12 Steps to a Resilient Enterprise

SupplyChainBrain
12 Oct 202258:25

Summary

TLDR在这段视频脚本中,供应链行业专家Mac McGarry分享了如何构建一个有韧性的企业。他讨论了过去一年中不可预测的事件对企业造成的影响,包括贸易战、疫情、消费者行为变化、政府反应、气候变化和政治分歧。McGarry强调了供应链专业人士在这些挑战中的关键作用,他们不仅是基础设施的无名英雄,也是在市场动荡中为领导者提供洞察力和行动方案的关键人物。他提出了12个步骤,帮助企业评估现状、制定愿景、利用技术、动员人才、进行业务连续性规划、利用数据、管理变革,并最终实现文化的转变,以创建一个更具韧性和敏捷性的企业。

Takeaways

  • 📈 **构建韧性企业**:企业需要制定计划以增强供应链的韧性,应对如疫情这样的不可预测事件。
  • 🌟 **领导力与方向**:Mac McGarry作为legility的执行副总裁,强调了领导力在塑造供应链未来中的重要性。
  • 🤝 **客户关系**:建立强大的客户关系对于企业的生存和发展至关重要。
  • 🚀 **技术的重要性**:技术是推动创新的关键催化剂,AI和新数据源可以提高供应链的预测能力和韧性。
  • ⚖️ **权衡与决策**:企业需要评估不同情况的权衡,例如服务水平与库存之间的关系。
  • 📊 **数据的作用**:数据被视为新石油,企业需要有效收集、聚合和利用数据以提高决策质量。
  • 🌐 **全球劳动力**:企业需要考虑不同年龄段和背景的全球劳动力,设计适合他们的工作流程和应用程序。
  • 🔄 **供应链的集成规划**:端到端的规划与执行相结合,是提高企业敏捷性和韧性的关键。
  • 📚 **教育与领导**:供应链专业人员需要向领导团队传达如何更好地服务消费者并在市场中保持竞争力。
  • 🛠️ **技术平台的简化**:企业应考虑使用单一平台来简化其供应链操作,以提高效率和响应速度。
  • 📉 **应对市场变化**:企业必须快速适应市场需求的变化,如将产品从餐厅销售转向零售市场。

Q & A

  • 什么是供应链的弹性企业?

    -供应链的弹性企业是指能够在面对市场波动、不可预测事件或危机时,快速适应并维持运营效率和客户服务水平的企业。它不仅能够应对短期内的挑战,还能通过战略规划和技术创新,长期保持竞争力。

  • 为什么说当前时刻是建立弹性企业的重要时机?

    -当前时刻,由于疫情和其他全球性事件的影响,市场经历了前所未有的波动,这对企业的供应链管理提出了更高的要求。企业需要建立更灵活、更具适应性的供应链,以应对快速变化的市场需求和潜在的风险,确保业务的连续性和增长潜力。

  • 在建立弹性企业的过程中,技术扮演了什么角色?

    -技术在建立弹性企业的过程中扮演了至关重要的角色。它不仅提高了数据处理和分析的能力,使企业能够更快地做出基于数据的决策,还通过自动化和智能化的工具,提高了供应链的响应速度和运营效率。此外,技术还帮助企业实现更好的可视化和预测能力,从而提前应对潜在的供应链中断。

  • 如何量化供应链的弹性?

    -量化供应链的弹性通常涉及评估企业对市场变化的响应速度、库存水平、服务能力、供应链中断的影响以及恢复时间等方面。具体的指标可能包括订单履行率、库存周转率、供应链中断的频率和持续时间、以及从中断中恢复的速度等。

  • 在供应链管理中,为什么需要敏捷性和弹性?

    -敏捷性和弹性对于供应链管理至关重要,因为它们使企业能够快速适应市场变化和不可预测的事件。敏捷性强调的是快速响应和灵活调整生产和服务的能力,而弹性则是指在面对冲击时维持运营和快速恢复正常运作的能力。这两者结合起来,可以帮助企业在竞争激烈和不断变化的市场中保持竞争力。

  • 企业如何评估其供应链的当前状态并制定改进计划?

    -企业可以通过内部审计和外部咨询相结合的方式,评估其供应链的当前状态。这包括分析供应链中断的影响、评估现有技术和流程的有效性、以及检查数据管理和决策支持系统的能力。基于这些评估结果,企业可以制定改进计划,包括投资新技术、优化流程、培训员工、以及建立更紧密的供应商和客户关系。

  • 在供应链中,如何实现更好的数据管理和分析?

    -实现更好的数据管理和分析需要企业建立一个统一的数据管理平台,确保数据的准确性和可访问性。此外,企业应利用先进的数据分析工具和算法,如人工智能和机器学习,来处理和分析数据,从而获得深入的业务洞察。同时,企业还需要培养数据驱动文化,鼓励员工基于数据做出决策。

  • 为什么说组织内部的一致性和变更管理对于建立弹性企业至关重要?

    -组织内部的一致性和变更管理对于建立弹性企业至关重要,因为它们直接影响到企业决策的质量和执行的效率。一致性确保所有部门和团队都朝着相同的目标努力,而变更管理则确保在实施新流程或技术时,员工能够顺利适应,从而减少阻力和提高成功率。

  • 企业如何通过供应链优化来提高客户满意度?

    -企业可以通过优化供应链来提高客户满意度,具体方法包括缩短交货时间、提高订单准确性、提供更多的定制化服务、以及通过更好的需求预测来减少库存积压。此外,通过提高供应链的透明度和沟通效率,企业可以更好地管理客户的期望,从而提高客户满意度。

  • 在建立弹性企业的过程中,如何平衡成本和效益?

    -在建立弹性企业的过程中,企业需要进行成本效益分析,确保投资能带来预期的回报。这包括评估新技术和流程的实施成本、预期的运营效率提升、以及潜在的收入增长。企业还应考虑长期的投资回报,而不仅仅是短期的成本节约。此外,通过敏捷的方法论,企业可以分阶段实施改进措施,这样可以在每个阶段评估投资的效果,并据此调整后续的投资计划。

  • 企业如何通过供应链创新来获得竞争优势?

    -企业可以通过供应链创新来获得竞争优势,例如通过采用先进的供应链管理技术、开发新的供应链合作伙伴关系、以及创造新的供应链运营模式。此外,企业还可以通过提供独特的供应链解决方案来满足客户的特定需求,或者通过提高供应链的可持续性来吸引环境意识强的客户。

Outlines

00:00

🎉 欢迎与介绍

Bob Bowman作为供应链大脑的主编,欢迎大家参加由敏捷性公司呈现的关于构建弹性企业的12个步骤的特别介绍会。他提到了会议结束时会有问答环节,并介绍了演讲者Mac McGarry,他是Legility的执行副总裁,负责公司在供应链领域的竞争定位和愿景。McGarry先生在加入敏捷性之前,曾在Sweetbridge Alliance担任总裁,这是一个开发区块链协议栈的非营利性开源基金会。他拥有超过25年的销售领导经验,并拥有Claremont McKenna College的经济学学士学位。

05:00

📈 供应链的挑战与机遇

Mac McGarry讨论了过去一年中供应链面临的不可预测事件,包括贸易战、COVID-19疫情、消费者行为变化、政府反应、刺激措施、气候变化和政治分歧。他强调了供应链专业人士在人道主义危机中的作用,以及他们如何利用洞察力和义务来支持领导者并采取行动。McGarry还提到了供应链的敏捷性,以及如何通过建立替代供应商和框架来应对供应链中断。

10:02

🤔 技术与数据的作用

讨论了技术在供应链创新中的作用,以及数据来源和预测技术如何提高供应链的弹性。McGarry提出了一个问题,以了解观众对疫情对业务影响的看法,并展示了调查结果。他还讨论了构建弹性企业计划的重要性,包括供应链连续性、技术投资、人才管理和决策支持引擎。

15:02

🛠️ 构建弹性企业的12个步骤

McGarry介绍了构建弹性企业的12个步骤,包括认识到问题、评估影响、制定愿景、探索技术、动员人才、业务连续性规划、数据利用、变革管理、组织对齐、文化建设、价值实现和庆祝成功。他强调了以客户为中心的重要性,并提出了如何通过更好的服务和更高的利润来实现这一目标。

20:03

🌟 成功案例与技术的重要性

通过Tillamook这个案例,McGarry展示了一个企业如何在疫情期间成功地将业务从餐厅和旅游业转移到杂货店需求上。他强调了技术在实现这一转变中的作用,以及如何通过单一平台进行决策,从而避免了争议。

25:06

🤝 合作伙伴的选择与ERP系统的局限性

McGarry回答了关于是否应该考虑ERP系统之外的替代方案的问题。他指出,虽然ERP系统是必要的,但并不足够,特别是当涉及到更复杂的供应链需求时。他鼓励企业考虑使用专门为供应链设计的决策支持平台,这些平台可以提供更深入的功能性,并帮助企业实现更好的供应链管理和决策。

30:08

📊 数据的重要性与成熟度模型

McGarry讨论了数据在构建弹性企业中的重要性,并提出了在企业层面设立数据策展人的职位的建议。他还提到了韧性成熟度模型,并鼓励企业进行自我评估,以了解它们在供应链韧性方面的当前水平,并设定目标在24个月内达到更成熟的阶段。

Mindmap

Keywords

💡供应链弹性

供应链弹性指的是企业在面对市场变化、不可预测事件或危机时,能够迅速适应并恢复正常运营的能力。在视频中,这一概念是核心主题,特别是在讨论如何构建一个能够抵御和适应如疫情这类黑天鹅事件的供应链时。例如,视频中提到了企业如何通过增加供应源的多样性和灵活性来提高其供应链的弹性。

💡敏捷性

敏捷性是指企业快速响应市场变化的能力。在视频中,敏捷性与供应链弹性紧密相关,特别是在当前不断变化的商业环境中。企业需要具备敏捷性以快速适应消费者行为的变化,如视频中提到的在线市场购物的增加。

💡技术催化

技术催化指的是技术进步如何推动业务创新和改进。在视频内容中,提到了AI、新数据源和机器学习等技术如何成为供应链改进的催化剂。这些技术的应用有助于提高预测准确性、增强供应链的可视性和响应能力。

💡数据驱动决策

数据驱动决策是一种基于数据和分析结果进行决策的方法。视频中强调了在供应链管理中利用正确数据在正确的时间和地点做出决策的重要性。例如,企业需要评估其库存政策的风险,并利用数据来量化需求的增加或减少。

💡业务连续性

业务连续性涉及企业在面对干扰时维持关键业务功能的能力。视频讨论了如何通过技术改进和流程优化来确保业务连续性,特别是在远程工作和网络安全挑战日益增加的背景下。

💡数字化转型

数字化转型指的是企业利用数字技术来改变服务或业务模式。视频中提到,数字化转型对于提高供应链的响应速度和质量信息的传递至关重要,它是企业在当前市场环境下保持竞争力的关键。

💡集成业务规划

集成业务规划是一种将企业各个部门的规划过程整合起来的方法,以确保整个组织的目标一致。在视频中,集成业务规划被视为实现供应链弹性的关键步骤,它允许从车间到顶层的决策一致性。

💡贸易战争

贸易战争通常指的是国家之间因贸易政策和关税问题而产生的经济冲突。视频中提到了贸易战争对于企业供应链规划的影响,企业需要考虑是否需要将生产从中国转移到其他国家,如越南,以应对贸易战争带来的不确定性。

💡气候变化

气候变化是指由于全球温室气体排放增加导致的全球气温上升现象。视频内容中提到了气候变化对供应链的潜在影响,如自然灾害(如澳大利亚和美国西海岸的野火)对物流和生产的干扰。

💡政治分歧

政治分歧指的是不同政治力量或团体之间的意见和利益冲突。视频中提到了政治分歧对贸易法律、关税和税收政策的影响,这些因素都可能对供应链的稳定性和可预测性产生影响。

💡消费者行为变化

消费者行为变化指的是消费者偏好、购买习惯或决策过程的变化。视频中讨论了疫情如何导致消费者行为发生显著变化,例如,更多人开始在线购物,这迫使企业重新考虑其分销渠道、包装、产品组合和定价策略。

Highlights

Bob Bowman作为供应链大脑的主编,欢迎参与者参加关于构建弹性企业的12个步骤的特别演讲。

演讲者Mac McGarry,Legility的执行副总裁,分享了他在供应链未来和敏捷性方面的领导力和愿景。

讨论了不可预测事件对供应链的影响,如贸易战、COVID-19疫情、消费者行为变化等。

强调了供应链专业人士在人道主义危机中作为基础设施的无名英雄的角色。

提出了在个人和专业生活中进行压力测试,并从中学习以提高业务连续性的重要性。

探讨了技术在提高供应链敏捷性和弹性中的作用,特别是人工智能和新数据源的应用。

介绍了12个步骤来构建一个弹性企业,从认识到问题、评估影响,到建立愿景和实施技术。

强调了数据在供应链管理中的重要性,以及如何利用数据来提高决策质量。

讨论了如何通过改变管理流程和激励机制来提高组织的适应性和变革文化。

提出了在供应链中建立信任系统和激励整个网络提供数据以实现端到端可视性的观点。

强调了在危机情况下快速做出决策的重要性,并提出了如何利用技术来预测或预防供应或需求危机。

讨论了如何通过集成业务规划和执行来提高供应链的响应速度和市场机会。

提出了通过敏捷方法和短期冲刺来快速实现项目成果,从而提高投资回报率。

强调了组织变革和对新技术的接受是提高供应链弹性的关键挑战。

讨论了如何通过评估合作伙伴、技术和最佳实践来评估和实施变化,以增强企业的弹性。

提供了关于如何使用数字化和集成业务规划来提高供应链的效率和效果的见解。

强调了在构建弹性企业的过程中,庆祝实现关键里程碑和价值实现的重要性。

Transcripts

play00:01

well hi everybody I'm Bob Bowman

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editor-in-chief for supply chain brain

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and I want to welcome you to this

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special presentation on 12 steps to a

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resilient Enterprise presented by

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agility

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now before we get started I do want to

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note that we will be having a question

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and answer session at the end of the

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presentation so all attendees are

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encouraged to submit their questions

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throughout the presentation and we will

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take them on at the end

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so at this point I want to introduce our

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speaker for today he is Mac McGarry

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Executive Vice President of legility

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he provides leadership and direction for

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agility's competitive positioning and

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vision for the supply chain of the

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future Mr McGarry is responsible for the

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global sales organization and building

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strong customer relationships

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before joining agility Mr McGarry served

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as president of sweetbridge Alliance a

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non-profit open source Foundation

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developing a blockchain based protocol

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stack for Global Commerce and Supply

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chains

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he brings more than 25 years of

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experience in sales leadership positions

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in the enterprise software and supply

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chain Industries he began his career as

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a computer programmer and he holds a ba

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degree in economics from Claremont

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McKenna College

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so with that I'm going to turn it over

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to Mac McGarry Matt take it away

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thank you Bob and I'm delighted to be

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here in a supply chain brain Forum uh

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the last time I had that privilege was

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in 2018 and we were speaking on a panel

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about the future of blockchain and the

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role and supply chain but today it's a

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different subject we're looking back

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over our shoulder over the last 12

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months and wow what a year think about

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it

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um think about all the unpredictable

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events the rare events that have all

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converged this has been the mother of

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all Black Swan events a Black Swan is

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now becoming everyday everyday word but

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just reflecting think about 2019 when

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the top of the agenda was how do we

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anticipate trade Wars with China does

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that mean we need to move sourcing and

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plants from China to Vietnam and if so

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do we take action now or action later

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that was what we thought was volatility

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in 2019 then go back to just a year ago

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February of 2020

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headline news we had some incidents of

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lockdowns and a viral scare in China

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Wuhan Prince of Province from

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and and the people were thinking how is

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that going to impact is that going to

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spread and there was all sorts of

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speculation but by March 11 311 many of

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us were traveling AS Global Citizens and

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we were quarantined in places we didn't

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predict and then we were asked to work

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from home it was safer and there was a

play02:49

lockdown of retail and travel in order

play02:52

to contain this virus this invasion of

play02:54

the microscopic kind that was increasing

play02:57

volatility in our Marketplace and these

play03:00

industries were shut down and therefore

play03:02

people were all of a sudden thinking

play03:04

differently about

play03:06

purchasing and traveling and consumer

play03:09

Behavior changed perhaps indefinitely

play03:11

some people who ordered frequently from

play03:13

Amazon ordered more frequently and those

play03:16

that never tried became addicted to the

play03:19

Online Marketplace and some people

play03:20

became shut-ins and everything they

play03:22

ordered was delivered to their doorstep

play03:24

and then certain industries so showed

play03:27

recession we have recessionary pressures

play03:29

uh China ironically the only one that

play03:31

seems to be posting a good GMP growth

play03:33

and the recession changes consumers and

play03:37

therefore we need to think about how

play03:38

that's going to impact our business

play03:39

government started to react

play03:41

inconsistently globally a little bit of

play03:44

unpredictability and then stimulus paths

play03:47

became known and then we started to find

play03:49

ways to stimulate people to go back to

play03:51

work or perhaps stay at home so we had

play03:54

some counter incentives for keeping our

play03:57

factories and our our trucks in motion

play03:59

and then of course climate change it's

play04:02

it's ever present those of us in the

play04:04

West Coast or in Australia we've had a

play04:07

crazy year of wildfires and you can go

play04:10

to bed one night

play04:12

um thinking the the fire is seven miles

play04:13

away and you wake up in the middle of

play04:15

night and understand your neighborhood's

play04:16

on fire that happened to us here in

play04:18

California and it just weighs into our

play04:21

psychic what can we expect and we have

play04:25

to deal with the uncertainty of the

play04:26

world and then of course politics

play04:28

divisive not only here in the United

play04:30

United States but in Hong Kong and in

play04:34

the UK there's been a lot of strife and

play04:36

unpredictability on tariffs and trade

play04:39

laws and travel and Taxation and so on

play04:42

so it's been a hell of a year so let's

play04:45

think about what does this mean for us

play04:51

and at moments that like this I reflect

play04:54

on some of the leaders that I've admired

play04:56

one of those is Winston Churchill who

play04:57

was a wartime leader and he said never

play05:00

let a good crisis go to waste and I

play05:03

think a supply chain professionals

play05:04

there's a lesson for us obviously this

play05:06

is a humanitarian crisis there's

play05:09

obviously a lot of people who are

play05:12

being impacted by the pandemic but as a

play05:14

supply chain professional we have

play05:16

insights and obligations you know we are

play05:18

the unspoken hero of the infrastructure

play05:20

the people who plan and get medical

play05:23

supplies food PPE and the Machinery of

play05:26

Life working and in these moments our

play05:28

job is to help our leaders

play05:30

understand how we can best serve our

play05:32

consumers in a challenging Marketplace

play05:35

and with those insights we can take

play05:37

action

play05:39

um there are a lot of pessimism for good

play05:41

reason but I'm optimistic but all of us

play05:44

have been stress tests in our personal

play05:45

lives and our professional lives now we

play05:48

are sometimes working from home with

play05:50

pets and construction workers and noise

play05:52

and being part-time Educators to our

play05:54

children more so than in previous years

play05:56

and our children are at home

play05:58

um and then in the workplace instead of

play06:00

having water cooler moments and the

play06:02

ability to meet face to face with the

play06:03

people we work with we're now remote and

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we're suffering from Zoom fatigue

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um our processes where we add agile did

play06:12

we have sufficient suppliers so supplier

play06:14

a wasn't available could we switch to

play06:16

supplier B if there was a disruption if

play06:18

there was unpredictable transportation

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bottlenecks did we have the ability to

play06:23

understand that and make decisions was

play06:25

our technology there to support us not

play06:28

only to have business continuity moving

play06:30

our Workforce from in the office to at

play06:32

home and did we have Internet sound and

play06:35

and cameras ready to go but at a more

play06:38

deeper level how resilient was our

play06:41

supply chain and then data did we have

play06:43

the right data at the right place at the

play06:45

right time with the right confidence to

play06:47

make decisions are we are operating on

play06:50

tribal knowledge and guesswork this was

play06:52

an important year for us to be looking

play06:55

forward into how we can change these

play06:57

things and the jury is is out for some

play07:00

businesses which will be decided in the

play07:02

next month or a year ahead but there

play07:04

have been a lot of reported bankruptcies

play07:06

there are those companies that are

play07:08

struggling to survive and those Will

play07:09

Survive and then of course the theme of

play07:11

this presentation today is how can we as

play07:15

a supply chain partner as a Innovation

play07:17

partner as a platform provider how can

play07:20

we help our customers we serve thrive in

play07:23

a spirit of K in a situation of Chaos

play07:27

What scenario applies to you what we've

play07:30

observed in our customer base is that

play07:33

there's been acute Supply disruption

play07:34

unpredictable uh situation many people

play07:37

started switching suppliers and creating

play07:40

agility in their Supply Chain by having

play07:42

Alternatives and creating a framework

play07:45

for shifting Supply from one location to

play07:47

another but even if you did that and did

play07:50

it well we still had unpredictable plant

play07:53

shutdowns a Workforce people working

play07:55

from home coveted outbreaks which

play07:57

inevitably led to delays as there were

play08:00

fewer birds in the sky passenger traffic

play08:03

decreased considerably the the right the

play08:06

fares of Air Cargo went up became less

play08:09

available and more expensive and then

play08:12

we're all competing for the same raw

play08:14

materials and component parts

play08:16

semiconductor chips are in short supply

play08:18

so you can't now even sell a car without

play08:21

having the right chips to be able to go

play08:22

in the vehicles and then of course so

play08:25

new bottlenecks were identified and we

play08:26

all had think about it creatively and

play08:29

then there was the demand variability so

play08:31

not only we have Supply challenges and

play08:33

the Demi the demand supplied balance but

play08:36

some of us benefited from an increase in

play08:39

demand but it shifted to a new market so

play08:41

we shifted from hospitality and

play08:43

restaurants and travel potentially to

play08:46

grocery and to do to serve the grocery

play08:49

we had to think about our distribution

play08:50

channels our packaging our product mix

play08:53

our pricing and promotion strategies we

play08:56

had to do so quickly sometimes with a

play08:58

lack of information and then of course

play09:00

we're working from home so the structure

play09:02

for making decisions and meeting

play09:03

together uh changed this and challenged

play09:06

us and then we're trying to think about

play09:07

what stores will open when will consumer

play09:10

Behavior go back to where it was a year

play09:12

ago which stores will open and when will

play09:14

people return and the shift to direct to

play09:17

consumer that will stay will it continue

play09:19

to grow

play09:20

so we're all trying to figure out

play09:22

consumer behavior and what we know is

play09:24

history is not always a predictive of

play09:26

the future because so many things change

play09:28

so quickly with different circumstances

play09:30

we're often left with different

play09:31

forecasting methods than what we had

play09:33

before ultimately a lot of uncertainty

play09:36

buyer reluctance and unpredictable

play09:38

delays

play09:40

so those of us who've committed our life

play09:41

to supply chain I'm an operational or

play09:44

technology provider perspective we're

play09:46

often

play09:48

committed to helping people fight fires

play09:50

the supply chain is about change it is

play09:53

about firefighting that is about

play09:55

reacting to what happened yesterday

play09:57

today and making your best guess

play09:59

and we've always thought about how do we

play10:01

better serve customers have right

play10:03

product right place right time right

play10:05

price uh the the what we the essence of

play10:08

what we do but we're also saying how do

play10:11

we adapt to a changing world and then we

play10:13

have technology chaining changing and

play10:15

technology is a great Catalyst for

play10:17

Innovation but there's often a hype

play10:19

cycle associated with it or there's a

play10:22

capital uh investment required where

play10:25

we're not necessarily we're spending

play10:27

money on new technology but how can AI

play10:29

new data sources impact our future

play10:32

improve our data forecasts and produce

play10:34

improve the resiliency of our supply

play10:36

chain and then perhaps many of us are

play10:38

looking forward and saying let's even go

play10:41

beyond reaction let's go into prediction

play10:44

and how do we predict or even prevent a

play10:47

crisis in Supply or demand how would we

play10:50

do that and we're thinking about it so

play10:53

that we are going to be more prepared

play10:54

going forward and that's the subject of

play10:56

today how do we become a more resilient

play10:59

Enterprise prize we look back over our

play11:02

shoulder the survey here in August from

play11:04

IDC showed that only 10 percent of the

play11:08

people in the summer said that the

play11:10

pandemic was not going to impact their

play11:11

business might have impacted our

play11:13

personal lives but the question was was

play11:15

this going to impact profits or did you

play11:17

have to change your business model less

play11:19

than 10 percent of North America said it

play11:21

wasn't going to change it but I'm

play11:24

curious and perhaps Bob why don't we ask

play11:27

the audience their point of view well

play11:29

good question let's get a snapshot of

play11:31

how people are feeling right now the

play11:33

question for the audience today is how

play11:35

did the pandemic affect your business

play11:37

select all of the following that apply

play11:39

to you

play11:40

increase in demand across one or

play11:43

multiple business units decrease in

play11:46

demand across one are multiple business

play11:48

units

play11:49

supply shortages cause delays and

play11:51

disappointment

play11:53

we experience disruptions in Supply and

play11:55

Logistics and we thrived

play11:59

let's leave just a few more seconds for

play12:01

the audience to figure out which of

play12:03

those apply to them

play12:04

and then we will show the results

play12:11

okay

play12:12

let's see how we fared

play12:16

well any surprises there Mac look at

play12:19

that 70 percent disruptions to supply

play12:21

and Logistics

play12:23

everybody was affected and a small you

play12:26

know 21 Thrive so what does that tell

play12:28

you it's a lot of different uh companies

play12:30

out there that's right right place right

play12:32

time if you're in the home gym or

play12:35

Furniture business you probably had

play12:37

unprecedented demand but for most

play12:39

Industries there was a change factor

play12:42

that they needed to take into

play12:43

consideration

play12:44

so building a plan for the resilient

play12:47

Enterprise

play12:48

recently with one of our clients that is

play12:51

suffering a decrease in demand we

play12:54

started to chart out their path and this

play12:56

is one of the artifacts of the workshop

play12:58

so first thing is build a plan for the

play13:01

Enterprise let's think about supply

play13:03

chain continuity in a different

play13:04

environment we certainly have a lot more

play13:06

visibility understanding of how it's

play13:08

impacted us recently

play13:10

um then let's say how do we lay the

play13:12

foundation

play13:14

um and then let's do some ROI analysis

play13:16

we do see an economic slowdown in this

play13:18

market segment but how do we lessen the

play13:21

impact let's not hit the bottom let's

play13:23

bounce back quickly and this is what

play13:25

we're now calling the digital divide and

play13:28

that is that we've been talking about go

play13:31

digital or face the consequences and uh

play13:35

the gap between the digital non-digital

play13:38

is more pronounced so if you had a

play13:40

totally digital supply chain you're able

play13:42

to react faster with a high velocity of

play13:43

high quality information be able to

play13:45

reflect and discern make decisions then

play13:48

you are able to bounce back sooner and

play13:50

so this is the model for this particular

play13:52

client

play13:55

and it's a riff on the flattening of the

play13:58

curve so we we can't always stimulate

play14:01

demand

play14:02

um when we have a shift in the market

play14:03

how do we react more quickly to it and

play14:06

then with all these technology and

play14:07

process improvements which we're going

play14:09

to refer to in today's presentation you

play14:11

want to outperform your competitors the

play14:14

call to action is supply chain leaders

play14:16

is to explain the leadership of the

play14:18

company and our customers we serve how

play14:20

are we going to do better next time and

play14:23

maintain a continuity of service agility

play14:25

is what we're striving for and Agility

play14:27

as we've described in supply chain is

play14:29

that given a high change environment on

play14:31

one side we're still able to have status

play14:33

quo delivery to our customers similar

play14:36

expectations similar profitability maybe

play14:38

we have a little bit more Expedition

play14:40

Expedition Expediting costs but we're

play14:42

able to maintain that relationship with

play14:45

our customer not true for everyone last

play14:46

year we've had a lot of apologies and

play14:48

explanations and vague commitments for

play14:51

delivery with uncertainty but going into

play14:53

the next year if we put the right

play14:55

infrastructure and processes and people

play14:58

and data into place we'll be able to

play15:00

outperform competitors which makes this

play15:02

a resilient Enterprise which means in

play15:04

the future supply chain will be able to

play15:06

respond quickly which will create more

play15:09

Market opportunities for us and our

play15:11

shareholders and the customers we serve

play15:14

I like maturity models The Gardener

play15:16

group's got a few on snop but this one's

play15:20

about resiliency and in this five

play15:23

categories of we all know one or two

play15:27

companies perhaps even in our Network

play15:28

that behave this way on the far left

play15:31

side it's the ad hoc siled company it's

play15:34

a factory they just want to utilize

play15:36

their assets and create as much output

play15:38

as possible and in someone else's issue

play15:41

if they create the right product they

play15:42

just want to ship it and then they hit

play15:44

their local productivity criteria

play15:46

they're a local Optimum those are

play15:48

companies we have to deal with maybe a

play15:51

recently acquired the subsidiary maybe a

play15:53

remote plant but that's not optimal

play15:56

where we all want to be is you know on

play15:58

the right side predictive and maybe most

play16:00

of us feel like we're somewhere between

play16:02

opportunistic and responsive so we can

play16:05

react to a situation with tribal

play16:06

knowledge we'd use human putty we get

play16:08

our smart people in the room we create

play16:11

scenarios we do some guesswork we get

play16:13

some spreadsheets sheets and we make

play16:15

some decisions and many of us have done

play16:17

a pretty good job if not excellent job

play16:19

given the circumstances and the

play16:21

challenges of the last year some

play16:23

companies are even more responsive

play16:25

they've calculated in they have the

play16:27

infrastructure they have the digital

play16:29

strategies in place and they were able

play16:32

to be responsive and quick and perhaps

play16:34

serve their customers better than their

play16:36

competition and gain market share and

play16:38

build a sticky relationship because that

play16:40

customer says these people I can rely on

play16:43

even in hard times but where we want to

play16:46

be is proactive and predictive and

play16:49

believe it or not we go back to the

play16:51

history books February of last year

play16:52

there were some companies that could see

play16:54

the pandemic coming not many but they

play16:57

were predictive and so how do you have

play16:58

the mindset the culture and the data and

play17:01

the institutionalized process by which

play17:03

you assess risks and take decisions

play17:05

quickly

play17:07

Bob we like to involve the audience

play17:09

let's ask another poll okay audience

play17:11

here's another one for you is your

play17:14

company looking to become more resilient

play17:17

here are your choices yes last year was

play17:20

difficult and we have an executive

play17:21

mandate to become more resilient

play17:24

yes we managed to perform well and we

play17:26

see advantages for becoming more

play17:28

resilient

play17:29

yes and no we have articulated the need

play17:31

but have not formally set specific goals

play17:34

for resiliency ah not really we are

play17:37

satisfied or even proud of our agility

play17:39

and business performance and huh not a

play17:42

priority for us currently

play17:44

okay audience which of those best

play17:46

describes you give you a few more

play17:48

seconds to come up with your answer

play17:51

and let's see what they say

play17:58

okay I'm very pleased to see that bottom

play18:01

one is such a small amount what are you

play18:03

what do you think Mac this looks like

play18:04

pretty much what we would hope people to

play18:06

say except now the yes and no work to be

play18:09

done

play18:10

yeah I think it's fair and that's that's

play18:13

a consistent with my experience so

play18:15

that's a good result for this survey so

play18:18

let's talk more specifically about the

play18:20

12 steps to build a resilient Enterprise

play18:22

so March of last year you know 11 months

play18:26

ago

play18:27

we sat down and said let's get some of

play18:29

our customers and experts together and

play18:32

say what's our pandemic response

play18:34

um we looked at humanitarian issues but

play18:36

we also looked at our roles in supply

play18:38

chain and we decided that we wanted to

play18:41

build a more resilient Enterprise and

play18:43

then of course we know it's not just

play18:44

technology it's people process

play18:46

technology and data and then of course

play18:49

we needed to say well where do we start

play18:51

and where do we end up what does it look

play18:53

like and through this Workshop or series

play18:55

of workshops we had a lot of good ideas

play18:58

13 was the last one then we decided

play19:00

wrestling around a little bit let's make

play19:02

it 12 one person in the audience had a

play19:04

specific story why 12 steps was

play19:06

important to them it worked for them so

play19:08

they said let's work for the resilient

play19:10

Enterprise so we homogenized and

play19:13

simplified and created 12 steps the

play19:16

first one is perhaps the obvious one uh

play19:19

recognize we have a problem uh let's

play19:21

let's take an assessment and figure out

play19:24

what we do next

play19:26

um if there is a problem of a certain

play19:29

size and shape

play19:30

how do we justify it is it a top three

play19:33

priority for the executive team do they

play19:35

understand it uh is it clear what this

play19:38

means or what's the job to be done and

play19:40

what's the benefit for seizing the

play19:42

market opportunity and then to be more

play19:44

specific on what the outcomes are we

play19:46

want what's the vision and vision here

play19:49

we're not talking about the theoretical

play19:51

Optimum five years from now a lot of

play19:53

companies are talking about the

play19:55

autonomous supply chain or cognitive

play19:57

supply chain lights out planning we're

play19:59

thinking about this more pragmatic and

play20:01

the supply chain where men and women

play20:03

with both feet on the ground we've got

play20:04

to deliver today and we have to deliver

play20:06

tomorrow

play20:07

something that's five years out might be

play20:09

a little far but we need to build

play20:11

towards that future goal and then so in

play20:14

intervals of six months how do we

play20:17

demonstrate Milestone achievement

play20:18

towards that Vision but what is that

play20:20

Vision where do we want to be in 1824

play20:23

months

play20:24

then we need to explore technology can

play20:27

be a great Catalyst and the technology

play20:29

today is very different than it was just

play20:31

three years ago the roles of AI digital

play20:34

twin machine learning these are all new

play20:37

uh and available to us so we should get

play20:40

smart on the technology so it can help

play20:42

influence our vision

play20:45

ultimately we don't have a Cadre of

play20:47

experts sitting on the sidelines waiting

play20:49

to be called into action oh we have a

play20:51

pandemic oh we know what to do let's go

play20:53

put it together we all have a talent

play20:56

management challenge we have great

play20:58

people we want to take care of them but

play21:00

we like to have more and then those

play21:02

people we have we're asking them to

play21:03

change their job and for I don't know

play21:05

most of our customers think that their

play21:08

demands on them have grown over time

play21:09

maybe even faster than technology enable

play21:13

them to uh provide that same level of

play21:15

service under the new conditions so how

play21:18

do you collaborate with people inside

play21:19

and outside your Enterprise mobilize

play21:21

talent and begin a project

play21:24

when we boiled it down there was a lot

play21:26

of debate what in essence from a

play21:29

technology perspective from a business

play21:30

process perspective are we trying to

play21:32

achieve to enable resiliency and

play21:35

resiliency is part agility it's also

play21:38

part how do we bounce back given these

play21:40

circumstances evaluate our trade-offs it

play21:43

came down to what we're thinking of as

play21:45

an elevated

play21:47

redefinition or embracing integrated

play21:49

business planning many of us understand

play21:52

from the early days of Oliver white what

play21:54

that is and we'll talk more about that

play21:56

but the idea was to have end-to-end

play21:58

planning connected to execution that

play22:01

allows us to make decisions from the

play22:03

shop floor to the top floor in service

play22:05

of the com where the company decides is

play22:07

good given any circumstances what we

play22:10

call the CEO driven Enterprise so if the

play22:14

president or the executive was involved

play22:16

in this decision making and they

play22:17

understood what our goals were for every

play22:20

customer for profits for new product

play22:22

launches for New Market penetration for

play22:24

margin and cash flow management given

play22:27

all those great business objectives in

play22:29

this situation what would we decide how

play22:32

do you operationalize that and have a

play22:34

decision support engine where people

play22:36

become information consumers can debate

play22:39

and trade off scenarios make decisions

play22:41

and execute them and then track the

play22:43

results of those decisions that they

play22:45

made and improve over time whether using

play22:47

machine learning or tribal knowledge to

play22:49

get in a room and said last time we did

play22:51

this let's look at the result there were

play22:53

unintended consequences now we're going

play22:55

to be smarter better next time

play22:58

business continuity is something that's

play23:00

been on the table for a long time

play23:01

obviously it's been challenged this last

play23:03

year not just from trying to move our

play23:05

Workforce from on-premise to at home and

play23:08

be able to connect and have security

play23:10

protocols certainly the cyber security

play23:13

rules uh the game has changed there of a

play23:17

business continuity looking more at

play23:19

supply chain not just having vendor one

play23:20

and vendor 2 as Alternatives but looking

play23:22

at it deeper uh more around the theme of

play23:25

resiliency and of course where I spent

play23:28

eight years of a GT Nexus and in the

play23:30

blockchain startup was how do we

play23:33

leverage data how do we create systems

play23:35

of trust how do we incentivize the whole

play23:39

network to provide data and standardize

play23:41

on that so we can have end-to-end

play23:43

visibility from Source

play23:46

um from maybe the two or three tiers

play23:48

down in the supply chain all the way to

play23:50

the consumer

play23:51

so when someone like my son a digital

play23:54

citizen uses his cell phone at a

play23:56

consumer label and says this Seafood was

play24:00

harvested ethically or this garment

play24:03

didn't involve cotton from this

play24:05

particular Province in China known for

play24:07

modern slavery

play24:09

we can then prove it and validate it so

play24:12

this fits into our sustainability goals

play24:14

but importantly it gives us the

play24:16

heartbeat analysis on what's happening

play24:18

in our supply chain and how do we make

play24:20

decisions based on what's really

play24:22

happening or could happen so data has a

play24:25

lot to do with it and you need to think

play24:27

about data differently a lot of

play24:29

companies have aspirations on data but

play24:31

have low maturity around how they create

play24:35

data aggregate data and leverage data if

play24:37

data is the new oil how are you refining

play24:39

it and making it into a finished product

play24:41

that improves your bottom line

play24:44

change management of course this is

play24:46

important every consulting firm is going

play24:48

to begin and end every conversation how

play24:50

important it is it is clearly important

play24:53

because even if you have perfect people

play24:54

and sufficient resources if you don't

play24:57

have the right process and you don't

play24:59

have the right incentives then you're

play25:01

not going to achieve the outcomes you

play25:03

intend and Alignment this is an advanced

play25:06

part of change management is that you

play25:09

need to have organizational design

play25:10

incentive compensation and making sure

play25:13

that everybody has enough information so

play25:15

they can make a decision what's good for

play25:16

the Enterprise not just good for them

play25:18

today as a short-term uh remedy to a

play25:22

situation alignment is an important part

play25:25

of this and then aspirationally how do

play25:27

we create a culture that Embraces

play25:29

resiliency and change where people wake

play25:32

up every day and say my job is of course

play25:34

to deliver at reasonable cost to my

play25:37

customer meet the expectations but at

play25:40

the same token I need to have a

play25:42

Relentless pursuit of perfection I need

play25:44

to get more resilient I need to get

play25:46

better and I need to know that my job is

play25:48

going to change I'm going to welcome

play25:49

that change easier to say than to do but

play25:52

culture is a big part of it and then

play25:55

what we thought about was if you've had

play25:57

the kpis in place and you had your

play25:59

outcomes well identified and you had the

play26:01

ability to track your value realization

play26:03

against the project goals people process

play26:06

technology and data sometimes a great

play26:08

expense

play26:09

where are we performing are we proving

play26:12

that we can improve Customer Loyalty be

play26:15

able to serve customers in new and

play26:16

innovative ways and are we able to

play26:18

impact the bottom line protect market

play26:20

share and gain momentum against the

play26:23

competition who may not be as resilient

play26:25

as we are so celebrates is the word to

play26:28

say the value realization the metrics

play26:30

are in place we've got the ways to

play26:32

measure this and now we're able to

play26:34

celebrate it because there's a level of

play26:36

objectivity and empirical evidence to

play26:38

support the big investment we made in

play26:41

building the resilience Enterprise

play26:43

Bob let's get a little audience

play26:45

participation okay here we go question

play26:48

number three audience where are you on

play26:51

your journey to resiliency

play26:53

early stages assessing and drafting a

play26:56

plan

play26:57

mid-stage evaluating Partners technology

play27:00

and best practices

play27:02

late stage implementing changes and

play27:05

gaining momentum

play27:07

or arrived confident we are prepared for

play27:10

the unexpected

play27:13

few seconds to gather your brains and

play27:15

your conclusions

play27:17

and we will take a look at where you are

play27:20

all are

play27:25

ah here again Mac not surprised that the

play27:28

smallest number have not yet arrived

play27:30

because if they had we wouldn't need to

play27:32

be listening to you would we

play27:35

yeah well this is encouraging

play27:37

you know the first step is the

play27:39

assessment that it's it's important and

play27:41

that we should build a plan for

play27:43

resiliency so let's start our journey in

play27:46

the time provide I'm just going to talk

play27:47

about three of the 12

play27:49

uh steps hopefully to increase your

play27:53

incentive to have a dialogue with us

play27:55

about this journey and how we can help

play27:57

you bring structure and discipline to

play28:00

achieve that outcome of resiliency you

play28:02

know the first place to begin is the

play28:04

assessment and we're going to talk more

play28:06

about that then justification and then

play28:08

the vision and then to highlight the

play28:11

vision you know sometimes technology

play28:13

trumps process meaning you can say let's

play28:16

just have a great process but if you

play28:18

your technology or data doesn't enable

play28:20

it it will not work or will not be as

play28:23

efficient as possible so we're going to

play28:25

tease out a little bit about some things

play28:27

that should be included in that vision

play28:29

statement starting off of course with

play28:31

the draft and agile methodology here's

play28:33

the vision as we intended here's how

play28:35

much it's going to cost for us to get

play28:36

there and here's the reasons why we

play28:38

would do it

play28:48

slides taking a little bit longer to

play28:49

build

play28:51

um so in the assessment phase what parts

play28:53

of my business suffered can we quantify

play28:55

the increase in demand which we are not

play28:58

able to fulfill or decrease in demand

play29:00

and where we exposed with way too much

play29:02

inventory what we all know to be true is

play29:05

that just in time inventory and cash

play29:07

management was King it's like we had the

play29:09

CFO design supply chain of financial

play29:12

people for good reasons want us to have

play29:14

as little inventory exposure as possible

play29:16

and to do it just in time that was the

play29:19

the idea of supply chain coordination

play29:21

across the network is that we didn't

play29:23

need to hold the inventory we can push

play29:24

it down into the supply chain but boy

play29:27

did that leave us vulnerable you know

play29:29

interesting stories of companies that

play29:31

had way too much inventory but

play29:33

coincidentally they benefited because

play29:35

they were able to serve demand where

play29:36

their competition could not so what was

play29:39

the calculated risk from uh your

play29:42

inventory policies and what what was the

play29:46

impact last year can we quantify it

play29:49

maybe anecdotals enough for your

play29:50

leadership team uh sometimes we actually

play29:52

need some more material uh

play29:56

evidence

play29:58

and if there was

play29:59

um both of these across all businesses

play30:02

what was the business performance impact

play30:05

and then look at these areas and then

play30:07

say is it big enough and important

play30:10

enough for us to be more resilient and

play30:12

if so what would what would that look

play30:14

like and some of the kpis that we would

play30:19

work with you in a discovery process is

play30:21

you know how many back orders were

play30:23

unfulfilled how many do we have an

play30:25

increase in customer deliveries do we

play30:27

tarnish our brand by having inconsistent

play30:29

messages to when we could deliver and we

play30:32

could say it's out of our control our

play30:34

suppliers or Transportation providers

play30:36

are fully booked or not available but at

play30:39

the end of the day the customer holds

play30:40

you responsible you can't always

play30:42

attribute blame to somebody else and

play30:44

then where suppliers performing well do

play30:47

they have the right processes in place

play30:49

to respond to the market so looking back

play30:52

you probably have your favorites those

play30:54

that through Herculean effort provided

play30:56

above expectation and the rest who may

play30:58

have failed and then we need to build

play31:00

justification because you can't spend

play31:02

money certainly in a recessionary period

play31:03

or even if you're thriving unless you

play31:05

have a clear return on investments and

play31:08

the ability to show its reasonable risk

play31:10

and then what what is the prize and how

play31:12

it's going to impact maybe something

play31:13

like earnings per share not just reduce

play31:16

inventory some things are easy like if

play31:18

we had a trade-off between service

play31:20

levels and inventory if we want to

play31:22

manage our cash we can change our

play31:24

inventory Safety stock policies but then

play31:26

we have an impact on services

play31:28

but you can say if I decrease inventory

play31:30

it's going to have this kind of impact

play31:31

but there are other kpis and factors

play31:34

that we need to think about right down

play31:37

to user acceptance the ability for these

play31:40

people to make more decisions maybe even

play31:42

look at the role on FTE calculations if

play31:45

you have hundreds of people involved in

play31:48

planning

play31:49

you can now think about how one person

play31:52

could do the job of five within two

play31:54

years and we think it's in front of us

play31:56

if it's not happening today

play31:59

um so look at you know the intangibles

play32:01

the tangibles the hard dollars the soft

play32:03

dollars the project momentum the risk

play32:05

and then of course the expected return

play32:07

and then how are you going to better

play32:09

serve your customers with higher profits

play32:11

and margins

play32:15

and then build a vision so you can't you

play32:17

have to have a goal you have to have a

play32:19

stated and articulate outcome it's

play32:21

easier to get money from your leadership

play32:22

team if you can argue that this robots

play32:25

can increase productivity in the factory

play32:27

or this resiliency project is going to

play32:30

improve our ability to compete in the

play32:32

future but that's vague so how do you

play32:35

make it more specific how do you make it

play32:37

real how do you give it tangibility and

play32:40

once you've identified the job to be

play32:42

done you know what is the remedy how are

play32:45

you going to achieve this and then we

play32:48

think in today's world where we are a

play32:51

little bit jaded we've had it projects

play32:53

that didn't deliver on the promise they

play32:55

took longer than we expected they took

play32:57

all the oxygen out of the room the

play32:59

creativity maybe an Erp project or

play33:02

warehousing project was super intensive

play33:04

super expensive and at the end of the

play33:06

day you said I've got infrastructure

play33:07

support and I'm better able to report

play33:10

um sarbanes-oxley my my accounting but

play33:12

did I improve my resiliency diet improve

play33:15

my ability to serve the marketplace

play33:17

so in that context of risk aversion

play33:21

dually recognized how do we build

play33:25

projects that mitigate risk and show

play33:28

tangibility quickly three months six

play33:30

month deliverables that show that it's

play33:33

not a theory it's not an experiment it's

play33:35

not a science project that we can

play33:37

actually improve our ability to forecast

play33:40

our ability to do Supply planning our

play33:43

ability to balance supply and demand so

play33:46

we think that the market is a little bit

play33:48

jaded and the remedy is an agile

play33:50

methodology with 30 60 90 day Sprints

play33:53

that show achievement towards a goal and

play33:56

that we then can actually deliver a

play33:57

result maybe even have the first phase

play33:59

of the project pay for itself in the

play34:01

first year so projects like resiliency

play34:04

can in fact pay for themselves

play34:06

quickly and easily and if you have the

play34:09

metrics in place to measure it then

play34:10

you're going to be able to show the

play34:12

management team that you spent the money

play34:13

wisely and it was worth the effort Bob

play34:16

let's take another poll

play34:18

let's indeed do that but before we do we

play34:20

just want to remind the audience one

play34:21

more time about the question and answer

play34:23

session at the end please submit your

play34:25

questions in the Q a area at the bottom

play34:27

center of your screen and we'll answer

play34:29

those live today during the webinar now

play34:32

let's move on to poll question number

play34:34

four what are the difficult challenges

play34:37

for your organization to become more

play34:39

resilient tick all that apply

play34:43

organizational alignment and change

play34:45

management

play34:47

availability of or commitment to new

play34:50

technology

play34:51

insufficient resources to implement the

play34:54

vision

play34:55

lack of executive buy-in

play34:57

and complexity of our supply chain again

play35:01

any of those who apply just check those

play35:04

off and we'll see where everybody is in

play35:06

about the next five to ten seconds

play35:13

okay let's take a look

play35:18

yeah interesting there the top one

play35:23

you've addressed that already Mac it's

play35:25

very important

play35:26

that's right I mean a lot of the pundits

play35:29

that talked about

play35:31

snop as a coordinated activity trying to

play35:34

marry what's good for the Enterprise

play35:36

across multiple departments have always

play35:38

said the organizational change is the

play35:41

most difficult

play35:42

um but now I think there are technology

play35:44

and agile methods where that helps uh

play35:47

prove the point and and build consensus

play35:50

and build confidence so in the last 12

play35:53

or so minutes before we open up for

play35:55

questions I just want to give a glimpse

play35:57

of what I think the new normal is so

play35:59

when you're building you make an

play36:00

assessment we want to be more resilient

play36:02

justification we think it's going to

play36:03

impact customer service and

play36:05

profitability and we'll be able to gain

play36:06

market share we have a vision that says

play36:09

we're going to be able to put some new

play36:10

processes in place leverage data more

play36:14

specifically reduce latency improve

play36:17

accuracy on how our supply chains

play36:19

behaving we want to be able to give some

play36:22

clear

play36:24

technology examples of what the new

play36:27

normal could be for your company about

play36:29

the challenge we've always faced the

play36:31

essence of supply chain how do we manage

play36:33

variability and volatility and of course

play36:36

more recently customer expectations on

play36:39

you know lead times and then I'd also

play36:41

like to add the dimension that we have

play36:43

increasing commitment to sustainability

play36:45

for good reasons there still is a hype

play36:47

cycle there more intense than actuality

play36:50

but there is opportunities with new

play36:52

technology for us to be able to say that

play36:55

if the US government says we're not

play36:58

gonna we're gonna ban imports from a

play37:00

certain part of the world due to the use

play37:02

of slavery or forced labor we no longer

play37:04

want to that cotton garments to enter in

play37:07

the United States it's a appropriate

play37:09

ethical supply chain sourcing decision

play37:12

how quickly can you put that new change

play37:15

into your supply chain at an operational

play37:17

level so The New Normal you know think

play37:20

about a year ago we all came in the

play37:22

office and now we don't and now we have

play37:26

of course time zones with our Global

play37:28

Citizens we have multiple languages we

play37:32

don't have the comfort of a common white

play37:33

board in the same physical room so now

play37:37

we're trying to make decisions in a new

play37:39

framework and we don't have the informal

play37:41

dialogues that we've had in the past

play37:42

water cooler moments lunches with our

play37:45

colleagues so now we have and then we

play37:48

have those of us in our 50s who might be

play37:50

in a places of power having earned it

play37:52

over 30 years of business experience but

play37:55

we also have the Millennials who are now

play37:57

40 years old and we have the digital

play38:00

citizens like my son uh who grew up with

play38:03

the iPhone and they're very comfortable

play38:05

in this digital world and their

play38:07

expectations are different so we need to

play38:09

design workflows and applications that

play38:12

take into account this Global Workforce

play38:15

different ages different perspectives

play38:17

and reach a consensus opinion make a

play38:20

decision not with Powerpoints and

play38:22

spreadsheets not with white boards in a

play38:25

physical room war room but virtually

play38:28

connecting all of these users where each

play38:30

person has a Persona a series of needs

play38:33

and requirements and obligations and

play38:35

responsibilities a racy model where

play38:37

there's data they're going to consume

play38:39

there's data they're going to provide

play38:40

recommendations are going to provide how

play38:42

do you do that in a single platform with

play38:45

a single set of workflow rules and be

play38:48

able to connect it so their job switches

play38:50

from data collection and preparation for

play38:53

an snop meeting for example into the

play38:56

data is all there let's do the what if

play38:58

scenario let's evaluate the Alternatives

play39:00

and trade-offs let's make a decision and

play39:03

let's track that decision the new

play39:05

efficiencies ahead of us we're not there

play39:07

yet but let's put the plans in place to

play39:09

be there at times like this I like to

play39:12

look to the research groups a one

play39:14

company I admire supply chain insights

play39:16

has done some fresh research here in the

play39:19

summer months about sales and operations

play39:21

planning as one example we can often

play39:24

interchange integrated business planning

play39:27

ibp with Advanced deployment of sales

play39:30

and operations planning

play39:32

and what this research group has said

play39:35

let's look at the potholes in pitfalls

play39:38

in a pandemic exercise now what are we

play39:41

doing today and you know interestingly

play39:44

to note that the average Manufacturing

play39:46

Company in North America has spent seven

play39:49

years on the Journey For Better snop

play39:53

outcomes and only 38 satisfied and that

play39:57

was a year ago so I think if you did the

play39:59

same survey now post pandemic or we're

play40:02

not through it yet but we can see the

play40:05

light at the end of the tunnel with

play40:06

vaccines on the horizon I think perhaps

play40:09

only 20 percent are satisfied so there's

play40:11

never been a better case to be able to

play40:14

educate our leadership team on the

play40:16

importance of getting an sop process in

play40:19

place and there's some gaps that are

play40:21

clearly understood and now we've got

play40:22

empirical evidence to demonstrate that

play40:24

there's four right here that I think are

play40:26

all relevant

play40:28

um to be able to do what if analysis

play40:31

based on what happened yesterday how's

play40:33

it going to impact our business and

play40:35

what's feasible and reasonable with

play40:37

visibility and to our ability to execute

play40:39

not only within our four walls but

play40:41

within our Network how do we orchestrate

play40:42

the network

play40:44

um how do we manage opportunities

play40:45

there's an increase in demand okay we

play40:47

have to make a full student body shift

play40:50

we're going to repackage we're going to

play40:51

change our distribution routes

play40:53

um what's the analysis on the risk then

play40:55

of course moving forward further and how

play40:58

do we collaborate between sales and

play41:00

finance as inputs and into the demand

play41:03

planning process but also uh how do we

play41:06

remove biased and improve the accuracy

play41:08

of that and of course use technology to

play41:11

understand what's profitable to promise

play41:13

where are we managing our margin

play41:17

so those of us who may have started in

play41:20

the 1980s in this supply chain Arena

play41:22

will remember that Oliver white was

play41:24

among the first to go from mrp2 to snop

play41:27

and that was a good book and in the 90s

play41:30

I adopted it and so maybe the six steps

play41:34

as outlined uh in our textbooks still

play41:36

apply but we think it's elevated and

play41:39

more important and more feasible today

play41:41

so things have changed and so let's take

play41:44

off maybe our intentions from the past

play41:46

and now we can actualize them I once

play41:49

worked for another software company that

play41:51

was got a great vision about the nervous

play41:54

system and we predicted that there will

play41:56

be someday in the future where you can

play41:58

have this visibility across your supply

play42:00

chain and optimize your network and

play42:02

service of your Market uh we believe a

play42:05

lot of those things we were

play42:06

promising or thinking about are could be

play42:09

actualized in the years ahead of us so

play42:11

it's much closer and of course when we

play42:13

talk about ibp and snop we're talking

play42:16

about the new reality and the new

play42:18

capabilities that is end-to-end

play42:19

visibility be connected to our Logistics

play42:21

service provider and maybe suppliers one

play42:24

or two deep with risk assessments

play42:25

process orchestration within our

play42:27

Enterprise and outside and think about

play42:29

our business outside in not just inside

play42:31

out and then collaborate inside and

play42:35

outside the company and each of us has

play42:37

our view exception based view of the

play42:39

world how do we monitor on exception

play42:42

based the heartbeat of our supply chain

play42:44

and perform better performance by making

play42:47

better decisions and then of course be

play42:49

able to have the what if simulation

play42:51

exercise in the event of a crisis or

play42:53

Market opportunity how do we seize the

play42:55

moment and then of course look at our

play42:58

strategic goals and make sure we're in

play42:59

alignment and look at it in both

play43:01

strategically long-term and short-term

play43:03

Horizons and then many of us think

play43:06

because in a sense ingredient is

play43:07

wherever possible automate and put

play43:10

cognitive analytics into our decision

play43:12

making framework and of course we're now

play43:15

thinking that you don't need five

play43:17

different applications and a lot of

play43:19

spreadsheets you can actually go to a

play43:21

single platform and have a multi-horizon

play43:24

approach so that you're able to think

play43:26

about your supply chain design you can

play43:28

think about your capital and your your

play43:31

investment plan and your supplier plan

play43:32

for the next two years but then how do I

play43:35

respond based on what happened yesterday

play43:36

and then how do I execute hour by hour

play43:39

we're now moving to a world where Supply

play43:41

planning execution come together

play43:44

snoe supply chain operations execution

play43:47

is part of the logical consequence of an

play43:50

snop process so this should be part of

play43:53

the vision simplify your platforms and

play43:56

applications to a common data model

play43:59

in fact we think it's not just an

play44:01

organizational alignment of a center of

play44:03

excellence but it's a little bit broader

play44:05

and deeper than that we call it the

play44:06

Nexus of Excellence you know what we

play44:08

want are fewer silos we want to have

play44:12

homogeneous uh processes we want to have

play44:15

semantic agreements so we can look at

play44:17

volume we can look at units we can look

play44:20

at dollars so that we can combine the

play44:22

different disciplines and all that data

play44:25

that we have get more of it have a

play44:27

voracious appetite for data but data is

play44:30

only as valuable as the insights we can

play44:31

generate and the decisions we can make

play44:33

and then the performance we can measure

play44:35

based on having a richer higher Fidelity

play44:38

picture of what's actually happening and

play44:40

then of course in a collaborative model

play44:41

we need to have guided workflows

play44:44

so that in the relay race of supply

play44:46

chain everybody knows their role place

play44:49

and that you can drill down in context

play44:51

right down to the shop floor down to a

play44:53

machine down to a shift and be able to

play44:55

make decisions on optimization and then

play44:58

with this new process comes

play45:00

accountability and actionable outcomes

play45:02

and then of course we're integrating

play45:04

both planning and execution so something

play45:07

that happens on a Friday night we can

play45:09

quickly before we leave office take a

play45:11

look at it make a decision and then

play45:13

execute on that so we come back to work

play45:16

on Monday with satisfaction that the

play45:18

crisis was averted and ultimately we're

play45:20

talking about an empowered organization

play45:22

where today's super users

play45:25

will become even more influential

play45:27

they'll have like a personal control

play45:29

tower where one person will be able to

play45:31

the decisions of five people with

play45:34

empirical data available at their

play45:35

fingertips uh maybe it's a lofty goal

play45:38

but I certainly believe that that's

play45:39

possible so one person today spend 30

play45:42

times in data collection the person

play45:44

tomorrow is has a wider bandwidth of to

play45:48

be able to address and then to be able

play45:50

to make decisions and demonstrate with

play45:52

empirical evidence why they made the

play45:54

decisions they did

play45:55

one of the things that's new uh

play45:57

something we've been talking about for a

play45:59

long time digital twins the ability to

play46:01

model your supply chain and to move from

play46:03

just uh to a constraint based planning

play46:06

and execution Market where you actually

play46:08

have visibility control and influence uh

play46:11

over your network

play46:12

and then of course in today's market you

play46:14

expect it to be highly visual with map

play46:16

metaphors and kpis we've got to have an

play46:20

always-on environment where we're making

play46:22

plans based on interruptions and

play46:24

opportunities we need to have that

play46:26

visual impact to be able to make

play46:28

decisions so it's actual intelligence so

play46:31

that we can quickly communicate across

play46:33

multiple disciplines have our kpis and

play46:36

our dashboards and then be able to go

play46:38

from there not in one system but in the

play46:40

same system drill down and look at

play46:42

what's really happening and so we're

play46:44

capable and feasible of making these

play46:46

decisions we have a lot of data sources

play46:49

from drones and iot more than we've ever

play46:51

had before it's exponential rise not all

play46:54

that data is real time nor does it need

play46:56

to be but we need to be able to have

play46:57

access through a common workflow and

play47:00

interface to be able to have real-time

play47:02

updates and then we're able to make

play47:04

better decisions in the form of a crisis

play47:06

in case of a crisis understand the

play47:08

implications and explain it to people so

play47:11

we're evaluating the supply AI

play47:13

variability

play47:14

and we're able to reduce lead time

play47:17

impact by letting our customers know and

play47:19

make some smart decisions do our ABC

play47:22

analysis our best customers our most

play47:25

profitable customers should get a

play47:26

priority list not expedite this cost a

play47:29

great expense for the wrong customer or

play47:31

the wrong product let's make informed

play47:33

choices and be able to track the results

play47:35

of those decisions we make

play47:37

so in summary we wanted to introduce

play47:39

today in this forum you know let's start

play47:42

the journey let's work together let's

play47:44

build a plan for the resilient

play47:46

Enterprise take agility and then some

play47:48

and move into what's the justification

play47:52

what's the prize what's the job to be

play47:54

done and then the vision be very

play47:56

specific on how technology and good

play47:59

partners are Catalyst for Innovation we

play48:01

are in an innovation crisis and we need

play48:04

to innovate in order to survive and

play48:06

thrive and create the the resilient

play48:09

Enterprise that we want many of you are

play48:11

thinking about investing in the future

play48:12

people process technology and data let's

play48:15

bring in Partners like legility is one

play48:18

of those for your consideration and

play48:20

together we will create actual

play48:21

intelligence across your network so you

play48:24

can be more resilient and be more agile

play48:26

and that's the promise of what we have

play48:28

to offer today and we're looking forward

play48:30

to working with you to build the plan

play48:32

for the resilient Enterprise over to you

play48:34

Bob let's open up the floor for

play48:36

questions

play48:37

let's do that and let's even as we are

play48:39

answering the questions there's still

play48:40

time for audience members to ask

play48:42

additional ones so just click on that q

play48:44

a button at the bottom of your screen

play48:46

where you can hope to squeeze you in in

play48:48

the few minutes we have left okay here's

play48:50

question number one for you Mac can you

play48:53

give an example of an Enterprise that

play48:55

has thrived in this period of disruption

play48:58

yeah absolutely and Tillamook is a

play49:01

company here in the western part of the

play49:03

U.S that's in the dairy and uh business

play49:06

and there are there are collaboratives I

play49:09

mean a Cooperative

play49:10

um so it's not just one company it's an

play49:11

entity of a lot of local Dairy Farmers

play49:15

and what they had was a big part of

play49:18

their business Bob was selling to

play49:21

restaurants and the travel industry and

play49:23

all of a sudden there were no new orders

play49:26

but the grocery demand was increasing so

play49:29

they had to quickly make an assessment a

play49:31

ship from this demand to another demand

play49:33

and as you know Bob you know a five

play49:36

percent change in in demand can have a

play49:38

bull walk impact impact on the supply

play49:40

but when they come down to say well

play49:42

we've got increased demand for ice cream

play49:44

a high margin business sold through

play49:46

grocery we need to change our packaging

play49:48

um but now with this increased demand we

play49:50

have to make some trade-offs you know

play49:52

and we can't overnight grow another cow

play49:55

so we have a finite Supply so how do we

play49:58

margin it based on customer satisfaction

play50:00

margin and other business goals and they

play50:02

were able to do so in the comfort of a

play50:04

single platform and they did so without

play50:06

controversy because people would come to

play50:07

the table they all had singing from the

play50:10

same song sheet they were operating in

play50:12

concert they were able to make decisions

play50:14

and then they were able to enjoy it and

play50:16

you know ultimately get the ice cream to

play50:18

the families that were consuming more in

play50:20

their comfort of their own home than

play50:21

they were previously

play50:23

great thanks a lot for that my firm is

play50:26

heavily committed to sap we have Sap's

play50:30

ibp should we consider alternatives or

play50:32

stay with our Erp vendors our enterprise

play50:34

resource planning vendors

play50:37

oh that's a great question Bob and it's

play50:39

you know the reason why we're in

play50:41

business as a best degree Contender is

play50:44

because erps

play50:46

necessary but not sufficient

play50:49

um if you have a core set of

play50:51

requirements that aren't very

play50:52

sophisticated and for whatever reasons

play50:54

the Erp solution meets your requirements

play50:57

you should probably stay the course but

play50:59

Bob we're in business as our competitors

play51:01

are because we have a better answer we

play51:04

have a lot more vertical content in our

play51:06

Solutions we don't serve everybody but

play51:08

the verticals we serve we have deep

play51:10

functionality so that you can connect

play51:12

the shop floor to the top floor and

play51:15

therefore this idea of having a single

play51:17

platform that's constraint based so that

play51:19

you can do what's feasible and

play51:20

reasonable and be able to share that

play51:22

information across departmental lines

play51:24

is something that a lot of the Erp

play51:27

companies simply haven't developed they

play51:28

might in the future but can you wait and

play51:31

a lot of times companies have said the

play51:33

sap implementation has been so big and

play51:35

so robust and so expensive and best

play51:37

practices to stay within the house of

play51:39

sap

play51:41

um more people are saying not good

play51:43

enough you know in fact you know Bob

play51:45

just this week you know last week it was

play51:47

one of our customers said we recently

play51:50

came together in a virtual forum and we

play51:53

decided that our Erp system is our

play51:57

transaction system but our brain is

play52:00

going to be in decision support in our

play52:02

supply chain platform that's going to

play52:04

make the Intelligent Decisions on What

play52:06

markets we serve what suppliers we do

play52:08

what margins we're going to get where

play52:09

are we going to place deliveries where

play52:11

are we going to ship product how are we

play52:12

going to get the right price

play52:14

um so they're saying they're doing the

play52:15

shift from basically an accounting

play52:18

system into a decision support network

play52:21

operating model and they've decided that

play52:24

now with this increase in ambition we

play52:27

can't get that solution from our Erp

play52:28

vendors so they're looking at us and

play52:30

others and they made the decision that

play52:32

we just have a better capability so if

play52:34

you think this the resiliency is

play52:36

important or agility is important we

play52:38

find that there's some limitations in

play52:40

the Erp stack so we would encourage

play52:42

people to Brave outside of that sap

play52:43

world and look at us and the other

play52:45

companies in the in the space okay that

play52:48

being the case though this next

play52:50

questioner is surprised by the low

play52:52

satisfaction percentage of ibp

play52:55

implementation over the past seven years

play52:57

can you expand on insights or reasons

play53:00

behind this low percentage

play53:01

yeah I mean I think first of all it's a

play53:05

tough journey to get sales and marketing

play53:08

and finance and production facilities in

play53:12

a complicated Network to agree and to

play53:15

coordinate decision making with the

play53:17

great clarity and process models and

play53:19

roles and definitions and the trade-offs

play53:22

um so the problem we're solving for is

play53:24

complexity

play53:26

um which is why a lot of us join supply

play53:28

chain maybe without knowing it we like

play53:30

complexity we like problem solving but

play53:33

think about how difficult it is Bob to

play53:35

get all the warring tribes with

play53:37

different incentives and backgrounds to

play53:39

agree to a snop plan so organizational

play53:42

alignment is tough and that doesn't go

play53:45

away but with better technology if you

play53:49

remove all of the spreadsheet and the

play53:52

data collection Nightmare and the

play53:54

friction

play53:55

and re and spend more time on the

play53:57

resolution less time on the preparation

play53:59

and you're delegating the aggregation of

play54:01

data and converting that information to

play54:03

a system or a platform you're spending

play54:06

more time in the consensual agreement

play54:08

perspective and if you have one set of

play54:10

data you'll have less conflict and many

play54:13

times Bob people thought it was a good

play54:15

project but then they lost momentum in

play54:18

the year three so there's a lot of

play54:19

reasons why it's so much dissatisfaction

play54:21

in fact some companies don't even have a

play54:24

real snop process but we think that

play54:27

that's a Cornerstone to the resilient

play54:29

Enterprise is to have a robust Advanced

play54:31

use of snop okay thanks uh in the plan

play54:35

for the resilient Enterprise how

play54:37

important is data

play54:40

well ultimately it's all about data and

play54:43

collaboration and we all want we've read

play54:46

the headline news from The Economist a

play54:48

couple years ago and we often coined the

play54:49

phrase you know day is the new oil

play54:52

um so if we're thinking about or a

play54:55

manufacturing company or a wholesaler or

play54:58

you know whatever our company

play54:59

description is we need to understand

play55:01

that we're also in the data business the

play55:03

data aggregation business he who has the

play55:05

best information wins you know that is

play55:08

sort of the Mantra of software

play55:10

technology and so how do you get higher

play55:15

um utilization of data how you aggregate

play55:17

more data and there's a lot more data

play55:19

sources a lot more syndication of data

play55:21

available you know there's GPS tracking

play55:23

now on shipments so what we think you

play55:26

need to do Bob is create at an executive

play55:30

level someone who's going to be the

play55:31

curator for data it may not just to be

play55:34

an I.T function it's a blend of I.T and

play55:36

business because the business know what

play55:38

data is relevant and it can tell you

play55:40

about the mechanics of how to get it

play55:42

maintain it

play55:43

um but that is a Cornerstone of creating

play55:46

a higher Fidelity picture is getting

play55:48

access to Greater amounts of data okay

play55:50

we're almost at the end I think we have

play55:52

time to squeeze in one last question Max

play55:54

so here it is you mentioned a resilience

play55:57

maturity in your presentation is there a

play55:59

way to get additional information on

play56:01

these five stages for us to understand

play56:03

our level and what is the economic case

play56:06

for each level

play56:07

just a couple of minutes or a minute or

play56:09

two on that yeah yes Bob I mean we

play56:11

started this kind of Consortium effort

play56:14

this task force this pandemic response

play56:16

team uh March of last year and we've

play56:18

used customers and on customers and

play56:20

experts to get together and create this

play56:22

methodology so we're at version one it's

play56:24

going to get better and evolve over time

play56:27

and we're looking at research groups

play56:29

like IDC and supply chain insights and

play56:31

Gardener group to get more information

play56:33

then go from some of the work that was

play56:36

about agility and then extending it to

play56:38

resiliency the ability to bounce back

play56:40

quickly as well as have agility in your

play56:43

supply chain and we've put together some

play56:46

more models and so we're happy to engage

play56:48

in that dialogue and what we want people

play56:50

to do is do a self-assessment you know

play56:52

are you in the siled ad hoc planning

play56:55

environment for some or most of your

play56:57

business are you opportunistic are you

play57:00

responsive or are you fact

play57:03

um are you managing risk adequately are

play57:06

you even predictive and then giving that

play57:08

texture and definition bob so people can

play57:11

say in our plan for resiliency we're

play57:14

going from stage two to stage three and

play57:16

these businesses but overall we want to

play57:18

be at stage five within 24 months again

play57:21

we don't want to put goals too far out

play57:23

there because technology changes and we

play57:26

all have short life's lead we've got to

play57:29

solve for results in a short period of

play57:31

time this heightened sense of change

play57:34

forces us to look at results quicker

play57:36

maybe it's unfair but that's the road

play57:38

we're on and be able to create these

play57:41

sort of Sprints towards 30-day 60-day

play57:44

90-day Sprints we're able to show some

play57:46

Milestone development towards this goal

play57:49

of resiliency

play57:51

I would be hard-pressed to identify a

play57:53

key aspect of supply chain playing and

play57:55

optimization that you did not address in

play57:57

this last hour Mac McGarry fantastic

play57:59

presentation just full of information

play58:01

that is a value to our listeners and

play58:03

Beyond anyone who did not get their

play58:05

questions answered in our time I'm sure

play58:07

Mac would be happy to answer them

play58:09

offline but in the meantime

play58:11

thank you again for an excellent

play58:13

presentation on 12 steps toward a

play58:15

resilient Enterprise thank you legility

play58:17

thank you audience for listening in

play58:18

everybody have a great day

play58:21

thank you

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