Metrics that Matter

Get Prepared

Supply Chain Insights LLC Copyright 2015, p. 2

Books for Your Bookshelf

Wiley
December 2012

Self-published
September 2014

Wiley
December 2014

Supply Chain Insights LLC Copyright 2015, p. 3

Todays Supply Chain is Stuck

Supply Chain Insights LLC Copyright 2015, p. 4

Industry Overview

Supply Chain Insights LLC Copyright 2015, p. 5

Why?

Supply Chain Insights LLC Copyright 2015, p. 6

What is Demand?

Demand
Signal

Accurate Weekly
Forecasting is ...

Delay from
Purchase to
Signal

* Represents emerging markets

Supply Chain Insights LLC Copyright 2015, p. 7

Fallacy #1: Functional Excellence

#sciwebinar

Supply Chain Insights LLC Copyright 2015, p. 8

Fallacy #2: A Project-based Focus

#sciwebinar

Supply Chain Insights LLC Copyright 2015, p. 9

Companies Get More Serious

With A Recession: But Cannot Sustain It

#sciwebinar

Supply Chain Insights LLC Copyright 2015, p. 10

What We Expected

Supply Chain Insights LLC Copyright 2015, p. 11

What we Learned.

A Supply Chain
is a Complex System
with Complex
Processes
with Increasing
Complexity
#sciwebinar

Supply Chain Insights LLC Copyright 2015, p. 12

The Supply Chain Effective Frontier

#sciwebinar

Supply Chain Insights LLC Copyright 2015, p. 13

Correlations to Market Capitalization

#sciwebinar

Supply Chain Insights LLC Copyright 2015, p. 14

Orbit Chart: Wal-Mart

(Inventory Turns and Operating Margin)

#sciwebinar

Supply Chain Insights LLC Copyright 2015, p. 15

Orbit Chart: Apple

(Inventory Turns and Operating Margin)

#sciwebinar

Supply Chain Insights LLC Copyright 2015, p. 16

Orbit Charts: Dow Chemical Company

#sciwebinar

Supply Chain Insights LLC Copyright 2015, p. 17

Orbit Charts: Mattel, Inc.

(Inventory Turns versus Operating Margin)

#sciwebinar

Supply Chain Insights LLC Copyright 2015, p. 18

Orbit Chart: Procter & Gamble

(Inventory Turns and Operating Margin)

#sciwebinar

Supply Chain Insights LLC Copyright 2015, p. 19

Overall Network: Inventory Turns versus

Operating Margin 2006-2012

#sciwebinar

Supply Chain Insights LLC Copyright 2015, p. 20

Measuring Supply Chain Improvement

Overall Ranking per Company

Balance: Return on Invested Capital & Revenue Growth Vector Trajectory (30%)
Strength: Inventory Turns & Operating Margin Vector Trajectory (30% of score)
Resiliency: Inventory Turns & Operating Margin Mean Distance (30%)

Supply Chain Insights LLC Copyright 2015, p. 21

Supply Chains to Admire Methodology

+
Performance

Improvement

Beats the industry

average for operating
margin, inventory turns
and ROIC for 20062014 and 2009-2014

Ranks above peer

group average on
The Supply Chain
Index for 20062014 or 2009-2014

Supply Chain Insights LLC Copyright 2015, p. 22

An Example: Food

#sciwebinar

Supply Chain Insights LLC Copyright 2015, p. 23

Annual Study: Supply Chains To Admire

Supply Chains to Admire 2015 to be Announced at the Supply

Chain Insights Global Summit on September 9th and 10th
Supply Chain Insights LLC Copyright 2015, p. 24

Comparing Companies
Both 1 and 3 have balance but
company 1 knows how to
rebound after the financial crisis
resilience
Strong in turns
but
unbalanced

Supply Chain Insights LLC Copyright 2015, p. 25

Driving Results

What Makes a Difference

Leadership
Building of talent
Outside-in processes
Horizontal process focus
Active and intentional design
Supply chain planning

Supply Chain Insights LLC Copyright 2015, p. 27

Right Stuff?

Supply Chain Insights LLC Copyright 2015, p. 28

Growing Talent Gap

Supply Chain Insights LLC Copyright 2015, p. 29

Losing Ground

Supply Chain Insights LLC Copyright 2015, p. 30

What does this Say to You?

Supply Chain Insights LLC Copyright 2015, p. 31

State of IT Systems

Supply Chain Insights LLC Copyright 2015, p. 32

The Role of ERP

Supply Chain Insights LLC Copyright 2015, p. 33

IT Systems:
Importance & Satisfaction by Role & Supply Chain

Supply Chain Insights LLC Copyright 2015, p. 34

State of Planning

Supply Chain Insights LLC Copyright 2015, p. 35

Get Prepared

Supply Chain Insights LLC Copyright 2015, p. 36

Supply Chain Insights LLC Copyright 2015, p. 37

Get Prepared

It is not an evolution
We are defining new
practices
Learn, to unlearn, to relearn

Supply Chain Insights LLC Copyright 2015, p. 38

Questions?

Supply Chain Insights LLC Copyright 2015, p. 39

Founder: Lora Cecere

Founder of Supply Chain Insights

LinkedIn Influencer
Guest blog for Forbes
Author of 3 books: Bricks Matter (2012), Shamans Journal (2014)
and Supply Chain Metrics That Matter (December 2014)

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 (6000 pageviews/month)
Forbes: http://www.forbes.com/search/?q=lora+cecere
Twitter: lcecere (5750 followers)
LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (35,000 followers)

Supply Chain Insights LLC Copyright 2015, p. 42