The Integrative Supply ChainFrom Third Party Logistics to Joint Business PlanningCobus RossouwChief Integration Officer, IMPERIAL Logistics

S U P P L Y C H A I N

S U P P L Y C H A I N

CONSUMERS DEMAND

operations planning and execution are converging -

and Logistics Service Providers are extending their relevance and service offering to become

As

more variety and quicker response,

critical partners in the supply chain.

S U P P L Y C H A I N

STRUCTUREMegatrends

Demand Driven Value Networks & Gartner Top 25Value of Convergence

Changing Role of Logistics Service Providers

Possible, Pragmatic and Pessimistic

S U P P L Y C H A I N

MegatrendsTurbo Supply Chain Visibility

Perfect Logistics

Blurring of Planning and Execution

Meaningful Collaboration

Dashboards and Real-Time Analytics

1

2

3

7

8

S U P P L Y C H A I N

Visibility through technology

Megatrends: Perfect Logistics

Meaningful Collaboration A “truly collaborative relationship” is

Strategic to our business

A future goal

Something we need to improve

Not important

Megatrends

Source: SCM World 2012

S U P P L Y C H A I N

56.4%

0.4%

30.1%

13.1%

MegatrendsS U P P L Y C H A I N

Extract, Transform, & Load – Including Data Scrubbing and Calculations

RepositoryActivity-based allocation of actual and budget costs (for FY2011 and FY2012 YTD)

Per site, Foods and C&GM, per store, per supplier, per discipline

Inbound, outbound & trunking

Supplier cost determination

Enabling competitive advantage and sustainability

E X T E R N A L B E N C H M A R K D A T A

Dashboards and Real-Time AnalyticsO P E R A T I O N S

S C E N A R I O M O D E L L I N G E F F I C I E N C Y T R A C K I N G D A S H B O A R D S (KPIS, CO2 ETC.)A D - H O C A N A L Y S I S

IMPERIAL

TMS

Key-Nuggets

CLIENT

Triceps

Cognos

SAP

Demand Driven Value Networks

S U P P L Y C H A I N

2 0 T H C E N T U R Y 2 1 S T C E N T U R Y

Demand Point a GivenAssembly Line Supply

Innovation and Externality

Demand Management

Networked SupplyEmbedded Innovation

S U P P L Y C H A I N

GARTNER TOP 25 [2012]CPG Companies

ME

AS

UR

ED

P

ER

FO

RM

AN

CE

P E R C E I V E D E X C E L L E N C E

00 2 01 0 4 03 0 5 0

1 0

2 0

3 0

4 0

5 0

Demand Driven Value Networks

The Transformation Journey

S U P P L Y C H A I N

Internally Focused

Responsive to DemandC O S T T O D E L I V E R

12

3 4Demand Driven

Build and Extend CoreDemand Management Processes

Value Driven Network

Joint Value Outcome Focused Performance Management

Externally Focused

Customer/Brand Driven Control

Integrate and Consolidate Business Process Infrastructure

Market Focused

Acquire Merge Partner, Legacy Growth, Business Units and Functions

C O S T F O C U S E D R E V E N U E F O C U S E D

Growth and ProfitabilityC O S T T O S E R V E

Convergence of Planning & ExecutionUJ Masters Research To what degree do you foresee a benefit for your outsourced partner to provide

both planning and execution functions?

S U P P L Y C H A I N

22%H U G E B E N E F I T

19%S L I G H T B E N E F I T

25%P O S S I B L E & U N C E R T A I N

6%N O B E N E F I T

25%M O D E R A T E B E N E F I T

TRANSACTIONALPROVIDER

FUNCTIONAL PARTNER

INTEGRATION PARTNER

Clie

nt P

a rtn

er

Integration Partner

Inve

ntor

y O

ptimisation

Demand M

anag

emen

t

Route to MarketNetwork Modeling

Cost-

to-serve

Fleet Opti

misa

tion Sustainability

Peak Managment

Cost

SAR

Caus

e an

d ef

fect

Targeting

ILV

SAR COST

ILV

Client

Supplier

Cost-to-s

erve

Fleet Optimisation

Peak Management

Susta

inabili

ty

Cost

SAR

Targ

etin

g

Clie

nt

Supplier

Inte

grated Logistics Visibility

Supplier

Client

Purchase/Transport orders POD’s & Invoices

Changing Role of Logistics Service Provider

S U P P L Y C H A I N

MA

TU

RI

TY

O

F

RE

LA

TI

ON

SH

IP

Part

ners

hip

Cont

ract

ual

Tran

sact

iona

l

E X T E N T O F I N T E G R A T I O N

Supply ChainLogisticsTransport

Possible, Pragmatic and Pessimistic Prison Chess

Hoarding (POS) data

Avoiding measurement

Ham in the sandwich

S U P P L Y C H A I N

Pessimistic

S U P P L Y C H A I N

Pragmatic

Possible, Pragmatic and PessimisticCompleteness vs accuracy

Think big, act small

Productive paranoia

Specialize

S U P P L Y C H A I N

Possible

Possible, Pragmatic and PessimisticHigher availability at lower cost

Intelligent logistics

Risk-tolerant outsourcing

Trust

S U P P L Y C H A I N

As consumers demand

more variety and

quicker response

operations planning and execution are converging and Logistics Service Providers are extending their relevance

and service offering to become

critical partners in the supply chain.