!

Adrian Gonzalez President, Adelante SCM

adrian@adelantescm.com

IsyourLogisticsVisibilityandCollaborationStrategyReadyfor2016andBeyond?

Elemica Executive Luncheon

June 21, 2016

FirstSupplyChainAnalystReport

Author Unknown, Written in Cuneiform, c. 3200 BCE

What does it say?

Iftheadviceis5200+yearsold…

“Supplychainvisibilityandcollabora4onarecri4calforsuccess…”

…why are we still talking about it?

Howmostcompaniesstillworktoday

!  Eachfunc)ondrivenbyitsownmetrics

!  Coopera)onvs.Collabora)on

Logistics

Manufacturing

Demand Planning Procurement

Image source: https://www.workintelligent.ly/workstyle/culture/2014-4-15-organizational-culture-silos/

Which function is the center of your supply chain universe, the one everyone else revolves around?

Softwaremirrorsorganizationalstructures

!  Eachappfocusedonmaximizingperformanceofsinglefunc)on

!  Datasharingvs.intelligencesharing

WMS

TMS LaborMgmt

DemandPlanning

Collaborate?Sure,ExceptIDon’tTrustYou

33% Almost two-thirds of the poll respondents said “you can’t be too careful” in dealing with people

Is that what you’re thinking when you’re sitting across from a supplier, customer, or other trading partner? Are they thinking the same thing about you?

Percent of respondents who say most people can be trusted

Source: http://ap-gfkpoll.com/featured/our-latest-poll-findings-24

Whyarewestilltalkingaboutit?

No ‘silver bullet’ solution It’s a moving target

Whydoesitmatter?

Keepingpacewithrapidpaceofchange

Keepingpacewiththerapidpaceofchange

!  Same-dayDelivery

!  Smaller,morefrequentshipments

!  Omni-channeldistribu)on

!  Narrower)mewindows

!  Capacityconstraints

!  Mul)-mode,mul)-geography

!  Regula)ons(e.g.,HOS,FoodSafety)

!  Technology(Drones,DriverlessTrucks)

#1 Challenge for Supply Chain Execs

Gettingthat“Swing”inSupplyChain

“Whenyougettherhythminaneight,it’spurepleasuretobeinit.It’snothardworkwhentherhythmcomes–that‘swing’as[rowers]callit.I’veheardmenshriekoutwithdelightwhenthatswingcomesinaneight;it’sathingthey’llneverforgetaslongastheylive”

–GeorgeYeomanPocockfromTheBoysintheBoat

TheFirstStepstoImproveSCVisibility

!  Iden4fyanddocumenttherootcausesofpoorsupplychainvisibility.Therootcausesgenerallyfallintothreecategories:ITissues(e.g.,lackofdatacapturesystemsorso\ware,poorintegra)onofsystems);Peopleissues(e.g.,poortraining);andProcessissues(e.g.,nometrics,operateinfunc)onalsilos).Simplyput,ifyoudon’tunderstandtherootcausesofpoorsupplychainvisibility,youwon’tknowwhatcorrec)veac)onstotake.

!  Quan4fythefinancialimpactofpoorsupplychainvisibility.Weallknowthatpoorsupplychainvisibilityresultsinlostsales(out-ofstocks),highertransporta)oncosts(expeditedshipments),excessinventory,andreducedcustomersa)sfac)on(amongothernega)veconsequences).Pu]ngadollarfigureonpoorsupplychainvisibility,andhowthecostsbreakdown,notonlyhelpsyougainuppermanagementsupporttotakecorrec)veac)ons,butalsohelpsyoutopriori)zethoseac)ons.

!  Enlistinternalandexternalstakeholderstodevelopandexecutesolu4ons.Toparaphraseapopularsaying,ittakesavillagetoachieveandmaintainhighlevelsofsupplychainvisibility.Assembleateamofinternalandexternalstakeholdersandprovidethemwithaclearandmeasurablemissiontoimprovesupplychainvisibility--andalsoprovidethemwiththenecessarysupport,intermsoftechnology,resources,anddecision-makingauthoritytoaccomplishthatmission.

BreakDownFunctionalSilos

!  Don’tconfuseCoopera)onwithCollabora)on

!  Leaderswithx-func)onalresponsibility–e.g.,ChiefSupplyChainOfficer

!  Developastrategicplanningandmanagementsystem,suchasthebalancedscorecard,thataligns“businessac)vi)estothevisionandstrategyoftheorganiza)on,improvesinternalandexternalcommunica)ons,andmonitorsorganiza)onperformanceagainststrategicgoals.”

ChangeMindsetonBusinessRelationships

“Intoday’srapidlyevolvingworld,businessrela)onshipsbasedonanoutdated‘win-lose’mentalitywon’twithstandamarketthatdemandsconstantchangeandadapta)on.

“Onlybyfocusingon‘win-win’rela)onshipscancompaniesdriveinnova)onandincreasetheircompe))veedge.”

ThinkBeyondERP

Leadingcompanieshavemadetwoimportantrealiza)ons:

!  TheirERPsystem,whichwasoriginallydesignedforinside-the-four-wallsbusinessprocessesandforcompaniesthatweremorever)callyintegratedthantheyaretoday,isnotthebestplaaormforcross-companycommunica)onandcollabora)on.

!  Business-to-Business(B2B)connec)vity--thatis,crea)ngandmanagingthousandsofone-to-oneconnec)onswiththeirtradingpartners,typicallyusingoutdatedtechnologylikeElectronicDataInterchange(EDI)--isnotacorecompetency.

SupplyChainOperatingNetworks:APlatformforCompaniesofTomorrow

QuantifyingtheValueofSCONs

!  Network-basedBIandAnaly)cs:Howarewedoingcomparedtopeers/market?

!  Excep)onManagement:iden)fyandresolveexcep)onsfasterandmoreeffec)vely

!  RiskManagement:gainmore)melyandinsighaulinsightsaboutemergingrisksandevents

!  Innova)on:Generatemore—andbeher—ideasforimprovingsupplychainprocessesandsolvingexis)ngproblemsbytappingthecollec)veinsights,knowledge,andexper)seofemployeesandpartnersacrossthesupplychain

… beyond the usual metrics

KeyTakeaways

!  A\er5200+years,the)mehascometo“walkthetalk”onsupplychainvisibilityandcollabora)on.

!  Yes,it’shardtodo–therearenosilverbulletsandthetargetkeepsmoving.

!  Iden)fyrootcausesofpoorsupplychainvisibility,quan)fytheimpactindollarterms,enlistinternal+externalstakeholders

!  Don’tconfusecoopera)onwithcollabora)on.Aligngoals,metrics,andresourcesacrossfunc)onalgroups.

!  ThinkbeyondERP.Youwillfindinnova)onattheintersec)onofso\ware,B2Bconnec)vity,andsocialnetworking(SCON)

ThankYou!

Adrian Gonzalez President

Adelante SCM adrian@adelantescm.com

www.talkinglogistics.com