Slides used in a webinar presentation on the future of supply chain management. Presenters from IBM and Colgate joined with Lora Cecere, founder of Supply Chain Insights.

1. Race for Supply Chain 2020
Lora Cecere – Supply Chain Insights
April 2013

2. About Supply Chain Insights
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.
Supply Chain Insights LLC Copyright © 2013, p. 2

3. Presenting Today:
The Race for Supply Chain 2020
Lora Cecere Fran O’Sullivan Neil Stout
Supply Chain Insights IBM Colgate-Palmolive
Supply Chain Insights LLC Copyright © 2013, p. 3

4. The Supply Chain of the Future
World
Population
North America Europe Asia
2007 2020 2007 2020 2007 2020
339M 342M 731M 722M 4.0B 4.6B
L America
2007 2020 Africa Oceania
572M 660M 2007 2020
2007 2020
965M 1.3B 34M 40M
Source: “The World at Six Billion” United Nations, 2004; The World UN Population Assessment 2006; “Unsustainable World,” 04/15/08, BBC
Supply Chain Insights LLC Copyright © 2013, p. 4

5. Supply Chain 2020 Tipping Points
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Orchestration Internet of Things
Talent
Shortage Big Data Learning
Supply Chains Supply Chains
Compliance on
Safe & Secure
Digital Manufacturing
Supply Chain Excellence =
Value-Based Outcomes
Delivered by Value Networks
Outside-In
Supply Chain Insights LLC Copyright © 2013, p. 5

6. Current State
Supply Chain Insights LLC Copyright 2013 Supply Chain Insights LLC Copyright © 2013, p. 6

7. Current State
Supply Chain Insights LLC Copyright © 2013, p. 7

8. Current State
Supply Chain Insights LLC Copyright © 2013, p. 8

9. Inventory Performance
250.0
200.0
Days of Inventory
150.0
100.0
50.0
0.0
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
Source: Supply Chain Insights, Corporate Annual Reports 2000-2011
Supply Chain Insights LLC Copyright © 2013, p. 9

10. Evolving Practices
Supply Chain Insights LLC Copyright © 2013, p. 10

11. Evolution
Supply Chain Insights LLC Copyright © 2013, p. 11

12. Current State
Supply Chain Insights LLC Copyright © 2013, p. 12

13. Definition
Structured • Transactional
Challenges:
Data • Time phased data
• Social Volume
Unstructured • Channel
Data • Customer Service
• Warranty
• Temperature Velocity
Sensor • RFID
Data • QR codes
• GPS
Variability
New • Mapping and GPS
• Video
Data • Voice
Types • Digital Images
Supply Chain Insights LLC Copyright © 2013, p. 13

14. Analytics Evolution
Supply Chain Insights LLC Copyright © 2013, p. 14

15. Listening Post Strategy
Supply Chain Insights LLC Copyright © 2013, p. 15

16. IBM Supply Chain in 2020
© 2013 IBM Corporation
Supply Chain Insights LLC Copyright © 2013, p. 16

17. IBM Supply Chain in 2020
© 2013 IBM Corporation
Supply Chain Insights LLC Copyright © 2013, p. 17

18. IBM Supply Chain in 2020
© 2013 IBM Corporation
Supply Chain Insights LLC Copyright © 2013, p. 18

19. IBM Supply Chain in 2020
© 2013 IBM Corporation
Supply Chain Insights LLC Copyright © 2013, p. 19

20. IBM Supply Chain in 2020
© 2013 IBM Corporation
Supply Chain Insights LLC Copyright © 2013, p. 20

21. IBM Supply Chain in 2020
© 2013 IBM Corporation
Supply Chain Insights LLC Copyright © 2013, p. 21

22. IBM Supply Chain in 2020
© 2013 IBM Corporation
Supply Chain Insights LLC Copyright © 2013, p. 22

23. IBM Supply Chain in 2020
© 2013 IBM Corporation
Supply Chain Insights LLC Copyright © 2013, p. 23

24. IBM Supply Chain in 2020
© 2013 IBM Corporation
Supply Chain Insights LLC Copyright © 2013, p. 24

25. Colgate Perspective
Neil Stout
Colgate-Palmolive
Supply Chain Insights LLC Copyright © 2013, p. 25

26. Colgate Palmolive Company
Supply Chain Overview
• $17B global consumer products
company, founded in 1806 (25% sales in NA)
• 22,000+ people in supply chain
• Products supplied to 223 countries, mfg from
32 countries
• Four focused core categories
– Oral Care – Personal Care
– Pet Nutrition – Home Care
Supply Chain Insights LLC Copyright © 2013, p. 26

27. Evolution of Supply Chain
Process Excellence
Continuous
Testing
Align Building Horizontal
Process Connectors Learning Orchestrate
Demand and Supply
Improving
In Market
Adapt
Resilient
Reliable
Right Product Efficient
Sense Demand
Demand Volatility
and Supply Right Place Cost
Shape Right Time
Procure to
Demand and Supply pay/order to
Supply based Volatility cash
on Market Right Cost
Supply Chain Insights LLC Copyright © 2013, p. 27

28. Funding The Growth Program
• Colgate’s long standing Global Continuous
Improvement Program
• FTG Teams at
every function and level
• Over 5000 savings
projects annually
• Culturally Driven
• Over 20 years contributing
--doubling the % of sales contribution in last 7 yrs
Supply Chain Insights LLC Copyright © 2013, p. 28

29. Hierarchy of Supply Chain KPIs
Profitable Assess
Growth
Service Cost Diagnose
Flexible, Reli
able &
Product
Sustainability Improve
Quality
Responsive
Enable
Supply Chain Insights LLC Copyright © 2013, p. 29

30. Questions?
Supply Chain Insights LLC Copyright © 2013, p. 30

31. Join Us
www.scicommunity.com
Supply Chain Insights LLC Copyright © 2013, p. 31

32. EDUCATE
SCI Research Supply Chain Index Supply Chain Wiki
Videos, Webinars, and
Share Your Own
Podcasts
Supply Chain Insights LLC Copyright © 2013, p. 32

33. ENRICH
Consulting Reviews Technology Reviews
Supply Chain Insights LLC Copyright © 2013, p. 33

34. EXPERT
Supply Chain Shaman Ask a Supply Chain
Blog Wizard
Supply Chain Insights LLC Copyright © 2013, p. 34

35. ENGAGE
Blogs Index Girl’s Weekly Trivia
Supply Chain Insights LLC Copyright © 2013, p. 35

36. Continue the Learning:
Bricks Matter Public Training
Two-day public training classes focusing on
accelerating the understanding of supply chain
excellence. $1500 for two days of training.
– Dallas, TX – May 6-7
– Princeton, NJ – June 24-25
For more information and to register, visit:
www.supplychaininsights.com/services/training/
Supply Chain Insights LLC Copyright © 2013, p. 36

37. Upcoming Webinars
• April 25th: Launch of the Supply Chain Index
• May 9th: How Do We Heal the Healthcare Value Chain, Part II
• June 13th: Sales and Operations Planning: State of the Union
• July 11th: Big Data Supply Chains and the Future of Analytics
• August 15th: State of Supply Chain Talent. Missing Link in the
Supply Chain
• August 29th: Digital Manufacturing
Each webinar is based on new and relevant research
and will feature 2-3 industry leaders
Supply Chain Insights LLC Copyright © 2013, p. 37

38. 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.
Supply Chain Insights LLC Copyright © 2013, p. 38

39. Where Do You Find Lora?
Contact Information:
lora.cecere@supplychaininsights.com
Blog: www.supplychainshaman.com
(4000 pageviews/month)
Twitter: lcecere 3770 followers. Rated as the
top rated supply chain social network user.
LinkedIn: linkedin.com/pub/lora-
cecere/0/196/573 (3560 in the network)
Supply Chain Insights LLC Copyright © 2013, p. 39