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Membership Meeting
Data Explosion:
Redefining Metrics
Boston Logistics Group, Inc.
1/8/07
Boston Logistics Group
Tel: (1) (781) 283-5788
www.bostonlogistics.com
Who We Are
 Supply Market Outlooks
 Supply Chain Return on Investment Briefs
 Custom Supply Chain Research
© 2006 Boston Logistics Group, Inc.
7/6/2017 Tel: (1) (781) 283-5788
Page 2
Boston Logistics Group
www.bostonlogistics.com
Explosion of IT Platforms and Concepts
ASCII
B2B
B2C
BOI
CAD
CIO
CPC
CPP
CTO
CTR
EDI
HTM/HTML
ISP
ISS
KM
MIME
MRP
POP
POS
Point Of Sale
ROI
XBRL
CRM
Rosetta
XML
Auction
WMS
© 2006 Boston Logistics Group, Inc.
7/6/2017 Tel: (1) (781) 283-5788
SRM
ERP
Data
GPS
APS
RFID
TMS
eRFQ
Page 5
Chat
Client
DNS
Domain
FTP
Gateway
Hypertext
Internet
MultiMedia
OPAC
Packet
Port
PPP
Protocol
Router
Server
Signature
SPAM
TCP
Telnet
Trojan Horse
WWW
Boston Logistics Group
www.bostonlogistics.com
Data changing our world
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Innovation from outside
Collaborative selling
Supply networks
Standardized subassemblies
“We’re moving towards a world where operations are networkcentric. There used to be vertical silos, [but in the future we’ll]
have horizontal businesses that can integrate with each other.”
- Stephen Miles, MIT
© 2006 Boston Logistics Group, Inc.
7/6/2017 Tel: (1) (781) 283-5788
Page 7
Boston Logistics Group
www.bostonlogistics.com
Revenue value of information
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Delivering Better Service
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Launching More New Products Faster
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Matching Organization of Resources to Demand
Segmenting and Prioritizing Orders
Customizing product and service delivery
Launching New Products More Frequently
Launching New Products Faster
Increasing Margins: Rapid, Flexible Response
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Rapid Response
Postponement
Dynamic Pricing
© 2006 Boston Logistics Group, Inc.
7/6/2017 Tel: (1) (781) 283-5788
Page 12
Boston Logistics Group
www.bostonlogistics.com
Cost value of information
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Lean manufacturing and lean distribution
Inventory management
Supplier partnering
Cross-docking and fleet rationalization
Quality management
E-procurement
© 2006 Boston Logistics Group, Inc.
7/6/2017 Tel: (1) (781) 283-5788
Page 14
Boston Logistics Group
www.bostonlogistics.com
Core competency drives IT architecture
How Strategy Drives Choice of Metrics
Competency Customer
Intimacy
Operations
Supply
Chain
Marketing /
Innovation
Example
Used car
dealership
Outsourced
IT services
Oil company
IT: Social
networking
Time
horizon
The moment
3 months
1 year
3-5 years
Metrics
Hit rate
Balanced
scorecard
Forecast
variance
Thought
leadership
P/E
© 2006 Boston Logistics Group, Inc.
7/6/2017 Tel: (1) (781) 283-5788
Page 17
Boston Logistics Group
www.bostonlogistics.com
1. Convert data to information
Supply and Demand Imbalance
$3,000
$2,500
Millions of
US Dollars
$2,000
$1,500
2006
2007
2008
2009
2010
2011
2012
Year
Capacity ($M)
© 2006 Boston Logistics Group, Inc.
7/6/2017 Tel: (1) (781) 283-5788
Page 27
Demand ($M)
Boston Logistics Group
www.bostonlogistics.com
2. Convert information to strategy
Families of Sourcing Strategies
• Rationalization
• Centralization of procurement
• Group purchasing
Scale
5
4
3
2
• RFx
• Global sourcing
• Auctions
• Payment terms
1
Integration
• E-Procurement
• Long-term agreements
• Supply chain integration
• Purchasing cards
• Portals
© 2006 Boston Logistics Group, Inc.
7/6/2017 Tel: (1) (781) 283-5788
0
Competition
Value
• Value engineering
• Standardization
• Spec simplification
Page 28
Boston Logistics Group
www.bostonlogistics.com
3. Create value above the market
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Value: Lower lifecycle costs
Integration: Reduced transactions costs
Scale: Economies of scale
Competition: go direct to manufacturers
Creating Price Leverage through Sourcing Strategy
100
99
• Value
• Competition
• Integration
• Scale
98
97
Price 96
95
94
93
92
1
2
3
4
5
Time Period
Market
© 2006 Boston Logistics Group, Inc.
7/6/2017 Tel: (1) (781) 283-5788
Page 29
Term-Adjusted
Boston Logistics Group
www.bostonlogistics.com
Thank You for Your Attention!
David Jacoby
Tel: (781) 283-5788
[email protected]
Boston Logistics Group helps supply chain executives make critical supply chain decisions that involve
investment and risk by forecasting the evolution of supply markets and technologies. Our mission is to
help our clients develop globally competitive supply networks that maximize Supply Chain Value.™ Our
products and services include:

Supply Market Forecasts that help purchasing managers decide how, where, and when to buy critical
externally-purchased materials and services

White Papers that help investors and policy makers quantify the benefit of emerging technologies and
decide whether or not to invest in them

Custom Research and Planning that supports high-stakes decisions such as acquisitions,
outsourcing, off-shoring, and make-or-buy
Industries Served:
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Discrete Manufacturing: Machinery, Equipment, Vehicles, Parts, Mechanical and Electrical Devices
Process Manufacturing and Conversion: Paper, Pulp, Energy, Packaging, Processed Minerals/
Aggregates, Plastics, Metals, Chemicals
Transportation: Railroads, Ocean Shipping Lines, Airlines, Trucking Companies, Package Delivery,
Intermodal
Logistics: Dedicated and Third Party Logistics, Ports, Stevedoring, Storage, Material Handling,
Distribution, Maintenance, Retail
© 2006 Boston Logistics Group, Inc.
7/6/2017 Tel: (1) (781) 283-5788
Page 30
Boston Logistics Group
www.bostonlogistics.com