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Successfully Transforming Your Business

….The End to End Demand-driven Value Network

“The Business Operating Strategy”

Is Your Supply Chain Strategy

Panel

Steve SigristNewell Rubbermaid

Dov ShenkmanOfficeMax

George Morrison Honeywell

Jim Matthews Research In Motion

Roddy MartinVice President

& Research Fellow

AMR Research

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0

20

40

60

80

100

120

19

80

19

85

19

90

19

95

20

00

20

05

PMI

CS

Consumers & Manufacturers In Synch – Consumers Led The Last Recession…..Need Visibility and Agility

Updated 10-16-09

© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.

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Functional Fragmentation - Disjointed End to End Collaboration

Demand

customer

Product

designpartner

SupplyTraditional

Definition of Supply Chain Management

& Manufacturing supplier

Collaboration& InnovationCapabilities

?

© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.

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Reality …Traditional Supply Chains Lack Process & Visibility

Manufacturer

Materials

MgmtManufacturing

(Make-Pack)

Distribution

&

Distributors

Suppliers

New Product or Service

Merges to the Base

Supply Process

Customers

Patients

Consumers

Suppliers

Partners

Manufacturers

Assemblers

Distributors

WholesalersCustomers Consumers

Users; Buyers

Risk Risk

Risk Risk Risk Risk

Risk

Programs

“Integration”

Architecture

© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.

Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author>

A Framework for The Demand-driven Value Network

Product & Service Innovation

Cu

sto

mers

, B

uyers

, U

sers

,

& C

on

su

mers

Channel

Demand

&

Demand

Management

Segmented Demand Visibility

User/

Consumer/

Demand

Insights

Su

pp

liers

& P

artn

ers

Push – Make – Supply Segments

Reliable,

Profitable

Response from

Supply Based on

Demand

Segmented Supply Visibility

decoupling

Demand

Translation

&

Trade Offs

Integrated Strategy,

Business &

Value Network

Planning

Pull Segments

© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.

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Holistic End to End Scope ………………..A Leadership Journey !

DemandSupply

Product

External

collaboration

partnerships

External

collaboration

partnerships

External

collaboration

partnerships

© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.

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13 The Coca Cola Company

14 Nike

15 Tesco

16 Walt Disney

17 Hewlett-Packard

18 Texas Instruments

19 Lockheed Martin

20 Colgate - Palmolive

21 Best Buy

22 Unilever

23 Publix Super Markets

24 Sony Ericsson

1 Apple

2 Dell

3 Procter & Gamble

4 IBM

5 Cisco

6 Nokia

7 Wal-Mart

8 Samsung

9 PepsiCo

10 Toyota

11 Schlumberger

12 Johnson & Johnson

2009

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Themes That Distinguish Leaders:

• Outside-in focus

• Embedded innovation

• Extended supply chains

• Balanced excellence

• Attitude

• Metrics

• Supply chain talent

Supply chains that are…

• Predictable and reliable

• Flexible

…and have:

• Profitable demand response

• Sustainable growth

• Satisfied customers

Outcome

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Anchored Change

“North-South”

Functional Goal

Alignment

Measurement

& Information

Aptitude

Change

LeadershipContinuous

Improvement

Culture

Power

Through

Process (e.g. S&OP)

“East-West”

Value - Process

Performance

What Makes It “Sticky”?

© 2009 Gartner, Inc. and/or its affiliates. All rights reserved.

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Roddy MartinVP & Research Fellow

125 Summer Street

Boston MA 02110

617.542.6600

Cell 617 306 0029

www.amrresearch.com