Introducing

Transcription

Introducing

Introducing - CPFR 2.0
Delight Customers and Maximize
Performance
Inez Blackburn
Ron Ireland
Jim Matthews
May 20, 2014
© 2014 GS1 US ALL RIGHTS RESERVED
GS1 US ANTITRUST CAUTION
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anti-competitive. If anyone believes the discussion is approaching these
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make your own business decisions and that all GS1 standards are voluntary
and not mandatory.
Please review the complete GS1 US antitrust policy at
http://www.gs1us.org/gs1-us-antitrust-compliance-policy “
INTRODUCING
• Inez Blackburn
• Ron Ireland
• Jim Matthews
AGENDA
1
New
World
Order
Collaboration
2
CPFR
The Good
The Bad
The Opportunity
3
CPFR
The Business
Case for Change
4
The CPFR 2.0
4
THE ACCEPTANCE AND USE OF TECHNOLOGY IS
CHANGING THE WAY CONSUMERS INTERACT, OBTAIN
INFORMATION AND PURCHASE ITEMS
28.7% of the world
is online
5.3 billion mobile
subscriptions WW
U.S. mobile commerce
reaches $1.2 billion
1.96 billion people are online
today and this number is estimated
to reach 2.4 billion by 2015
940 million subscriptions to 3G
services
Global mobile commerce sales
expected to reach $163 billion
by 2015
63% research via
social networking
83% of holiday shoppers
influenced by reviews
500 million active,
175 million daily users
47% of the time they are
influenced by what is read
Consumer reviews are 15x more
trusted than descriptions from mfg
A ‘Facebook Like’ from a friend
carries the same weight as 100
positive reviews from strangers
Will Stores Survive: Bricks and Mortar in the Age of Mobility and e-Commerce
5
© 2014 inezblackburn.com
THEN AND NOW
THEN…
• Big + Odd Looking Machines
• Receipt Printers / Cash Drawers
NOW…
• (Square)
• Simple + Elegant Tablet + Square
Reader / Email Receipts / Touch
Signing
THEN…
Desk Tops and Notebooks
NOW…
Tablets and Smartphones
MICHAEL DELL DID NOT INVENT TRANSISTORS,
COMPUTERS, … BUT HE REVOLUTIONIZED
THE PC INDUSTRY – HOW?
HP: Build To Forecast
Manufacture
Demand
Dell: Build To Order
Demand
Manufacture
This business model innovation not thinkable without collaboration and
cooperation across the supply chain
ZARA’S COLLABORATIVE BUSINESS MODEL IS
REVOLUTIONIZING FASHION RETAILING
APPIFICATION OF SOCIAL MEDIA
HELP ME, HELP YOU, HELP OTHERS…
Waze
• 30MM Users, +3x
Y/Y
• 600MM+ Miles
Driven per Month
with Waze Open
Jawbone UP
• Initial Launch of ~70K
Users (11/11) =
• 7B+ Steps
• 800 Years of Sleep
• Re-launched 11/12
Yelp
• 84MM Users, +37% Y/Y
• 33MM User-Generated
Reviews, +49% Y/Y
SOCIAL MEDIA AND THE SUPPLY CHAIN TWEETS ABOUT OPEN SHIPMENTS
SUPPLY CHAIN DISCUSSION
NEW BUSINESS MODELS—ALL TAKING ADVANTAGE OF
EMERGING TECHNOLOGY
EXISTING PRODUCTS/TECHNOLOGY
EXISTING MARKET NEEDS
Business Model Innovation
•
•
•
•
•
Finding new ways
Finding new ways
Finding new ways
Finding new ways
Finding new ways
to interact with consumers and learn
to develop products & solutions
to match supply to demand
to distribute products and services
to capture value
By improving and changing information flow and thus
reducing risk or allocate it more efficiently
THE FUTURE IS NOW!
1. AWARENESS
2. RESEARCH
Customers have the
freedom to achieve their
goals throughout the
shopping process…
3. PURCHASE
4. RETRIEVAL / DELIVERY
5. SERVICE / SUPPORT
Social media
Advertising
Retailer sites
Signage
Email
Kiosks
Checkouts
Employees
SMS/MMS
Catalogs
Call centers
Direct mail
Texting
…using whichever
channels and touch
points they prefer.
Will Stores Survive: Bricks and Mortar in the Age of Mobility and e-Commerce
14
© 2014 inezblackburn.com
14
CPFR® – The Good The Bad
The Opportunity
MISSION OF CPFR 
Change the relationship paradigm between trading partners and create significantly
more accurate information that can drive the value chain to greater sales and profits.
TPC1320
ORIGINAL CPFR DEFINITION AND OBJECTIVE
CPFR is defined by Collaborative Business Practices that
enable business partners to have visibility into one
another’s critical demand, order forecasts and
promotional forecasts through a systematic process of
shared brand and category plans, exception identification
and resolution
CPFR Objective – Improve efficiencies across the
extended supply chain, reducing inventories, improving
service levels and increasing sales
CPFR 9 STEP GUIDELINES
Distributor Business
Development Activities
1
Develop Front-End
Agreement
2
Create Joint Business
Plan
Planning
Business Model - Scenario A
•
Step 1 – Front-End agreement
– Agree to confidentiality and dispute
resolutions
– Develop scorecard to track supply
chain metrics
– Establish incentives
•
Step 2 – Joint Business Plan
– Project team develops plans for
promotions, inventory policy changes,
new product introductions, store
openings and closings
•
Steps 3 – 5 – Sales forecast collaboration
– Trading partners share demand
forecasts and identify exceptions.
Resolutions are collaborated on causal
factors to a single forecast number.
•
Steps 6-8 – Order forecast collaboration
– Trading partners share replenishment
plans, identifying and resolving
exceptions.
•
Step 9 – Order generation/delivery execution
– Results data is shared and forecast
accuracy problems is reviewed.
Performance metrics are accessed.
Manufacturer Business
Create Sales Forecast
3
4
Identify Exceptions for
Sales Forecast
Exception Criteria
Exception Criteria
Distributor
Exception Triggers
Manufacturer
Exception Triggers
Exception
Items
POS
Data
Create Order Forecast
6
Manufacturer
Materials &
Production
Planning
Order Forecast
Frozen Forecast
Distributor
Exception Triggers
7
Order Forecast
Forecasting
Manufacturer
Decision Support Data
Constraints
Resolve / Collaborate On
Exception Items
5
Distributor Decision
Support Data
Constraints
Manufacturer
Exception Triggers
Exception
Items
Exception Items
8
Support Data
Manufacturer
Updated Data for
Exception Items
Consumer
Long
Term
Short
Term
9
Order Generation
Order / PO
Produce
Product
Feedback
Distributor Receiving
Key :
Product
Delivery Execution
Order Filling /
Shipment Execution
Order filling feedback
Distributor
Activities
Either / Joint
Activities
Manufacturer
Activities
Replenishment
Retail Store
ORIGINAL CPFR MODEL
Distributor Business
1
Develop Front-End
Agreement
2
Create Joint Business
Plan
Planning
Business Model - Scenario A
Manufacturer Business
Create Sales Forecast
3
4
Sales Forecast
Exception Criteria
Exception Criteria
Distributor
Exception Triggers
Manufacturer
Exception Triggers
Exception
Items
Create Order Forecast
6
Manufacturer
Materials &
Production
Planning
Order Forecast
Frozen Forecast
Order Forecast
7
Distributor
Exception Triggers
Forecasting
Manufacturer
POS
Data
Constraints
Exception Items
5
Support Data
Constraints
Manufacturer
Exception Triggers
Exception
Items
Exception Items
8
Support Data
Manufacturer
Updated Data for
Exception Items
Consumer
Long
Term
Short
Term
9
Order Generation
Order / PO
Produce
Product
Feedback
Distributor Receiving
Key :
Product
Delivery Execution
Order Filling /
Shipment Execution
Order filling feedback
Distributor
Activities
Either / Joint
Activities
Replenishment
Retail Store
Manufacturer
Activities
ORIGINAL CPFR MODEL
CPFR Challenges
• Complexity
• Scalability
• Business case and realizing
desired results
• Emerging Technologies and Apps
RETAILER AND MANUFACTURER TASKS
Retailer Tasks
Collaboration Tasks
Manufacturer Tasks
Planning
Vendor Management
Collaboration Arrangement
Account Planning
Category Management
Joint Business Plan
Market Planning
Forecasting
POS Forecasting
Sales Forecasting
Market Data Analysis
Replenishment Planning
Order Forecasting
Demand Planning
Replenishment
Buying/Re-buying
Order Generation
Production & Supply Planning
Logistics/Distribution
Order Fulfillment
Logistics/Distribution
Analysis
Store Execution
Exception Management
Execution Monitoring
Supplier Scorecard
Performance Assessment
Customer Scorecard
THE BULL WHIP EFFECT
Retailer’s Orders to Manufacturer
Consumer Sales
20
Order Quantity
Order Quantity
20
15
10
5
15
10
5
TIME
TIME
Wholesaler’s Orders to Manufacturer
Manufacturer’s Order to Supplier
20
Order Quantity
Order Quantity
20
15
10
5
TIME
15
10
5
TIME
S.Hau Lee, Stanford University
TPC170
YOU NEED TO BE ABLE TO PITCH AND MAKE
THE CATCH
You need to have the skills if you’re going to execute well with others
© Oliver Wight International
LIMITED COLLABORATION
Executive
Management
Executive
Management
Sales /
Marketing
Information
Technology
Buyers
Merchandising
Sales
Person
Information
Technology
Buyer
Finance
Finance
Operations
Manufacturing
Deployment
Warehousing
Deployment
NAA3970
Relationship Management
Relationship Management
THE BEST OF COLLABORATION
Executive Executive
Management Management
Sales /
Marketing
Information
Technology
Finance
Buyers
Merchandising
Information
Technology
Finance
Manufacturing
Operations
Deployment
Deployment
Warehousing
NAA3980
INTEGRATED BUSINESS PLANNING
MANAGEMENT
BUSINESS
REVIEW
STRATEGY
BUSINESSPLAN
PERFORMANCE
PRODUCT
MANAGEMENT
REVIEW
SUPPLY
REVIEW
DEMAND
REVIEW
Supply Chain
Management
Portfolio
Management
Supply Point
Management
Market
Management
Project
Management
Supplier
Management
Demand
Management
Resource
Management
Sales
Management
Procurement Management
OWI 0004-03a
The Business Case for Change
and
Introducing CPFR® 2.0
CASE STUDY - CPFR DELIVERS
Situation:
•
•
•
High tech industry – multi billion dollar supplier and customer
Very upset customer, CEO to CEO escalation
High inventory on some products, various drivers (both supplier and customer)
Action:
•
•
•
CPFR presentation to customer executives
Successfully aligned with executives on the problem and the approach to solve it
Excellent collaboration and full deployment of CPFR
Results:
 38% reduction in inventory in first 4 months
 4 near flawless new product introductions, including bleed off of old stock
 Delighted customer, including executive sponsor touting the success of the
program to customer executives and using this success as justification
for a $1M capital request to expand the initiative
WHY RE-INVENT AND RE-DEPLOY CPFR
1
Rules of engagement for collaboration have evolved
Building solutions leveraging existing technology and investing
in future technology.
2
We must more effectively understand problems and choose CPFR
solutions that solve those problems quickly
This must be accomplished in a simple and logical way that more easily
secures executive sponsorship and delivers on desired results.
3
Ensure that the Consumer/Shopper remain at the center of the solution
Incentives Rewards and Behaviors must be aligned with a strong business
case for collaboration.
NEW BUSINESS MODELS—ALL TAKING ADVANTAGE OF
EMERGING TECHNOLOGY
EXISTING PRODUCTS/TECHNOLOGY
EXISTING MARKET NEEDS
Business Model Innovation
•
•
•
•
•
Finding new ways
Finding new ways
Finding new ways
Finding new ways
Finding new ways
to interact with consumers and learn
to develop products & solutions
to match supply to demand
to distribute products and services
to capture value
By improving and changing information flow and thus
reducing risk or allocate it more efficiently
COLLABORATIVE PLANNING
COLLABORATIVE FORECASTING
COLLABORATIVE REPLENISHMENT
SUMMARY - CPFR 2.0
• Recognizes and leverages:
• Current and Emerging Technology
• New Consumer Models
• Retail Realities
• Big Data
• Integrated Business Planning
• Addresses CPFR shortcomings:
• Process scalability
• Perception of complexity
• Resource requirements
• Migration path from existing
processes
• Iterative improvements to critical
results
Q&A
MORE INFORMATION
To get involved with the workgroup efforts on Collaborative
Planning, Forecasting, and Replenishment, you can email
[email protected].
If you want to learn more about CPFR 2.0, there is a oneday course offered on Monday, June 9th during the GS1
Connect pre-conference education track. For more
information, you can visit
http://www.gs1us.org/resources/gs1-connect-conference.
39
CONTACT INFORMATION
Michelle Covey
Director, Industry Engagement
GS1 US
TEL
E M AI L
WEB
+1 510.387.6999
[email protected]
www.GS1US.org/ApparelGM
Connect with the GS1 US community on

Introducing

Transcription

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