Supply Chain Insights: Building the Customer-Centric Supply Chain - 17 AUG 2016

Building the Customer-

Centric Supply Chain

Supply Chain Insights LLC Copyright © 2016, p. 1

Our Speakers Today

Mark Hersh, Director of

Supply Chain Strategy,

Clorox

Lora Cecere, Founder

of Supply Chain

Insights


Who Is Your Customer?

Patient

Hospital

What Is the Goal? Efficient Sickness?



Patient

Hospital

What Is the Goal? Wellness?




What Drives Your Service Issues?

Most Do Not Know….

Channel out-of-stock(s)


Collaboration: The Right Stuff


Retail Scorecards

Cost-to-serve analysis calculates

the profitability of products,

customers, and routes to market --

and to give a fact-based focus for

decision making -- on service mix

and operational changes for each

customer.


Cost to Serve in Consumer Products


Current State of Order Automation


1. Clarity of Purpose for the Consumer

2. Takes Ownership of the Channel: Drives Reliability and Excitement

3. Build Segmented Customer Strategies: Ties Strategy to

Policy/Execution

4. Cost-to-Serve with Data-Driven Discussions

5. The Supply Chain Has a Clear Focus on Outcomes

6. Alignment Between Operations and Commercial Teams

7. Scorecards used to Build Strong Relationships

8. Processes Built on Channel Data. Implemented Outside-in

Processes

9. Hands-free and Reliable Order Processes

10. Cross-Functional Listening

Ten Characteristics: Most Advanced Companies

Building the Customer-Centric

Supply Chain

Supply Chain Insights Webinar

August 17, 2016

Clorox Now

Sales of $5.8Billion

8,000 employees

Manufacture products in 24 countries

80% of businesses in USA

6 R&D facilities

Traded on

Sells products in more than 100 countries

PROPERTY OF THE CLOROX COMPANY

Copyright © 2016 The Clorox Company 14

Leading Brands


Copyright © 2016 The Clorox Company 15

16

Many are extremely

value conscious

Multiculturalism

requires right

product designs

Aging population

in the U.S.

Technology gives

consumers access to

an incredible amount

of real time data

Consumers outside

of the U.S. have

different needs

Shopping patterns

and preferences

are becoming more

diverse

Serving our consumer base is challenging


Copyright © 2016 The Clorox Company

17

Amazon

continues

to grow

exponentially

Retailers demanding lower working

capital, increased differentiation, and

improved profitability

Explosion in new

channels and

store formats

Clorox has

entered

several new

channels

Market place continually changes and adds complexity



Becoming Consumer-Centric

18

Consumer needs are the inspiration for everything we do, and

everyone does their work through that lens.

Employees use our products and our competitors’ products and

are immersed with consumers every day (e.g., start and end

every meeting with a consumer-related topic).

Employees routinely listen to, read about, and interact with

consumers through internal and external channels.

Employees are so knowledgeable about our products that they

are confident and capable of engaging with a consumer online,

in the store or in market.

The company continuously embraces and acts on consumer

feedback.

Success is measured from the consumer’s perspective.

We give consumers what they want, when they want and where

they want it.

We delivered customized responses to consumer needs –

offerings, messaging, packaging.



The Building Blocks of the Journey

19

Sales / Supply

Chain

Partnership

Retailer

Segmentation /

SC Services

Voice of the

Customer

Value Chain

Segmentation

Fulfillment

Models

Demand Mgt. &

Planning

Capability

Manufacturing

Flexibility /

Cycle Times

Collaboration

for Scale &

Efficiency

Select

Customization

&

Postponement



20

Voice of the Customer

Ask/Listen/Learn Voice of our Customer

• Strategic Direction

• Objectives & Priorities

• Capability Needs – Now & Future

• Clorox Gap vs. Needs

Assess Model Analytics to identify ways to improve performance – cost, efficiency, growth

Activate via Planning Process Build & Create Operationalize Measure

Refresh & Recap Accountable for continuous improvement

Why Is VOC Important?

• Listen to hear and understand Customer’s Voice

• Learn from all voices: Consumer, Shopper, Customer, Supplier, Competition

• Incorporate wants/needs into business rhythm for plans/resources



Techniques to Drive Joint Value with Retailers

21

Supply Chain

Advisory Services

Agile Inventory

Value Stream

Mapping “Lite”

One Supply Chain

View

Growth Planning Process Peanut Butter Approach

Suppliers

Clorox

Customer

Trusted

Partners

Base

Operations

Transformational

Change

Proactive

Analytics

Improvement

Services

Suppliers

+

Clorox

+

Customer

Value Chain Segmentation – translating Product, Market, Customer

and Business Unit requirements into the right supply chain construct

Better Good Best

Balancing Response & Efficiency

Disruptive Innovation

Promotion Related

Efficient & Low Cost

Performance:

A

B

C

D

Service Cost Speed Value Chain

Type

Bu

siness R

equ

iremen

t

Responsive

Efficient

A G

I L I T

Y

Product

Market/

Channel

Customer/

Consumer

Business

Unit ‘Fact

Base’ (learnings,

trends, financial

performance,

emerging

opportunities,

competitive

intelligence)

Strategic

Portfolio

View by

Product

(6-Box Model)

22 PROPERTY OF THE CLOROX COMPANY


Defined and differentiated capabilities by Value Chain type

23

We have been defining the differentiated capabilities specific to the 4 value chain types for

the key elements in the E2E supply chain. Elements include (but not comprehensive):

Manufacturing

Location

Assets

Ownership

Assets

Flexibility

E2E

Collaboration

Sourcing

Agreements

Design for

Manufacturability

Capacity

Utilization

Capital

Guidelines

Unit Cost

Information

Sharing / Flow

Demand

Visibility

Cycle

Times

Product / Pkg.

Customization

Innovation

Speed

Metrics

Leader

Skillsets

PROPERTY OF THE CLOROX COMPANY Copyright © 2016 The Clorox Company

What we have learned

Voice of the Customer is the cornerstone for success.

View Value Chain Segmentation (VCS) in the context

of business objectives and company strategy.

VCS is one piece of the overall process to create the

right supply chain strategy.

Success requires leaders who think and act with an

end-to-end mindset.

Use terminology the business leaders understand.

Refresh supply chain designs continuously using the

VCS. It is a “team sport”.

PROPERTY OF THE CLOROX COMPANY Copyright © 2016 The Clorox Company

24

Where we are going

Currently defining the next wave of capabilities and roadmap to

deliver the Company’s 2020 growth strategy.

Embedding ‘Put the Consumer First’ across the enterprise and

building the desired behaviors and actions. Driving the other four

Calls to Action as part of our Growth Culture work:

Continually employing ‘Voice of the Customer’ with both our external

and internal customers to define requirements and create plans.

25 PROPERTY OF THE CLOROX COMPANY Copyright © 2016 The Clorox Company

Questions

Questions

26


Fit with Demand Driven


Where Does Customer-Centric Fit?

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www.slideshare.com/loracecere

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@scinsightsllc

@lcecere

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About Lora Cecere

• Founder of Supply Chain Insights

• “LinkedIn Influencer”

• Guest blog for Forbes

• Author of 5 books: Bricks Matter (2012), Shaman’s Journal (2014),

Supply Chain Metrics That Matter (2014), Shaman’s Journal (2015),

Shaman’s Journal (2016)

• 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.

Contact Information: • Email: [email protected]

• Blog: www.supplychainshaman.com (15,000 pageviews/month)

• Forbes: www.forbes.com/sites/loracecere

• Twitter: twitter.com/lcecere (7,700 followers)

• LinkedIn: www.linkedin.com/in/loracecere (110,000 followers)

• LinkedIn Influencer: www.linkedin.com/today/author/446631