a functional view into supply chain response management: what does response management mean from a...
DESCRIPTION
Presented by Trevor Miles, VP thought leadership, KinaxisTRANSCRIPT
Copyright © 2011 Kinaxis Inc. All Rights Reserved. 1
A Functional View into S l Ch i R M t
Trevor Miles, Thought Leader
Supply Chain Response Management
gBill Dubois, Business consultant
Copyright © 2011 Kinaxis Inc. All Rights Reserved.
Introduction
Copyright © 2011 Kinaxis Inc. All Rights Reserved. 3Copyright © 2010 Kinaxis Inc. All Rights Reserved.
Today’s (& Tomorrow’s) DilemmaProfitable Response in a Demand-Driven Enterprise
A new era of surprise and compromise requires integrated demand-supply planning, monitoring, and profitable response capabilities
Copyright © 2011 Kinaxis Inc. All Rights Reserved. 4
planning, monitoring, and profitable response capabilities
CompaniesCompanies can’t predict the can’t predict the pp ppfuturefuture, , ……build organizations that will build organizations that will
i d fl i hi d fl i hsurvive and flourish survive and flourish under under any possible futureany possible future…any possible future.…any possible future.
Source: McKinsey Quarterly, Dynamic management: Better decisions in uncertain times, December 2009
Copyright © 2011 Kinaxis Inc. All Rights Reserved. 5
Market Dynamics
• Top CPG companies forecast performanceForecasting Performance Benchmarking Study, Terra Technologies, March 2011
– MAPE for a one month lag was 31% + 12%.• Forecast Accuracy Range: 57% - 81%
– Eight years ago: 36% + 10% MAPE– Eight years ago: 36% + 10% MAPE
• High-Tech/Electronics – anecdotalg– Struggle to get better than 50% MAPE
• Where will breakthrough performance come from?– Learning to forecast and plan better?– Learning to respond profitably to plan variance?
Copyright © 2011 Kinaxis Inc. All Rights Reserved. 6
– Learning to respond profitably to plan variance?
Traditional Planning Process Segmentation
Assumes Execution happens
Copyright © 2011 Kinaxis Inc. All Rights Reserved. 7
appe sflawlessly
The Merging of Planning and Execution
• In many areas, planning and execution should be blurring but whether they are or not in most companiesblurring, but whether they are or not in most companies is still a question
• Need organizations to become flatter and operate inNeed organizations to become flatter, and operate in more of a true team environment
• A flatter organization has more people taking actionA flatter organization has more people taking action rather than building plans or giving orders
• As a result, operational planning and even some tactical planning processes start to merge with actual execution
Copyright © 2011 Kinaxis Inc. All Rights Reserved. 8
Next Generation Supply Chain Management – The Integration of Planning and ExecutionCSCO Insights Thought Leadership Series, Supply Chain Digest, 2009
Intelligent Event Management Systems are an Important Component of the Real-Time Supply Chain
Does the Event Impactother Processes/Goals?other Processes/Goals?
Next Generation Supply Chain Management –The Integration of Planning and Execution
CSCO I i ht Th ht L d hi S i
Copyright © 2011 Kinaxis Inc. All Rights Reserved. 9
CSCO Insights Thought Leadership Series,Supply Chain Digest, 2009
SCM is a “team” sport
• Visibility is necessary but insufficient requirement• Event severity determined by impact on others• Event severity determined by impact on others
8
10
8
108
10
0
2
4
6
1 3 5 7 9 11 0
2
4
6
8
02
4
6
1 3 5 7 9 11
– Are these events significant?A th t l t d?
1 3 5 7 9 11Supplier 1 3 5 7 9 11CM
1 3 5 7 9 11Customer
– Are these events related?– How can you tell?– If they are, who can help?
Copyright © 2011 Kinaxis Inc. All Rights Reserved. 10
If they are, who can help?
Response ManagementDynamic Supply Chain Alignment
120
Volume/Revenue
80
100
Shi d
40
60 Shipped
Backlog
ForecastDemand Affected? Supply Affected?
0
20
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19Time
Wh t? Capacity ConstraintInventory Buffer
What-If analysis to
What?Why?Who?
Copyright © 2011 Kinaxis Inc. All Rights Reserved. 11
yresolve the issue
Demonstration
Copyright © 2011 Kinaxis Inc. All Rights Reserved. 12Copyright © 2010 Kinaxis Inc. All Rights Reserved.
Q&A
Copyright © 2011 Kinaxis Inc. All Rights Reserved. 13Copyright © 2010 Kinaxis Inc. All Rights Reserved.
Copyright © 2011 Kinaxis Inc. All Rights Reserved. 14
Thank you!Trevor Miles | [email protected] | +1.647.248.6269 | @milesahead
Bill Dubois | bdubois@kinaxis com | +1 613 324 4037Bill Dubois | [email protected] | +1.613.324.4037
Copyright © 2011 Kinaxis Inc. All Rights Reserved. 15Copyright © 2011 Kinaxis Inc. All Rights Reserved.
Copyright © 2011 Kinaxis Inc. All Rights Reserved. 16