Big Data Analytics and the Supply Chain Opportunity

PowerPoint Presentation

Using New Forms of Analytics

Supply Chain Insights LLC Copyright 2016, p. #

Disclaimer: I am a Skeptic


A Social Scientist


A Fortune-teller of Sorts.


I Write for the Supply Chain Leader


Pressure Is On!


Descriptors Used by Leaders


Todays Risks


Since 2000, 52 percent of the companies in the Fortune 500 have either gone bankrupt, been acquired, ceased to exist, or dropped out of the Fortune 500.

Activist campaigns against companies with a market cap greater than $10 billion has more than doubled since 2010. Activists won, partially won or settled 73% of proxy fights in 2014, up from 55% in 2010. Increasing Pressure on Operations


Productivity


Technology Evolution

Operational Investments

Workforce Productivity

Analytics


Understanding the Organization


Right Stuff?


Middle Management Has Greatest Shortage of Supply Chain Talent


Growing Talent Gap


Metrics That Matter


What We Expected


Functional Silos an Issue


Alignment Issues


The Supply Chain Effective Frontier


Orbit Charts: Dow Chemical Company and DuPont


Automotive


Orbit Chart: Pharmaceutical(Inventory Turns and Operating Margin)


Eli Lilly and Novo Nordisk


P&G and Kimberly-Clark


Consumer ProductsClorox and Church & Dwight



Lack of clarity on supply chain excellenceFocus on functional excellenceIsolated projects with a ROI rationalizationLack of supply chain designNot managing the metrics holistically across the organizationWhy?


Evolution of Visibility


The Evolution of the Long Tail


Increase in Outsourcing


Bullwhip Effect


Gaps in Supply Chain Visibility


A Closer Look at Todays Effectiveness


Build Horizontal Processes


Evolution of Horizontal Processes


Current State


Need for Network Ownership


Future State


Listening: Lenovo


0000000CanadaCustomer A calls about a blue screen on a YogaCustomer B posts on Facebook about his X220s AC/DC adapter issuesLarge Enterprise Client experiences 5 keyboard malfunctions in their latest shipment. Complaints received through account executive[Critical Situation]BrazilCustomer F submits a service from on esupport.lenovo.com regarding their W530 hard driveMoroccoCustomers G & H comment on their X220s electrical issues on Twitter.comCustomer I called about Yoga screen issues AustraliaCustomer J write a review on NewEgg.com about AC/DC adapter issues on X220Customer K had an eChat with Lenovo about Yoga screen issuesChinaCustomer L wrote on Weibo about Yoga screen issuesCustomer M calls about a Tablet 8 battery issuesVoice of Customer Comes in Many Forms

USACustomers C & D write X220 product reviews on amazon.com and mention issues with AC/DC adaptersCustomer E posts on forums.lenovo.com that they are experiencing blue screens on their Yoga


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0000000Lenovo

6 recorded issues about X220s AC/DC adapter

5 recorded issues about keyboard issues on X1 Carbon

5 recoded issues about Yoga screen

1 recorded issue about W530 hard-drive

1 recorded issue about Tablet 8 batteryOne Voice A Single View of Perceptual Quality


Synchronize/organize all comments/complains into one voice42

Making the Digital Pivot


Supply chains that learn as we sleepNetwork of networksDigital manufacturingRedefinition of Service Supply ChainsInteractive UINew business modelsLooking Forward


Confluence of Technologies


Evolution of Analytics


Data Strategy for.

Clouds?Streams?Lakes?


Big Data Supply Chains are Evolving48Challenges:TransactionalTime phased dataStructured Data

SocialChannelCustomer ServiceWarrantyTemperatureRFIDQR codesGPSMapping and GPSVideoVoiceDigital ImagesUnstructured DataSensorDataNewDataTypesVolumeVelocityVariability


Analytics Maturity


Data Types


Supply Chains Dont Play by the Rules51

But, what if they could?


Case Study: Internet of Things

Demand-Driven Replenishment


Big Hairy Audacious Goals

Business goals/ challenges:Scale the businessIncrease the number of machines in operation from 900 to 3,000 by 2016Expand internationally

Essentially we had to justify Whitbreads 60 million acquisition!

While transforming the Supply Chain

Replace legacy spreadsheet system with new IT system:The legacy system could not pull in data from the coffee stations telemetry systems, so all this valuable data was going to wasteOur brand guardians were effectively spending all their time poring over spreadsheets and manually replenishing stock

These processes were not scalable in line with our ambitions

We needed to transform other aspects of our supply chain and grow at the same time!Change logistics / warehousing partnerMove to direct purchasing

Solution

ToolsGroup is at the heart of our successful supply chain transformation:

System access our telemetry data tap into our machine telemetry data and uses it to calculate replenishment orders for partner sites.The data is used to forecast demand and optimise inventory levels

Some of the results (walk through the four figures on the left of the slide):

Also point out the new role of Brand Excellence Advisor

And we far exceeded our business goals!:

Blew away target to have 3,000 machines in place by 2016. We achieved this target in 2013, a full three years ahead of schedule!Moving into new markets Poland, Ireland and DubaiLaunched new CEM-200 "intelligent" coffee station concession

Next steps (only if there is time)52

2:00am Emergency Drug Call


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Opportunity

1/3 of shipped produce wasted: $34B in annual global waste from perishable foods

50% is due to temperature variations from the farm to retail shelf

Reducing temperature related shrink by half is approx. $9B opportunity.

Perishable Produce A Closer Look1% reduction in Shrink Increase in profit of $1,173,5556% reduction in Shrink Increase in profit of $7,378,830

Case Study on Shelf lifePerishable Products: RFID Cold Chain Opportunity

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Group by First In or Shelf Life?

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