Professional Documents
Culture Documents
Process
Lora Cecere
September 2013
Cereal
About Us
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.
18 Reports in 2012
2014 Publication
Current State
Current State
A Supply Chain
is a Complex System
with Complex Processes
with Increasing Complexity
Industry Progress
Days of Inventory
200.0
150.0
100.0
50.0
0.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Consumer Packaged Goods 59.0 57.0 62.0 64.0 67.0 67.0 68.0 70.0 70.0 64.0 64.0 67.0
Chemical
71.5 71.9 78.2 75.1 62.0 70.3 68.1 64.3 64.3 78.6 72.9 72.8
Pharma
122.2 133.7 190.1 171.0 184.3 175.6 167.8 149.8 154.9 198.7 154.3 131.8
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
86.5 80.0 94.2 89.6 87.3 87.5 86.9 80.2 81.0 95.6 81.5 75.5
Source: Supply Chain Insights 2012
Productivity in Manufacturing
Productivity in Retail
Progress
(2000-2012)
Impact of A Recession
Demand Networks
Design Networks
Innovation
Methodologies
Design the
supply
response
Supply Chain
Network Design
Build
organizational
systems and
manage talent
Continuous
Improvement
Capabilities Required
Align supply
relationships
Effective Supply
Networks
Execution of buyside strategies
Business Process
How do I do the right things right?
Source: Supply Chain Insights, LLC
Agility
SKILLS
INCENTIVE
RESOURCES
PLAN
SKILLS
INCENTIVE
RESOURCES
PLAN
INCENTIVE
RESOURCES
PLAN
RESOURCES
SHARED
VISION
SHARED
VISION
SKILLS
INCENTIVE
SHARED
VISION
SKILLS
INCENTIVE
SHARED
VISION
SKILLS
RESOURCES
LEADERSHIP
CHANGE
CONFUSION
LEADERSHIP
ANXIETY
LEADERSHIP
FALSE
STARTS
PLAN
LEADERSHIP
FRUSTRATION
PLAN
LEADERSHIP
GRADUAL
CHANGE
Extremely/very easy
Users
12%
12%
24%
Neutral
Extremely/very difficult
24%
24% EASY
29%
53% DIFFICULT
___________________________________________________________
Source: Supply Chain Insights LLC, Transportation (Aug-Oct 2012)
Base: Transportation Users (Manufacturers, Retailers and Distributors) (n=34)
Q18. How easy is it for your company to get total supply chain costs for your operations?
26
Typical Organization
CEO
Chief Customer
Officer
Chief Marketing
Officer
COO
Account Teams
Growth
VP of Supply
Chain
Sales
Volume
Customer
Service
Procurement
Logistics
CFO
VP of
Manufacturing
CIO
Quality
Cost
Alignment
Finance
Information Technology
S&OP Process
Existence, Goals & Processes
S&OP Balance
What-if Analysis
S
&
OP
Common Practice
Market-driven Focus
Ask sales
Manufacturing plan
39
Supply Chain Insights LLC Copyright 2013, p. 39
S&OP Evolution
Sales Driven
Match Demand
with Supply
ManufacturingDriven
Deliver a Feasible
Plan for Operations
Match Demand
with Supply
Greater Benefit
Growth
Resilience
Efficiency
Businessplanning Driven
Maximize
Profitability
Demand Driven
Maximize
Opportunity
Sense and
Shape
Demand
Market Driven
Maximize
Opportunity and
Mitigate Risk.
Orchestrate
Demand
Market to Market
S&OP Process
Plan Execution
Benefits Received
from S&OP Processes
Increasing revenue
Improving forecast accuracy
Reduction of inventory
Improving asset utilization
59%
2%
5-7%
57%
10-15%
50%
42%
3-7%
38%
36%
3-6%
2-8%
32%
32%
34%
3-6%
30%
Case Study
Growth (2007-2012)
47
Business Planning
Forecasting
Constrained Forecast
Increasing levels of
granularity
49
Supply Chain Insights LLC Copyright 2013, p. 49
Demand-side Views
Supply-side Views
Hole in Enterprise
Architectures
Account-Level
A
VMI C
Downstream Data
Supplier
Supplier
Distribution
Network
Supplier
Distribution
Network
Supplier
Distribution
Network
Demand-side Views
Supply-side Views
Demand
Translation
Account-Level
A
VMI C
Downstream Data
Supplier
Supplier
Distribution
Network
Supplier
Distribution
Network
Supplier
Distribution
Network
Talent Shortage
Gap by Position
Wrap-up
S&OP has grown in importance.
The trade-offs of the supply chain cannot be
effectively modeled using a spreadsheet.
Focus on continuous improvement and
serving the business.
Questions?
Who is Lora?
Founder of Supply Chain Insights