The Future of Supply Chain Technologies

Future of Supply Chain
Technologies

Supply Chain Insights LLC Copyright © 2013, p. 2
Metrics That Matter
Fall 2014
Publication

Supply Chain Insights

Growth has Slowed

The Efficient Supply Chain

The Long Tail of the Supply Chain:
Growing Complexity
Volume
Level of Predictability
Predictability based on forecast accuracy vs Actual Order Profiles

Increasing Commodity Volatility

Current State

Many Systems

Large Gaps in Current Technologies

Gap in What-if Architectures

Growing use of Cloud and BPO

Future State of Planning

Greatest Gaps in Visibility Importance vs. Performance:
Inter-enterprise Order Management, 1st Tier Suppliers
and 3rd Party Manufacturing

Building Visibility Solutions

• 1/3 of the fruits and vegetables of the world did not have
to be thrown away due to temperature abuse?
• A heart could be printed at a hospital as part of a
transplant procedure?
• Garages could be used for overflow storage?
• Analytics could give us the answers to the questions that
we do not know to ask?
• Supply chains could learn and respond as we sleep?
• Improved sensing would enable continuous test and learn
in vitro in market?
What If?

Connecting to better serve your
customers, your employees and
your partners outside in.

Use of Emoticons

Ratings and Reviews: Giantnerd.com

Co-Design products like Nike

Co-Develop like Quirky

Customer as the Designer

The Crowd has Built a Car
“Wikispeed”

Amazon Aspires to
$100B in CPG Sales

Emergence of Digital Path to Purchase

CUSTOMER PATH ANALYTICS

KINETIC HEAT MAPS

Four Moments of Truth
The List:
• Digital
Recipe
• Digital
Coupons
• Online
Rating and
Reviews
The Basket:
• Shelf-
sensing
• QR Codes
• In-store
coupons
• IP Address
Sensing
The Check-out
• Downstream
Data
• Loyalty Data
Usage
• Sentiment Data
• Ratings and
Reviews

Entrance of Digital Path to Purchase

Mobile Applications

The Collaborative Economy
Collaborative Economy Definition: An
economic model of shared ownership and
access between people, startups, and
corporations.

Co-Storage of Products with Lockitron

Co-Production with 3D Printers

Evolution
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

An adaptive network 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.
What is a Market-driven Value Network?

Market-Driven Value Networks
Characteristics

Rethinking Analytics
Descriptive
Connect with reality, a single source of
the truth
Predictive
Understand the most likely future
scenario, and the business implications
Prescriptive
Recommendation of the best
alternative
Cognitive
Highly automated optimization
solutions that get smarter over time
What happened?
What will Happen?
What should we do about it?
Learning Systems

Thinking Harder about the Problem
Engine
Inputs Outputs
• Deterministic Optimization
• Stochastic Optimization
• Simulation
• Cognitive Learning Engines
Depth of
Analysis
Scope
• Single function within the enterprise
• Multiple functions within the enterprise
• Connection of trading partners on single functions
• Connection of trading partners on multiple functions (make, source, and deliver)
• Single signals (single numbers)
• Time-phased outputs
• Multiple signals with time-phased outputs
• Patterns and probabilities
• Single signals (single numbers)
• Time-phased inputs
• Multiple signals with time-phased inputs
• Patterns and probabilities
The Data Model
of the Engine

Future is Bright: But, we have
to learn from the past, to
unlearn to be open to the
future.
Summary

Questions?

Annual Event September 2014

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.

Where Do You Find Lora?
Contact Information:
lora.cecere@supplychaininsights.com
Blog: 100 Posts/Year
www.supplychainshaman.com
(10000 pageviews/month)
Forbes: Write 2X/Month
http://www.forbes.com/search/?q=lora+cecere
Twitter: lcecere 4800 followers.
LinkedIn: linkedin.com/pub/lora-
cecere/0/196/573 (Linkedin Influencer over 6000
followers in the network)

The Future of Supply Chain Technologies

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