NOW 2022 Conference Lora Cecere

Harnessing the Power of Big Data and Analytics
LORA CECERE
Founder
Supply Chain Insights

Lessons from the Pandemic
Embracing Data
Investing in New Forms of Analytics
The So What? Why now?
About Lora
About Supply Chain Insights
My Focus Today
Agenda

Introduction
Supply Chain Insights LLC. Copyright © 2022
S E C T I O N 1
4

I Write for the Supply Chain Leader

Lessons from the
Pandemic

INFLATION/RECESSION GEO-POLITICAL
SUPPLY AND
LOGISTICS CONSTRAINTS
SHIFTING MARKETS
Supply Chain Shocks
Dynamic and complex macro-environmental issues impacting performance

Supply Chain Insights LLC Copyright © 2022
Navigating the
Shades of Gray
The world becomes more gray through the pandemic.
Time is redefined and processes become outside-in using
new forms of data and analytics.
9

Response During the Pandemic
7%
31%
46%
15%
0%
During the pandemic, we managed very well. No
issues.
During the pandemic, we managed well with some
issues.
We managed the business by brute force. We did it,
but it was tough.
The business struggled during the pandemic.
The business was not equal to the challenge of the
pandemic.
TOTAL
__________________________________________________________
Source: Supply Chain Insights LLC, Redefining The Supply Chain Response Study
Q11. When you think of the supply chain’s response during the pandemic, how would you classify your company’s business performance?

43%
33%
51%
24%
28%
9%
28%
3%
Shifts in demand
Labor availability
Supply availability
Ocean freight costs
Ocean freight variability
Availability of air
Inadequacies of planning…
Inefficiencies of working…
6%
31%
13%
13%
3%
7%
6%
Support by the executive team
Having the right inventory
Labor in distribution centers
China lockdowns
Availability of road transport
Price of air freight
Price of road transport
Greatest Issues
__________________________________________________________
Q12. What were your greatest issues? ?

Industries Struggle
with Inventory
12

What Mattered?
Alignment
Analytics
Inventory Management
13

14
Definition
34%
63%
85%
46%
54%
69%
15%
27%
Supply Chain Finance
Order Management
Transportation Management
Manufacturing
Contract Manufacturing
Procurement
Corporate Social Responsibility
Risk Management
Q7: When you think of the term “supply chain” in your organization which functions?

Organizational Alignment Before Pandemic
64%
92%
87%
65%
79%
74%
49%
82%
30%
44%
38%
45%
25%
44%
49%
28%
39% 36%
25%
51%
13%
28%
18%
23%
New Product
Dev't &
Distrib'n
Sales and
Operations
Manufact'g
&
Procurement
Operations &
IT
Finance &
Operations
Sales &
Finance
Marketing &
Finance
Sales &
Marketing
Marketing & IT Finance & IT Sales and IT CSR
&
Operations
Importance Performance
Greatest Gaps

79%
91%
64%
76%
67% 64%
73%
58%
52%
73%
21%
30%
45%
18%
30%
24% 24%
33%
24% 21%
42%
9%
Logistics and
supply chain
planning
Supply chain
planning and
manufacturing
Logistics and
procurement
Sales and supply
chain planning
Supply chain
planning and
customer service
Finance and
supply chain
planning
Procurement
and
manufacturing
Finance and
manufacturing
Finance and
procurement
Customer service
and distribution
Corporate Social
Responsibility
and
Manufacturing
Importance Performance
__________________________________________________________
Source: Supply Chain Insights LLC, Analytics Digital Transformation Study
Q9. In your opinion, how important is it for each of the following pairs of teams to be aligned within your supply chain?
Q10. How aligned do you believe that these same pairs of teams actually are with your company?
Greatest Gaps Between Importance
and Performance
Within the Supply Chain During the Pandemic

53%
7%
41%
18%
23%
27%
18%
27%
Yes, there is a digital
transformation strategy.
No, there is not a digital
transformation strategy.
Extremely satisfied 5 Somewhat satisfied 4 Neutral 3 Somewhat dissatisfied 2 Extremely dissatisfied1
__________________________________________________________
Q14: Does your company have a digital transformation strategy?
Q41. Satisfaction with the speed at which it gets critical data to make decisions within the network?
AVG
3.99
1.63
Companies with Digital Transformation Strategies
Did Significantly Better

.
We Must Learn to Unlearn
and Build Better

Embracing Data

Innovation?
10%
30%
58%
3%
We are usually the last to try a new technology
We are usually among the last to try a new
technology
We are usually in the middle when it comes to
trying a new technology
We are usually the first to try a new technology
__________________________________________________________
Q33: Which of the following best describes your company's approach to investing in new analytics strategies, in general?

80% of Supply Chain Data Is Not Used

DIGITAL TRANSFORMATION STRATEGY
15%
12%
25%
4%
25%
19%
1%
3%
Improving order- to-cash…
Improving procure-to-pay…
Driving better supply chain…
Transportation automation
Improvements in planning
Sensing market conditions to…
Sensing product quality in…
Automation of factories
__________________________________________________________
Q17. If yes in Q14, what was the focus of the digital transformation strategy?
.
12%
15%
18%
7%
7%
1%
30%
3%
Warehouse automation
The elimination of paper
Speeding up processes
Alternative energy sources
Improve manufacturing cycles
3-D printing
Improved analytics for decision…
Other

Definitions
Real-time: Data generated and used
within 15 minutes
Decisions at the Speed of Business:
Effective decisions made at the speed of
business

VISIBILITY – IMPORTANCE vs EFFECTIVENESS
__________________________________________________________
Q23: How effective would you rate your company on visibility?
Q24: How important would you rate visibility capabilities for your company?
3.9
4.0
4.1
4.3
3.1
2.5
2.9
3.0
Visibility
bility
ibility
isibility
Manufacturing Visibility
Supplier Visibility
Logistics Visibility
Enterprise Visbility
Gap
Importance Effectiveness
0.8
1.5
1.2
1.3

Speed of Getting and Using Data
7%
16%
28%
33%
34%
25%
24%
22%
6%
3%
Within the
company/enterprise
Within the network
Extremely dissatisfied 1 Somewhat dissatisfied 2 Neutral 3
Somewhat satisfied 4 Extremely satisfied 5
__________________________________________________________
Q41: How satisfied would you say the typical company is with the speed at which it gets critical data to make decisions within
the enterprise? And how about within the network?
AVG
2.93
2.63

Familiarity with Analytics Strategies
24%
57%
49%
27%
52%
6%
36%
13%
31%
12%
33%
40%
18%
22%
19%
15%
22%
10%
19%
10%
16%
13%
22%
16%
33%
18%
22%
25%
13%
36%
28%
34%
30%
33%
18%
25%
16%
1%
6%
25%
12%
40%
9%
27%
19%
31%
22%
13%
9%
1%
3%
7%
7%
7%
15%
3%
10%
4%
4%
Deep learning
Apache Spark
Hadoop
Graph
Ontology
Blockchain
Sentiment analysis
Probabilistic forecasting
Fuzzy logic
Python
R
NoSQL
Not at all familiar1 Not very familiar2 Somewhat familiar3 Very familiar4 Extremely familiar5
__________________________________________________________
Q38: How familiar are you personally with the meaning of the following terms as they apply to analytics strategies?

Process Latency
Process latency is the time that it takes an
organization to agree on how to use the signal to
drive the decision.
For example, in a pilot with BSH, the Demand Latency
was 1-2 weeks while Process Latency was 3-4 months.
An organization’s agility improves when they can align
quickly to the market signals. As a result, BSH made a
decision on allocation strategies too late.

Demand Latency
Demand
Latency
Demand latency is the time from channel purchase to demand translation of channel
replenishment to drive order to an upstream trading partner.
While most companies believe that an order is a good predictor of demand, the
increase in the supply chain's long-tail increases demand latency elongation. With
product proliferation, globalization, and micro-segmentation, demand latency
dramatically increased over the past decade.
For a turn item at a mass retailer, like Wal-Mart, the demand latency is twenty days,
while for a long-tail product, the demand latency can be over one hundred days.
As a result, the order is not as good a predictor of demand as ten years ago. As a
result, increasingly, the order is out of sync with the market.

Biggest Opportunity? Redefining Time
33
• Market Latency: The translation of a market signal to a buying
pattern to a visible order pattern.
• Demand Latency: The time to translate channel purchase data
pattern to an order through replenishment processes.
• Process Latency: The time for the organization to make a decision.
Market Latency: 3-6 months
Demand
Latency: 2-12
weeks
Process
Latency: 2-6
weeks

Investing in New
Forms of Analytics

__________________________________________________________
Q35. In your Personal opinion, how would you rate the LEVEL OF INVESTMENT that Company is putting into analytics
strategies today?
9%
27%
48%
16%
Somewhat too much investment
Just the right amount of investment
Somewhat too little investment
Way too little investment
Level Of Investment

Challenges
25%
13%
12%
16%
31%
9%
6%
Employee skill levels
Employee knowledge
Funding
Leadership support
Alignment between business & IT
Management of the rate of change
Other
__________________________________________________________
Q37: What are the top TWO challenges that the typical company is facing today when it comes to analytics strategies?

Wrapping Up

38
Insights
01
No Company Was Ready for the
Pandemic. The Changing Market Is
An Opportunity for Growth.
02 Redefine Time and the Response
for Greater Value
03 Imagine the Supply Chain of the
Future from the Customer Back.

About Lora

40
2 years Partner at Altimeter
Group (leader in open research)
8 years Gartner and AMR
Research
8 years Experience in
Marketing and Selling
Supply Chain Software at
Descartes Systems Group
and Manugistics (now
JDA/Blue Yonder)
Who Is Lora?
Founder of Supply Chain
Insights
“LinkedIn Influencer”, Guest
blogger for Forbes, Author:
Bricks Matter (2012), Supply
Chain Metrics That Matter
(2014), and Shaman’s
Journals (2014-22)
15 Years Leading Teams in
Manufacturing and
Distribution for Clorox,
Kraft/General Foods,
Nestle/Dreyers Grand Ice
Cream and Procter &
Gamble.

Founded in February 2012 by Lora Cecere, Supply Chain
Insights LLC is in its eleventh year of operation. The
Company's mission is to deliver independent, actionable, and
objective advice for supply chain leaders.
41

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