwebinar

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Orbit Chart: Wal-Mart
(Inventory Turns and Operating Margin)
#sciwebinar

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Orbit Chart: Apple
(Inventory Turns and Operating Margin)
#sciwebinar

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Orbit Charts: Dow Chemical Company
#sciwebinar

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Orbit Charts: Mattel, Inc.
(Inventory Turns versus Operating Margin)
#sciwebinar

19. Supply Chain Insights LLC Copyright © 2015, p. 19
Orbit Chart: Procter & Gamble
(Inventory Turns and Operating Margin)
#sciwebinar

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Overall Network: Inventory Turns versus
Operating Margin 2006-2012
#sciwebinar

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Measuring Supply Chain Improvement
Overall Ranking per Company
• Balance: Return on Invested Capital & Revenue Growth Vector Trajectory (30%)
• Strength: Inventory Turns & Operating Margin Vector Trajectory (30% of score)
• Resiliency: Inventory Turns & Operating Margin Mean Distance (30%)

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Supply Chains to Admire Methodology
Performance
Beats the industry
average for operating
margin, inventory turns
and ROIC for 2006-
2014 and 2009-2014
Improvement
Ranks above peer
group average on
The Supply Chain
Index for 2006-
2014 or 2009-2014
+

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An Example: Food
#sciwebinar

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Annual Study: Supply Chains To Admire
Supply Chains to Admire 2015 to be Announced at the Supply
Chain Insights Global Summit on September 9th and 10th

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Comparing Companies
Strong in turns
… but
unbalanced
Both 1 and 3 have balance … but
company 1 knows how to
rebound after the financial crisis
 resilience

26. Driving Results

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• Leadership
• Building of talent
• Outside-in processes
• Horizontal process focus
• Active and intentional design
• Supply chain planning
What Makes a Difference

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Right Stuff?

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Growing Talent Gap

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Losing Ground

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What does this Say to You?

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State of IT Systems

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The Role of ERP

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IT Systems:
Importance & Satisfaction by Role & Supply Chain

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State of Planning

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Get Prepared

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• It is not an evolution
• We are defining new
practices
• Learn, to unlearn, to relearn
Get Prepared

39. Supply Chain Insights LLC Copyright © 2015, p. 39
Questions?

42. Supply Chain Insights LLC Copyright © 2015, p. 42
Founder: Lora Cecere
• Founder of Supply Chain Insights
• “LinkedIn Influencer”
• Guest blog for Forbes
• Author of 3 books: Bricks Matter (2012), Shaman’s Journal (2014)
and Supply Chain Metrics That Matter (December 2014)
• 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.
Contact Information:
• Email: lora.cecere@supplychaininsights.com
• Blog: www.supplychainshaman.com (6000 pageviews/month)
• Forbes: http://www.forbes.com/search/?q=lora+cecere
• Twitter: lcecere (5750 followers)
• LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (35,000 followers)