FUTURE OF SUPPLY CHAIN MANAGEMENT

There is a new supply chain management that drove the success of Amazon and e-commerce. And it is moving across industries, markets and the world. Speed is the new competition. Are you a leader or a laggard here? What it is. Essentials/Elements. Think Supply Chain Management Is Disruptive Innovation. Manufacturers. Retailers.

1. Future of Supply Chain
Management.
Are You Aligned Where SCM
Is Going?
Tom Craig
[email protected]

2. Introducing LTD
Management
Supply chain management /
logistics
Consulting
Advisor
Real world experience
Written over 90 white papers, e-
books, and articles
Analyze AND implement
Actionable
Solutions that work
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3. Disruption
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New Selling Reality –E-commerce
Success—driven by Supply Chain Management
More exactly—by New Supply Chain Management

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5. What We May Be Discussing
Threats
Your business model
Supply chain management as
disruptive innovation
Your future
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6. New Reality: Selling Revolution
Selling duality
E-commerce
Disruption/change
Customer power
Customer expectations
Customer convenience
Drives customer expectation success
Not stopping at B2C/DTC
Across industries, markets, global
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10. 10
£13.4 in 2019

11. And
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Amazon Prime has 150 million subscribers.

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13. STATISTA SLIDE????
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15. New Selling Reality—Driven by
a New Supply Chain Management
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16. Duality—Store vs Online
1)Stores
2)Cases
3)Warehouse layout for
cases/ pallets (Height &
Labor)
4)Warehouse alignment—
fewer
5)Stop and start
6)Standard use of outside
logistics providers
1)Individual customers
2)Eaches
3)Warehouse layout for
eaches (Horizontal & Tech)
4)Warehouse alignment—
more
5)Flow
6)New role with velocity &
bring logistics in-house
(Reverse Outsourcing)
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17. New Supply Chain Management
Strategic
Weaponized
Drives selling success
Metrics
Perfect order
Inventory turns
Inventory Rich
Out of stock
Lost opportunity investment
Not logistics costs
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18. The New Supply Chain Elements
& Essentials
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19. End-to-End
Upstream where supply of supply chain begins
Less attention
Blend purchasing/procurement & logistics/transport
Downstream & more than fulfillment
Starts with purchase order
Ends with customer or store
And everything in between
15 players in international trade & supply chain
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20. Velocity
Order delivery velocity
driven by inventory velocity
driven by supply chain
velocity
Time compression
Uncertainty
Increased inventory
Inventory buffer reduction
Speed need increasing
Think velocity
2
Flow vs nodes & links
Lean—value stream mapping
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21. Complexity
Supply chains within supply
chains
Non linear
Upstream & downstream
Number of participants
Integration
Network alignment
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22. Warehouse
Network &
Alignment
What is objective of
these?
Where located?
How many?
How managed?
How replenished?
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23. Visibility
End to end
Players/participants
Locations
Different technologies
External
Internal
Risks without it
Blind spots
Redundancies
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24. Structure
Process
Organization
Where you are going,
not where you are
Hybrid
Supply chain, not
logistics
Imbed IT
Technology
More than track
and trace
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25. Technology
End-to-end integrated visibility (more than track and trace)
Digitization
New techs impact supply chain management and logistics
Drones, driverless trucks, digitalization, blockchain,
augmented reality/virtual reality /3D, IoT, analytics
How to do it—new reality needs new organization: Meld SCM
and tech, not project teams
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26. Integration
Not optional
End-to-end
Visibility
Structure
Process
Organization
Technology
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27. 4 Wall Myopia
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Four walls
Distribution centers
Factories
Stores
Much SCM is outside
Missing a lot?
ERP
Lean

28. Reverse outsourcing
Bring in house
Amazon & logistics
Walmart & food
Disintermediation
Velocity
Control
Complexity
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29. New Logistics
•Redefine role in end-to-end
supply chain with velocity
•Performance metrics
•Usual suspects or new breed of
providers?
•3PSCM
•SCMaaS
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30. Manufacturers vs retailers
Manufacturers
CPG/FMCG vs Rest
Lack of robust e-commerce
familiarity
Factory/inside vs supply
chain management/outside
Velocity/flow vs stop &
start
End to end concept
Inventory rich & stockouts
Retailers
Conflict of store vs online
Tiers of inventory & size of
network where inventory is
placed—DCs & stores
Fulfill from DCs vs stores
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31. Challenges and
Questions
The points I discussed—what if I
am right?
At minimum, seeing the value
benefit to your business
Time to change & tipping poi
How does SAP handle
omnichannel with its supply
chain duality?
How does SAP deal with the new
reality with end-to-end velocity?
And direction—upstream
/downstream & outside/inside
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32. More Disruption, Change, & Ahead
Velocity to Velocity
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Exception warnings
Blockchain
Cryptocurrencies
Augmented reality/Virtual
reality
Analytics
Internet of Things
3D printing
Driverless vehicles
Robotics—warehouse and
delivery
Drones
Platform businesses
Artificial intelligence
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33. What Does It Mean Going
Forward for ERP, Manufacturers,
Retailers, & Logistics Providers?
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34. The Future
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