Transcript Supply Chain Execution

Business consulting in technology
Supply Chain ExecutionSolving business issues or
just yet more headaches ?
Presented by: David L Marshall
PreCognition Ltd
Agenda
In the land of the blind the one eyed man is king
- why visibility dramatically reduces returns
Return on Investment, strategists dream
or an FD’s real business case scenario ?
Soft World or hard reality How do you select and implement the right
software project to provide hard benefits
Collaboration or Integration, how SCEM is
the logical progression from electronic trading
Supply Chains are under Pressure
Supply
uncertainty
• Globalization
• Less vertical integration
• Brittle supply chain
Demand
uncertainty
• Consumer behavior
• Demand Forecast Error
• Shorter Product Life Cycles
• Longer Supply Chains
Critical business issues by type
Supply chain visibility
30
27
24
22%
21
% of total
responses
18
15%
15
12
9%
9
6%
5%
6
3
0
Supply
chain
visibility
Technical
constraints
Business
process
Communications
Other
©MARTEC International
Benefits - Improving Information Exchange
Supply chain visibility
38%
% of total
responses
22%
14%
12%
7%
Supply
chain
visibility
Financial
Stock
6%
Suppliers Customers No benefits
©MARTEC International
Optimisation ?
Return on Investment,
strategists dream
or an FD’s real
business case scenario ?
Firms overspend on optimisation . .
“How much did your supply chain optimisation
implementation cost?
How long did the project last?”
More than
expected
68%
80%
Less than
expected
Cost
Time
28%
20%
As expected
4%
0%
0%
20%
40%
60%
80% 100%
Average budgeted amount: €9.7m
Average amount spent to date €16.9 m
Base: 25 European companies implementing supply chain optimization
Communication methods 2003
100
UK Suppliers
95
90
85
Traditional EDI and
Web based electronic
trading – poor take up
76%
80
75
70
65
60
11%
% of total 55
45
responses40
35
30
25
20
11%
9%
15
10
1%
2%
5
EU Suppliers
100
0
Direct
Traditional
Communication EDI
Web
EDI
Fax/E-mail
Paper
87%
95
90
85
Low exploitation of
available technologies
Is EDI dead ??
80
75
70
65
60
3%
55
45
40
35
30
25
20
15
3%
10
5
Or just pining ??
0
7%
3%
0%
Direct
Traditional
Communication EDI
Web
EDI
Fax/E-mail
Paper
100%
©MARTEC International
Adaptive supply networks
3. Implement
adaptively
Deploy supporting
technologies
incrementally
1. Organize adaptively
Adaptive
Supply
Network
New structure
and performance
metrics
implemented to
enable organizational
flexibility
2. Operate adaptively
Manage business processes
by exception
To develop adaptive supply networks
firms must embrace three principles
Kewill integrated solutions
ASNs let firms proactively respond
In today’s
supply chains
In adaptive
supply networks
Optimisation
focus
Efficiency
Efficiency and agility
InputInput
for for
decision-making
Historical data
Leading indicators
Problem-solving
Centralised
Manual
Decentralised
Software assisted
Origin of demand
information
Crystal ball
Point-of-sale data
Executive
imperative
Cost-cutting
Risk management
The FDs objectives...hard realities
“40% growth in sales and profits
BUT
•
•
•
•
over 3 years”
No increase in stock
No increase in warehouse space
Improved customer service
Maintain product profit margins
Moving to Direct Dispatch
•
•
•
•
•
•
Real-time order processing
Supply chain event management
SLA / KPI management
Reduce on hand stock
Cross dock integration
Automated billing
Direct Dispatch – removing DCs
The Solution from Kewill Systems
• Improved efficiency
• Direct dispatch from supplier to
customer
• Supply chain collaboration
– suppliers
– call centre
– carriers
• Visibility of the complete supply chain
Kewill provision of exceptions visibility
Adaptive workflow from Kewill
Current System
Customer
JDW
Kewill
Supplier
Carrier
New System
Customer
JDW
Kewill
Supplier
Carrier
Benefits derived from Kewill
• Reduced order cycle time
• Increased range and volume of
products with no increase in stock or
commitment
• Improved customer service
• Reduction in cancelled orders
• Reduction in supply chain costs
To adaptive supply networks
Choosing the right software
Actions can be taken to reduce the
likelihood of returns
Pre-emptive shipment reporting
Soft worlds – Hard realities
Choosing the right software
Collaboration in action….
Whiteboards for Supply Chain partners
Shipment status alerts
PreCognition
Working together
making it stronger
www.precognition.biz
[email protected]