Where Are We on the Evolution of Supply Chain Planning?

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Dialogue with two supply chain leaders on their insights and participation in the Supply Chain Insights 2015 benchmarking work on supply chain planning. Lora Cecere, founder of Supply Chain Insights facilitates a discussion with Yone Dewberry, Vice President of Planning at Land O’Lakes, and Andrew Byer, Associate Director of Global Supply Network Operations at Procter & Gamble. A presentation from the 2015 Supply Chain Insights Global Summit

Business

9/14/2015 September 2015, p.1Supply Chain Insights Global Summit #ImagineSC
Where Are We on the Evolution of
Supply Chain Planning?
Review of the Supply Chain Insights
Benchmarking Data
Facilitator: Lora Cecere – Supply Chain Insights
Panelists: Andrew Byer – Procter & Gamble
Yone Dewberry – Land O’Lakes

9/14/2015 September 2015, p.2Supply Chain Insights Global Summit #ImagineSC
Imagine the Supply Chain: 2025
• How do you define planning? What is
your philosophy?
• What did you learn from the planning
benchmarking?
• What would be your advice for the people in
the room?

9/14/2015 September 2015, p.3Supply Chain Insights Global Summit #ImagineSC

9/14/2015 September 2015, p.4Supply Chain Insights Global Summit #ImagineSC
What I Learned
• The best company at inventory management is
not the best at forecasting.
• Forecast consensus is eroding the forecast in
four out of five companies.
• Alignment between demand and supply planners
is more difficult in larger companies.
• Forecast error at the DC level is high.
• Planning processes are evolving.

9/14/2015 September 2015, p.5Supply Chain Insights Global Summit #ImagineSC
Items per $1B in Revenue

9/14/2015 September 2015, p.6Supply Chain Insights Global Summit #ImagineSC
Items per Planner

9/14/2015 September 2015, p.7Supply Chain Insights Global Summit #ImagineSC
Study Overview

9/14/2015 September 2015, p.8Supply Chain Insights Global Summit #ImagineSC
Inventory Effectiveness

9/14/2015 September 2015, p.9Supply Chain Insights Global Summit #ImagineSC
S&OP Feasibility

9/14/2015 September 2015, p.10Supply Chain Insights Global Summit #ImagineSC
Forecast Error

9/14/2015 September 2015, p.11Supply Chain Insights Global Summit #ImagineSC
Forecast Bias

9/14/2015 September 2015, p.12Supply Chain Insights Global Summit #ImagineSC
Imagine the Supply Chain: 2025
• How do you define planning? What is your
philosophy?
• What did you learn from the planning
benchmarking?
• What would be your advice for the people in
the room?

9/14/2015 September 2015, p.13Supply Chain Insights Global Summit #ImagineSC
Imagine the Supply Chain: 2025
• How do you define planning? What is your
philosophy?
• What did you learn from the planning
benchmarking?
• What would be your advice for the
people in the room?

9/14/2015 September 2015, p.14Supply Chain Insights Global Summit #ImagineSC
Questions?

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Where Are We on the Evolution of Supply Chain Planning?

1. 9/14/2015 September 2015, p.1Supply Chain Insights Global Summit #ImagineSC Where Are We on the Evolution of Supply Chain Planning? Review of the Supply Chain Insights Benchmarking Data Facilitator: Lora Cecere – Supply Chain Insights Panelists: Andrew Byer – Procter & Gamble Yone Dewberry – Land O’Lakes

2. 9/14/2015 September 2015, p.2Supply Chain Insights Global Summit #ImagineSC Imagine the Supply Chain: 2025 • How do you define planning? What is your philosophy? • What did you learn from the planning benchmarking? • What would be your advice for the people in the room?

3. 9/14/2015 September 2015, p.3Supply Chain Insights Global Summit #ImagineSC

4. 9/14/2015 September 2015, p.4Supply Chain Insights Global Summit #ImagineSC What I Learned • The best company at inventory management is not the best at forecasting. • Forecast consensus is eroding the forecast in four out of five companies. • Alignment between demand and supply planners is more difficult in larger companies. • Forecast error at the DC level is high. • Planning processes are evolving.

5. 9/14/2015 September 2015, p.5Supply Chain Insights Global Summit #ImagineSC Items per $1B in Revenue

6. 9/14/2015 September 2015, p.6Supply Chain Insights Global Summit #ImagineSC Items per Planner

7. 9/14/2015 September 2015, p.7Supply Chain Insights Global Summit #ImagineSC Study Overview

8. 9/14/2015 September 2015, p.8Supply Chain Insights Global Summit #ImagineSC Inventory Effectiveness

9. 9/14/2015 September 2015, p.9Supply Chain Insights Global Summit #ImagineSC S&OP Feasibility

10. 9/14/2015 September 2015, p.10Supply Chain Insights Global Summit #ImagineSC Forecast Error

11. 9/14/2015 September 2015, p.11Supply Chain Insights Global Summit #ImagineSC Forecast Bias

12. 9/14/2015 September 2015, p.12Supply Chain Insights Global Summit #ImagineSC Imagine the Supply Chain: 2025 • How do you define planning? What is your philosophy? • What did you learn from the planning benchmarking? • What would be your advice for the people in the room?

13. 9/14/2015 September 2015, p.13Supply Chain Insights Global Summit #ImagineSC Imagine the Supply Chain: 2025 • How do you define planning? What is your philosophy? • What did you learn from the planning benchmarking? • What would be your advice for the people in the room?

14. 9/14/2015 September 2015, p.14Supply Chain Insights Global Summit #ImagineSC Questions?

Where Are We on the Evolution of Supply Chain Planning?

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Where Are We on the Evolution of Supply Chain Planning?