the future of supply chain technologies
DESCRIPTION
Presentation given at the Terra Technology event in Orlando on April 4th.TRANSCRIPT
Future of Supply Chain Technologies
Supply Chain Insights LLC Copyright © 2013, p. 2
Metrics That Matter
Fall 2014 Publication
Supply Chain Insights LLC Copyright © 2013, p. 3
Supply Chain Insights
Current State
The Future
Going Forward
Wrap-up
Supply Chain Insights LLC Copyright © 2013, p. 6
Growth has Slowed
Supply Chain Insights LLC Copyright © 2013, p. 7
The Efficient Supply Chain
Supply Chain Insights LLC Copyright © 2013, p. 8
The Long Tail of the Supply Chain: Growing Complexity
Volume
Level of PredictabilityPredictability based on forecast accuracy vs Actual Order Profiles
Supply Chain Insights LLC Copyright © 2013, p. 9
Increasing Commodity Volatility
Supply Chain Insights LLC Copyright © 2013, p. 10
Current State
Supply Chain Insights LLC Copyright © 2013, p. 12
Many Systems
Supply Chain Insights LLC Copyright © 2013, p. 13
Large Gaps in Current Technologies
Supply Chain Insights LLC Copyright © 2013, p. 14
Gap in What-if Architectures
Supply Chain Insights LLC Copyright © 2013, p. 15
Growing use of Cloud and BPO
Supply Chain Insights LLC Copyright © 2013, p. 16
Future State of Planning
Supply Chain Insights LLC Copyright © 2013, p. 17
Future State of Planning
Supply Chain Insights LLC Copyright © 2013, p. 18
Greatest Gaps in Visibility Importance vs. Performance:Inter-enterprise Order Management, 1st Tier Suppliers
and 3rd Party Manufacturing
Supply Chain Insights LLC Copyright © 2013, p. 19
Building Visibility Solutions
Supply Chain Insights LLC Copyright © 2013, p. 20
Supply Chain Insights
Current State
The Future
Going Forward
Wrap-up
Supply Chain Insights LLC Copyright © 2013, p. 21
• 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?
Supply Chain Insights LLC Copyright © 2013, p. 22
Connecting to better serve your customers, your employees and your partners outside in.
Supply Chain Insights LLC Copyright © 2013, p. 23
Use of Emoticons
Supply Chain Insights LLC Copyright © 2013, p. 24
Ratings and Reviews: Giantnerd.com
Supply Chain Insights LLC Copyright © 2013, p. 25
Co-Design products like Nike
Supply Chain Insights LLC Copyright © 2013, p. 26
Co-Develop like Quirky
Supply Chain Insights LLC Copyright © 2013, p. 27
Customer as the Designer
Supply Chain Insights LLC Copyright © 2013, p. 28
The Crowd has Built a Car “Wikispeed”
Supply Chain Insights LLC Copyright © 2013, p. 29
Amazon Aspires to $100B in CPG Sales
Supply Chain Insights LLC Copyright © 2013, p. 30
Emergence of Digital Path to Purchase
Supply Chain Insights LLC Copyright © 2013, p. 3131
CUSTOMER PATH ANALYTICS
Supply Chain Insights LLC Copyright © 2013, p. 3232
KINETIC HEAT MAPS
Supply Chain Insights LLC Copyright © 2013, p. 33
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
Supply Chain Insights LLC Copyright © 2013, p. 34
Entrance of Digital Path to Purchase
Supply Chain Insights LLC Copyright © 2013, p. 3535
Mobile Applications
Supply Chain Insights LLC Copyright © 2013, p. 36
Supply Chain Insights LLC Copyright © 2013, p. 37
The Collaborative Economy
Collaborative Economy Definition: An economic model of shared ownership and
access between people, startups, and corporations.
Supply Chain Insights LLC Copyright © 2013, p. 38
Co-Storage of Products with Lockitron
Supply Chain Insights LLC Copyright © 2013, p. 39
Co-Production with 3D Printers
Supply Chain Insights LLC Copyright © 2013, p. 40
Supply Chain Insights
Current State
The Future
Going Forward
Wrap-up
Supply Chain Insights LLC Copyright © 2013, p. 41
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
Supply Chain Insights LLC Copyright © 2013, p. 42
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?
Supply Chain Insights LLC Copyright © 2013, p. 43
Market-Driven Value Networks Characteristics
Supply Chain Insights LLC Copyright © 2013, p. 44
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
Supply Chain Insights LLC Copyright © 2013, p. 45
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
Supply Chain Insights LLC Copyright © 2013, p. 47
Supply Chain Insights
Current State
The Future
Going Forward
Wrap-up
Supply Chain Insights LLC Copyright © 2013, p. 48
Future is Bright: But, we have to learn from the past, to unlearn to be open to the future.
Summary
Supply Chain Insights LLC Copyright © 2013, p. 49
Questions?
Supply Chain Insights LLC Copyright © 2013, p. 50
Annual Event September 2014
Supply Chain Insights LLC Copyright © 2013, p. 51
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.
Supply Chain Insights LLC Copyright © 2013, p. 52
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)