Adrian Gonzalez, Adelante SCM – “A Supply Chain Operating Network (SCON): Communicate, Collaborate, Innovate”

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Adrian Gonzalez President

Adelante SCM

Supply Chain Operating Networks: Communicate, Collaborate, Innovate

Elemica reveal 2014

May 6-7, 2014

What do these companies have in common?

“Past performance is no guarantee of future results”

Marshall Goldsmith’s bestseller is about how successful people can become even more successful. The same can be said of companies and their supply chain networks, processes, and technologies.

Companies Have Been Succeeding …

ì …despite having poor visibility and control of their supply chains;

ì …despite having outdated and inflexible IT systems;

ì …despite not taking a holistic perspective of their end-to-end processes;

ì …despite, despite, despite.

But why can’t companies succeed “despite” any more?

The # 1 Challenge for Supply Chain Execs

ì Supply chain networks

ì Global markets & competition

ì Product lifecycles

ì Customer expectations

ì Technology (cloud, mobile, social)

ì Regulations

ì Risk

Keeping pace with rapid

pace of change

Cannot Succeed “Despite” Any More

“The significant problems we face cannot be solved at the same level of thinking we were at when we created them.”

Albert Einstein

Are you working in a Company of Yesterday or a Company of Tomorrow?

What are the attributes of a Company of Tomorrow?

Successful Companies of Tomorrow Will…

Make smarter decisions faster

Have more accurate, timely, and complete supply chain visibility than competitors – move from REACTIVE to PREDICTIVE (& PRESCRIPTIVE)

Move away from “What’s in it for me?” business relationships to “What’s in it for WE?”

Supply Chain Operating Network: A Platform for Companies of Tomorrow

Conceptual model developed in 2003

What is Achilles’ Heel of SCM?

Image source: www.gluu.org

$ Billions Wasted on Data Quality Issues

“We estimate the total annual costs of inadequacies in supply chain infrastructures to be in excess of $5 billion in the automotive industry and almost $3.9 billion in the electronics industry.”

True in the process industries too!

Network-based BI & Analytics: The Missing Link in Business Intelligence

Supply Chain BI Dashboard

SCON 2.0: Enabling Peer-to-Peer Communication and Collaboration

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Enabling a Rapid-Response Supply Chain

“What is needed [in a dynamic business environment] is a supply chain of rapid response…Many people who work in the materials business [and] talk about supply chains and the speed of supply chains [have historically] thought about systems talking to systems across enterprises and about processes. But in reality, the speed of the chain is not really related to the systems used by the various companies—it’s all about people, and people talking to people.”

Source: “TEVA Pharmaceutical: A Case Study on Spontaneous Association Leveraging Enterprise Social Software,” Enterprise 2.0 webcast, August 2011

Tony Martins VP Supply Chain

TEVA Pharmaceuticals

“Spontaneous Association” at TEVA Pharmaceuticals

TEVA Pharmaceuticals reduced manufacturing cycle time by 40 percent in four months and improved lead time from upstream

suppliers by as much as 60 percent.

Source: “TEVA Pharmaceutical: A Case Study on Spontaneous Association Leveraging Enterprise Social Software,” Enterprise 2.0 webcast, August 2011

Most Valuable Social Networking Capabilities

Source: Adelante SCM websurvey of 200+ SCM professionals, 2013

Quantifying the Value of SCONs

ì Exception Management: identify and resolve exceptions faster and more effectively

ì Risk Management: gain more timely and insightful insights about emerging risks and events

ì Innovation: Generate more — and better — ideas for improving supply chain processes and solving existing problems by tapping the collective insights, knowledge, and expertise of employees and partners across the supply chain

… beyond the usual metrics

Key Takeaways

ì Past performance is no guarantee of future results.

ì The pace of change is accelerating, so you can’t succeed “despite” any more.

ì Successful companies of tomorrow will…

1. Make smarter decisions faster 2. Have more accurate, timely, and complete supply chain

visibility than competitors – move from REACTIVE to PREDICTIVE (& PRESCRIPTIVE)

3. Move away from “What’s in it for ME?” business relationships to “What’s in it for WE?”

Thank You!

Adrian Gonzalez President

Adelante SCM 617.529.9639

[email protected]

www.talkinglogistics.com