European tour

Bricks Matter

Lora Cecere

Supply Chain Insights LLC Copyright © 2012, p. 2

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


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: 12 Five-Star Reviews on Amazon


18 Reports in 2012


35 Reports Planned for 2013

Supply Chain Metrics:

Apparel/FootwearOutsourced Manuf’g

AutomotiveSC Index: Corp. Perf.

Survey-Based:

Continuous Impr’mtRisk Management

Supply Chain MobilityMaster Data Mgmt

Digital ManufacturingSupply Chain FinanceDigital Path to Purch.Omnichannel Fulfillmt

Tracking Surveys:

S&OP and Agility #2Big Data #2

Transportation #2

Integrated Demand #2SCTalent #2

Voice of SC #3

Other:

Software Market-shareCool Technologies

Consumer Value Chain


The Supply Chain Pioneers


Supply Chain Management: Top 3 Elements of Pain for Respondent


A Supply Chain

is a Complex System

with Complex Processes

with Increasing Complexity


The Effective Frontier


Growth Profitability Cycle Complexity

R&D Margin Cash on Hand C2C Cycle Altman Z

R&D to COGS Ratio Free Cash Flow Ratio Days of Finished Goods Capital Turnover

SGA Margin Gross Margin Days of Inventory Current Ratio

SGA/COGS Net Profit Days of Payables Outstanding Quick Ratio

COGS as Percent of Net Sales Operating Margin Days of Raw

Materials Return on Assets

Pretax Margin (EBIT) Days of Sales Outstanding Return on Equity

YoY Sales Growth Days of Work in Progress

Return on Invested Capital

Operating Margin DPO/DSO Return on Net Assets

Inventory Turns Revenue/Employee

Receivables Turns Cost of Sales

Useful Ratios


Cash-to-Cash Cycle vs. Gross Margin (2000-2011)SUMMARY SLIDE


Industry Averages


Chemical


Consumer Electronics


Consumer Packaged Goods


Colgate-Palmolive Company vs Unilever N.V.


Cash-to-Cash Cycle vs. Gross Margin (2000-2011)SUMMARY SLIDE


Food


Cash-to-Cash Cycle vs. Revenue per Employee (2000-2011)


Five Year Comparison


Pharmaceutical


Source: Supply Chain Insights 2012

Average Days of Inventory by Year

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Consumer Packaged Goods

59 57 62 64 67 67 68 70 70 64 64 67

Chemical

71.5 71.9 78.2 75.1 62 70.3 68.1 64.3 64.3 78.6 72.9 72.8

Pharma

122.236691097

869

133.699100562

175

190.147616165

968

170.986522478

989

184.342617399

859

175.550260476

877

167.799951139

247

149.815153981

283

154.915781882

591

198.663134119

976

154.313480863

244

131.819794240

294

High Tech

93.1 57.6 46.5 48.5 35.9 37.3 43.8 36.8 34.6 41.3 34.8 30.4

Average

86.4591727744

674

80.0497751405

437

94.2119040414

919

89.6466306197

472

87.3106543499

647

87.5375651192

192

86.9249877848

117

80.2287884953

207

80.9539454706

477

95.6407835299

941

81.5033702158

11

75.5049485600

736

25.0

75.0

125.0

175.0

225.0

Da

ys

o

f In

ve

nto

ry


Evolution

Align:Market Driven

Building Horizontal Process Connectors

ContinuousTesting

LearningImprovingIn Market

OrchestrateDemand and Supply

ResilientReliable

Adapt: Demand Driven

EfficientSense

Demandand Supply

Shape Demand andSupply based

on Market

Absorb DemandVolatility

Absorb Supply Volatility

Right Product

Right Place

Right Time

Right Cost

Cost

Procure to pay/order to

cash


An adaptive network focused on a value-based outcome that senses and translates

market changes (buy and sell-side markets) bi-directionally with near-real time data latency to align sell, deliver, make and

sourcing operations.

What is a Market-driven Value Network?


Evolving Practices

Sustainability


Corporate Sustainability Dilemma


Corporate Sustainability Alignment


Corporate Sustainability Alignment

Current Performance


State of IT Systems


System Importance


Satisfaction with Technology


The Gap

The Path Forward


The Supply Chain of the Future

World Population

Source: “The World at Six Billion” United Nations, 2004; The World UN Population Assessment 2006; “Unsustainable World,” 04/15/08, BBC

North America

2007 2020339M 342M

Europe

2007 2020731M 722M

Asia

2007 20204.0B 4.6B

L America

2007 2020572M 660M

Africa

2007 2020965M 1.3B

Oceania

2007 202034M 40M

MARCO TRENDS


Outside-In

Value-Based OutcomesDelivered by Value Networks

Supply Chain Excellence =

Supply Chain 2020 Tipping Points

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Talent Shortage

Compliance on Safe & Secure

Orchestration

Big Data Supply Chains

Internet of Things

Learning Supply Chains

Digital Manufacturing


Scenario Planning


Rethinking Analytics



Definition

42

Challenges:• Transactional• Time phased data

Structured Data

• Social• Channel• Customer Service• Warranty

• Temperature• RFID• QR codes• GPS

• Mapping and GPS• Video• Voice• Digital Images

Unstructured Data

SensorData

NewDataTypes

Volume

Velocity

Variability


Connecting the Extended Supply Chain

43


Connecting the Extended Supply Chain


Two-day public training classes focusing on accelerating the understanding of supply chain excellence. $1500 for two days of training.

– Chicago, IL – April 1-2– Dallas, TX – May 6-7– Princeton, NJ – June 24-25

For more information and to register visit: www.supplychaininsights.com/services/training/

Training – Based on Bricks Matter

http://www.supplychaininsights.com/services/training/


Where is Your Opportunity?


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.


Where Do You Find Lora?

Contact Information: [email protected]

Blog: www.supplychainshaman.com (4000 pageviews/month)

Twitter: lcecere 3700 followers. Rated as the top rated supply chain social network user.

LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (2300 in the network)

Date post:	15-Dec-2014
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