bi scm presentation - using business intelligence to optimize your supply chain

1Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org

Using Business Intelligence to Optimize your Supply Chain

Vispi MunshiFounder - ERP [email protected]://www.erp-india.com



Today’s Agenda

- Introduction

- What is Supply Chain Management (SCM)

- Supply Chain Functions

- What is Business Intelligence

- Data Analytics

- Applying BI to the Supply Chain

- Supply Chain Intelligence System

- Measuring Supply Chain performance

- Supply Chain Scorecard

- Future, Conclusion, Q&A



Ground Rules

- Please turn mobile ringer to SILENT MODE

- If you have to take a call, please leave the room and then start talking

- Questions can be asked any time

- Before asking question, raise your hand

- No talking with each other

- Disagreements allowed, but no disrespect

- Timeframe awareness

- Lets learn from each other and increase our knowledge



Introductions

- Full Name

- Where do you work (Company/Consultant/Student etc)

- Your job designation and responsibilities

- Any BI tool you have already used?

- Any Supply Chain experience?

- Expectation from this workshop



What is Supply Chain Management

Supply chain management is the integration of the activities that procure materials and services, transform them into intermediate goods and final products, and deliver them through a distribution system.



Supply Chain Overview

Warehousing

Warehousing

Transportation

Transportation

Vendors/plants/portsTransportation

Factory

Transportation Customers

Informationflows



FocusCompany

Suppliers

Supplier’ssuppliers

Customers

Customers/End users

Acquire Convert Distribute

Product and information flow



Key SCM Functions

- Loose partnering with Suppliers, Suppliers of Supplier, Contract Manufacturers, Wholesalers, Distributors, Dealers, Logistics Partners, Retailers, Service Providers

- http://www.youtube.com/watch?v=wLNdDSYqhNw

- Demand forecasting

- Propagation to suppliers (Demand Management)

- Lead time estimation and propagation towards manufacturer (Order Fulfillment)

- Efficiency in Inventory Management (Warehousing)

- Automated orders and payments (pricing determined in advance, EDI)

- Supplier Relationship Management

- Logistics Management

- Manufacturing coordination

- Information sharing across companies in the chain



What is business intelligence?

Business Intelligence is a term generally used to identify a class of Information System applications useful for supporting operational, tactical and strategic decision making of a organization.

BI deals with producing (and presenting) Accurate, Relevant and Timely (ART) INFORMATION from integrated data.

Not Accurate: Users loose faith in system

Not Relevant: Users ignore the system

Not Timely: Users find alternatives to the system



BI System Anatomy

BACK-ENDData Collection and

Integration Tools

ERP

Ecomm

CRM

Files

….

Data Mart

Forecasting, Mining

PRESENTATION

FRONT-END

Analytics, Visualization, Dashboards, …

DISTRIBUTION

Alerts, Email, Mobile, Intranet ….



Backend BI Tools: Used for collection, integration and consolidation of data from various sources.

Intermediate BI Tools: Allows users to create forecasts and identify trends (data mining) from the data.

Frontend BI Tools: Provides users with a interactive and intuitive interface to view the information generated.



- Based on multi-dimensional view of data (cubes)

- Pivot Table demo

- Features for drilling in and across data

- Slicing and dicing of data

- Graphics capabilities

- Similar to Excel

- Exception reporting

- Data Analyst would use such tools and create Reports/Analysis/Graphs (objects)

- These objects would be supplied to Executives using Dashboards, Alerts etc.

Data Analytics (New Age Decision Support Systems)



Multi-dimensional Data



High-end: Business Objects, OBIEE, Microstrategy, …

Open Source: http://en.wikipedia.org/wiki/Business_intelligence_tools

Data Analytics Tools in Market



Dashboards and Alerts

- Dashboards are collection of reports/analysis/graphs

- Alerts are specific events that the system finds and sends a email/sms etc to the executive

- Key Performance Indicators (KPI’s) can be set and linked to alerts

- Linking across objects provides executive with ability to go through the generated information in a very intuitive manner



Data Mining

- Also known as KDD (Knowledge Discovery in Databases)

- Involves use of large data sets

- Involves uses of Statistical Methods, Database Systems and Artificial Intelligence

- The objective is to discover patterns or knowledge from existing data

- Involves four step process: Data Preparation (classification), Hypothesis (user provided guidance), Discovery (of knowledge) and Validation (of discovered knowledge against hypothesis)

- High end tools: SPSS, SAS, …

- Open Source: http://en.wikipedia.org/wiki/Data_mining



Using BI in the Supply Chain

- Demand Forecasting

- Inbound dashboards and alerts (Supply bottlenecks)

- Outbound dashboards and alerts (Distribution efficiency)

- Supplier Analysis using Data Analytics

- Purchase Order Performance Analysis

- Warehouse Utilization Analysis

- Inventory Turns Analysis

- Distribution Channel Analysis

- Simulation of Change Impact (Pricing, Batching Orders, Warehouse location)

- Alerting Partners (suppliers, contract manufacturers, transporters, distributors)



Supply Chain Intelligence System

BACK-ENDData Collection and

Integration Tools

SCM

WMS

Partner Systems

….

SCI Mart

Forecasting, Mining

PRESENTATION

FRONT-END

Analytics, Visualization, Dashboards, …

EXTRANET ACCESSTo

PARTNERS (SCI Portal)

ALERTS by email and mobile

to SC ManagersAnd Partners



Measuring Supply Chain Performance

- Key factors: Speed, Quality and Cost

- Suppliers and Contract Manufacturers: On Time Delivery, % Returns, % Compliance, Lead Time Consistency, Comparison with Market Price

- Transporters: On Time Delivery, % Damage, Transport Cost per Unit

- Distributors: Ordering Consistency, Information Sharing, Complaints from Dealers/Customers

- Inventory: % Automation, Optimizing Turns (Velocity), Shelf Age, Holding Cost

- Warehouse: % Accident/Damage, Picking Time, % Utilization of space, Manpower cost

- Total: Summary for Speed, Quality and Cost, Trust and Transparency



Supply Chain KPI Scorecard

Speed Quality Cost

Suppliers

Inbound Transport

Warehouse

Outbound Transport

Distributors

Total



ConclusionQ&A

Thank You

[email protected]

98250 11489

bi scm presentation - using business intelligence to optimize your supply chain

Data & Analytics

supply chainwhat

supply chainintroductions

supply chain experience

supply chainbackend

supply chainground rules

consolidationof data

integrated data

data slicing