Contenu connexe Similaire à Metrics That Matter Webinar -October 10, 2013 (20) Metrics That Matter Webinar -October 10, 20133. Supply Chain Insights LLC Copyright © 2013, 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
4. Supply Chain Insights LLC Copyright © 2013, p. 4
This is the new bible for all supply chain
executives. It provides an insider’s
perspective that will prove incredibly
valuable to even the most grizzled
supply chain veteran. This is the next
must-have business book.
--Bruce Richardson, Chief Enterprise
Strategist, Salesforce.com
Today, the worlds of social business and
supply chain management have many
degrees of separation. I enjoyed working
with Lora to understand what the future
transformation of digital marketing to
digital business could look like.
--Jeremiah Owyang, Research
Director, Altimeter
Second Printing of Bricks Matter:
17 Five-Star Reviews on Amazon
Book can be ordered from Amazon.com in hardcopy or digital format
7. Supply Chain Insights LLC Copyright © 2013, p. 7
A Supply Chain
is a Complex System
with Complex Processes
with Increasing Complexity
14. Supply Chain Insights LLC Copyright © 2013, p. 14
Perform better than peer group
Improve year-over-year results
Align internally on metrics
Deliver against the business strategy
Demonstrate consistency in results
Use innovation in supply chain processes
Balance. Be leaders in managing trade-offs
Our Point of View:
Definition of Supply Chain Excellence
15. Supply Chain Insights LLC Copyright © 2013, p. 15
In a way that is:
Resilient and predictable
Balanced across the set of metrics to
maximize value
Showing year-over-year improvement
against peer group
To Drive Corporate Performance
17. Supply Chain Insights LLC Copyright © 2013, p. 17
Most Interesting Patterns
• Revenue per Employee versus Inventory Turns
• Operating Margin versus Inventory Turns
• Cash-to-Cash Cycle versus Inventory Turns
20. Supply Chain Insights LLC Copyright © 2013, p. 20
What Have We Learned?
• Each industry has a different pattern of
trade-offs of balancing
growth, profitability, cycles and complexity.
• Companies that are supply chain leaders
have very small movement with a balanced
portfolio of metrics.
• It is about MUCH more than Return on
Assets (ROA), growth and inventory.
21. Supply Chain Insights LLC Copyright © 2013, p. 21
2002 2012
0
3
6
9
12
15
0 250 500 750 1,000 1,250
InventoryTurns
Revenue per Employee (K$)
The Dow Chemical Company
Visualizing the Patterns
Source: Supply Chain Insights LLC, Corporate Annual Reports 2002-2012 from One Source
Best Scenario
DOW
999, 6.7
Trace the line from
2002 point to 2012
point to follow the
performance over
time.
The diamond shows the company’s average over the period.
Ex: The Dow Chemical Company (DOW) has an average of 999
K$ for revenue per employee and 6.7 for inventory turns.
Ideally, companies are increasing
inventory turns and revenue per
employee, moving towards the upper
right corner of the graph over time.
Here, we plot inventory turns (y-axis)
vs. revenue per employee (x-axis).
Average (Revenue per Employee, Inventory Turns)
23. Supply Chain Insights LLC Copyright © 2013, p. 23
Inventory Turns vs. Revenue per
Employee (2002-2012)
25. Supply Chain Insights LLC Copyright © 2013, p. 25
Operating Margin vs. Revenue per
Employee (2002-2012)
27. Supply Chain Insights LLC Copyright © 2013, p. 27
Operating Margin vs. Revenue per
Employee (2002-2012)
28. Supply Chain Insights LLC Copyright © 2013, p. 28
Inventory Turns vs. Revenue per
Employee (2002-2012)
30. Supply Chain Insights LLC Copyright © 2013, p. 30
Inventory Turns vs.
Revenue per Employee (2003-2012)
35. Supply Chain Insights LLC Copyright © 2013, p. 35
Inventory Turns vs. Revenue per Employee
(2002-2012)
40. A formulaic representation of
how companies are trading off
growth, profitability, cycle and
complexity performance on
selected supply chain financial
metrics against market
valuation.
43. Supply Chain Insights LLC Copyright © 2013, p. 43
• Supply chain is a complex system with
increasing complexity.
• Different industries have different
patterns, but the cash-to-cash metrics have
the highest correlation to market
capitalization with some of the poorest
performance.
Wrap-up
44. Supply Chain Insights LLC Copyright © 2013, p. 44
1. Finish the work on the Supply Chain Index
2. Place the rankings on balance, strength and
resilience into the Supply Chain Insights
Community for Shaman Circle members to
vote on supply chain excellence
3. Final analysis of companies to be revealed
at the 2014 Supply Chain Insights Global
Summit
Next Steps
45. Supply Chain Insights LLC Copyright © 2013, p. 45
PAST WEBINARS: ON DEMAND
• From August 29, 2013: Supply Chain
Index, Overview
• From August 15, 2013: Supply Chain Talent: The
Missing Link
• From July 25, 2013: What is the Role of the
Store
Webinars
www.supplychaininsights.com/upcoming-webinars
UPCOMING WEBINARS
• November 13, 2013: Shaman’s Circle
• November 14, 2013: Healthcare Value Chain
• December 12, 2013: Digital Manufacturing & 3D
Printing
• January 23, 2014: Voice of the Supply Chain
46. Supply Chain Insights LLC Copyright © 2013, p. 46
Global Summit 2014
Registration is Now Open
Supply Chain Insights Global Summit 2014
September 10-11, 2014
The Phoenician – Scottsdale, AZ USA
www.supplychaininsightsglobalsummit.com
47. Supply Chain Insights LLC Copyright © 2013, p. 47
Upcoming Corporate Training
Chicago, IL and Atlanta, GA
November 11-12, 2013
Chicago, IL USA
January 16-17, 2014
Atlanta, GA USA
www.supplychaininsights.com/training
49. Supply Chain Insights LLC Copyright © 2013, p. 49
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.
50. Supply Chain Insights LLC Copyright © 2013, p. 50
Where Do You Find Lora?
Contact Information:
lora.cecere@supplychaininsights.com
Blog: www.supplychainshaman.com
(5000 pageviews/month)
Twitter: lcecere 5200 followers.
LinkedIn: linkedin.com/pub/lora-
cecere/0/196/573 (5200 in the network)