“sell” super session
Wednesday, May 29, 2013
2:45 – 5:15 pm
THURSDAY, May 30, 2013
8:15 – 10:45 am
SCLA annual executive business forum
Osceola ballroom a
2
OPENING REMARKS & INTRODUCTIONS
Rick Sather
VP Customer Supply Chain
Kimberly-Clark Corporation
Session Introduction
• “Sell” in a Supply Chain conference?
• How is commerce changing?
• How are you using data for decision making?
• What are the supply chain implications and
opportunities?
4
Sell Supersession Agenda
•
Part 1 – Omni-Channel Retailing
– Overview
• Chris Foltz – Program Director Global Solutions, IBM
– John Lewis Case Study
• Danny Griffiths – Central Planning Manager, John Lewis
• Chris Jones, EVP Marketing & Services, Descartes
•
•
Break
Part 2 – Demand Sensing & Agility
– Overview
• Bill Read - Senior Managing Director, Accenture
– Safeway & PepsiCo Case Study
• Carl Graziani – SVP Supply Chain Strategies and Services,
Safeway
• John Phillips – SVP Customer Supply Chain and Logistics, PepsiCo
5
IBM SMARTER COMMERCE
Redefining commerce in the age of the ‘chief executive customer’
Chris Foltz
Program Director Global Solutions
IBM
Customer expectations are soaring
They want:
you to know them as an individual
simple, yet feature-rich self-service
capabilities
a seamless and integrated experience
relevant, timely promotions
a flawless post-purchase experience
7
Smarter Commerce requires focus on three dimensions
Customer
Engagement
Customer Insight
and Intelligence
“Multi-channel” has
evolved to “all channels,
all the time”
Value Chain
Optimization
Integration and
synchronization
to meet new value
delivery requirements
Advocacy based on
trust is the new “loyalty”
Customer Experience
Omni-channel commerce
Audience Participation
• Does your company have strategy for omni or
multi-channel commerce?
1.
2.
3.
4.
5.
Yes – fully developed
Yes – work in progress
Yes – just beginning
No – we need to start
No – it does not apply
Smarter Commerce delivers exceptional
customer experiences
Buy
Adaptive
procurement
and optimized
supply chain
Market
Buy
Buy
Market
Market
Service
Anticipate
behavior and
deliver flawless
customer service
Targeted and
personalized
marketing across
all channels
Sell
Service
Service
Sell
Sell
Seamless
cross-channel
customer
experience
Leaders are taking an integrated
approach to commerce
Puts the
customer at
the center
of your
commerce
processes
Anticipates
and deliver
across mobile
and social
Applies deep
insights to
take action
in real time
Optimizes
procurement
based on
demand
Extends core
systems to
synchronize
your value chain
Omni-channel commerce
Audience Participation
• How big of an impact with omni-channel
commerce have on your supply chain?
1.
2.
3.
4.
5.
Significant – we are already seeing it
Significant – we anticipate a big impact in the future
Moderate
Small
No impact
To adapt to the empowered customer, companies must
address processes across their supply chain
• Manage Raw Materials
• Plan Supplier Network &
Inventory Needs
• Plan & Manage
Inbound Logistics
• Manufacture Goods
& Manage Orders
• Analyze & Respond to
Customer Demands
• Measure Performance
13
• Plan & Manage
Outbound Logistics
Omni-channel commerce
Question for prizes
• What are customer NOT expecting?
1.
2.
3.
4.
You know them as in individual
A seamless and integrated experience
Free shipping
Relevant, timely promotions
Omni-channel retailing & the
implications on the supply chain
Danny Griffiths
Chris Jones
General Manager Central Planning
John Lewis Partnership
EVP Marketing & Services
Descartes Systems Group
John Lewis Case Study
Question for Prizes
• How much do you purchase on-line?
1.
2.
3.
4.
Majority of my purchases
Frequent and growing on-line purchases
Some on-line purchases
No on-line purchases
John Lewis Case Study
Question for Prizes
• In addition, to on-line purchases, do
you take advantage of services (such as
home set up and installation)
1.
2.
3.
4.
Often
Occasionally
Rarely
Never
John Lewis in Home Delivery
•
•
•
•
40+ year home delivery history
Private fleet
“Partner” delivery
Limited ability to offer value
added services
• Traditional processes
– Paper based
– Take order, figure out how to delivery later
• Offering 2 hours windows
Home Delivery Strategy Change
• Omni-channel retailing initiative
• Service parity with existing capabilities
• Same service proposition across the
UK
• Service as a competitive weapon
• Use value added services to grow
product revenue
• Champions
– Dino Rocos Operations Director
– Andy Street Managing Director
Home Delivery Analysis
• Interview customers and
partners
– Why did and didn’t customers buy?
– Provide customers choice
• Service offering flexibility
• Redefine of resource utilization
• Engage customer “eco
delivery”
• All home delivery data placed
in data warehouse
Supply Chain Strategy
• Supply Chain Enablers
–
–
–
–
Physical – infrastructure OK
Process – one for all channels
Technology – unified delivery system
Last mile skills training
• Simple for customers and partners to
use
• Model work “engineered standards”
• Regular interaction with buyers
Benefits
• Expected
– Value-added services
– Product sell through
– Premium delivery revenue
• Surprises
–
–
–
–
Mileage reduction per delivery
Buyers/Merchant embrace
New service offering turn around
Olympics coverage
Recommendations
• Retailer
–
–
–
–
Success starts at the point of sale
Service helps drives product sales
Consistent service proposition
Service agility
• Other companies
– Proactively engage the customer
• Choice
• Service attachment
• Drive down delivery costs
John Lewis Case Study
Question for Prizes
• John Lewis “Surprise” benefit?
1. Mileage reduction per delivery
2. Value-add services attachment
3. Premium delivery revenue
Questions?
25
The supply chain response
to big data
Bill Read
Senior Managing Director
Accenture
Big Data / Demand Sensing
Audience Participation
• What is the biggest opportunity in supply chain to
leverage Big Data information?
1. Additional revenue generation
2. Increased insight on customer needs and thus an ability to
segment and satisfy at a higher level
3. Reduction of operating costs across the enterprise, including
suppliers and customers
4. Increase in speed to market for innovation and new products
and services
Huge volumes of data coming in but with
limited abilities to leverage…
Change the mental operating model and
build new end-to-end demand-driven network
process capabilities
Leveraging Center-led process &
performance visibility supported by Control
Tower analytics
Drive increased revenue and cost control for all
value chain participants
28
The Demand-Driven Value Network Model
Product & Service Innovation
III
Supply Visibility
Integrated Business
Operating Strategy,
Value Network
Planning
Demand
Insights
Shaping
By
“Segment”
Channel
Demand
Sensing
Relationships
&
Demand
Management
Demand
Translation
&
Trade-Offs
Reliable,
Profitable
Compliant
Response
Decoupling/trade offs
Segmented Pull
Suppliers &
Partners
Contract Manufacturing
Customers , Buyers,
Users,
& Consumers
Demand Visibility
“Big
Data”
I
II
Segmented Push
Adapted from Gartner Research
29
End-to-End Maturity
Process-based Stages of Maturity ( Leader - 4.7, Industry Av – 2.4 >)
Projects
“Integrated
Functional
Excellence “
React
Projects
Projects
Demand
Supply
Demand
Supply
Stage 4
“Demand driven
End-to-End
Processes”
Demand
Supply
Product
Stage 4+
“Value Translation
Network”
Value
Stage 2 Stage 3
Demand
Stage 1
Demand
Supply
Product
Shape for Value
Synchronize
Sense
Demand
Supply
X
Reactive
Product
Reactive
Reactive
X
Projects
Product
Product
Integrate
Product
Copyright © 2013 Accenture All Rights Reserved.
30
Big Data / Demand Sensing
Audience Participation
• What Stage of Supply Chain is your business today?
1.
2.
3.
4.
5.
Stage 1 – React
Stage 2 – Project focus
Stage 3 – Integrated functional excellence
Stage 4 – Demand-driven integrated processes
Stage 4+ - Value Translation Network
The Control Tower –
Key to Leveraging Big Data
CT - Cloud-based
extensible
overarching data and
process model
Big Data
Capability
CT
Complementary to
existing IT
applications
Overarching process-based
visibility and analytics
Demand-driven Value Network
Business
scenario-based
planning
End-to-End Business
Operating System
The Control Tower Platform
Flexible Decoupling Information & Analytics
…..Flexible “Decoupling” Information
& Analytics
Layer
Internal & External
Process Infor.
Layer
Application, Data and IT
Process Architecture
Data sourced
from multiple
distributed
transaction
systems
32
Example ……..
Drive Revenue by adapting with increasing
business & process maturity and outside in
analyses from Big Data
Big Data Insights
The Trade Promotion
Management
Business Journey to Value
Integrated
Business
Planning
Profitability Insights
Joint Value Creation with Suppliers &
Customers
New Products and Improvements
Winning in New Markets
Operationalizing
The Innovation Journey to Value
Margin Erosion
33
Control Tower Deployment
Through Stages of Maturity
Stage 2
Stage 3
Stage 4
Demand
Planning
Demand Planning
Integrated
Business
Planning
S&OP
Visibility
Supply
Planning
Supply Chain
Network
Alignment
S&OP
Balanced
Functional
SupplyTradeoffs
Planning
Supply Chain
Network
Alignment
End-to-End
Business
Network
Trade Offs
Supply Chain
Network
Alignment
Stage 5
Integrated
Business
Operations
Planning
Value
Network
Alignment
Risk, Complexity, Organization Design, Leading and Managing Change, Enabling IT
Summary Points
• Realize that:
• Big Data is not “the end in itself” –
it is “a means to an end” – Business Outcomes
• Big Data is a leadership challenge, not a technology challenge
• Recognize your stage of maturity and align across the
business to improve
• DO NOT underestimate the implications on “organizational
effectiveness and design”
• Pick capable business and technology partners to
enable Control Tower capabilities
35
Big Data / Demand Sensing
Question for prizes
• What is not a Big Data Insight?
1.
2.
3.
4.
5.
6.
Trade Promotion Management
New Products and Improvements Winning in New Markets
Operationalizing the Innovation Journey to Value
Margin Erosion
Profitability Insights
All of the above are big data insights
BIG DATA COLLABORATION TO
REDUCE OUT-OF-STOCKS AND
GROW TOP-LINE SALES
Carl Graziani
John Phillips
SVP Supply Chain
Safeway, Inc.
SVP Customer Supply Chain & Logistics
PepsiCo, Inc.
Questions?
38
Wrap-up &
closing remarks
Rick Sather
VP Customer Supply Chain
Kimberly-Clark Corporation
Key Take-Aways
Establish Strategies for:
– Multi-channel commerce
– Leveraging data
• Data to information to insights to
action
– Leveraging Supply Chain to grow
sales
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Lean – RfS event
June 27, 2013 - West Midlands, UK
www.leanrfs.co.uk/
41
Wrap-up &
closing remarks
Rick Sather
VP Customer Supply Chain
Kimberly-Clark Corporation