Más contenido relacionado Apics IBF Presentation on Customer Collaboration2. “When it comes to driving volume, a dollar
spent in working with a customer in developing
customer programs is worth three spent in
trade promotion.”
North American Supply Chain Leader
Supply Chain Insights, LLC © 2012, p. 2
3. BRICKS Book
Publishes
Matter
in August
2012
The Role of Supply Chains
in Building Market-Driven
Differentiation
LORA M. CECERE
CHARLES W. CHASE JR.
4. Agenda
Current State
Pitfalls and Potholes
Devil is in the Detail
New Ways to Work Together
Wrap-up
Supply Chain Insights, LLC © 2012, p. 4
5. 5
Typical Organization
CEO
Chief
Customer COO
Officer
Chief
VP of Supply VP of
Marketing Sales CFO
Chain Manufacturing
Officer
Account Customer
Procurement Logistics CIO Quality
Teams Service
Growth Volume Cost
Supply Chain Insights, LLC © 2012, p. 5
6. A Supply Chain
is a Complex System
with Complex Processes
with Increasing Complexity
Supply Chain Insights, LLC © 2012, p. 6
7. Looking at Supply Chain as a Complex
System
Profitable Growth
Revenue Cost of Goods
Corporate
Trade-offs Working Capital
Corporate Social Responsibility
Investment
Trade-offs R&D Strategy and Investment Asset Strategy and Investment
Forecast Accuracy Customer Service Inventory
Supply Chain
Trade-offs Channel Strategy Product and Supplier Strategy
Service Portfolio
Sales Distribution Manufacturing Logistics Procurement
Supply Chain Policies Policies Policies Policies Policies
Waste
Returns Backorders First Pass Yield Empty Miles Material Yield
8. Developing the Supply Chain Strategy
Business strategy
What are the right things to do to increase company value?
Value-network strategy
What are the right ways to support the business strategy?
Align demand right trade-offs betweenthe
What are the Right product Design value drivers for each value network?
Build Align supply
relationships platforms supply organizational relationships
response systems and
Supply chain strategy manage talent
Effective Supply
Demand Networks Design Networks Continuous Networks
Improvement
Joint Value Innovation Supply Chain Execution of buy-
Creation Strategies Methodologies Network Design Capabilities Required side strategies
Business Process
How do I do the right things right?
9. S&OP Process
Existence & Processes
Have a Sales & Operations Planning Process
Not sure
No 3%
10%
Yes
87%
# Distinct S&OP Processes
5 S&OP processes on average
59% have 3+ processes
27%
20% 19%
14% 12% 9%
1 2 3 4 5 More than 5
Base: Total Sample (117)
Q17. Does your company have a Sales and Operations Planning (S&OP) process? A S&OP process is a tactical planning process to forecast sales and plan operations.
Base: Have a S&OP process (102)
Q18. Which one of the following best defines the goal of your current S&OP process?
Q19. How many distinct S&OP processes does your company currently have? Your best estimate is fine. OPEN-ENDED Supply Chain Insights, LLC © 2012, p. 9
10. Multiple S&OP Processes
Regional
S&OP
Processes
Executive
S&OP
Supply Chain
S&OP
Planning
Processes
Processes
With Key
with Key
Customers
Suppliers
Supply Chain Insights, LLC © 2012, p. 10
11. Importance of S&OP Process
for Agility
Importance of S&OP Process to Agility
3% Not important (1-3)
7%
20%
(4)
(5)
90% 42%
Important
(6)
28%
Extremely important (7)
Base: Have a S&OP process (102)
Q22. How important do you think your S&OP process is to improving the agility of your supply chain? Supply Chain Insights, LLC © 2012, p. 11
12. Agenda
Current State
Pitfalls and Potholes
Devil is in the Detail
New Ways to Work Together
Wrap-up
Supply Chain Insights, LLC © 2012, p. 12
13. Organizational Alignment to Improve Value Chain
Relationships
P&G Efficient Consumer Response adoption as a change program…
SHARED + SKILLS + INCENTIVE + RESOURCES + PLAN + LEADERSHIP =
VISION CHANGE
SKILLS + INCENTIVE + RESOURCES + PLAN
= CONFUSION
SHARED + INCENTIVE + RESOURCES + PLAN + LEADERSHIP
VISION = ANXIETY
SHARED
+ LEADERSHIP
VISION + SKILLS + INCENTIVE + RESOURCES = FALSE STARTS
SHARED
+ SKILLS + INCENTIVE + PLAN + LEADERSHIP = FRUSTRATION
VISION
SHARED
+ SKILLS + RESOURCES + PLAN + LEADERSHIP = GRADUAL CHANGE
VISION J. P. KOTTER
based on
14. Goal Alignment
Health
Care Pharma BioTech
Providers
Goal: Working Capital Goal: Growth Goal: Innovation
Turns
True collaboration only happens when there is a
sustaining win/win value proposition.
Supply Chain Insights, LLC © 2012, p. 14
15. Goal Alignment
3rd Party
Retail CPG Supplier
Goal: Working Goal: Growth Goal: Costs
Capital Turns
Supply Chain Insights, LLC © 2012, p. 15
16. Food Value Chain Working Capital
Inventory and Costs
Retail Store Retail
Consumer Warehouse Manufacturing Suppliers
Sales
Sales
Sales
Sales
Demand
Time
Time Time Time
Days of Working Capital
60
55
50
2009
45
40 2008
35
2007
30
25 2006
20
15 2005
10 2004
Retailers Food Manufacturers Containers and Packaging
Inventory data source: CFO Magazine September 2010-2004
17. The Bullwhip Effect.
Retailer DC Manufacturer DC Suppliers
Store
Demand
Signal
Accurate
Difficult Almost Weekly
Trivial Easy Impossible Forecasting
is ...
Instant 3-10 Days 10-20 Days Delay from
20-50 Days
7-20 Days 20-45 Days Purchase to
Variable 45-80 Days Signal
Red Represents Emerging Economies with
Distributor Trade
18. Traditional Supply Chains do not Respond Fast
Enough with Market Data
Production
POS store
Shipments to DC
Kraft Foods Presentation MIT
Supply Chain Forum, November
2011
19. Trade Promotion Compliance w/ Retailers?
Less than 50% 50-70% 70-90% Greater than 90%
In-store advertisements 24% 22% 30% 24%
Every day low price 24% 25% 24% 27%
Price
26% 28% 26% 21%
discounts/changes
Joint marketing w/
22% 33% 28% 17%
retailers
Buy one get one free 25% 30% 23% 23%
Market basket or cross-
21% 36% 36% 8%
category promos
Coupons 31% 27% 27% 16%
Custom products 24% 34% 29% 12%
Floor displays or end
33% 28% 33% 6%
caps
Special packaging 24% 47% 20% 9%
Q. What percent of your trade promotion tactics have compliance at the retail level?
Sample Size = [varies by # of companies using each promotion type]
Supply Chain Insights, LLC © 2012, p. 19
20. Agenda
Current State
Pitfalls and Potholes
Devil is in the Detail
New Ways to Work Together
Wrap-up
Supply Chain Insights, LLC © 2012, p. 20
21. S&OP Plan Execution
S&OP Plan Execution
Execution is not connected to S&OP plan 9%
We try to execute the S&OP plan, but hardly do
in practice 25%
We execute the S&OP plan most of the time 35%
We execute the S&OP plan nearly all of the
time 19%
We monitor market events and adjust to S&OP Sense &
plan within limits 13%
Respond
Base: Have a S&OP process (102)
Q25. After your S&OP plan is generated, how is it executed? Please pick the one that describes it best. Supply Chain Insights, LLC © 2012, p. 21
22. Supply Chain Focal Points for Next 2 Years
Supply Chain Focal Points for Next 2 Years
Total Primary
Improving demand planning 74%
23%
Saving costs 70%
21%
Shortening cycles 21%
66% Top Supply
Chain Focal
Network design 62%
8% Points
New product launch effectiveness 48%
10%
Channel sensing 30%
3%
Revenue management 26%
7%
18% “Other” Focal Points
Other 7%
Base: Total Sample (61)
Q23. What do you expect to be your primary focus on your supply chain over the next 2 years? Please select the one that is most important.
Q24. What other supply chain elements, if any, will you be focusing on over the next 2 years? Please select all that apply.
Supply Chain Insights, LLC © 2012, p. 22
23. Demand-side Views Supply-side Views
Hole in Enterprise
Architectures
Account-Level
VMI C
A Supplier Supplier Supplier Supplier
Downstream Data Distribution Distribution Distribution
Network Network Network
Supply Chain Insights, LLC © 2012, p. 23
24. Demand-side Views Supply-side Views
Demand
Translation
Account-Level
VMI C
A Supplier Supplier Supplier Supplier
Downstream Data Distribution Distribution Distribution
Network Network Network
Supply Chain Insights, LLC © 2012, p. 24
25. Connecting the Extended Supply Chain
Transactional Transactional Transactional
Applications Applications Applications
Trading Partner 1 Trading Partner 2 Trading Partner 3
25
Supply Chain Insights, LLC © 2012, p. 25
26. Connecting the Extended Supply Chain
Collaborative Collaborative Collaborative
Layer Layer Layer
Transactional Transactional Transactional
Applications Applications Applications
Enterprise Data Enterprise Data Enterprise Data
Warehouse Warehouse Warehouse
Trading Partner 1 Trading Partner 2 Trading Partner 3
Key:
Demand Signal
Predictive Analytics
Repository
Supply Signal Transactional Adapters
Repository and Intelligent Rule Sets
Supply Chain Insights, LLC © 2012, p. 26
27. Agenda
Current State
Pitfalls and Potholes
Devil is in the Detail
New Ways to Work Together
Wrap-up
Supply Chain Insights, LLC © 2012, p. 27
28. Smartphone Integration
49% recipe searches
38% shopping lists
2/3 of smart phone owners
use them in the grocery
store
Allrecipies.com Today’s Recipe Box Study April, 2010
28
Supply Chain Insights, LLC © 2012, p. 28
29. “Where’s My Bud” Viral Campaign
Campaign
Objectives:
Reduce Out of Stocks
at targeted retailers by
5%
Increase Shopper
satisfaction and brand
loyalty Validation:
Identify a key leader or
market that wants to pilot.
50/50 shared risk in effort
and resources to pursue.
Keep costs to a minimum for
pilot, under $75K
Concept:
Execute a viral campaign
focused on leveraging
shoppers to identify out of
stocks and potentially
pricing compliance issues
Leverage a combination of
consumer, internet, and in-
store technical capabilities
Supply Chain Insights, LLC © 2012, p. 29
30. Retailer Experience
New text message to
612-961-7802:
A customer at Denny
and Doug’s Liquor
Emporium has just
snapped a tag. You’re
out of stock on Bud
Light.
Please contact your
wholesaler.
Supply Chain Insights, LLC © 2012, p. 30
31. Here are some locations near you where you can
find Bud Light. Be sure to use this promotion code
to get your discount:
ABBL12456
Supply Chain Insights, LLC © 2012, p. 31
32. Stop & Shop and Giant Are Leveraging
Mobile In Store
• Twice the basket size
• 16% higher store
frequency rate and
• 18% higher coupon
redemption rate than
that of general
grocery shoppers
32
Supply Chain Insights, LLC © 2012, p. 32
33. S&OP Responsibility
Who’s Responsible for Running the S&OP Process
Primary Secondary Any Responsibility
Supply chain planning 61% 25% 86%
Sales 36% 46% 83%
Senior management 48% 33% 81%
Production/manufaturing operations 36% 40% 75%
Corporate strategy 43% 27% 70%
Procurement 15% 52% 68%
Marketing 22% 46% 67%
Finance 18% 48% 66%
Manufacturing outsourcing 3% 42% 45%
Channel partners in the buy-side of your market 4% 23% 27%
Channel partners in the sell-side of your market 5% 21% 26%
Base: Do NOT Have S&OP Experience; Total Answered (135)
Q5. In your organization, who takes responsibility for running the S&OP process? Supply Chain Insights, LLC © 2012, p. 33
34. Agenda
Current State
Pitfalls and Potholes
Devil is in the Detail
New Ways to Work Together
Wrap-up
Supply Chain Insights, LLC © 2012, p. 34
35. Summary
• For 90% of supply chains, customer collaboration in
S&OP improves agility.
• We say that we are collaborating, but we are only
really sharing data. Collaboration is a sustainable
win/win value proposition.
• Today’s supply chains respond. They don’t sense.
To be able to sense, the supply chain needs to be
redefined..
• S&OP is not just about product. It is about joint
planning of new opportunities.
Supply Chain Insights, LLC © 2012, p. 35
36. “When it comes to driving volume, a dollar
spent in working with a customer in developing
customer programs is worth three spent in
trade promotion management spending.”
North American Supply Chain Leader
Supply Chain Insights, LLC © 2012, p. 36
37. 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 © 2012, p. 37
38. Where do you find Lora?
Contact Information: loracecere@gmail.com
Blog: www.supplychainshaman.com
(3500 pageviews/month)
Twitter: lcecere 2950 followers. Rated as the
top rated supply chain social network user.
Linkedin: linkedin.com/pub/lora-
cecere/0/196/573 (2300 in the network)
Supply Chain Insights, LLC © 2012, p. 38