GT Nexus Bridges2015 Morning Coverage

bridges

So there are 138 companies represented at GT Nexus Bridges2015 Conference, including the likes of Johnson Controls, Microsoft, Pfizer, Target, William’s Sonoma, and  many logistics service providers and service partners.

Sean Feeney, CEO of GT Nexus opened the show today talking about how he uses an anonymous email inbox to solicit employee questions.  Can you imagine the questions about the staff room, toilets or why the stocks not public yet?  Pretty gutsy guy.

GT Nexus is now approaching $150 million in revenue.  There are reasons for that, but one chiefly seems to be the need for companies to have visibility into what is moving so they can plan more effectively.

Sean spoke about their number one R&D area is moving from descriptive to diagnostic to predictive supply chain intelligence product .  The number two area is their app express, build your apps  and a client can extend app without worrying about infrastructure.  Addidas and Patagonia are doing this to collaborate with their supply chain in the manner they want.   Their first app is in Apple Store.

Jim Cafone, VP of Pfizer’s supply chain spoke about how a big pharma company with $50bn in revenue, 21,000 skus,  and 55 manufacturing sites and 130 distribution centers was able to survive and thrive after the patent cliff knocked off $26 billion from their revenue since 2009.

How?  They transformed their Market Supply Platform, their Logistics and Customs platform and their Manufacturing platform.  For example, Pfizer transferred  175 markets to Pfizer Global Supply for demand forecasting .  They moved all logistics and customs operations to a shared platform.  They optimized their manufacturing from 92 to 55.  And they are now building the glue to put these platforms together via  supply chain control towers and common set of internal and external metrics.  This has translated into impressive numbers - forecast accuracy has improved, which has enabled  finished goods inventory to go way down, taking out $800 million of working capital out of $6.3bn of inventory.

These investments enable an efficient use of working capital by taking capital assets off their balance sheet, return on capital goes up.  Inventory been taken out by coordinating a complex demand, capacity planning, and transportation planning in a very complex and highly regulated industry.

Rounding out the morning presentations were Brooks Brothers Jim Dixon talking about how they use GT Nexus as both a buyer and seller and Lear’s Supply Chain manager speaking about the real time information needs of a car seat manufacturer with the auto industry.

It was an intense start to the day and filled with lots of quality presentations!

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