1. Towards a Consumer-Oriented Supply Chainby
Panagiotis Andrianopoulos
Hector Perez Wario
Hector
May 21, 2015

2. Towards a Consumer-Oriented Supply Chain
Agenda
Research Objective
Process and Findings
Value Stream Map
Forecast Analysis
Roadmap
Conclusions
Hector
Towards a Consumer-Oriented Supply Chain

3. Towards a Consumer-Oriented Supply Chain
Introduction
Traditional Supply Chain CPG industry
Stock outs  Loss sales
Excess Inventory
Towards a Consumer-Oriented Supply Chain

4. Towards a Consumer-Oriented Supply Chain
Research Objective
How can we define a consumer-oriented supply chain?
Components
How can we develop one?
Tools or techniques
Hector
Towards a Consumer-Oriented Supply Chain

5. Towards a Consumer-Oriented Supply Chain
Process and Findings
Findings:
Triggered by consumer demand
Requires strong collaboration
Flexible transportation system
Process:
Conditions  Value Stream Map
Industry Research
Data Collection
Data Analysis
Future State  Roadmap
SHORT TERM
Hector
LONG TERM
Towards a Consumer-Oriented Supply Chain

6. Value Stream Map (VMI Process)
Product Interaction
Software Interaction
Vendor
Retailer
Consumer/Store
Panos
Human Interaction
Towards a Consumer-Oriented Supply Chain

7. Value Stream Map (non-VMI Process)
Panos
Towards a Consumer-Oriented Supply Chain

8. Towards a Consumer-Oriented Supply Chain
Forecast Analysis SKU1
Introduction
Discontinue
Hector
Towards a Consumer-Oriented Supply Chain

9. Towards a Consumer-Oriented Supply Chain
Forecast Analysis SKU2
Promotion
Promotion
Hector
Towards a Consumer-Oriented Supply Chain

10. Towards a Consumer-Oriented Supply Chain
Analysis Results
Retailer Store forecasts are more responsive
VMI model displays collaboration
Promotions
Combined synchronized forecast
Flowcasting
Towards a Consumer-Oriented Supply Chain

11. Roadmap: Short-Term Steps
Panos
Towards a Consumer-Oriented Supply Chain

12. Roadmap: Long-Term Steps
Panos
Towards a Consumer-Oriented Supply Chain

13. Towards a Consumer-Oriented Supply Chain
Conclusions
Definition
Forecasting is key
One truth
Future research/Next steps:
POS data and accuracy
Forecast “master” per product category
Panos
Towards a Consumer-Oriented Supply Chain

14. Towards a Consumer-Oriented Supply Chain
Thank you
Q&A
Panos
Towards a Consumer-Oriented Supply Chain

15. Towards a Consumer-Oriented Supply Chain
Back Up
Towards a Consumer-Oriented Supply Chain

16. Towards a Consumer-Oriented Supply Chain
TO-BE Value Stream Map
Towards a Consumer-Oriented Supply Chain

17. Towards a Consumer-Oriented Supply Chain
TO-BE Value Stream Map
Towards a Consumer-Oriented Supply Chain

18. Towards a Consumer-Oriented Supply Chain
TO-BE Value Stream Map
Towards a Consumer-Oriented Supply Chain

19. Towards a Consumer-Oriented Supply Chain
TO-BE Value Stream Map
Towards a Consumer-Oriented Supply Chain

20. Value Stream Map (VMI Process)
Retailer Distribution Center
Store Analyst
Forecast Analyst (FA)
Category management
Tool #1b
revision and suggested order to the system
store pulls
Masters Sales Plan (MSP)
Promo info
FA red flags
Forecast of exceptions (3w)
EDI 855
Inventory Analyst (IA)
EDI 856
Vendor Distribution
Center
Vendor Plant
Retailer Stores
Consumer
Tool #1a
Cashier
Store Associate
ERP #1
Vendor product
Update every 30 min
daily input
updates or corrections and confirms order
Planogram
Shelf merchandising
MAL
VMI PO
ERP #2
Tool #1c
VMI PO (Turn & Promo)
Daily Inventory position
Tool #2
EDI 852
Sales forecast (30 days)
Promo PO (1 week)
Sales
Promo info
(4 weeks)
VMI Analyst
Store analysts receive information
Long-term forecast
(120 days)
Feedback on VMI PO
IA VMI red flags