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  • Creating a Supply Chain Analytics Center of Excellence Whats the Big Deal?

    March 17, 2016

  • Meet the Presenters

    Gertjan de Lange Connecting Business and Optimization SVP, AIMMSGertjan has 2 decades of experience in Analytics and Operations Research. He works closely with our customers, partners, academia and research organizations like Gartner as well as our sales, client support and R&D team to make sure we capture the business value of optimization for our customers.

    Chris GordonVP, North AmericaChris has worked in supply chain consulting and operations across Europe, the US and India for more than 25 years. Hes driven dozens of supply chain initiatives with a heavy focus on leveraging analytical evidence to promote major business change.

  • Exec SummaryBusinesses and supply chains are seeking new approaches to get ahead in the analytics age. Are you looking for

    fresh ideas to update your organization, methods and tools to make the best of this huge opportunity?

    Topics addressed in this webinar:

    > How analytics can transform your organization

    > Defining the opportunity

    > What is a Supply Chain CoE

    > The CoE Pyramid

    > Getting buy-in and agreement

    > Supply Chain Centers of Excellence maturity

    > Maturity in the market some examples

    > Q&A & Next steps

    3

  • How Analytics Can Transform Your Organization

    4

    Tribalknowledge Sacredcows

    ExperiencedOperators

    Towers/Pillars

    Datasupporteddecisions

    BusinessPrescriptions

    Businessvaluebaseddecisions

    acrosstheenterprise

    Business is difficult. Most large companies are driven by ambition,

    innovation & chaos

    Butitsnoteasytochange.Technologyshouldbetheeasypart

  • Defining the Opportunity

    5

    PlanningTeams

    Manufacturing &Production Teams

    Transportation &LogisticsTeams

    PricingTeams

    SourcingTeams

    SupplyChainPlanningCapitalProj.Planning

    SupplyPlanningPortfolioOptimization

    ProductionPlanningProductionScheduling

    InventoryMgmt.WarehouseMgmt.

    SKUPricingMarketPricing

    PromotionalPlanningShelfOptimization

    NetworkDesignNetworkOptimizationRouting&SchedulingOptimalFleetSizing

    SupplierOptimizationDisruptionPlanningLTCapacityPlanningProductIntroductions

    LowerCostsIncreasedRevenueImprovedEfficiency

    Un-realizedrevenueof4%

    MinimizeLostSalesIncreasedCustomerSatisfaction

    MaximizeProfit

    SafetyStockreductionsof25%

    IncreasedMarketShareIncreasedRevenueMaximizeProfit

    Gut-feelpricing

    LowerCostIncreasedReliabilityHigherEfficiency

    25%reductioninun-plannedrushshipments

    MinimizedDisruptionLowerCost

    IncreasedReliability

    5%reductioninsupplycosts

  • 01M O D E L

    Centralized Team: The supply chain analytics team is a centralized supply chain function.

    02M O D E L

    Distributed Team: Supply chain analytics competencies reside in individual business units or functions.

    03M O D E L

    Internal Outsourcing to the Enterprise Analytics Group: A general enterprise analytics team handles supply chain analytics needs.

    04M O D E L

    External Outsourcing to a Service Provider: An external service provider handles supply chain analytics needs.

    What is a Supply Chain Analytics CoE?

    Source:Gartner

  • The CoE Pyramid

    7

    In-house

    Partner

    AIMMS

    Recruit (INFORMS)

    LinkedIn

    Operational Research

    Linear programming

    Multi-integer programming

    Non- linear programming

    SourceSkills

    IT Data, UI & Test

    In-house

    IT Partner

    IT Data, UI & Test

    2 days AIMMS training

    Data stewardship

    UX leadership

    Test compliance

    Skills Source

    In-house

    Partner

    Users

    Training & Change

    Change management

    Org design

    SourceSkills

    Business Understanding & functional leadership

    Planning, Manufacturing, logistics & sourcing

    Takes a huge org to justify full time functional representation

    In-house functional teams

    Business advisory

    SourceSkills

  • Getting Buy-in and Agreement to an SC CoE at the Executive Level

    One

    TwoThree

    Four

    8

    Promotion Webinars POCs Use Cases Lunch!

    Opportunity Burning Bridges Quarterly

    Statements Exec Motivations Wild Cards

    Success Real Problem

    Solved quickly Functional

    involvement Revenue upside

    Sponsorship Funding Scaling Tooling

  • Getting Buy-In With Users

    9

  • Applications: Maturity By Supply Chain Area

    10

    IncreasedMarketShareIncreasedRevenueMaximizeProfit

    LowerCostIncreasedReliabilityHigherEfficiency

    MinimizedDisruptionLowerCost

    IncreasedReliability

    MinimizeLostSalesIncreasedCustomerSatisfaction

    MaximizeProfit

    LowerCostsIncreasedRevenueImprovedEfficiency

    68%ofApplications 5%ofApplications 19%ofApplications 3%ofApplications5%ofApplications

    PlanningTeams

    Manufacturing &Production Teams

    Transportation &LogisticsTeams

    PricingTeams

    SourcingTeams

    ProductionPlanningProductionScheduling

    InventoryMgmt.WarehouseMgmt.

    SKUPricingMarketPricing

    PromotionalPlanningShelfOptimization

    NetworkDesignNetworkOptimizationRouting&SchedulingOptimalFleetSizing

    SupplierOptimizationDisruptionPlanningLTCapacityPlanningProductIntroductions

    SupplyChainPlanningCapitalProj.Planning

    SupplyPlanningPortfolioOptimization

  • Maturity in the Market

    11

    Few ManyOne

    #OFAPPS DEPLOYED

    Oil, Gas&Chemicals

    Manufacturing

    Food&Beverage

    ForestryProducts

    Retail

    Transportation

    LifeSciences

    HighTech

    RelativeMaturityofCenterofExcellence

    #ofPrescriptiveApps successfullydeployed

  • Maturity in the Market

    12

    ModelFocused Application&AdoptionFocused

    Novice

    MATURITY

    Oil, Gas&Chemicals

    Manufacturing

    Food&Beverage

    ForestryProducts

    Retail

    Transportation

    LifeSciences

    HighTech

    RelativeMaturityofCenterofExcellence

    #ofPrescriptiveApps successfullydeployed

  • The Audience Today

    13

    Telcom

  • Tailor-Made Apps for IBP/S&OP, Capable-to-Promise and Profitable to PromiseChallengeJBS is a global leader in beef, lamb and poultry processing with over 200K employees worldwide, the company has 340 production units and businesses. They sell to over 150 countries. The company needed a solution that would allow them to explore the best ways to meet demand and allocate production capacity at their different plants.

    Solution JBS decided to redesign their processes to allow for a systematic assessment and

    optimization of multiple scenarios on a much more detailed level. The system that was developed enables them to respond rapidly to changing market prices

    for all of their (intermediate) products on a daily basis at over 45 primary processing plants for 2000+ SKUs. In addition, it allows them to compare these insights with the latest update of their demand scenarios, production capabilities, transport possibilities, and all associated costs.

    Results 25% increase to original margin 90% improvement on adherence to plan Increased adaptability and agility in the planning process An optimized product portfolio with the right inventory levels The ability to integrate Cost-to-Serve analysis and considerations into the S&OP process The ability to collaboratively explore multiple scenarios

    Readmore:JBSCaseStudy,SCBlog,GartnerReport

  • Integrated Planning Solution

    ChallengeBRF is a giant in the global food market and one of the main exporters of animal protein on the plant with food that reaches 110 countries. The Sadia division process over 7M birds per day. The team was looking for an integrated planning solution for its poultry business.

    Solution Statistical models for performance and decision support model to select flocks Individual performance curves per farm

    o Growth, consumption, etc.o Other variables taken into consideration

    Longer and integrated horizon o 30/60 days ahead of time

    Results $ 50 million savings in 2 years Agility in planning & Reacting to adverse situations Improved Planned vs. Actual Detailed planning

  • Driving Profitability with Demand-Pull Respond Planning and Scheduling

    ChallengeNampak is a leading packaging company, with a large glass production facility in South Africa. Increasing needs for product flexibility and production efficiency, paired with rising demand volatility required Nampak Glass to improve their ability to deploy the best possible production schedule at all times.

    SolutionNampak traded Excel for an AIMMS-based planning and optimization tool. Their solution, an application for Demand-Pull Respond Planning and Scheduling, named GOBSS (Glass Optimization Business Software Solution), leverages AIMMS technology to support the companys schedulers, sales and management teams to make the best business decisions through the evaluation and optimization of profit scenarios.

    Results Increased ability to respond to market dynamics and internal production changes Ability to extract more value from their planning process and quantify planning

    changes in a financial way Improved balance between customer service and profitability

    Readmore:NampakCaseStudy,SCBlog

  • Strategic Network Design

    ChallengeA regional food company has skyrocketed in popularity to become the best-se