Contenu connexe Similaire à Llamasoft presentation2 (20) Llamasoft presentation23. Supply Chain Insights LLC Copyright © 2014, p. 3
Supply Chain Insights is focused on delivering
independent, actionable and objective advice for
supply chain leaders.
A company dedicated to research,
turn to us when you want the latest insights
on supply chain trends, technologies to know and
metrics that matter.
About Us
5. Supply Chain Insights LLC Copyright © 2014, p. 5
To develop a methodology to help supply chain leaders define supply
chain improvement. To be effective, it had to:
• Evaluate progress over time by peer group.
• Be objective and data driven.
• Compare progress of companies across currencies.
• Enable the comparison of progress of companies regardless of size:
very large to mid-market companies.
• Connect supply chain performance to corporate performance.
• Use standardized, and available data.
Our Vision
8. Supply Chain Insights LLC Copyright © 2014, p. 8
A Supply Chain
is a Complex System
with Complex
Processes
with Increasing
Complexity
Our Belief
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9. Supply Chain Insights LLC Copyright © 2014, p. 9
Resilient and predictable
Balanced across the set of metrics
to maximize value
Showing year-over-year strength
against peer group
Desired Corporate Performance
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10. Supply Chain Insights LLC Copyright © 2014, p. 10
The Supply Chain Effective Frontier:
First Representation
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11. Supply Chain Insights LLC Copyright © 2014, p. 11
While we like this framework, there is no good
source of consistent and accurate data for:
– Forecast Accuracy
– Case Fill Rate
– Corporate Social Responsibility
Problem with this Framework
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12. Supply Chain Insights LLC Copyright © 2014, p. 12
The Supply Chain Effective Frontier:
Second Representation
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In most supply chains, complexity has risen throwing the
supply chain out of balance. We find that nine out of ten
companies are stuck at the intersection of inventory turns
and operating margin.
14. Supply Chain Insights LLC Copyright © 2014, p. 14
Intersection of Operating Margin and
Inventory Turns
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15. Supply Chain Insights LLC Copyright © 2014, p. 15
Companies Get More Serious
With A Recession
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22. Supply Chain Insights LLC Copyright © 2014, p. 22
Supply Chain Metrics That Matter Reports
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What is Resiliency?
Tightness of the Pattern
on the Orbit Chart for
Operating Margin and
Inventory Turns
25. Supply Chain Insights LLC Copyright © 2014, p. 25
Overall Ranking per Company
• Balance: Return on Invested Capital & Revenue Growth Vector Trajectory (30%)
• Strength: Inventory Turns & Operating Margin Vector Trajectory (30%)
• Resiliency: Inventory Turns & Operating Margin Mean Distance (30%)
• Peer: Peer Rankings by Industry (10%)
The Supply Chain Index
A new way to measure relative
supply chain performance by
industry, based on 4 components:
balance, strength, resiliency and
peer rankings.
Supply Chain Index: A Measure of Supply
Chain Improvement
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27. Supply Chain Insights LLC Copyright © 2014, p. 27
Supply Chain Index
30% 30% 30% 10%
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What is the right weighting?
What is the right time period?
28. Supply Chain Insights LLC Copyright © 2014, p. 28
An exclusive, invitation-only group
of senior supply chain leaders
(330 at present):
• Two private networking events/year
• One-on-one networking as needed
• Invitations to rank companies for the
Supply Chain Index (one per company)
• Monthly calls on specific topics
Next Steps: Shaman’s Circle
30. Supply Chain Insights LLC Copyright © 2014, p. 30
Supply Chain Index: Consumer Products
2006-2012
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31. Supply Chain Insights LLC Copyright © 2014, p. 31
Colgate and P&G
(2000-2012)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2000-2012
2000
2012
2000
2012
4
5
6
7
0.10 0.15 0.20 0.25
InventoryTurns
Operating Margin
Colgate-Palmolive Company Procter & Gamble Company
Best Scenario
CL
0.21, 5.7
PG
0.18, 5.7
Average (Operating Margin, Inventory Turns)
33. Supply Chain Insights LLC Copyright © 2014, p. 33
Supply Chain Index: Consumer Products
2009-2012
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34. Supply Chain Insights LLC Copyright © 2014, p. 34
• Beauty category gains ground. Heavier CPG products lose ground as
the cost of transportation increases.
• L’Oreal, Beiersdorf and Unilever improve. Colgate falls.
Consumer Products Comparison
36. Supply Chain Insights LLC Copyright © 2014, p. 36
Supply Chain Index: Food and Beverage
2006-2012
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39. Supply Chain Insights LLC Copyright © 2014, p. 39
Supply Chain Index: Food and Beverage
2009-2012
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40. Supply Chain Insights LLC Copyright © 2014, p. 40
• Nestle, Smuckers, PepsiCo, Inbev and Conagra make significant
gains.
• General Mills and Coca-Cola Enterprises fall.
Food and Beverage Comparison
43. Supply Chain Insights LLC Copyright © 2014, p. 43
Inventory Turns vs. Operating Margin
(2000-2012)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2000-2012
2000
2012
2000
2012
3
4
5
6
7
8
0.00 0.10 0.20 0.30
InventoryTurns
Operating Margin
BASF SE E. I. du Pont de Nemours and Company
Best Scenario
BAS
0.10, 5.3
DD
0.10, 4.0
Average (Operating Margin, Inventory Turns)
45. Supply Chain Insights LLC Copyright © 2014, p. 45
• BASF and Dow Chemical move up the stack.
• Dow improves post Rohm and Haas acquisition.
• DuPont, FMC and Ecolab drop in the rankings.
Insights on Chemical
52. Supply Chain Insights LLC Copyright © 2014, p. 52
• Nine out of ten companies are stuck on the Effective Frontier. The
project approach versus a clear operating strategy is detrimental.
• Supply chain resiliency is improving. However, the lack of resiliency of
contract manufacturing and 3PLs should be a risk concern for
manufacturers.
• The Index favors companies with a high ROIC. Companies that have
increased complexity, lost margin and have not more fully utilized
assets are penalized in the rankings.
• Those the score higher on the Effective Frontier within a peer group
are good at planning and network design.
What Have We Learned?
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53. Supply Chain Insights LLC Copyright © 2014, p. 53
Do we Have Best Practices?
My Answer: I think that we
have past practices that are
evolving.
56. Supply Chain Insights LLC Copyright © 2014, p. 56
Metrics That Matter
• Lora Cecere’s 2nd book:
Metrics That Matter
• To publish in Fall 2014
http://tinyurl.com/metricsthatmatter
Pre-orders available on Amazon:
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57. Supply Chain Insights LLC Copyright © 2014, p. 57
What’s Happening at
Supply Chain Insights?
www.supplychaininsights.com
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58. Supply Chain Insights LLC Copyright © 2014, p. 58
About Lora Cecere
• Founder of Supply Chain Insights
• Invited to be a “LinkedIn Influencer”
• Invited to write a guest blog for Forbes
• Author of 2 books: Bricks Matter (2012) and
Metrics That Matter (to publish Fall of 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 (4800 followers)
• LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (7000 in the network)
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