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Learn from the Past, to
Unlearn, and Rethink the
Future
Supply Chain Insights LLC Copyright © 2018, p. 2
I Am A Social Scientist
Supply Chain Insights LLC Copyright © 2018, p. 3
I Write for the Supply Chain Leader
Supply Chain Insights LLC Copyright © 2018, p. 4
2012
Supply Chain Insights LLC Copyright © 2018, p. 5
What I Believed
The Manifesto for
Change
Supply Chain Insights LLC Copyright © 2018, p. 7
Third Industrial Revolution Productivity Impact Stopped in
2004
Supply Chain Insights LLC Copyright © 2018, p. 8
Market Forces
Supply Chain Insights LLC Copyright © 2018, p. 9
2007 Recession
Supply Chain Insights LLC Copyright © 2018, p. 10
Do We Have Best Practices?
Or Functional Excellence?
Supply Chain Insights LLC Copyright © 2018, p. 11
Today’s Supply Chain
Supply Chain Insights LLC Copyright © 2018, p. 12
Tomorrow’s Supply Chain
Supply Chain Insights LLC Copyright © 2018, p. 13
Risk Management Issues Growing
Supply Chain Insights LLC Copyright © 2018, p. 14
Unprecedented Commodity Pressures
Supply Chain Insights LLC Copyright © 2018, p. 15
Inventory Levels Burgeoning
Supply Chain Insights LLC Copyright © 2018, p. 16
Normal
Distribution
SKU/L
SalesVolume
Anything But Normal
Complexity: The “Long Tail”
Supply Chain Insights LLC Copyright © 2018, p. 17
Normal
Distribution
SKU/L
SalesVolume
Anything But Normal
Consistent and Forecastable: 874
items representing 77% of the
volume and 74% net sales. 64% of
the volume is forecastable with a
55% error.
Inconsistent demand: 1723 items
representing 23% of the volume and
26% net sales.
Traditional
Optimization
Techniques
Need for Machine Learning/Pattern
Recognition: Inventory Strategy
Not Forecastable
by Conventional
Means
Client Case Study
Driving a Digital
Transformation
Supply Chain Insights LLC Copyright © 2018, p. 19
Digital Supply Chain:
Transforming the Atoms
and Electrons of the Supply
Chain through the
Confluence of new
Capabilities/Technologies.
Digitization: Making signals
and processes digital.
What Does Digital Transformation Mean for
You? There Is No One Definition
Supply Chain Insights LLC Copyright © 2018, p. 20
What Is Digital?
Supply Chain Insights LLC Copyright © 2018, p. 21
What Is Next-Generational Thinking?
Supply Chain Insights LLC Copyright © 2018, p. 22
Current Supply Chain Process Thinking
Rows and Columns:
Transactional Data
Fixed Hierarchies with
Structured Data
One-to-One Enterprise Linear Flows
Descriptive and Predictive Analytics
New Forms of Analytics
Supply Chain Insights LLC Copyright © 2018, p. 24
Data Needs to Move Securely Through Value
Networks In…
Clouds Streams Pools
Supply Chain Insights LLC Copyright © 2018, p. 25
Need for New Forms of Analytics
Supply Chain Insights LLC Copyright © 2018, p. 26
Evolution of Insights
Supply Chain Insights LLC Copyright © 2018, p. 27
Evolution of Cognitive Computing
Supply Chain Insights LLC Copyright © 2018, p. 28
Impact of Localized Assortment
Supply Chain Insights LLC Copyright © 2018, p. 29
Sentiment: The Need to Listen
Supply Chain Insights LLC Copyright © 2018, p. 30
Redefining
Time
Supply Chain Insights LLC Copyright © 2018, p. 31
1.5M sku locations
~ 95% slow or intermittent
Seasonal demand (at the item level) is identified down to a specific
location.
Simplified for clarity In reality, looks more like this
•365 days
•150+ local climates
•Avg 3,000 items / location (165M)
•15 year lifecycle changing amplitude
Lennox International
Supply Chain Insights LLC Copyright © 2018, p. 32
•Replace
•Compressor
•Engines
• Dealer gets service event
• We get parts sales
• Customer has non-event
• Customer - Dealer & Brand loyalty
Your compressor shows that it will fail
within the next 30 days. What day would
be good for us to come replace it?
Redefining Service
Supply Chain Insights LLC Copyright © 2018, p. 33
Internet of Things
Supply Chain Insights LLC Copyright © 2018, p. 34
Supply Chain Insights LLC Copyright © 2018, p. 35
Rich user interface in full HD
Evocative sound track with
burring grinder and tinkling
of spoons
Memorable flavours and
fragrances
Cutting edge reliable /
ultra efficient computer
processing hardware
Stunning curved design by
Italian automotive designers
Irresistible aromas of Costa’s
coffee shops
Innovative coffee-making
system providers
Redefining Replenishment
Supply Chain Insights LLC Copyright © 2018, p. 36
L’Oreal: Direct Communication with Customers
New use cases
Product
Information
Dialogue with
smartphonesAutomated cash-out
- Examples -
Supply Chain Insights LLC Copyright © 2018, p. 37
Transforming Inbound Logistics
Mobile Device Apps
AIS Vessel Location
Sensors
Supply Chain Insights LLC Copyright © 2018, p. 38
Improved On-Time Delivery
Digital Manufacturing
Supply Chain Insights LLC Copyright © 2018, p. 40
What Is Digital Manufacturing?
Additive
Manufacturing
Paperless Processes Robotics
AGCO Manufacturing Redefinition
Supply Chain Insights LLC Copyright © 2018, p. 42
L’Oreal: 3D PRINTING - PROTOTYPING
42
3D printed mold for simple pack
S/T 3D printing :
15 days - 4 000 €
100 pieces
S/T traditional machining :
60 days - 20 000 €
1000 pieces
Mold proto standard
simple & complex pack
CCZ – 3D Lab
Supply Chain Insights LLC Copyright © 2018, p. 43
3D PRINTING - PRODUCTION
43
New design opportunities for our brands
Network of Networks
Supply Chain Insights LLC Copyright © 2018, p. 45
The adoption of distributed and open technology
by the ecosystem of technology providers and
business users to drive inter-operability in value
networks to improve business outcomes.
What Is the Network of Networks?
Supply Chain Insights LLC Copyright © 2018, p. 46
What Does Not Work
Supply Chain Insights LLC Copyright © 2018, p. 47
Future View
Supply Chain Insights LLC Copyright © 2018, p. 48
Write once and use company and contact information many times.Community Directory
• Reduce onboarding through once source of data.
Blockchain redefines visibility and track and trace.Traceability
• Confluence of Blockchain and Spark/Internet of Things Redefine Lineage.
Bitcoin and Blockchain disintermediate traditional banking.Supply Chain Finance
• Emergence of the supply chain digital wallet.
• An alternative to EDI.
Cognitive computing eliminates the need for master data
management and standards.Interoperability
• Data is mined through patterns and translated for context through cognitive computing.
Shift from standards to process canonicals.
What Could Change?
Talent
Supply Chain Insights LLC Copyright © 2018, p. 50
Baby Boomers, Vendors, Academics, and Remote Employees
Are Most Satisfied with Their Jobs
Supply Chain Insights LLC Copyright © 2018, p. 52
Today’s Challenges
Supply Chain Insights LLC Copyright © 2018, p. 53
Wrap-up
We must learn to unlearn to
relearn.
What got us here is not the
answer for the future.
Innovation makes much of
what we have today legacy.
Moving forward takes courage.
The opportunities are great.
ENGAGE WITH US!
Visit Us Online
www.supplychaininsights.com
www.supplychainshaman.com
www.linkedin.com/company/supply-chain-insights
www.slideshare.com/loracecere
Follow Us on Twitter
@scinsightsllc
@lcecere
Attend a Live Event
www.supplychaininsightsglobalsummit.com
www.supplychaininsights.com/the-shamans-circle
Supply Chain Insights LLC Copyright © 2018, p. 55
About Lora Cecere
• Founder of Supply Chain Insights
• “LinkedIn Influencer”
• Guest blog for Forbes
• Author of 5 books: Bricks Matter (2012), Shaman’s Journal (2014),
Supply Chain Metrics That Matter (2014), Shaman’s Journal (2015),
Shaman’s Journal (2016), Shaman’s Journal (2017)
• 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.
Contact Information:
• Email: lora.cecere@supplychaininsights.com
• Blog: www.supplychainshaman.com (15,000 pageviews/month)
• Forbes: www.forbes.com/sites/loracecere
• Twitter: twitter.com/lcecere (9,100 followers)
• LinkedIn: www.linkedin.com/in/loracecere (290,000 followers)
• LinkedIn Influencer: www.linkedin.com/today/author/446631

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Presentation at New Jersey Talent Network

  • 1. Learn from the Past, to Unlearn, and Rethink the Future
  • 2. Supply Chain Insights LLC Copyright © 2018, p. 2 I Am A Social Scientist
  • 3. Supply Chain Insights LLC Copyright © 2018, p. 3 I Write for the Supply Chain Leader
  • 4. Supply Chain Insights LLC Copyright © 2018, p. 4 2012
  • 5. Supply Chain Insights LLC Copyright © 2018, p. 5 What I Believed
  • 7. Supply Chain Insights LLC Copyright © 2018, p. 7 Third Industrial Revolution Productivity Impact Stopped in 2004
  • 8. Supply Chain Insights LLC Copyright © 2018, p. 8 Market Forces
  • 9. Supply Chain Insights LLC Copyright © 2018, p. 9 2007 Recession
  • 10. Supply Chain Insights LLC Copyright © 2018, p. 10 Do We Have Best Practices? Or Functional Excellence?
  • 11. Supply Chain Insights LLC Copyright © 2018, p. 11 Today’s Supply Chain
  • 12. Supply Chain Insights LLC Copyright © 2018, p. 12 Tomorrow’s Supply Chain
  • 13. Supply Chain Insights LLC Copyright © 2018, p. 13 Risk Management Issues Growing
  • 14. Supply Chain Insights LLC Copyright © 2018, p. 14 Unprecedented Commodity Pressures
  • 15. Supply Chain Insights LLC Copyright © 2018, p. 15 Inventory Levels Burgeoning
  • 16. Supply Chain Insights LLC Copyright © 2018, p. 16 Normal Distribution SKU/L SalesVolume Anything But Normal Complexity: The “Long Tail”
  • 17. Supply Chain Insights LLC Copyright © 2018, p. 17 Normal Distribution SKU/L SalesVolume Anything But Normal Consistent and Forecastable: 874 items representing 77% of the volume and 74% net sales. 64% of the volume is forecastable with a 55% error. Inconsistent demand: 1723 items representing 23% of the volume and 26% net sales. Traditional Optimization Techniques Need for Machine Learning/Pattern Recognition: Inventory Strategy Not Forecastable by Conventional Means Client Case Study
  • 19. Supply Chain Insights LLC Copyright © 2018, p. 19 Digital Supply Chain: Transforming the Atoms and Electrons of the Supply Chain through the Confluence of new Capabilities/Technologies. Digitization: Making signals and processes digital. What Does Digital Transformation Mean for You? There Is No One Definition
  • 20. Supply Chain Insights LLC Copyright © 2018, p. 20 What Is Digital?
  • 21. Supply Chain Insights LLC Copyright © 2018, p. 21 What Is Next-Generational Thinking?
  • 22. Supply Chain Insights LLC Copyright © 2018, p. 22 Current Supply Chain Process Thinking Rows and Columns: Transactional Data Fixed Hierarchies with Structured Data One-to-One Enterprise Linear Flows Descriptive and Predictive Analytics
  • 23. New Forms of Analytics
  • 24. Supply Chain Insights LLC Copyright © 2018, p. 24 Data Needs to Move Securely Through Value Networks In… Clouds Streams Pools
  • 25. Supply Chain Insights LLC Copyright © 2018, p. 25 Need for New Forms of Analytics
  • 26. Supply Chain Insights LLC Copyright © 2018, p. 26 Evolution of Insights
  • 27. Supply Chain Insights LLC Copyright © 2018, p. 27 Evolution of Cognitive Computing
  • 28. Supply Chain Insights LLC Copyright © 2018, p. 28 Impact of Localized Assortment
  • 29. Supply Chain Insights LLC Copyright © 2018, p. 29 Sentiment: The Need to Listen
  • 30. Supply Chain Insights LLC Copyright © 2018, p. 30 Redefining Time
  • 31. Supply Chain Insights LLC Copyright © 2018, p. 31 1.5M sku locations ~ 95% slow or intermittent Seasonal demand (at the item level) is identified down to a specific location. Simplified for clarity In reality, looks more like this •365 days •150+ local climates •Avg 3,000 items / location (165M) •15 year lifecycle changing amplitude Lennox International
  • 32. Supply Chain Insights LLC Copyright © 2018, p. 32 •Replace •Compressor •Engines • Dealer gets service event • We get parts sales • Customer has non-event • Customer - Dealer & Brand loyalty Your compressor shows that it will fail within the next 30 days. What day would be good for us to come replace it? Redefining Service
  • 33. Supply Chain Insights LLC Copyright © 2018, p. 33 Internet of Things
  • 34. Supply Chain Insights LLC Copyright © 2018, p. 34
  • 35. Supply Chain Insights LLC Copyright © 2018, p. 35 Rich user interface in full HD Evocative sound track with burring grinder and tinkling of spoons Memorable flavours and fragrances Cutting edge reliable / ultra efficient computer processing hardware Stunning curved design by Italian automotive designers Irresistible aromas of Costa’s coffee shops Innovative coffee-making system providers Redefining Replenishment
  • 36. Supply Chain Insights LLC Copyright © 2018, p. 36 L’Oreal: Direct Communication with Customers New use cases Product Information Dialogue with smartphonesAutomated cash-out - Examples -
  • 37. Supply Chain Insights LLC Copyright © 2018, p. 37 Transforming Inbound Logistics Mobile Device Apps AIS Vessel Location Sensors
  • 38. Supply Chain Insights LLC Copyright © 2018, p. 38 Improved On-Time Delivery
  • 40. Supply Chain Insights LLC Copyright © 2018, p. 40 What Is Digital Manufacturing? Additive Manufacturing Paperless Processes Robotics
  • 42. Supply Chain Insights LLC Copyright © 2018, p. 42 L’Oreal: 3D PRINTING - PROTOTYPING 42 3D printed mold for simple pack S/T 3D printing : 15 days - 4 000 € 100 pieces S/T traditional machining : 60 days - 20 000 € 1000 pieces Mold proto standard simple & complex pack CCZ – 3D Lab
  • 43. Supply Chain Insights LLC Copyright © 2018, p. 43 3D PRINTING - PRODUCTION 43 New design opportunities for our brands
  • 45. Supply Chain Insights LLC Copyright © 2018, p. 45 The adoption of distributed and open technology by the ecosystem of technology providers and business users to drive inter-operability in value networks to improve business outcomes. What Is the Network of Networks?
  • 46. Supply Chain Insights LLC Copyright © 2018, p. 46 What Does Not Work
  • 47. Supply Chain Insights LLC Copyright © 2018, p. 47 Future View
  • 48. Supply Chain Insights LLC Copyright © 2018, p. 48 Write once and use company and contact information many times.Community Directory • Reduce onboarding through once source of data. Blockchain redefines visibility and track and trace.Traceability • Confluence of Blockchain and Spark/Internet of Things Redefine Lineage. Bitcoin and Blockchain disintermediate traditional banking.Supply Chain Finance • Emergence of the supply chain digital wallet. • An alternative to EDI. Cognitive computing eliminates the need for master data management and standards.Interoperability • Data is mined through patterns and translated for context through cognitive computing. Shift from standards to process canonicals. What Could Change?
  • 50. Supply Chain Insights LLC Copyright © 2018, p. 50 Baby Boomers, Vendors, Academics, and Remote Employees Are Most Satisfied with Their Jobs
  • 51.
  • 52. Supply Chain Insights LLC Copyright © 2018, p. 52 Today’s Challenges
  • 53. Supply Chain Insights LLC Copyright © 2018, p. 53 Wrap-up We must learn to unlearn to relearn. What got us here is not the answer for the future. Innovation makes much of what we have today legacy. Moving forward takes courage. The opportunities are great.
  • 54. ENGAGE WITH US! Visit Us Online www.supplychaininsights.com www.supplychainshaman.com www.linkedin.com/company/supply-chain-insights www.slideshare.com/loracecere Follow Us on Twitter @scinsightsllc @lcecere Attend a Live Event www.supplychaininsightsglobalsummit.com www.supplychaininsights.com/the-shamans-circle
  • 55. Supply Chain Insights LLC Copyright © 2018, p. 55 About Lora Cecere • Founder of Supply Chain Insights • “LinkedIn Influencer” • Guest blog for Forbes • Author of 5 books: Bricks Matter (2012), Shaman’s Journal (2014), Supply Chain Metrics That Matter (2014), Shaman’s Journal (2015), Shaman’s Journal (2016), Shaman’s Journal (2017) • 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. Contact Information: • Email: lora.cecere@supplychaininsights.com • Blog: www.supplychainshaman.com (15,000 pageviews/month) • Forbes: www.forbes.com/sites/loracecere • Twitter: twitter.com/lcecere (9,100 followers) • LinkedIn: www.linkedin.com/in/loracecere (290,000 followers) • LinkedIn Influencer: www.linkedin.com/today/author/446631

Notas del editor

  1. Why the long tail is getting bigger
  2. Why the long tail is getting bigger
  3. With the cognitive engine the seasonal demand is identified down to the specific location within a region Know that micro-climates can make the demand index different as little as 30 miles away On the left we’ve made it easy to understand hot and cold and different locations On the right is a better emulation of the real picture
  4. Introduction of new model (machine type) – keeps us ahead of the curve and revolutionises once again the category
  5. Clearly the usage is also extremely intense with consumers, with our connected mirrors, that display informations as you approach a product, in the dialogue we can initiate with the consumer on her or his Iphone and of course, with the extremely high speed of cash out
  6. 3D printing is also key in prototyping, enabling fast development in our 3D lab in Clichy at headquarters enabling multi tasking teams to decide much faster in totally new development processes and also to run in a very short period of time pre series based on 3D molds, reducing this process from 60 to 15 days. Not only time is shorter but also money, even if the pre-series are limited to about 100 pieces instead of 1000, which is not a show stopper in this kind of process
  7. 3D printing enables also in our industry forms that were not to be realized in the past, especially here for our luxury products division , here the brand Urban Decay