Watch the webinar: http://bit.ly/KrDWZn
Emcien’s 3-part webinar series featured executives from NCR Corporation and explored the effects of product variety on companies. The discussion began by defining the current state of the industry and how product variety is impacting organizations. We then discussed how companies can diagnose and repair the underlying causes and maintain a highly profitable product portfolio. Lastly, we wrapped up with the critical concepts around empowering sales for dramatic improvements in sales efficiency and revenue.
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Product variety and your supply chain
1. What is Product Variety
Costing your Company?
Webinar 2: Product Variety and your
Supply Chain
2. • Vice President of Sales & Operations
Planning at NCR Corporation
• Responsible for driving process
improvement, tool development, and
streamlining IT systems
Mike Groesch
VP Sales & Operations
Planning at NCR Corp.
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3. About NCR
• Assisted and self-service
solutions, offered for:
– Financial, retail, travel, hospitality,
gaming, government, telecom and
technology services
• 100+ countries
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6. Supply Chain Challenges
• Too much inventory but never the right part
• Extended lead times
– Real: physical lead time
– Apparent: promised lead time
• Whipsaw in the supply chain
– Customer changes their mind and the sales
motion does not resolve a critical decision
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7. Impact of Product Variety on Supply Chain
• Many choices = Inventory challenge
• Which signal do you send?
– Wrong signal = Wrong inventory
– More inventory than we want; but never the
right inventory
• Too much working capital tied up
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8. Gartner Maturity Model
Focus, Sponsorship, Organization
STAGE 4
STAGE 3 Value Focus
STAGE 2 Demand Focus • CEO Sponsorship
STAGE 1 Brand Focus • COO Sponsorship • Multi-enterprise,
Agile
• VP Supply Chain • Integrated
Market Focus
Sponsorship Programs
• Departmental
Sponsorship • Business Team
• Silo Focus
REACT ANTICIPATE COLLABORATE ORCHESTRATE
SOURCE: Gartner, August 2010
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9. A Reactive Organization
Lack of coordination between Demand, Supply, and Products
S & OP
Emails and Supply Chain
Sales Spreadsheets Planning
Product
Management
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10. A Systemic Solution
Demand Shaping Demand Sensing
Operations and
Demand Product Management
Sensing
Demand Assess/Supply
Shaping Chain Plan
Sales Operations
NPI
Analyze
Product the Market
Management
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11. Demand Sensing and Demand Shaping
Demand Shaping Demand Sensing
Operations and
Demand Product Management
Sensing
Demand Assess/Supply
Shaping Chain Plan
Sales Operations
NPI
Analyze
Product the Market
Management
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13. Demand Sensing and Demand Shaping
Demand Shaping Demand Sensing
Operations and
Demand Product Management
Sensing
Demand Assess/Supply
Shaping Chain Plan
Sales Operations
NPI
Analyze
Product the Market
Management
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14. The Transformation
• Cultural shift
• Improve employee experience
• Improve customer satisfaction
• Shareholder value
– Growth
– Revenue
– Margin
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15. What Does Success Look Like?
• Delighted customers
• Inventory turns/velocity
• Reduced volatility into the supply base
• Increased flexibility across customer base
• Improved lead times
• Improved communication between
Sales & Operations and Customers
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16. What is the Financial Impact?
• Q4 revenue $1.6 billion, up 17%
• Q4 gross margin grew 270 basis points,
up 25.2% year-on-year
• Backlog at end of year was over $1 billion
• Non-GAAP EPS up 23% year-on-year
• 2011 revenue growth 13%
SOURCE: NCR Q4 2011 Earnings Announcement
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17. Value Focus
Product variety is a cross-functional problem that can’t be
solved with stovepipe mentality.
The solution requires executive sponsorship and support
from all the functional areas.
John Bruno Peter Dorsman
CTO and EVP
EVP Corporate ISG and Global
Development Operations
Peter Leav
Bill Nuti Bill VanCuren EVP
CIO Global Sales, PS
Chairman, and Consumables
President and CEO
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18. Next Webinar
Product variety and Sales enablement
The critical concepts around empowering sales for
dramatic improvements in sales efficiency and revenue.
www.emcien.com/webinars
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