supply chain index webinar for healthcare

48
Healthcare Value Networks: How Do You Measure UP? The Supply Chain Index #sciwebinar

Upload: lora-cecere-supply-chain-insights

Post on 02-Nov-2014

358 views

Category:

Health & Medicine


0 download

DESCRIPTION

In this presentation, you will learn how you can use the Supply Chain Index to measure supply chain performance for the healthcare value chain. The Supply Chain Index is a measurement of balance, strength, and resiliency progress for the period of 2006-2012. Learn which companies have progressed at the fastest rate and why.

TRANSCRIPT

Page 1: Supply chain index webinar for healthcare

Healthcare Value Networks: How Do You

Measure UP?The Supply Chain Index

#sciwebinar

Page 2: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 2

Supply Chain Insights is focused on delivering independent, actionable and objective advice for

supply chain leaders.

A company dedicated to research, turn to us when you want the latest insights

on supply chain trends, technologies to know and metrics that matter.

About Us

#sciwebinar

Page 3: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 3

Presenters

Abby MayerResearch Associate

Lora CecereFounder and CEO

#sciwebinar

Dr. George RungerProfessor, CIDSE, ASU

Page 4: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 4

Agenda

Vision

History of Our Work

Resiliency Patterns and Mathematical Calculation

Why It Matters To You

What's Next?

#sciwebinar

Page 5: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 5

A Supply Chain is a Complex System

with Complex Processes

with Increasing Complexity

Our Belief

#sciwebinar

Page 6: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 6

Resilient and predictable

Balanced across the set of metrics to maximize value

Showing year-over-year strength against peer group

Desired Corporate Performance

#sciwebinar

Page 7: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 7

The Supply Chain Effective Frontier:First Representation

#sciwebinar

Page 8: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 8

While we like this framework, there is no good source of consistent and accurate data for:

– Forecast Accuracy– Case Fill Rate– Corporate Social Responsibility

Problem with this Framework

#sciwebinar

Page 9: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 9

The Supply Chain Effective Frontier: Second Representation

#sciwebinar

In most supply chains, complexity has risen throwing the supply chain out of balance. We find that nine out of ten companies are stuck at the intersection of inventory turns and operating margin.

Page 10: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 10

Industry Overview

#sciwebinar

Page 11: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 11

Progress over the Last Twelve Years

#sciwebinar

Page 12: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 12

Intersection of Operating Margin and Inventory Turns

#sciwebinar

Page 13: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 13

Companies Get More Serious With A Recession

#sciwebinar

Page 14: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 14

Today’s Supply Chain

#sciwebinar

Page 15: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 15

A Business Continuity Risk

#sciwebinar

Page 16: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 16

Agenda

Vision

History of Our Work

Resiliency Patterns and Mathematical Calculation

Supply Chain Index

What's Next?

#sciwebinar

Page 17: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 17

Mining 20 Years of Financial Data

#sciwebinar

Page 18: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 18

Correlations to Market Capitalization

#sciwebinar

Page 19: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 19

“No significant supply chain improvement happens in less than

three years….”

Marty Kisluik, FMC

#sciwebinar

Page 20: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 20

How to Read an Orbit Chart

#sciwebinar

Page 21: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 21

Supply Chain Metrics That Matter Reports

#sciwebinar

Page 22: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 22

Agenda

Vision

History of Our Work

Resiliency Patterns and Mathematical Calculation

Supply Chain Index

What's Next?

#sciwebinar

Page 23: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 23

Supply Chain Metrics That Matter Reports

#sciwebinar

What is Resiliency?

Tightness of the Pattern on the Orbit Chart for Operating Margin and Inventory Turns

Page 24: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 24

Abbott Laboratories & Shire PLC

#sciwebinar

Page 25: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 25

Boston Scientific Corporation & Stryker Corporation

#sciwebinar

Page 26: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 26

GlaxoSmithKline PLC & Merck & Co., Inc.

#sciwebinar

Page 27: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 27

Resiliency 2000-2012

#sciwebinar

Page 28: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 28

Agenda

Vision

History of Our Work

Resiliency Patterns and Mathematical Calculation

Supply Chain Index

What's Next?

#sciwebinar

Page 29: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 29

Overall Ranking per Company• Balance: Return on Invested Capital & Revenue Growth Vector Trajectory (30%)• Strength: Inventory Turns & Operating Margin Vector Trajectory (30%)• Resiliency: Inventory Turns & Operating Margin Mean Distance (30%)• Peer: Peer Rankings by Industry (10%)

The Supply Chain IndexA new way to measure relative supply chain performance by industry, based on 4 components: balance, strength, resiliency and peer rankings.

Supply Chain Index: A Measure of Supply Chain Improvement

#sciwebinar

Page 30: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 30

The Index Framework

#sciwebinar

Page 31: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 31

Supply Chain Index

30% 30% 30% 10%

#sciwebinar

What is the right weighting? What is the right time period?

Page 32: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 32

Looking at the Value Network

#sciwebinar

Page 33: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 33

Industry Overview: 2006-2012

#sciwebinar

Page 34: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 34

Supply Chain Index: Hospital for 2006-2012

#sciwebinar

Page 35: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 35

Supply Chain Index: Hospital for 2009-2012

#sciwebinar

Page 36: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 36

Pharmaceutical Industry

#sciwebinar

Page 37: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 37

Supply Chain Index: Pharmaceutical for 2006-2012

#sciwebinar

Page 38: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 38

Supply Chain Index: Pharmaceuticals for 2009-2012

#sciwebinar

Page 39: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 39

Medical Device

#sciwebinar

Page 40: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 40

Supply Chain Index: Medical Device 2006-2012

#sciwebinar

Page 41: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 41

Supply Chain Index: Medical Device for 2009-2012

#sciwebinar

Page 42: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 42

• Industries and companies in the healthcare value network have struggled to improve supply chain processes. With high margin, there is low priority on supply chain excellence.

• Nine out of ten companies are stuck on the Effective Frontier. The project approach versus a clear operating strategy was detrimental.

• Supply chain resiliency is improving. However, the lack of resiliency of contract manufacturing and 3PLs should be a risk concern for all manufacturers.

• Large companies, that were early adopters, made great progress at the beginning of the decade, but progress has slowed. The Supply Chain Index shows that their progress has been eclipsed by late followers.

What Have We Learned?

#sciwebinar

Page 43: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 43

Agenda

Vision

History of Our Work

Resiliency Patterns and Mathematical Calculation

Supply Chain Index

What's Next?

#sciwebinar

Page 44: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 44

Next Steps

#sciwebinar

• Supply Chain Index Webinars• August 12- Industrial Value Network

• Monthly Research Reports• July 22- Healthcare Value Network• August 19- Industrial Value Network

• Final analysis of companies to be revealed at the 2014 Supply Chain Insights Global Summit

Page 45: Supply chain index webinar for healthcare

Questions?

#sciwebinar

Page 46: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 46

Metrics That Matter

• Lora Cecere’s 2nd book: Metrics That Matter

• To publish in Fall 2014

http://tinyurl.com/metricsthatmatter

Pre-orders available on Amazon:

#sciwebinar

Page 47: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 47

What’s Happening at Supply Chain Insights?

www.supplychaininsights.com

#sciwebinar

Page 48: Supply chain index webinar for healthcare

Supply Chain Insights LLC Copyright © 2014, p. 48

About Lora Cecere

• Founder of Supply Chain Insights

• Invited to be a “LinkedIn Influencer”

• Invited to write a guest blog for Forbes

• Author of 2 books: Bricks Matter (2012) and Metrics That Matter (to publish Fall of 2014)

• Partner at Altimeter Group (leader in open research)

• 7 years of Management Experience leading Analyst Teams at Gartner and AMR Research

• 8 years Experience in Marketing and Selling Supply Chain Software at Descartes Systems Group and Manugistics (now JDA)

• 15 Years Leading teams in Manufacturing and Distribution operations for Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble.

Contact Information: • Email: [email protected]• Blog: www.supplychainshaman.com (6000 pageviews/month)• Forbes: http://www.forbes.com/search/?q=lora+cecere• Twitter: lcecere (4800 followers)• LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (7000 in the network)

#sciwebinar