supply chain index webinar for healthcare
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
Healthcare Value Networks: How Do You
Measure UP?The Supply Chain Index
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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
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Presenters
Abby MayerResearch Associate
Lora CecereFounder and CEO
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Dr. George RungerProfessor, CIDSE, ASU
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Agenda
Vision
History of Our Work
Resiliency Patterns and Mathematical Calculation
Why It Matters To You
What's Next?
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A Supply Chain is a Complex System
with Complex Processes
with Increasing Complexity
Our Belief
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Resilient and predictable
Balanced across the set of metrics to maximize value
Showing year-over-year strength against peer group
Desired Corporate Performance
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The Supply Chain Effective Frontier:First Representation
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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
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The Supply Chain Effective Frontier: Second Representation
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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.
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Industry Overview
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Progress over the Last Twelve Years
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Intersection of Operating Margin and Inventory Turns
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Companies Get More Serious With A Recession
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Today’s Supply Chain
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A Business Continuity Risk
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Agenda
Vision
History of Our Work
Resiliency Patterns and Mathematical Calculation
Supply Chain Index
What's Next?
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Mining 20 Years of Financial Data
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Correlations to Market Capitalization
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“No significant supply chain improvement happens in less than
three years….”
Marty Kisluik, FMC
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How to Read an Orbit Chart
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Supply Chain Metrics That Matter Reports
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Agenda
Vision
History of Our Work
Resiliency Patterns and Mathematical Calculation
Supply Chain Index
What's Next?
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Supply Chain Metrics That Matter Reports
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What is Resiliency?
Tightness of the Pattern on the Orbit Chart for Operating Margin and Inventory Turns
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Abbott Laboratories & Shire PLC
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Boston Scientific Corporation & Stryker Corporation
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GlaxoSmithKline PLC & Merck & Co., Inc.
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Resiliency 2000-2012
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Agenda
Vision
History of Our Work
Resiliency Patterns and Mathematical Calculation
Supply Chain Index
What's Next?
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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
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The Index Framework
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Supply Chain Index
30% 30% 30% 10%
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What is the right weighting? What is the right time period?
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Looking at the Value Network
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Industry Overview: 2006-2012
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Supply Chain Index: Hospital for 2006-2012
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Supply Chain Index: Hospital for 2009-2012
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Pharmaceutical Industry
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Supply Chain Index: Pharmaceutical for 2006-2012
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Supply Chain Index: Pharmaceuticals for 2009-2012
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Medical Device
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Supply Chain Index: Medical Device 2006-2012
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Supply Chain Index: Medical Device for 2009-2012
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• 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?
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Agenda
Vision
History of Our Work
Resiliency Patterns and Mathematical Calculation
Supply Chain Index
What's Next?
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Next Steps
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• 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
Questions?
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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:
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What’s Happening at Supply Chain Insights?
www.supplychaininsights.com
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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)
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