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Building World-Class Supply ChainsThe 7 Drivers of Excellence
Dan Balan
President, Fastraqq Inc.
January 13th, 2016
Revenue pressure
Cost containment
Increasing Competition
Decreasing Customer Loyalty
Global Supply Chains
Shorter innovation cycles
Copyright Fastraqq Corporation 2016 Dan Balan
Building World-Class Supply Chains
The Global Landscape
The Challenges Facing Companies
• New product introductions/innovations
• Speed-to-market• Cycle time/response time
reduction• Strategic relationships• Cost effective fulfillment• Customer and channel
specific value delivery
• What is execution roadmap to all of these?
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
Why?
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
Foundations of Supply Chains
The Extended Ecosystem
The 7 Drivers ofExcellence
Problems in the Supply Chain
The 4 Levers of Transformational Understanding
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
RetailOutlet
Distribution
Manufacturing
Consumer
Supplier TransfeTransfer TransfeTransferTransfer Transfer
Material Flow Material Flow Material FlowMaterial Flow
CASH FLOW CASH FLOWCASH FLOW CASH FLOW
INFORMATION FLOW
I. Foundations of Supply Chain
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
I. Foundations of Supply Chain
Supply Chain Web
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
I. Foundations of Supply ChainGlobal Supply Chain Pattern
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
I. Foundations of Supply ChainGlobal Supply Chain Eco-System
Maximize Customer Responsiveness
Minimize End-to-End Supply Chain Costs
Minimize Design-to-Cash Cycle Time
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
II. The Extended EcosystemSupply Chain Constituents
• Plants• Delivery Locations• Suppliers• Facilities• Value adders
• Tier Customers• Freighters• Distribution
Centers/Warehouses• Vendor Managed Inventory
Locations• Retailers
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
II. The Extended EcosystemWhat is Truly a Supply Chain?
• Boxes in Motion
• Brand in Motion
• Business in Motion
• Bottom Line in Motion
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
III. Problems in the Ecosystem
Wareho
uses
Retai
l
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
III. Problems in the Ecosystem
• Supplier issues
• Dependencies
• Supply-demand mismatch
• Lack of information visibility
• Delivery disruptions
• Back orders/shortages
• Write-offs
• Obsolescence
• Erratic costs and times
Copyright Fastraqq Corporation 2016 Dan Balan
Building World-Class Supply Chains
The Information
Chain
Enabling Technologies
Ecosystem Relationships
Circle of Excellence
Correlational Literacy
MetricsRisk
Elimination
Supply-Demand Fulcrum
IV. The 7 Drivers of Supply Chain ExcellenceThe performance platform for supply chain excellence
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
One view…One voice…One value
Cause and effect thinking
Smash the cognitive silos
#1 Correlational Literacy
IV. The 7 Drivers of Supply Chain Excellence
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
IV. The 7 Drivers of Supply Chain Excellence#2 Performance Metrics
• Order to Ship Time• Order to Cash Time• Cash to Cash Cycle Time• Inventory Turns • Working Capital Availability• Obsolescence • Reevaluation
• Return on Assets • Total Landed Cost• Insolation of Misc. Costs• Total Cost of Doing Business
with Customer
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
IV. The 7 Drivers of Supply Chain Excellence
Risks• Baxter
• Motorola
• Kraft
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
IV. The 7 Drivers of Supply Chain Excellence
#4 Supply-Demand Fulcrum
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
Develop
Products
Sell to
CustomersFulfill
Orders
Procurement
Materials
Manufacture
Products
Distribute
Products
Serve
Customers
IV. The 7 Drivers of Supply Chain Excellence
• The business cycle• Customer life cycle• Order life cycle• Product life cycle• Integration through
appropriate data conduits
• Alerts, triggers, and rapid-response systems
Copyright Fastraqq Corporation 2016 Dan Balan
#5 The End-to-End Information Chain
Building World-Class Supply Chains
Reduce cost Reduce times Reduce material wastage Improve collaboration
Faster systemic response Operational efficiency Predictive capabilities Improving throughput
The Improvement Matrix
IV. The 7 Drivers of Supply Chain Excellence#6 Enabling Technologies
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
3D printers Robotics Machine simulation Customer tracking, segmentation,
and assessment
The Cloud Sensing technologies Replication, modularity to
innovation Sustainability and packaging design
Specific applications
IV. The 7 Drivers of Supply Chain Excellence#6 Enabling Technologies
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
Create win-win Create transparency Involve tactical personal Establish common standards of
success
Truth, Transparency, and Teamwork
IV. The 7 Drivers of Supply Chain Excellence#7 Ecosystem Relationships
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
The Information
Chain
Enabling Technologies
Ecosystem Relationships
Circle of Excellence
Correlational Literacy
MetricsRisk
Elimination
Supply-Demand Fulcrum
IV. The 7 Drivers of Excellence
Building World-Class Supply Chains
Copyright Fastraqq Corporation 2016 Dan Balan
www.fastraqq.comDan Balan
President, Fastraqq Inc.630-414-7010
dbalan@fastraqq.com
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