business intelligence and analytics: a command and control center for supply chain excellence -...
TRANSCRIPT
Business Intelligence and Analytics: C d d C t l C tCommand and Control Center
for the Chief Supply Chain Officer
Tom Dadmun
VP, Program Management Office
ADTRAN – The Network Access Company
Session Agendap y
Challenges Abound!! In today’s ever changing business landscape
RCA – Root Causal Analysis – What is the Problem
The Vision Research & Benchmarking “ Best In Class “The Vision – Research & Benchmarking Best In Class
Establishing Proof Points, Gaining Mindshare
Incorporating BI into the Culture / DNA of the company
Lessons Learned – Take Aways
Corporate Statistics
• FY2011 Revenue: $717 Million
• Large established Presence in Telecom gEquipment Industry
• Employees: ~1,800 total
• Headquarters: Cummings Research Park, Huntsville, Alabama
• Sales offices around the world
• In‐house and outsourced manufacturing
• Long Term Financial Strength
Broadband
5B Mobile Phones Globally
Mobility Demand Is Exploding Broadband
5B Mobile Phones GloballySmartphones Are PervasiveTrue Mobility Is No Longer ATrue Mobility Is No Longer A Convenience– Voice over Wi-Fi, Facetime
N D i R l O Wi l
Mobility
New Devices Rely On Wireless Connectivity– iPADs CloudiPADs
Mobile Data Traffic Is Growing ExponentiallyWi-Fi Data Offload To Fixed Network Is Necessary
Challenges Abound in Today’s Economy• Significant Growth in telecom industry
• Government programs for BBS Broadband Stimulus
E ll t h d• Economy overall staggers ahead
• Forecasting with historical algorithms??
• Suppliers, subcontractors, manufacturing, customers!!!
• In a recession you have frantic competition
Current Landscape of Problems
• Current data everywhere – spreadsheet mania
• The old “ islands of information “ still exist
How do you collaborate with disparate information?• How do you collaborate with disparate information?
• Spaghetti systems – Where’s the data?
• 80% - 20% Rule Reversal
Problem Statement
• Lack of ability to quickly provide y q y pvisibility into near time data
• Unable to quickly manage the business through KPI’s transactionalbusiness, through KPI s, transactional
reporting and analysis.
And… Get the Data Right!
• Multiple documented studies show Spreadsheets are prone p pto errors– KPMG found 91% of 22 spreadsheets
taken from an industry sampletaken from an industry sample contained errors.
– Olson & Nilsen found a 21% cell error t i d d h trate among experienced spreadsheet
users.
– The University of Michigan found an 11.3% cell error rate among inexperienced spreadsheet users.
Th t b i i f t t id li it d i ibilit & h i tiThe current business infrastructure provides limited visibility & synchronization
Suppliers Manufacturing Divisions Channels End Customer
Distributors
Carriers
CNS b ADTRANSubs
Distributors
EnterpriseEN
VARs
Suppliers Manufacturing Divisions Channels End Customer
Carriers
CN
Supply Chain Planning
S l C ll b tiOrder Allocation & Promising
Distributors
ADTRAN
Demand Planning
Supply Collaboration
Distributors
EnterpriseENCollaborative Sourcing
Ingram
Demand CollaborationTransportation Mgt. & Optimization
VARsExecutive Business Intelligent Dashboard
“ If h f h i id
Quotes worth mentioning……
“ If the rate of change inside your organization is slower than the grate of change outside……..
the end is near”Jack Welch
Jack Welch
Due Diligence• Evaluated 8+ vendors, narrowed field down to two:
– Feature & functionality matrix comparison
• Engaged Industry Experts for Analysis
– Aberdeen, Gartner, Forrester and others
C d t d it b h k i it• Conducted on site benchmark visits:
– Vanderbilt University , Alabama Farmers Cooperative
• Reference ConcallsReference Concalls
– Cisco, Alcatel –Lucent
• Academia
– Georgia Tech, UT, UAH
A l t R ti Ab d GAnalyst Ratings – Aberdeen Group
Process Methodology• Conducted demos to cross functional user group of 20 g p
members
• Presented business assessment of BI toolset to Steering C ittCommittee
– Business Case
– ROIROI
– Expected Results
– Timeline
– Measurement Criteria
– Program Management Reviews
– Contingencies
Quotes worth mentioning……
"There is nothing more difficult to take in hand,hand,
more perilous to conduct, or more uncertain in its success,or more uncertain in its success,
than to take the lead in the introduction of a new order of things"new order of things
Jean-Jacques RousseauJean Jacques Rousseau
Return on InvestmentSolutions reviewed had costs including:g
Initial InvestmentImplementation CostsOngoing Service CostsOngoing Service CostsTraining Costs
• This would support up to 175 users.• Based on anticipated cost savings, a 142% ROI will be realized in year one. (7.1 month payback)
l ll b $ d d l• IT savings alone will be approx. $150K. Individual departments could pay for their own licenses based on their own projected usage / savingson their own projected usage / savings
B fit / Ri kBenefits / RisksBenefits:
– Abstracts reporting from underlying database allowing for easier plug in to different applications. (e.g. new ERP)
– Ability to understand rearrange and dig into results on yourAbility to understand, rearrange and dig into results on your desktop
– Provide a single data point for all metrics, eliminate need for re-working numbers through Excelworking numbers through Excel
Risks:– Oracle Portal is nearing EOL.– All reports will have to be rewritten if we replace/upgrade Baan– Excel is prone to mistakes and consistently provides different p y p
values from different perspectives.
Anticipated Cost Savings
Number of hours spent each week running reports and hand processing in Excel that could be saved each week:processing in Excel that could be saved each week:
Functional Area Hrs / Week7 Departments 102.98
In addition up to 80 hours/week could be saved developingIn addition up to 80 hours/week could be saved developing custom reports in ITThat is potentially 4.73 people or $355K / year
Project Milestones
ADTRAN’s Hierarchy of Supply Chain Metrics
Demand VisibilityForecastAccuracy
On TimeDelivery
SCCost
Performance Tradeoffs
Demand Visibility
Inventory Revenue Margin
HeadcountCapacityS&OPTurns /DOS
Supply ChainPerformanceManagement
Cycle CountAccuracy
Mat’l % of Revenue
LogisticsSpend
Mfg.CycleTime
Inv.Aging
Management
Inventory Weekly Purchase Negotiated RM/FG DC OTD
OperationalEffectiveness
yProjectionAccuracy
yFreightSpend
PriceVariance
gSavings Efficiency Root Cause
BuildPlan
PlannedFG
Deliveries
MaterialP.O. OTD
NPO OpenRequisitions
Turnkey vs.RMS %
QuarterlyMaterial $’s
Spend
ContractManufacturerPerformance
Roll out - DeploymentPhPhase one
Sales Portal
Executive DashboardExecutive Dashboard
Supply Chain AnalyticsO tiOperations
Procurement
Planning / ForecastingPlanning / Forecasting
S&OP Meetings
FinanceFinanceBOD Presentations
Quotes worth mentioning……
“ There is nothing so useless as doing efficiently that which should not be done at all”done at all
• Peter Drucker
Phase Two - Prioritization
• Manufacturing
• QualityQ y
• Inside Sales
• Transportation• Transportation
• Treasury
• Cost Accounting
• Human Resources
• Marketing
Results
• IT department stated that the project was able to reduce the effort by 50% on 10 people who spent 40% of their time currently developing reports.
• In accounting and operations, it was identified that 100 hours per week was saved amongst early adopters.
• With this success and the momentum growing we expect to utilize this tool across the entire enterprise.
Wrap Upl “b h l h ” h dl• Normal “behavioral change” hurdles to
overcome
• Training methodology needs to be managedg gy g
• Consistency versus “Out of Control!”• Consistency versus Out of Control!
• Champions emerge
