Trip Report: Mexico Logistic Summit 2016
Earlier this month LLamasoft participated in the Logistic Summit 2016: Latin America’s biggest supply chain and logistics event, which gathers the industry’s highest level executives to learn about worldwide best practices. With over 13,000 participants, the event was held April 6-7 in Mexico City. Here are a few highlights from the forum.
Experiences, Best Practices and Innovation in Supply Chain and Logistics
One of the highlights of the conference were the international supply chain and logistics leaders who presented on their own use cases and successes. One resounding theme of these sessions was the importance of offering “customer-centric” service and cross-functional corporate strategies to solve daily operations issues and improve margins.
In the session, “Stop Fighting and Start to Win: Guiding Profit Through Strategy and Functional Integration” Jeanne Reisinger, Procter & Gamble Ex Supply Chain Director, explained the importance of understanding both supply chain and corporate strategy to define key factors such as consumers profiles, competitors, product quality, among others. She also stressed the importance of establishing supply chain capabilities to better respond to larger company strategies, the ability to innovate in critical areas and the bettering of its internal reactions against the market fluctuations.
Meanwhile, Luis Correa, Amazon Mexico Operations Director, shared the company’s best practices and keys to success, by conveying the importance the client has inside daily activities and confessing the obsession the organization has for its customers. He also highlighted the leading role technology plays in develop operations, becoming the enabler between the company and clients interactions.
The second day of the event included the presentation “Metrics that Matters: How to Balance Cost, Service levels and Inventory” by Lora Cecere, President and CEO of Supply Chain Insights, who revealed that only 10 percent of companies adopt functional practices to successfully improve the operational margins and inventory turns simultaneously. She cited this as inefficient, and shared that the reason lies in the lack of alignment between the finance and operations teams, highlighting the need for a cross functional approach.
Four Supply Chain Design Practices that Enable Continuous Improvement and Innovation
One of the event’s most popular sessions was led by Toby Brzoznowski, LLamasoft Co-founder and Executive Vice-president, who due to the large number of attendees, had to repeat the session again. Brzoznowski presented the four supply chain design practices that enable continuous improvement and innovation, through illustrations and case studies, highlighting that as business grows and face complex challenges, it is necessary to analyze the role that elements such as supply chain design vs. planning and execution plays inside the company. A good planning and execution could never overcome a bad design. Companies with a complex supply chain should incorporate design as an ongoing process to anticipate the potential changes and respond to difficult “What if?” questions, optimize to find the right balance between costs, service, sustainability and risk, and respond to contingencies, market fluctuations or new business strategies.
Finally, Brzoznowski highlighted the four supply chain design practices for a sustainable growth and improvement establishing a supply chain strategy:
- Data Management to acquire valuable and useful information from multiple sources
- Modeling & Analytics to design numerous Supply Chain end-to-end digital scenarios
- Knowledge Management to align all elements involved within the operation
- Talent Development in order to possess personnel capable of integrating and execute Supply Chain demanded changes
The event was an overall success and key as LLamasoft continues to grow within Latin America. To read this blog is Spanish, please click here.