The Future of Supply Chain Technologies

Future of Supply Chain Technologies

Supply Chain Insights LLC Copyright © 2013, p. 2

Metrics That Matter

Fall 2014 Publication


Supply Chain Insights

Current State

The Future

Going Forward

Wrap-up


Growth has Slowed


The Efficient Supply Chain


The Long Tail of the Supply Chain: Growing Complexity

Volume

Level of PredictabilityPredictability based on forecast accuracy vs Actual Order Profiles


Increasing Commodity Volatility


Current State


Many Systems


Large Gaps in Current Technologies


Gap in What-if Architectures


Growing use of Cloud and BPO


Future State of Planning


Future State of Planning


Greatest Gaps in Visibility Importance vs. Performance:Inter-enterprise Order Management, 1st Tier Suppliers

and 3rd Party Manufacturing


Building Visibility Solutions



Current State

The Future

Going Forward

Wrap-up


• 1/3 of the fruits and vegetables of the world did not have to be thrown away due to temperature abuse?

• A heart could be printed at a hospital as part of a transplant procedure?

• Garages could be used for overflow storage?• Analytics could give us the answers to the questions that

we do not know to ask?• Supply chains could learn and respond as we sleep?• Improved sensing would enable continuous test and learn

in vitro in market?

What If?


Connecting to better serve your customers, your employees and your partners outside in.


Use of Emoticons


Ratings and Reviews: Giantnerd.com


Co-Design products like Nike


Co-Develop like Quirky


Customer as the Designer


The Crowd has Built a Car “Wikispeed”


Amazon Aspires to $100B in CPG Sales


Emergence of Digital Path to Purchase


CUSTOMER PATH ANALYTICS


KINETIC HEAT MAPS


Four Moments of Truth

The List:• Digital

Recipe• Digital

Coupons• Online

Rating and Reviews

The Basket:• Shelf-

sensing• QR Codes• In-store

coupons• IP Address

Sensing

The Check-out• Downstream

Data• Loyalty Data

Usage• Sentiment Data• Ratings and

Reviews


Entrance of Digital Path to Purchase


Mobile Applications



The Collaborative Economy

Collaborative Economy Definition: An economic model of shared ownership and

access between people, startups, and corporations.


Co-Storage of Products with Lockitron


Co-Production with 3D Printers



Current State

The Future

Going Forward

Wrap-up


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 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?


Market-Driven Value Networks Characteristics


Rethinking Analytics

DescriptiveConnect with reality, a single source of

the truth

PredictiveUnderstand the most likely future

scenario, and the business implications

PrescriptiveRecommendation of the best

alternative

CognitiveHighly automated optimization

solutions that get smarter over time

What happened?

What will Happen?

What should we do about it?

Learning Systems


Thinking Harder about the Problem

EngineInputs Outputs

• Deterministic Optimization• Stochastic Optimization• Simulation• Cognitive Learning Engines

Depth of Analysis

Scope• Single function within the enterprise• Multiple functions within the enterprise• Connection of trading partners on single functions• Connection of trading partners on multiple functions (make, source, and deliver)

• Single signals (single numbers)• Time-phased outputs• Multiple signals with time-phased outputs• Patterns and probabilities

• Single signals (single numbers)• Time-phased inputs• Multiple signals with time-phased inputs• Patterns and probabilities

The Data Model of the Engine



Current State

The Future

Going Forward

Wrap-up


Future is Bright: But, we have to learn from the past, to unlearn to be open to the future.

Summary


Questions?


Annual Event September 2014


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: 100 Posts/Year www.supplychainshaman.com (10000 pageviews/month)

Forbes: Write 2X/Month http://www.forbes.com/search/?q=lora+cecere

Twitter: lcecere 4800 followers.

LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (Linkedin Influencer over 6000 followers in the network)

Business

The Future of Supply Chain Technologies