fireside chat: supply chain control tower

Copyright © 2012 Kinaxis Inc. CONFIDENTIAL

Fireside Chat: Control Tower

Roddy Martin (CCI) – Supply Chain Thought Leader Trevor Miles (Kinaxis) – vp, thought leadership

Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 2

Roddy Martin

•  Roddy Martin •  SC Transformation Thought

Leader •  Executive South African

Breweries ( SABMiller) •  Engineering Leadership •  Manufacturing Strategy •  IT Leadership •  Change Management

Leadership •  AMR Research SC

leadership •  CCI SVP SC


Consumers, Shoppers & Buyers

Make Choices

Point of Purchase

Stock Outs

Product Quality On The Shelf

Costs to Serve Account Profitability

Winning in New Markets

Complexity Costs or

Differentiates

Demand Supply

Product

“Supply Chain” Starts with the Buyer Choice; Is Outside-In; End to End & An Interdependent Network

Risk

Embedded

Risk Management

“Integrative Improvement

Actions & Trade Offs”

…& Impacts Capabilities Here Starts here …..

Open Innovation

3


Bringing The Pieces Together Into A Demand-driven Value Network based Business Operating Strategy Is A Maturity-based Transformation Journey…

4

Ac

tual M

arket D

eman

d

STIC

KY

GLU

E

Product

Supply Demand

?

Demand sensin

g and shap

ing How

Adapted from AMR Research

Copyright © 2012 Kinaxis Inc. CONFIDENTIAL 5 5

The Demand-driven Value Network Framework

Product & Service Innova9on

Segmented Pull

Custom

ers , Buyers, Users,

& Con

sumers

Channel Demand

& Demand

Management

Demand Visibility

User/

Consumer/ Demand Insights

Suppliers & Partners

Segmented Push

Reliable, Profitable Response

from Supply Network Based on Demand

Supply Visibility

decoupling

Demand TranslaJon

& Trade Offs

Integrated Strategy, Business Sufficiency & Value Network

Planning

Adapted from AMR Research

Customer Consumer back design


No Systemic Continuous

Improvement Plans or structure.

Fire Fighting

The 5 Stages Performance-Improvement Maturity

6

Imp

act

Expert Led /Based

Projects

Implementation of

Improvement Projects led by

Experts

(Ad Hoc - Projects)

Integrated Functional Excellence

Structured Integration Within

Core Functions

(Systemic – Limited Integrated of Functions )

End-to-end Integrative

Improvement System

Codified

Integrative

Improvement

(Situational and Systemic)

Learning Network

Culture of Innovation and

Sharing

(Situational, Systemic and

Strategic) Reactive

Fixes

Stage 1 Stage 2

Stage 3

Stage 5

Stage 4

Average

Leaders ”The Promise

Of IT”

Stages Of Performance Improvement Maturity


The Ultimate Goal… Sustainable, Anchored Capabilities

Exce

llenc

e in

Res

ults

Excellence in Work Practices

Sustainable Business Performance Improvement

Necessary but not Sufficient

“ lean and efficiency improvements”

“silo cost fo

cus ”

• Balance • Capabili=es • Processes

• Change Leadership

Unsustainable Performance


Layers of “Management Systems”…illustrative process examples only

8

High Performance Transac9on Processing Applica9on Architecture

High Performance Informa9on Technology

Enabled Work Flow System & Business

Process Management

High Performance Business Opera9ng System

Integra9ve Improvement System Deployment & Capability Development

ERP

CRM

SCM

PLM

S & OP

CPFR

1 2 3 4 5

VMI

RFID Traceability

Planning

Stages of Process-‐based Opera4ng & Performance Improvement Maturity to Demand Driven Value Network Sufficiency

The end to end way the business actually operates

Technology modeled workflows and business processes using business &

transac9onal data

Technology based applica9ons, data processing & data management

Systems of Record

System of Process

Business Opera9ng System of Venture

and Sufficiency S & OP

Balancing Process & Profitability Analyses

Business Sufficiency Planning

Demand Forecast Accuracy & Planning

Innova9on & Value driven Business Tradeoffs

?

?

Technology Enabled Work Flow Processes & Data Management

Business Opera9ng Strategy, Execu9on, & Culture

Improvement Goals & Projects

FuncJonal Process IntegraJon

Demand-‐driven end-‐ end SC process integraJon

Value driven Business tradeoffs & network

“MES”

Supply Reliability & Supply Planning

Integrated Quality

& compliance

Performance Maturity – based context of data & informa9on

Master data & process-‐based context of data

Systems of Process and Control

Real 9me & Process Control Data

High Performance Automa9on Architecture Machines Controls Measurements

SRM

Sourcing &

Procurement

Logis9cs & Distribu9on

WHM

Applica9on, Data and IT Process Architecture


Layers of “Management Systems”…illustrative process examples only

9

High Performance Transac9on Processing Applica9on Architecture

High Performance Informa9on Technology

Enabled Work Flow System & Business

Process Management

High Performance Business Opera9ng System

Integra9ve Improvement System Deployment & Capability Development

ERP

CRM

SCM

PLM

S & OP

CPFR

1 2 3 4 5

VMI

RFID Traceability

Planning

Stages of Process-‐based Opera4ng & Performance Improvement Maturity to Demand Driven Value Network Sufficiency

The end to end way the business actually operates

Technology modeled workflows and business processes using business &

transac9onal data

Technology based applica9ons, data processing & data management

Systems of Record

System of Process

Business Opera9ng System of Venture

and Sufficiency S & OP

Balancing Process & Profitability Analyses

Business Sufficiency Planning

Demand Forecast Accuracy & Planning

Innova9on & Value driven Business Tradeoffs

?

?

Technology Enabled Work Flow Processes & Data Management

Business Opera9ng Strategy, Execu9on, & Culture

Improvement Goals & Projects

FuncJonal Process IntegraJon

Demand-‐driven end-‐ end SC process integraJon

Value driven Business tradeoffs & network

“MES”

Supply Reliability & Supply Planning

Integrated Quality

& compliance

Performance Maturity – based context of data & informa9on

Master data & process-‐based context of data

Systems of Process and Control

Real 9me & Process Control Data

High Performance Automa9on Architecture Machines Controls Measurements

SRM

Sourcing &

Procurement

Logis9cs & Distribu9on

WHM

Business Opera9ng System Integra9ve Improvement System

Applica9on, Data and IT Process Architecture

Flexible Decoupling Informa9on , Collabora9on Process & Analy9cs Model Layer -‐ “Control Tower”


Transformation - Two Core Thrusts of Work; Today and Tomorrow!

…Aligned Through a Transformation “Office”

Business Management

Role

Control & Manage the Business

& Compliance

Compliant &

Controlled Business

Performance

Leadership Role Business Strategy,

Intent, & Focus Areas

Priori9zed Work

Build Sustainable Improvement & Compliance

CapabiliJes

Sustained &

Compliant Agility

Capabili9es

Future-‐ize The Business

Sustainable & Compliant Performance Improvement Culture

Change Management & Alignment COE

Vision Strategic Intent

Managing The Change

Vision

Strategic Intent

Managing The Change

Imp

act

1950 2010

Expert based

Functional Excellence

Integrative Improvement

System

Learning Network

No Continuou

s Improvement

Plans or str

ucture.

Implementatio

n approach

bas

ed on the cap

ability of the loc

al expert

(Ad

Hoc)

Structured im

plementation ap

proach

wit

hin the function

s (Systemic)

Codified and

integrated imple

mentation

(Situa

tional and Sy

stemic)

Culture of Innovation and Sharing of Production

Know How

(Situational, Systemic and Strategic)

No Cont. Imp.

2013

Stage 1 Stage 2

Stage 3 Stage 4

Stage 5


Executing the Business Operating Strategy

Vision

Strategic Intent

Custom

ers

Inno

vaJo

n

Supp

ly Network

Reliable Supp

ly

Talent & Skills

Supp

liers

Prioritized Work

11

Strategic Focus Areas

Supply Chain

Leading and Managing The Change - Transformation COE

Alignment, Governance , Definition, Resourcing, Collaboration

Execu9ng the “Integra9ve Challenge” Across The End to End Extended Supply Chain


The Integrative Performance Improvement System (IIS) Connects the Dots

The Execu9on Challenge !

“Evolving READINESS”

1 2 3 4 5 Projects Processes Demand-‐driven Value Network > >

GOAL ALIGNMENT

Strategy

Metrics

Organiza=on

IT

INTEGRATED PROCESSES

Supply Demand

S & OP

A Strategic Enterprise

Ini9a9ve to Lead Alignment & Develop Capabili9es Using IIS Plaaorm

Transforma9on COE

Process –based Performance Analy9cs


Trevor Miles

vp, thought leadership [email protected] | @MilesAhead | +1.647.248.6269


Supply Chain is an End-to-End “Team Sport”

•  Cross-Functional = Collaborative •  Consensus = Compromise •  Alternatives = What-If


Source: Gartner, Delivering Business Value from S&OP, Todd Applebaum and Jan Kohler, Mar 29, 2012


Enables enterprises to dramatically compress the time to make profitable course corrections

Cross-functional teams can now use a single product to plan, monitor, and respond to all aspects of supply and demand balancing in minutes - not days or weeks

Better business outcomes through reducing risk, increasing customer satisfaction and improving financial profitability


Improvement Actions & Trade Offs


Discussion