When the P&G team shared insights on out-of-stocks with A. G. Lafley, he said “I have discovered a new billion dollar brand opportunity.” The goal was to orchestrate the supply chain to better deliver on the first moment of truth—having the item in stock on the shelf when the customer wanted to purchase the product. Jake Barr shares insights on the evolution of this strategy and then brings Lora Cecere and Carol Ptak to the stage to discuss two complimentary, but different views of demand-driven strategies.
Jake Barr, CEO of BlueWorld Supply Chain Consulting; Carol Ptak, Partner at the Demand-driven Institute; and Lora Cecere, Founder of Supply Chain Insights.
A presentation from the 2015 Supply Chain Insights Global Summit
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Where Are We on the Demand-Driven Journey? A Look Back and a Look Forward.
1. Jake Barr - CEO
BlueWorld Supply Chain Consulting
Retired – Global Director – P&G
Where are We on
The Demand Driven
Journey?
2. Lora Cecere -
Founder of Supply
Chain Insights
Carol Ptak –
Founder of Demand
Driven Institute
Referee/Judge
Welcome to…..
3. “Qualifications to Incite the Riot”
• P&G Demand Driven Architect
• Accenture/Gartner Recognized “Outside In” Expert
4. Ground Rules
“How did we get here”
Perspective on Barriers to Progress
Panelist View of our Current State
Your Take on the State of Affairs
Closing thoughts
The Great Debate - September 2015
5. Story of the $1Billion Dollar Brand
How to Deliver Game Changing Value
at the Two Moments of Truth
How Did We Get Here?
Deliver superior consumer value
cheaper/better/faster
6. Business Driver Translation
Leaving Revenue/Margin on Table
• Despite technically BIC Service
Limiting speed of growth - not agile
• Need for more sku’s/channels/markets
• Differentiated Retail/Customer Requirements
• Segmentation of the supply chain for
cost/cash
Cash/Cost Intensive
• We needed to be the bank for growth
Couldn’t Productively Scale
• Needed new approach
Supply Chain Dysfunction/Visibility
WhyChange?
11. Consumer-driven Supply Networks: Defined by P&G in the
1990s as a shelf-driven, outside-in process defined by successful
execution of the two moments of truth. (The two moments of truth
are: Was the product in stock? Was the customer delighted?)
Demand-driven Supply Networks: As defined by AMR Research
in 2004: a supply chain that senses and translates market signals
in real time.
Demand-driven Value Networks: As defined by AMR Research in
2007: A network that senses demand with minimal latency to drive
a near-real time response to shape and translate demand.
Market-driven Value Networks: As defined by Supply Chain
Insights in 2010: an adaptive network focused on a value-based
outcomes that senses, translates, and orchestrates market
changes (buy and sell-side markets) bi-directionally with near-real
time data to align sell, deliver, make and sourcing organizations
outside-in.
Definitions
16. RealTimeOperations
SeamlessE2E Synchronization
Synchronize the cadencedsupplychain From Shopper Consumption through
Suppliers
Digital Integration of POS Data as key
source for shopper behavior and shelf-
offtake. Scaled Integration into forecast.
Real time, Digitized Supply Network Capacity
Planning
Agile Digital Scheduling and sequencing of
factory floor ops driving real time supply response
Segmentation of Demand Info Flowto fully
automate turn planning and focus high value
touches on events/merchandising integration
Real Time,What-If Scenario Modeling and Simulation, together
with integrated target setting and tracking.
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2
3
4
Have We Come Far Enough? - No!
18. “End State”
Business Sufficiency
• Supply chain – sustainable, scalable &
synchronized driven by Real Time data
• Single Demand, Supply and Business
Planning Environment
• Volume and Financial sufficiency
evaluation concurrent and real time
• What-if and Scenario Management
2012The Procter & Gamble Company, All Rights Reserved.
19. Panelist’s Perspective
Initial Thoughts on:
Level Set – What’s Your Definition of Demand Driven
Demand Driven – Dead or Alive?
What is behind the lack of broad scale success given
the potential offered?
What are some practical interventions or
advancements that would significantly change the
game here?
How do we deal with driving the improvement in the
crossover of source, make, deliver?
Compelling thought you want to leave the audience with.
20.
21. • Make the Supply Chain Visible – E2E
• Deliver Reliable Predictable Supply
• Drive off of Demand Visibility/Integration
• Agility to Shape/Predict Potential
Failures – in advance
• Bring Supply Chain Options/Tradeoffs
“Alive”
• Enable “Segmentation” of Service
Non-Negotiable
Bigger Picture – “End Game”
22. Demand Driven Success?
Creation of Roadmap – Maturity Model
Top 25 Ranking Benchmarks
Breakthroughs in SC Technology
Created “outside in” network design
Initiated review of Gaps in SC Talent
Triggered new process monitoring &
measurement processes