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 “GS1 US is committed to complying fully with anti-trust laws. We ask everyone to refrain from discussions in areas of antitrust such as pricing, deal-making, selling, promoting or other activities which could be viewed as anti-competitive. If anyone believes the discussion is approaching these boundaries, please inform a GS1 US representative. Please remember to 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 “ © 2014 GS1 US ALL RIGHTS RESERVED INTRODUCING • Inez Blackburn • Ron Ireland • Jim Matthews © 2014 GS1 US ALL RIGHTS RESERVED 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 © 2014 GS1 US ALL RIGHTS RESERVED 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 © 2014 GS1 US ALL RIGHTS RESERVED 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 © 2014 GS1 US ALL RIGHTS RESERVED THEN… Desk Tops and Notebooks NOW… Tablets and Smartphones © 2014 GS1 US ALL RIGHTS RESERVED 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 © 2014 GS1 US ALL RIGHTS RESERVED ZARA’S COLLABORATIVE BUSINESS MODEL IS REVOLUTIONIZING FASHION RETAILING © 2014 GS1 US ALL RIGHTS RESERVED 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 © 2014 GS1 US ALL RIGHTS RESERVED SOCIAL MEDIA AND THE SUPPLY CHAIN TWEETS ABOUT OPEN SHIPMENTS © 2014 GS1 US ALL RIGHTS RESERVED SUPPLY CHAIN DISCUSSION © 2014 GS1 US ALL RIGHTS RESERVED 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 © 2014 GS1 US ALL RIGHTS RESERVED 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 © 2014 GS1 US ALL RIGHTS RESERVED 14 © 2014 inezblackburn.com 14 CPFR® – The Good The Bad The Opportunity © 2014 GS1 US ALL RIGHTS RESERVED 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. © 2014 GS1 US ALL RIGHTS RESERVED 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 © 2014 GS1 US ALL RIGHTS RESERVED 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 Development Activities 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 Identify Exceptions for Order Forecast Forecasting Manufacturer Decision Support Data Constraints Resolve / Collaborate On Exception Items 5 Distributor Decision Support Data Constraints Manufacturer Exception Triggers Exception Items Resolve / Collaborate On Exception Items 8 Distributor Decision Support Data Manufacturer Decision Support Data 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 © 2014 GS1 US ALL RIGHTS RESERVED ORIGINAL CPFR MODEL Distributor Business Development Activities 1 Develop Front-End Agreement 2 Create Joint Business Plan Planning Business Model - Scenario A Manufacturer Business Development Activities Create Sales Forecast 3 4 Identify Exceptions for 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 Identify Exceptions for Order Forecast 7 Distributor Exception Triggers Forecasting Manufacturer Decision Support Data POS Data Constraints Resolve / Collaborate On Exception Items 5 Distributor Decision Support Data Constraints Manufacturer Exception Triggers Exception Items Resolve / Collaborate On Exception Items 8 Distributor Decision Support Data Manufacturer Decision Support Data 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 © 2014 GS1 US ALL RIGHTS RESERVED ORIGINAL CPFR MODEL CPFR Challenges • Complexity • Scalability • Business case and realizing desired results • Emerging Technologies and Apps © 2014 GS1 US ALL RIGHTS RESERVED © 2014 GS1 US ALL RIGHTS RESERVED 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 © 2014 GS1 US ALL RIGHTS RESERVED 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 © 2014 GS1 US ALL RIGHTS RESERVED 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 © 2014 GS1 US ALL RIGHTS RESERVED © 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 © 2014 GS1 US ALL RIGHTS RESERVED © Oliver Wight International 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 © 2014 GS1 US ALL RIGHTS RESERVED © Oliver Wight International 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 © 2014 GS1 US ALL RIGHTS RESERVED © Oliver Wight International OWI 0004-03a The Business Case for Change and Introducing CPFR® 2.0 © 2014 GS1 US ALL RIGHTS RESERVED 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 © 2014 GS1 US ALL RIGHTS RESERVED 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. © 2014 GS1 US ALL RIGHTS RESERVED © 2014 GS1 US ALL RIGHTS RESERVED 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 © 2014 GS1 US ALL RIGHTS RESERVED COLLABORATIVE PLANNING © 2014 GS1 US ALL RIGHTS RESERVED COLLABORATIVE FORECASTING © 2014 GS1 US ALL RIGHTS RESERVED COLLABORATIVE REPLENISHMENT © 2014 GS1 US ALL RIGHTS RESERVED © 2014 GS1 US ALL RIGHTS RESERVED 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 © 2014 GS1 US ALL RIGHTS RESERVED Q&A © 2014 GS1 US ALL RIGHTS RESERVED MORE INFORMATION To get involved with the workgroup efforts on Collaborative Planning, Forecasting, and Replenishment, you can email apparelgm@gs1us.org. 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. © 2014 GS1 US ALL RIGHTS RESERVED 39 CONTACT INFORMATION Michelle Covey Director, Industry Engagement GS1 US TEL E M AI L WEB +1 510.387.6999 mcovey@GS1US.org www.GS1US.org/ApparelGM Connect with the GS1 US community on © 2014 GS1 US ALL RIGHTS RESERVED