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Presentation given at the SAS Global Forum on the Connected Supply Chain.
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Presentation on the Connected Supply Chain
1.
The Connected Supply Chain April
2018 For the Supply Chain Leader Who Wants to Rise Above
2.
Supply Chain Insights
LLC Copyright © 2018, p. 2 I Am A Social Scientist
3.
Supply Chain Insights
LLC Copyright © 2018, p. 3 The Work that We Do
4.
Supply Chain Insights
LLC Copyright © 2018, p. 4 I Write for the Supply Chain Leader
5.
Supply Chain Insights
LLC Copyright © 2018, p. 5 ⹠Outside-in ⹠Synchronized (versus Integrated) ⹠Horizontal (versus Vertical) Process Excellence ⹠Data at the Speed of Business ⹠Data-Driven Insights ⹠Sensing before Response What Is The Connected Supply Chain?
6.
Supply Chain Insights
LLC Copyright © 2018, p. 6 It Is NotâŠ
7.
Supply Chain Insights
LLC Copyright © 2018, p. 7 Planning IsâŠ. A River that Flows Through the Value Network
8.
Supply Chain Insights
LLC Copyright © 2018, p. 8 Todayâs Reality
9.
Supply Chain Insights
LLC Copyright © 2018, p. 9 Third Industrial Revolution Productivity Impact Stopped in 2004
10.
Supply Chain Insights
LLC Copyright © 2018, p. 10 Risk Drivers
11.
Supply Chain Insights
LLC Copyright © 2018, p. 11 Inventory
12.
Supply Chain Insights
LLC Copyright © 2018, p. 12 Normal Distribution SKU/L SalesVolume Anything But Normal The âLong Tailâ is Growing
13.
Supply Chain Insights
LLC Copyright © 2018, p. 13 Why? Commodity Pressures
14.
The Manifesto for Change
15.
Supply Chain Insights
LLC Copyright © 2018, p. 15
16.
Supply Chain Insights
LLC Copyright © 2018, p. 16 What I Believed
17.
Supply Chain Insights
LLC Copyright © 2018, p. 17 Only 12% Of Companies Are Driving Improvement and Performance Better Than Their Peer Group at the Intersection of Operating Margin and Inventory Turns.
18.
Supply Chain Insights
LLC Copyright © 2018, p. 18 Customer Service The Supply Chain Is a Complex System with Increasing Complexity.
19.
Supply Chain Insights
LLC Copyright © 2018, p. 19 2006 2016 6.6 6.8 7.0 7.2 7.4 7.6 7.8 8.0 0.08 0.09 0.10 0.11 0.12 0.13 0.14 0.15 InventoryTurns Operating Margin Food Best Scenario Food 0.11, 7.38 ï”Average (Operating Margin, Inventory Turns) Source: Supply Chain Insights LLC, Corporate Annual Reports 2006-2016 from YCharts Shifts in the Food Manufacturing Market Operating Margin vs. Inventory Turns (2006 - 2016)
20.
Supply Chain Insights
LLC Copyright © 2018, p. 20 Gaps in Alignment
21.
Supply Chain Insights
LLC Copyright © 2018, p. 21 Functional Management of Costs: Manage Costs Like a Decathlete
22.
Supply Chain Insights
LLC Copyright © 2018, p. 22 Efficient Is Usually Not Effective
23.
Supply Chain Insights
LLC Copyright © 2018, p. 23 What Makes a Difference?
24.
Driving a Digital Transformation
25.
Supply Chain Insights
LLC Copyright © 2018, p. 25 What Is Next-Generational Thinking?
26.
Supply Chain Insights
LLC Copyright © 2018, p. 26 Todayâs Reality
27.
Supply Chain Insights
LLC Copyright © 2018, p. 27 Current Supply Chain Process Thinking Rows and Columns: Transactional Data Fixed Hierarchies with Structured Data One-to-One Enterprise Linear Flows Descriptive and Predictive Analytics
28.
Supply Chain Insights
LLC Copyright © 2018, p. 28 Digital Supply Chain: Transforming the Atoms and Electrons of the Supply Chain through the Confluence of Technologies What Does Digital Transformation Mean for You? There Is No One Definition
29.
Bar codes were
first used at Marsh Supermarket in 1968
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LLC Copyright © 2018, p. 30
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LLC Copyright © 2018, p. 31
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LLC Copyright © 2018, p. 32
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LLC Copyright © 2018, p. 33 Use of Downstream Data
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LLC Copyright © 2018, p. 34 Impact of Localized Assortment
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Supply Chain Insights
LLC Copyright © 2018, p. 35 Sentiment: The Need to Listen
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New Forms of
Analytics
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Supply Chain Insights
LLC Copyright © 2018, p. 37 Data Needs to Move Securely Through Value Networks In⊠Clouds Streams Pools
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LLC Copyright © 2018, p. 38 Need for New Forms of Analytics
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LLC Copyright © 2018, p. 39 Evolution of Insights
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Supply Chain Insights
LLC Copyright © 2018, p. 40 Evolution of Cognitive Computing
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LLC Copyright © 2018, p. 41 Redefining Time
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Supply Chain Insights
LLC Copyright © 2018, p. 42 Internet of Things
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Supply Chain Insights
LLC Copyright © 2018, p. 43
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Supply Chain Insights
LLC Copyright © 2018, p. 44 Rich user interface in full HD Evocative sound track with burring grinder and tinkling of spoons Memorable flavours and fragrances Cutting edge reliable / ultra efficient computer processing hardware Stunning curved design by Italian automotive designers Irresistible aromas of Costaâs coffee shops Innovative coffee-making system providers Redefining Replenishment
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Supply Chain Insights
LLC Copyright © 2018, p. 45 1.5M sku locations ~ 95% slow or intermittent Seasonal demand (at the item level) is identified down to a specific location. Simplified for clarity In reality, looks more like this âą365 days âą150+ local climates âąAvg 3,000 items / location (165M) âą15 year lifecycle changing amplitude Lennox International
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Supply Chain Insights
LLC Copyright © 2018, p. 46 âąReplace âąCompressor âąEngines âą Dealer gets service event âą We get parts sales âą Customer has non-event âą Customer - Dealer & Brand loyalty Your compressor shows that it will fail within the next 30 days. What day would be good for us to come replace it? Redefining Service
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Supply Chain Insights
LLC Copyright © 2018, p. 47 Transforming Inbound Logistics Mobile Device Apps AIS Vessel Location Sensors
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Supply Chain Insights
LLC Copyright © 2018, p. 48 Improved On-Time Delivery
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Digital Manufacturing
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LLC Copyright © 2018, p. 50 What Is Digital Manufacturing? Additive Manufacturing Paperless Processes Robotics
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AGCO Manufacturing Redefinition
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Network of Networks
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Supply Chain Insights
LLC Copyright © 2018, p. 53 The adoption of distributed and open technology by the ecosystem of technology providers and business users to drive inter-operability in value networks to improve business outcomes. What Is the Network of Networks?
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Supply Chain Insights
LLC Copyright © 2018, p. 54 What Does Not Work
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Supply Chain Insights
LLC Copyright © 2018, p. 55 Future View
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Supply Chain Insights
LLC Copyright © 2018, p. 56 Write once and use company and contact information many times.Community Directory ⹠Reduce onboarding through once source of data. Blockchain redefines visibility and track and trace.Traceability ⹠Confluence of Blockchain and Spark/Internet of Things Redefine Lineage. Bitcoin and Blockchain disintermediate traditional banking.Supply Chain Finance ⹠Emergence of the supply chain digital wallet. ⹠An alternative to EDI. Cognitive computing eliminates the need for master data management and standards.Interoperability ⹠Data is mined through patterns and translated for context through cognitive computing. Shift from standards to process canonicals. What Could Change?
57.
Rethinking Planning
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Supply Chain Insights
LLC Copyright © 2018, p. 58 Shifts in Planning Architecture
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Supply Chain Insights
LLC Copyright © 2018, p. 59 ⹠A pattern caused by order frequency, order quantity or batch size. ⹠A type of demand: trade promotion, new product launch, seasonal consumption. ⹠A product build to execute a supply chain strategy. Life for a supply chain planner is not as easy as it used to be. What Is a Demand Flow?
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Supply Chain Insights
LLC Copyright © 2018, p. 60 Data Inputs Engines Demand Plan Outputs Align Engines with Outcomes Planning Master Data
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Talent
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Supply Chain Insights
LLC Copyright © 2018, p. 62 Baby Boomers, Vendors, Academics, and Remote Employees Are Most Satisfied with Their Jobs
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LLC Copyright © 2018, p. 64 Todayâs Challenges
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Moving Forward
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LLC Copyright © 2018, p. 67 ⹠Outside-in ⹠Synchronized (versus Integrated) ⹠Horizontal (versus Vertical) Process Excellence ⹠Data at the Speed of Business ⹠Data-Driven Insights ⹠Sensing before Response What Is The Connected Supply Chain?
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Supply Chain Insights
LLC Copyright © 2018, p. 68 Wrap-up ⹠Embrace New Technologies at the Right Time. ⹠Focus on Capabilities. Build with the Goal in Mind. ⹠Manage the Supply Chain as a Complex System.
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Supply Chain Insights
LLC Copyright © 2018, p. 69 Time to Take a Different Path?
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LLC Copyright © 2018, p. 71 About Lora Cecere âą Founder of Supply Chain Insights âą âLinkedIn Influencerâ âą Guest blog for Forbes âą Author of 5 books: Bricks Matter (2012), Shamanâs Journal (2014), Supply Chain Metrics That Matter (2014), Shamanâs Journal (2015), Shamanâs Journal (2016), Shamanâs Journal (2017) âą Partner at Altimeter Group (leader in open research) âą 7 years of Management Experience leading Analyst Teams at Gartner and AMR Research âą 8 years Experience in Marketing and Selling Supply Chain Software at Descartes Systems Group and Manugistics (now JDA) âą 15 Years Leading teams in Manufacturing and Distribution operations for Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble. Contact Information: âą Email: lora.cecere@supplychaininsights.com âą Blog: www.supplychainshaman.com (15,000 pageviews/month) âą Forbes: www.forbes.com/sites/loracecere âą Twitter: twitter.com/lcecere (8,700 followers) âą LinkedIn: www.linkedin.com/in/loracecere (255,000 followers) âą LinkedIn Influencer: www.linkedin.com/today/author/446631
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