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Logistics Visibility and Collaboration – Where Data Meets Action

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Amplify 2012 Phil Lambert

TMS Ideal for SaaS

• Need visibility and control to understand the true nature of events

• To do this they need supply chain community enablement, integration, collaboration across multi-parties, along with event-driven optimization

• Such collaboration requires shared global visibility and action.

• Cloud based connect platforms are needed

Source: Paraphrased from ‘Rising above the cloud’ Aberdeen Sept 2012

Rising Above the Cloud

Source: Aberdeen Group Sept 2012

Type of Metric Best-In-Class

Average Laggard

Change in total global annual transportation spend PER UNIT HANDLED over the past year

4% reduction

2% increase

14% increase

Annual global transportation spend as a percentage of shipment value 4% 7% 11%

Perfect Orders – On-time and complete customer delivery 97% 93% 92%

Importance of Logistics

Source: ARC 2008, IBM Institute for business Value, 2005 Value Chain Study & Cap Gemini 2005 Third-Party Logistics Study

Logistics Costs as a Proportion of Sales Logistics Costs by Industry

Logistics Costs Components Transportation accounts for almost 50% of an average company's logistics costs, and transportation costs, as a percent of sales, are rising for many companies

TMS Ideal for SaaS

5

Transportation — unlike warehousing or supply chain planning — relies on a multi-enterprise, geographically dispersed network that includes a supplier, shipper, third-party logistics provider (3PL), carrier, and/or customer. All of these entities are involved in the process, and that setup “really lends itself to network-based solutions that favor SaaS.”

Source: Gartner Group January 2011

Islands of Optimisation

Supplier

Finan

ce

HR

Prod

uctio

n

War

ehou

sing

Customer

Finan

ce

HR

Prod

uctio

n

War

ehou

sing

Distributor

Finan

ce

HR

Prod

uctio

n

War

ehou

sing

WMS ERP SCP

e-Logistics

Source: Phil Lambert E Logistics 2000

Simple, Complex or Both

Today’s Supply Chain

Demand Driven

Global Supply Network

.

Lack of Confidence: • Order status • In transit inventory • Forecasts • Supplier performance • Quality/Quantity issues • Order cycle times

Lack of Visibility Increases Supply Chain Risks

Lack of Visibility

Other Potential Consequences: • Not able to proactively manage customer service issues • Unable to respond quickly to revenue opportunities • Delayed response to unforeseen events • Additional costs, eg. higher inventory, unplanned overtime • Lack the information to undertake root cause analysis

The Solution

• Multi-entity, multi-enterprise collaborative environment • Global Visibility of where everything is and what’s happening • Management and Control of the Process • Exception Management • Automated Actions • Flexibility • On-going Analysis of KPIs, problems or areas for

improvement

Visibility & Alerts During Execution

Graphic Source: Hewlett Packard

Dynamic Logistics Execution

Automated Actions

Connectivity - Visibility

Carrier

Carrier

Carrier

Carrier

Carrier

Carrier

Supplier 1

Supplier 2

Supplier 3

Plant Distribution Hub

Customer

Retail Shop

ERP ERP WMS ERP LSP LSP LSP

Graphic Source: Hewlett Packard

Connectivity is the First Step

Building Integrated Demand-Supply Networks

Source: Aberdeen Group November 2010

RO

I

Level of Maturity

Visibility Maturity View

Event Tracking Milestone Monitoring Automated Alerts Intelligent Messaging Automated Actions

Dynamic Supply Chain Execution

Information Foundation

Supply Chain Process Automation

Visibility Platform

External Data

Internal Data

Role based Dash Boards & KPIs Root cause Analysis Ad-Hoc Reporting

One Version of the Truth

Integration Platform

Actionable Intelligence

Visible Means Actionable

Solution The Industry Has Been Waiting For

• Elemica has recently become an Oracle BPO Partner for Oracle Transportation Management.

• This allows Elemica customers to access discrete portions of the Oracle OTM functionality, combined with the Elemica connectivity and collaboration capabilities using a SaaS business model.

• These are solution options that companies in the chemical industry seem to have been waiting for and should evaluate for implementation.

Complex, Constrained and Undervalued: A Look Inside Chemical and Process Industry Supply Chain Logistics. Gartner, October 2011

Logistics Visibility and Collaboration – Where Data Meets Action

30 October 2012 Phil Lambert