kinaxis - thought leader power hour: the potential of the social supply chain

Supply Chain Matters

Moderated by:Oliver Sloane, Managing Director, RaptureWorld Ltd

Presented by:

Trevor MilesDirector, Thought Leadership &

Chief Blogger,Kinaxis

Lora CecerePartner,

Altimeter Group

Bob Ferrari,Managing Director,

The Ferrari Research & Consulting Group LLC &

Executive Editor,Supply Chain Matters

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Trevor Miles

Trevor, director of thought leadership at Kinaxis, serves as an

expert source for Kinaxis customers, prospects, industry analysts

and journalists. Known throughout the supply chain field, Trevor

has published numerous articles, presented at various industry

events, and is the primary contributor to the Kinaxis 21st Century

Supply Chain blog.

[email protected] Blog: http://blog.kinaxis.com/authors/miles/Twitter: @milesahead http://www.linkedin.com/in/trevormiles

Copyright © 2011 Kinaxis Inc. All Rights Reserved.

mailto:[email protected]

http://blog.kinaxis.com/authors/miles/

http://twitter.com/@milesahead



http://www.linkedin.com/in/trevormiles

3

Altimeter Group is a research insights group providing companies

with a pragmatic approach to understanding disruptive

technologies. We have four areas of focus: Leadership and

Management, Customer Strategy, Enterprise Strategy, and

Innovation and Design.

Visit us at http://www.altimetergroup.com or contact

[email protected].

[email protected]

Blog: www. supplychainshaman.com Twitter: @lcecere

Linkedin: linkedin.com/pub/lora-cecere/0/196/573

Lora Cecere

http://www.altimetergroup.com/


4

Email: [email protected]

Web: http://www.theferrarigroup.com/supply-chain-matters

Multiple years of supply chain operational and IT applications experience

Independent industry analyst with previous research director roles at AMR Research and IDC

Executive Editor of Supply Chain Matters, providing timely multi-industry commentary on global supply chain business process and IT developments

Supply Chain MattersBob Ferrari


http://www.theferrarigroup.com/supply-chain-matters

http://www.theferrarigroup.com/supply-chain-matters

5

Agenda

• Setting the stage

– Trevor Miles, Kinaxis

• Demand side considerations

– Lora Cecere, Altimeter Group

• Supply side considerations

– Bob Ferrari, The Ferrari Group

• Pulling it together

– All

• Q&A



Setting the stage – Trevor Miles

9

Shift to “Systems of Engagement”

Systems of Record Systems of Engagement

Transaction-oriented

Command & Control

Facts, Dates, Commitments

Single Source of the Truth

Accuracy & Completeness

ERP, APS, PLM, CRM, WMS, TMS

Adapted from Geoffrey Moore, A “Future History” of Content Management, AAIM, Dec 14, 2010


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Transaction-oriented Interaction-oriented

Command & Control Collaborative

Facts, Dates, Commitments Insights, Ideas, Nuance

Single Source of the Truth Open Forum for Discovery & Dialog

Accuracy & Completeness Immediacy & Accessibility

ERP, APS, PLM, CRM, WMS, TMS Twitter, SMS, Facebook, LinkedIn



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Transaction-oriented Interaction-oriented

Command & Control Collaborative

Facts, Dates, Commitments Insights, Ideas, Nuance

Single Source of the Truth Open Forum for Discovery & Dialog

Accuracy & Completeness Immediacy & Accessibility

ERP, APS, PLM, CRM, WMS, TMS Twitter, SMS, Facebook, LinkedIn



Inside Out Outside In

12

Demand side considerations – Lora Cecere

© 2011 Altimeter Group

Your Opportunity is at the Intersection of the Social and Interest Graph(s)

15

Use of Emotions as Causal Factors?


16

Listening and Learning in New Product Launch: Produce Saver Response

#Future15SB @bwdumars


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Listening and Learning in New Product Launch: Produce Saver Response

#Future15SB @bwdumars


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All of that! For Dell….Dell’s Key Social Media Milestones


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Supply side considerations – Bob Ferrari


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Content Outline

• Social media context and supply facing considerations for use

• Some examples• Supply facing observations and wrap-up• Question and answer period

Supply Chain MattersCopyright 2011 The Ferrari Consulting and Research Group LLC.

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Social Media

• Methods people communicate and gather information / insights / opinions / perceptions / news

• Time sensitive• Unfiltered and

uncontrolled- important news travels faster on social media


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Social Media in Supply Chain

Supply Facing Demand Facing

Trading Partners

Supply disruption Demand disruptionCrisis managementSupply intelligence

Suppliers Channel Partners

Product demandService needsDemand disruptionBuyer intelligence


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Current State – Supply Facing

• Early phases• Directed at pulling information and teams together

quickly to sense and respond• Innovators are adopting in:

– Crisis management– Supply or demand disruption– Supplier intelligence– “Black Swan” events


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• Ad-hoc networks solving business problems• In the moment (always on in spite of …..)• Mobile and empowered professional• A comfortable medium for “Millenials”

Changing Dynamics of Business and Team Networks

Alert – Inform – Share - Validate

Copyright 2011 The Ferrari Consulting and Research Group LLC.


Omnipresent Access and Mobility

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Three stated priorities for responding to a disruption:

• Take care of people (associates)

• 34,000 associates impacted / 43,000 phone calls

• Take care of operations

• 120 facilities damaged

• 66% recovered in 48 hours / 93% recovered in 7 days

• Take care of communities

• 3000 trailers of merchandise dispatched for aid

Hurricane Katrina (2005) – Wal-Mart Response


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Wal-Mart Emergency Operations Center

• Continuous messaging via:– Email and IM– Internal TV and mobile radio network– Intranet links / wiki’s– Incident management web site– VOIP and thin client netbooks

• External links to emergency agencies, weather analysis, external databases, webcams, social media sites, charitable organizations


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Chengdu China Earthquake (2008)- Cisco Systems

• Magnitude 7.9 earthquake caused widespread destruction, loss of life, and global response

• Cisco Business Continuity Team Alerted– Full impact analysis conducted in 48 hours– People-to-people contact– Affected sites, parts, products, suppliers– Deployed second sourcing option to

compensate for one impacted product; assisted impacted supplier in securing new facility and capacity


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Cisco Business Continuity Team

• Multiple global response centers

• Detailed mapping of the entire Cisco global supply chain

• Documented and tested crisis response processes

• External links and alerts from NC4

• Continuous monitoring and real-time risk assessments

• Utilization of multitudes of communication methods

• Other major incident responses:– H1N1 virus outbreak in Mexico– 2009 Earthquake in Taiwan


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Salmonella Outbreak Peanut Butter (2009)

• U.S. federal investigators issued nationwide consumer alert noting outbreak- unable to locate source

• Blogs, social media, traditional media echoed warnings with little facts

• +7 days: CDC and FDA began to suspect source of infection was PCA plant in Blakely GA. Supply Chain Matters blog urged food producers to check all sourcing

• FDA urged manufacturers to inform consumers about whether their products contained peanut butter /paste sourced from PCA.

• Subsequently, over 1800 food, snack and pet related products had to be voluntarily recalled


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Other Subsequent Time and Crisis Sensitive Incidents

• Product contamination of life saving drug Heparin, traced to China (2008)

• Salmonella contamination in pistachios (2009)

• Salmonella contamination of packaged eggs (2010)

• BP Gulf of Mexico Oil spill (2010)

• Widespread political turmoil across Middle East countries (2011)

Social Media Continues Playing a more important role:


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Social Considerations - Wrap-Up

• Communicating and connecting with customers also applies to connecting employees and supply partners

• When traditional digital and physical channels breakdown, or when crisis is occurring, social media takes hold

• Social networks should not be ignored for gathering / clarifying / communicating time critical information

• Tech-savvy “Millennial” professionals are very comfortable and savvy with utilizing social media to form team-oriented networks

• Has the potential to provide a competitive advantage

• Multiple concerns or adoption barriers remain but encourage an open mind with senior management



Pulling it together

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Impact of Global Business Dynamics

• Increased demand for– Collaboration– Relationship Management

• Challenge: To engage with peers globally to solve problems– Answers are not in Systems of Record– They are in other people’s (and often other companies’) heads

• Burden falls on the middle of the organization– Not front-line workers engaged in transactional workflows– Not top executives engaged in strategic issues

• Need to invest in “IT for the middle tier”– Communication and collaboration systems– Broad and easy access to Systems of Record on demand

Geoffrey Moore, A “Future History” of Content Management, AAIM, Dec 14, 2010


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kinaxis - thought leader power hour: the potential of the social supply chain

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