Lora Cecere - Founder of Supply Chain Insights
Carol Ptak – Founder of Demand Driven Institute
Referee/Judge
Welcome to…..
Ground Rules
“How did we get here” Perspective on Barriers to Progress Panelist View of our Current State Your Take on the State of Affairs Closing thoughts
The Great Debate - September 2015
Story of the $1Billion Dollar Brand How to Deliver Game Changing Value
at the Two Moments of Truth
How Did We Get Here?
Deliver superior consumer value cheaper/better/faster
Business Driver Translation Leaving Revenue/Margin on Table•Despite technically BIC Service
Limiting speed of growth - not agile•Need for more sku’s/channels/markets•Differentiated Retail/Customer Requirements• Segmentation of the supply chain for cost/cash
Cash/Cost Intensive•We needed to be the bank for growth
Couldn’t Productively Scale•Needed new approach
Supply Chain Dysfunction/Visibility
Why
Cha
nge?
Vision
Make the Supply Chain a Competitive Weapon by
Synchronizing the Cadence from Shopper
through Supplier
Supply Network
Daily Daily DemandDemand
Replenishment
Customer Customer HeadquartersHeadquarters
Planning
P&G/Partners& Suppliers
Deployment
OOS Visibility
Merchandising
Roadmap to Progress
Synchronization of Processes/Stds New Age Metrics/Rewards Eliminate Technology silos
New “Skills”/New Talent
Consumer-driven Supply Networks: Defined by P&G in the 1990s as a shelf-driven, outside-in process defined by successful execution of the two moments of truth. (The two moments of truth are: Was the product in stock? Was the customer delighted?)
Demand-driven Supply Networks: As defined by AMR Research in 2004: a supply chain that senses and translates market signals in real time.
Demand-driven Value Networks: As defined by AMR Research in 2007: A network that senses demand with minimal latency to drive a near-real time response to shape and translate demand.
Market-driven Value Networks: As defined by Supply Chain Insights in 2010: an adaptive network focused on a value-based outcomes that senses, translates, and orchestrates market changes (buy and sell-side markets) bi-directionally with near-real time data to align sell, deliver, make and sourcing organizations outside-in.
Definitions
Definition
Does not meanMake to order everythingSimple pullInventory everywhere
Does meanSensing changing customer demand, then adapting planning and production while pulling from suppliers – all in real time!
All material and content © copyright 2015 Demand Driven Institute. All rights reserved.Certified Demand Driven Planner (CDDP) is a trademark of the ISCEA
Demand Driven MRP?
Material Requirements Planning(MRP)
Distribution Requirements Planning
(DRP)Lean Theory of
Constraints Innovation
Demand Driven MRP(DDMRP)
A multi-echelon materials and inventory planning and execution solution.
Six Sigma
All material and content © copyright 2015 Demand Driven Institute. All rights reserved.Certified Demand Driven Planner (CDDP) is a trademark of the ISCEA
Crawl/Walk/RunIt’s a Continuous Journey
Reliable/Predictable SupplySupply Chain VisibilityConnecting external flowsControl Tower/Network OrchestratorsConcurrent Demand/Supply ScenariosRinse-Recycle-Repeat
Real Time OperationsSeamless E2E Synchronization
Synchronize the cadenced supply chain From Shopper Consumption through Suppliers
Digital Integration of POS Data as key source for shopper behavior and shelf-offtake. Scaled Integration into forecast.
Real time, Digitized Supply Network Capacity Planning
Agile Digital Scheduling and sequencing of factory floor ops driving real time supply response
Segmentation of Demand Info Flow to fully automate turn planning and focus high value touches on events/merchandising integration
Real Time, What-If Scenario Modeling and Simulation, together with integrated target setting and tracking.
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3
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Have We Come Far Enough? - No!
Sum it Up:Why Haven’t We Seem More Breakthrough
Three GAPS:
Process
Technology
Organization
Culture
Panelist’s PerspectiveInitial Thoughts on:
Level Set – What’s Your Definition of Demand Driven
Demand Driven – Dead or Alive?
What is behind the lack of broad scale success given the potential offered?
What are some practical interventions or advancements that would significantly change the game here?
How do we deal with driving the improvement in the crossover of source, make, deliver?
Compelling thought you want to leave the audience with.
Demand Driven Success?
Creation of Roadmap – Maturity ModelTop 25 Ranking BenchmarksBreakthroughs in SC TechnologyCreated “outside in” network design Initiated review of Gaps in SC TalentTriggered new process monitoring & measurement processes