Presentation at the Bluecrux Digital Event on November 29

Learn from the Past, to
Unlearn, and Rethink the
Future

Supply Chain Insights LLC Copyright © 2018, p. 2
I Am A Social Scientist

I Write for the Supply Chain Leader

2012

What I Believed

Third Industrial Revolution Productivity Impact Stopped in
2004

Market Forces

2007 Recession

Do We Have Best Practices?
Or Functional Excellence?

Today’s Supply Chain

Tomorrow’s Supply Chain

Risk Management Issues Growing

Unprecedented Commodity Pressures

Inventory Levels Burgeoning

Normal
Distribution
SKU/L
SalesVolume
Anything But Normal
Complexity: The “Long Tail”

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

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

What Is Digital?

What Is Next-Generational Thinking?

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

Are You
Afraid to
Jump?

Where Are You Willing to Invest?
Early Adopter Late Adopter
Cognitive, Machine Learning,
Blockchain, Internet of Things,
Wearables, Drones, Autonomous
Vehicles
Cloud, Concurrent Planning,
Descriptive Analytics, Production
Planning, Inventory Management,
Transportation Planning
2 Options:
Little
Choice in
Between

Data
Inputs
Engines Plan
Outputs
Align Engines with Outcomes
Planning Master Data

Shifts in Planning Architecture

Businesses are Complex

Effectiveness of Analytics

The Building of Excel Ghettos
Isolated, Disconnected
Decision-making

Data Accessibility Is An Issue for Business Leaders

Demand Latency
Forecastability
Customer Service: On-time and Infull
Tactical Plan Feasibility
Schedule Adherence
Loads Tendered. Loads Accepted.Forecast Value Added

EnterpriseCustomers Suppliers
Demand
Networks
Supply
Networks
Logistics Networks

Demand
Networks
Supply
Networks
Logistics Networks
Decision Support Master Data
Transactional
Systems
Executional
Planning
Operational
Planning
Tactical
Panning
Tactical
Planning
Tactical
Planning
Tactical
Planning
Tactical
Planning
Strategic Planning
Operational
Planning
Operational
Planning
Operational
Planning
Operational
Planning
Executional
Planning
Executional
Planning
Executional
Planning
Executional
Planning
Transactional
Systems
Transactional
Systems
Transactional
Systems
Transactional
Systems

Demand
Networks
Supply
Networks
Logistics Networks
Decision Support Master Data
Transactional
Systems
Transactional
Systems
Transactional
Systems
Transactional
Systems
Transactional
Systems
E
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Strategic Planning
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• Engines: Modeling/Math
• Scalability
• User Interface
• Collaboration/What-if Analysis
• Partner Requirements
• Culture
• System of Record
• Integration
Selection Criteria for Planning

• Scalability
• User Interface
• Culture
• Integration

Demand Latency
Forecastability
Customer Service: On-time and Infull
Tactical Plan Feasibility
Schedule Adherence
Loads Tendered. Loads Accepted.Forecast Value Added

Data Needs to Move Securely Through Value
Networks In…
Clouds Streams Pools

Need for New Forms of Analytics

Evolution of Insights

Evolution of Cognitive Computing

Impact of Localized Assortment

Sentiment: The Need to Listen

Redefining
Time

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

•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

Internet of Things

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

L’Oreal: Direct Communication with Customers
New use cases
Product
Information
Dialogue with
smartphonesAutomated cash-out
- Examples -

Transforming Inbound Logistics
Mobile Device Apps
AIS Vessel Location
Sensors

Improved On-Time Delivery

What Is Digital Manufacturing?
Additive
Manufacturing
Paperless Processes Robotics

AGCO Manufacturing Redefinition

L’Oreal: 3D PRINTING - PROTOTYPING
60
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

3D PRINTING - PRODUCTION
61
New design opportunities for our brands

Current State

Maturity

Hands Free?

What Makes a Difference?

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?

What Does Not Work

Future View

What Is A Network?

Supply Chain Operating Networks

Is Blockchain the Answer?

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?

Baby Boomers, Vendors, Academics, and Remote Employees
Are Most Satisfied with Their Jobs

Today’s Challenges

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

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 (293,000 followers)
• LinkedIn Influencer: www.linkedin.com/today/author/446631

Presentation at the Bluecrux Digital Event on November 29

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Presentation at the Bluecrux Digital Event on November 29

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