5/25/22 September 2014, p.1 Supply Chain Insights Global Summit #ImagineSC Managing the Iron Triangle Philippe Lambotte Mattel
Managing the Iron Triangle
Oct 30, 2014
The presentation given by Philippe Lambotte, Senior Vice President of Global Supply Chain Operations at Mattel, at the Supply Chain Insights Global Summit in Scottsdale, AZ on September 10, 2014
Managing the Iron Triangle
The supply chain leader manages the intersection of customer service, cost and inventory. Philippe Lambotte terms this the Iron Triangle. Listen to Philippe as he discusses the performance of Kraft, Merck, and now Mattel on the Supply Chain Index and shares his insights.
Managing the Iron Triangle
The supply chain leader manages the intersection of customer service, cost and inventory. Philippe Lambotte terms this the Iron Triangle. Listen to Philippe as he discusses the performance of Kraft, Merck, and now Mattel on the Supply Chain Index and shares his insights.
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
9/11/2014 September 2014, p.1Supply Chain Insights Global Summit #ImagineSC
Managing the Iron Triangle
Philippe LambotteMattel
9/11/2014 September 2014, p.2Supply Chain Insights Global Summit #ImagineSC
AgendaOur message Triangle Definition Consumer Goods example – Kraft Pharmaceuticals example - MerckFashion/Toy example – Mattel Putting it all together
9/11/2014 September 2014, p.3Supply Chain Insights Global Summit #ImagineSC
Supply Chain excellence – it is all about customers
9/11/2014 September 2014, p.4Supply Chain Insights Global Summit #ImagineSC
Iron Triangle
Cost Cash
Service
Revenue Leverage supply chain capabilities to drive margin and top line revenue
Optimize required investments in working capital
Ensure products get to store at lowest landed cost
On Time In Full
9/11/2014 September 2014, p.5Supply Chain Insights Global Summit #ImagineSC
Example Consumer Goods industry
Service
• Short cycle time • High promotional ratio• Regional/local supply chain • Focus on shelf execution
2
-
50,000
100,000
150,000
200,000
250,000
Prod_All
POS WM
Cs_Shipmts WM
Cs_Shipmts All
210000187100 7.25Z MAC & CHS 35
3 week+ reaction time
9/11/2014 September 2014, p.6Supply Chain Insights Global Summit #ImagineSC
Example Pharmaceutical industry
Revenue
• Patent cycle/peak and cliff • High compliance management• High and complex technologies• 6 months - 3 year long supply
chains
73.0
30.0
Finished GoodsInventory coverage
Days
Drugs Food
-58%
97.5 98.0
Drugs Food
Service level %
Source: Industry Census of Manufacturers, 2001
9/11/2014 September 2014, p.7Supply Chain Insights Global Summit #ImagineSC
Example Fashion/Toy industry
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0
500
1000
1500
2000
2500
Manufacturing production phasing
Inventory
• Huge Seasonality (Big 6)• Placing bets • Immediate write off after season • 1-3 month long supply chains
9/11/2014 September 2014, p.8Supply Chain Insights Global Summit #ImagineSC
Putting it all together
Need to understand which corner of the iron triangle is most critical for your business
Educate your organization to understand trade offs and be deliberate about them
Keep two corners stable while driving the third one
Don’t wait for crisis to happen
Related Documents
![⃝§[dan briody] the iron triangle inside the secret](https://static.cupdf.com/doc/110x72/568ca8a21a28ab186d9a2489/dan-briody-the-iron-triangle-inside-the-secret.jpg)
