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Adrian Gonzalez President, Adelante SCM

adrian@adelantescm.com

What Business Are You In? Time for a New Answer

LabelMaster Dangerous Goods Symposium

September 2017

A Little Dangerous Goods Humor

Clockspeed of Industries Accelerating

“Each industry has its own evolutionary life cycle (or ‘clockspeed’), measured by the rate at which it introduces new products, processes, and organizational structures.”

Supply Chain Blizzard

“The Amazon Effect” Drones

Driverless Trucks

3D Printing

IoT & Mobile

Blockchain

Changing Regulations

AI / Machine Learning Mergers & Acquisitions

Cyber Security

New Competitors

Keeping Up with The Rapid Pace

of Change

Infrastructure Constraints

“Past Performance No Guarantee of Future Results”

Are You Working for Company of Yesterday or Company of Tomorrow?

How do you become a Company of Tomorrow?

1.Unlearn “The Way We’ve Always Done It”

We have to unlearn “supply chain management” — that is, unlearn the terminology and concepts we continue to use. The term “chain” implies fixed, linear, rigid — things that are the exact opposite of today’s operating reality, where trading partner networks, business processes, and customer expectations (among many other things) are more fluid and constantly changing.

From Chains to Network Effects

Take a Different Perspective

“Commercial graphs depict relationships between businesses, based on their actual interactions as they are captured digitally… ...will help businesses manage their own partner relationships better... ...can help companies assess the performance of their business relationships…can help managers identify new partners and suppliers who are likely to outperform current ones. And they help companies benchmark their performance against peers.”

Here Comes the Chief Network Effects Officer

↗ How do we make it easier for our users to participate and create 'connections' they see as valuable?

↗ How do we make it easier for ourselves to identify value from user participation, contributions, and links?

↗ How should we (re)organize ourselves to best harvest the value of 'network effects' to measurably boost the quality, opportunity, and 'user experiences' of our offerings?

2. Stop Shoveling Snow with a Dustpan

21 inches of snow My “shovel”

April Fools Day Blizzard (Boston, 1997)

Yesterday’s Supply Chain Tools & Processes...

↗ Takes more time

↗ Takes more effort

↗ Not as effective

↗ Not as user friendly

…are becoming today’s dustpans

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Where to Find Supply Chain Innovation

3. Stop Confusing Cooperation with Collaboration

Define shared vision statement and metrics focused on the end customer

The First Question You Must Ask

Is UPS in the package delivery business or ...

What business are you in?

“Dangerous Goods” vs.

Many Companies Falling Short on SCRM

Why Supply Chain Risk Management Matters

Disruptions have a negative across the board effect on stock price, profitability, and share price volatility. It does not matter who caused the disruption, what was the reason for disruption, what industry a firm belongs to, or when the disruption happened - disruptions devastate corporate performance.

How to cross the chasm?

Speak the Language of the CFO

Making the case for a large investment in technology or resources using dangerous goods terms is meaningless to the CFO. You have to equate the value proposition to metrics the CFO understands and cares about, such as working capital, cash flow, and other items linked to the company’s P&L and balance sheet

Collaborate with Sales / Break Down Functional Silos

SC@Intel: Supply Chain as Expert Resource for Customers & R&D

The Bottom Line

↗ The Clockspeeds of every industry are accelerating and what got you here won’t get you there (where you need to be).

↗ To become a Company of Tomorrow, you have to unlearn “the way we’ve always done things” with respect to yesterday’s processes and technologies.

↗ What business are you in? You’re in the supply chain risk management business; you’re in the e-commerce enablement business; you’re in the business of helping your companies increase sales and market share.

Thank You!

Adrian Gonzalez President

Adelante SCM adrian@adelantescm.com

www.talkinglogistics.com