1. Supply Chain Strategy and Vision Georgia CXO Forum – January 14, 2010 Align, Transform and Optimize Business Solutions
2. Agenda Introduction Survey Results Market Trends Align, Transform and Optimize Business Solutions Strategy Future Discussions Monarch Supply Chain Management
3. Introduction Over 20 years experience in Supply Chain and Retail Direct-to-Consumer and Multi-Channel domains for Spiegel, QVC and The Home Depot Profile - Proven track record for practical solutions from definition to realization that bridge the gap between strategic business needs and available tools and technology Strategy to improve transportation partner visibility, integration and processes Strategy to streamline B2B communications and new partner integration Specialties and Markets- Design & Realization of Supply Chain Strategy, BI and BPM Strategy, Partner management and integration SMB Retailers, Direct-to-Consumer, e-Commerce, Third Party Logistics Providers Align, Transform and Optimize Business Solutions
4. Survey Results Top 3 Strategic Objectives from Survey Revenue growth and increased profitability – 61% Business development Acquisitions Expense reduction – 39% Increased profitability Improve employee morale – 28% Hire and train more staff Strengthen employee confidence To have fun at work Align, Transform and Optimize Business Solutions
5. Survey Results Current Overview Spending Reduced or delayed during last year Focus shifting to business and strategic improvements Labor Reductions in force Moving to employee improvements in hiring & training Strategy and Direction Non-traditional methods to deliver initiatives Re-evaluated business drivers Only 40% of respondents have a Supply Chain Strategy Align, Transform and Optimize Business Solutions
6. Market Trends Visibility and BI in the Supply Chain Identify and measure KPI’s and service levels Improve relationship and performance of both partners and internal operations Partner integration Business Process Management Institutionalize knowledge Move from ‘tribal’ to ‘institutional’ knowledge model Business Continuity Outsourcing Mergers & Acquisitions Align, Transform and Optimize Business Solutions
7. Market Trends Factors impacting the business and Supply Chain Revenue reductions of 10% - 40% Fuel prices – UPS revised routing to eliminate left turns Green initiatives – Conservation and recycling initiatives gaining favor Government regulations – Cap-and-Trade, import and customs regulations Economy and recession – Increased risk Align, Transform and Optimize Business Solutions
8. Strategy Overview A McKinsey survey of 444 respondents found 16% agreed IT and business strategy were integrated 19% found no relationship between business and IT strategy! The strategy is the roadmap that utilizes a variety of methods to attain the vision Lean Supply Chain is a method An organization must analyze the historical, current and possible business factors in developing a vision and strategy An organization should incorporate a method to measure, analyze progress and revise the strategy in in order to meet the vision Align, Transform and Optimize Business Solutions
9. Strategy Delivery Model Our Strategy Delivery Model follows a logical progression to deliver the strategy in the most cost effective manner. Current Metrics Business Drivers Strategy Delivery Model Strategy Physical Process Vision Align, Transform and Optimize Business Solutions
10. Strategy Challenge The range of possible futures confronting business is great! Companies that nurture flexibility, awareness, innovation, analytics and resiliency are more likely to survive the crisis, and even to prosper. The recession and resulting reductions in force and experience have a great impact on a business’ ability to develop and deliver a strategy Align, Transform and Optimize Business Solutions
11. Strategy Value Organizations that develop and maintain a Supply Chain Strategy Enhance position by adapting quickly to changing business drivers Quickly identify, develop and implement high value solutions Increase flexibility and cost effectiveness of operations Maintain competitive position within market In this recessionary period the Supply Chain, and especially transportation, can be the CFO’s best friend! According to McKinsey survey IT has become more important to improving business efficiency and reducing costs across the enterprise COGS is the largest piece of the pie of expense and a small reduction will generate a large impact on the bottom line! A large piece of the COGS pie is Supply Chain expense! Align, Transform and Optimize Business Solutions
12. Future Discussion Define “where you are” Who are your customers? What service, value, product do you provide your customers? Identify the key team members Perform a SWOT on your current strategy Align, Transform and Optimize Business Solutions
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14. Monarch Supply Chain Management - Value Improve delivery capabilities and reduce costs of delivery of Supply Chain Integration requirements and new B2B partners Integrate third-party business partners into legacy order fulfillment architecture Partner with off-shore services provider for application support outsourcing Support increased volume projections without increasing the size or number of DC’s by implementing new Material Handling Equipment, automation and parcel manifesting software Align, Transform and Optimize Business Solutions
15. Monarch Supply Chain Management -Differentiators Strong business acumen with the ability to understand value drivers Ability to work with executive stakeholders and align diverse interests Holistic perspective – strong understanding of how IT supports and enables the business Strong track record and pragmatic application of project delivery practices that lead to more successful projects and realization of benefits. Flexible engagement model – Strong and varied partner ecosystem that allows us to take advantage of specific partner strengths for the benefit of our clients. Align, Transform and Optimize Business Solutions
16. Questions Any additional topics or questions not covered? Align, Transform and Optimize Business Solutions
17. Monarch Supply Chain Management MSCM is the logical choice! Contact us to discuss your needs. Tom Brouillette tbrouillette@monarchscm.com 404-693-2334 www.monarchscm.com Align, Transform and Optimize Business Solutions
Editor's Notes
extend services and integrate (enhanced systems) into key vendor suppliers and/or buyers to reduce costs, or enhance value-"integrate the relationship".