Supply Chain Insights LLC Copyright © 2013, p. 1

Evolution of Supply Chain Processes

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. 2

Sales and Operations Planning

Supply Chain Insights LLC Copyright © 2013, p. 3

S&OP Evolution

Manufacturing-Driven

Deliver a Feasible Plan for Operations

Match Demand with Supply

Sales Driven

Match Demandwith Supply

Business-Planning Driven

Maximize Profitability

Demand Driven

Maximize Opportunity Sense and

Shape Demand

Market Driven

Maximize Opportunity and Mitigate Risk. Orchestrate

DemandMarket to Market

Greater Benefit• Growth• Resilience• Efficiency

Source: Supply Chain Insights, LLC, 2012

Supply Chain Insights LLC Copyright © 2013, p. 4

Current State: Corporate Social Responsibility

Supply Chain Insights LLC Copyright © 2013, p. 5

Big Data

Supply Chain Insights LLC Copyright © 2013, p. 6

The Supply Chain Effective Frontier

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Supply Chain Insights LLC Copyright © 2013, p. 7

• Supply Chain Index: A formulaic representation of supply chain financial ratios correlated to stock market capitalization valuation.

• Supply Chain Effective Frontier: The balance of growth, profitability, cycle and complexity metrics to deliver the supply chain strategy. It may or may not maximize the company’s market valuation.

• Supply Chain Excellence: The behavior of companies working to maximize value through the setting of targets for supply chain financial ratios and aligning metrics that matter (tied to value chain strategy).

Definitions

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Supply Chain Insights LLC Copyright © 2013, p. 8

A Look at History: Progress in Productivity

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Supply Chain Insights LLC Copyright © 2013, p. 9

A Look at Retail

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