Download Supply Chain Management – Increase Profit Contribution Kevin

Supply Chain Management – Increase Profit Contribution
Kevin Beidelman & Gary Lenik, Principals, Bolero Associates
Pursue Supply Chain Excellence! Why?
Service  Speed  ROI
 Faster response to Customer demand
 Competitive advantage
 Increased inventory turns (velocity)
 Reduced risk
 Real-time visibility/communication (all stakeholders)
 Improves Total Quality (Lean-Six Sigma extended…)
 Time to market – Effective NPI integration
 Single plan/execution focused on Customer
 Improved margins for all partners
ROI
$$$
Supply Chain Disruptions
Are Costly
$$$
 Margin erosion is the most common outcome of supply chain
disruptions – sudden demand changes is most costly contributor
 53% of Supply Chain Leaders say disruptions have become more
costly since 2010
 71% of Corporate Executives believe supply chain risk is an
important factor in strategic decision-making and 64% claim to
have a risk management program in place
 41% of Supply Chain leaders lack confidence in their riskmanagement programs
Deloitte Survey – Executives Face Growing Supply Chain Threats
Reducing Supply Chain Costs
Supply Chain Costs
Customer service
Inventory costs
Planning
Change management
Transportation (in/out)
Depreciation
Product management
Warranty/returns
Order management
Supply chain finance
Procurement
Supply chain IT
Distribution
Warehouse
Rework
A.K. Kearney Study: Results from
companies pursuing supply chain
improvements
Remaining
Costs
58%
10-15% of Revenue
$500M = $50M Supply Chain Costs
Opportunity = $50M x 42% =
$21M Savings
SC Savings
42%
Supply Chain
Improvement
TOP 25 SUPPLY CHAIN COMPANIES - 2015
*
*
1
2
3
4
5
6
7
8
9
10
11
12
Apple
Procter & Gamble
Amazon.com
McDonald's
Unilever
Intel
Inditex
Cisco Systems
H&M
Samsung Electronics
Colgate-Palmolive
Nike
Coca-Cola Company
Starbucks
13
14
15
16
17
18
Wal-Mart Stores
3M
Pepsico
Seagate Technologies
Nestle
Lenovo
19
20
21
Qualcomm
Kimberly-Clark
Johnson & Johnson
22
23
24
L'Oreal
Cummins
Toyota Motor
25
Home Depot
•
Source: Gartner Research
5
= masters category for
long term top 25 firm
Competitive Advantage/Benefits
Where the top Supply Chain companies excel:
 Supplier Development
 Collaborative Product Development
 Demand-Driven Value Chains
 Lean Manufacturing
 Demand Capture
 Supply Chain Design & Network integration
 Brand Leverage
 Strong Customer Collaboration
 Performance-Based Metrics
ROI
Enable ‘Real Time’ Actions
Speed > Enterprise Flows
• Products & Services
 Information
 Financial
• Zero Latency
 Simple, tailored workflows
 Automate routine transactions
 Accelerate decisions
• Leaner Processes
 Specific intent
 Focused action
Enterprise enablers
• Visibility
• Flexibility
• Collaboration
• Control
To Learn More
• Visit us:
www.BoleroAssociates.com
• Contact us: 1-800-634-1843
Kevin Beidelman
Gary Lenik
[email protected]
[email protected]
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