know about problems before your customers do

Order Visibility:

Know About Problems Before Your Customers Do

www.KnowYourSupplyChain.com

23 October 2012

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What We’ll Cover Today

• The importance of Supply Chain

visibility

• The link between Order Visibility and

customer satisfaction

• Customer case studies that enable

revenue growth, cost reduction and

increased customer satisfaction

• Prescriptive steps that generate value

and momentum


One Recipe For SuccessSupply Chain Companies’ #1 Priority: Customer Satisfaction

Integration

Visibility

Focus &

Simplification


Market DriversHow Companies are Responding to the Challenges

To help drive competitive advantage, leading companies are investing in

technology supporting Supply Chain Visibility and Order Management


Specific Solution Areas Covered

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KNOW What Impacts Order VelocityOrder Monitoring

Proactively alert on the following conditions:

• Credit Block

• Delivery Block

• Delivery N/A

• Incorrect SKU

• Missing Quantity

• Incomplete Order


How Do You Get Customers To Love You?

Perfect Product

Perfect Price

Perfect Delivery

Perfect Order?


If You Can’t Wait for Perfect…..

Deliver Consistency

React Quickly

Continually Improve

Act Consistently

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“Firm”Real-time

0 (No value)

-∞ (disaster)

HardCritical

“Soft”Real-time

-n (Penalty)

HardEssential

Reacting Quickly and Reacting Optimally“Real Time” vs. “Right Time”

Value

Time

Deadline

+

-

0

Source: Dr. Opher Etzion


KNOW the Impact On Your CustomerCustomer Order Backlog


The Opportunity | Convert “Right-time” to “Real-Value”

Value

Business event

Data captured

Action taken

Intelligence delivered

Time

Reference: Richard Hackathorn – The BI Watch: Real Time to Real Value

ActionAccelerator

Opportunity

• Order arrives from customer• Customer orders back-ordered / out of stock product

• Truck at loading dock Missed Opportunity

• Order stuck on credit hold• Customer cancels order

• Truck has left the dock


KNOW How Your 3PL Providers are Performing

Visibility to Each Transaction Processing Step:

Order-to-Ship transactions related to Customer Orders are

tracked at each processing step and real-time metrics such as

average step processing time reveal higher than normal cycle

times indicating a problem

SLA Violation Monitoring & Alerting:

Rules set for metrics such as # of violations

point to higher than normal error & stuck order

occurrence


We All Know How To Start

• Start small and focused

� Identify the critical few issues

� Single process

� Single pain point

• Start with a process that affects service levels, revenue and profit

• Have a template to start from that can be tailored

� Achieve results quickly

� Implement a specific solution for a specific problem


KNOW About Problems Before Your Customer DoesProcess Assurance: Advance Ship Notification

• Extends to real time monitoring of ASN Acknowledgements

• Allows Production Support to Proactively contact the customer


KNOW the Critical CheckpointsDelivery and Customer Replenishment


KNOW Where Your Order IsLeverage diverse data to provide superior customer service

• Link diverse internal

and partner systems

• Provide a messaging

interface for all event

signals from all 3PL

providers

• Integrate BPM

workflow technology

to proactively manage

alerts


KNOW What Drives Your Cash Conversion Cycle

Get the Work Do the Job Create the Invoice

QuoteCreate the

InvoiceSales OrderEnquiry End of JobRevenue Booked

Invoice Delivered

InvoicePayment

Show Me the Money


Beyond Visibility: Know more than “the Score”

• Instrument the Process at key

action points

• Intelligently understand when

orders are not flowing correctly

• Ability to take immediate action

and see immediate results


Focus on Critical Monitoring Points

Industry.PerformanceREADY Best Practice

Industry.PerformanceREADY processes are based

on Industry Best Practices and hundreds of

enterprise system implementations

Focus on the “critical few” monitoring

points of a more complex process


Distilling a Complex ProcessHow to identify the “Critical Few” monitoring points

DATA: Data exists (and are readily available) at the identified process step

VALUE: The step is a point where value is either created or lost – value as recognized by

the organization, a customer, a supplier/partner

DIFFERENTIATION: The underlying measurements have changed in a significant way from

the steps before or after (eg: if three sequential steps all have the same underlying data –

and cycletime measurements are not critical – then there is no value in monitoring all three

steps)

ACTION: Surfaced metrics, alerts & insight drives action

LEADING INDICATOR: Monitoring the step can provide an early indication of potential

issues downstream in the process

Not every process step is equal: the value of process instrumentation is

directly tied to selecting the appropriate monitoring points


Best-in-Class Solutions Provide Content in ContextProcess performance metrics, not just process outcomes

12


The Software AG Answer Out of the Box iKnow Order Visibility Solution

Fast Delivery: 8 weeks; fixed pricelicense and services

Integrates data across multiple systems to provide a 360 degree view of the

Order to Cash Process

Pre-configured Processes, Dashboards, KPIs and Alerts

Fixed price, short time to value solution built on the success of

clients like Kraft, Coca-Cola Enterprises & Baker Hughes


Process Visibility is the First Step to Business Process Excellence

• Model Processes, Roles &

Organizations

• Foundation for joint understanding

and operational standards

• Business Process KPI Visualization

• Real-time visibility

• Alerts, Thresholds

Process Mapping

Process Instrumentation

• As-Executed Process

• Process analytics

• Root cause analysis

• Benchmarking

Process Analytics& Benchmarking

• Workflow Automation

• Process GUIs

• Business Rules

• CPI Framework

Process Improvement & Automation


More to Explore

Online Articles: Supply & Demand Chain Executive

Blogs: B2B.com

2 Minute iKnow YouTube Video


Continuing the Conversation

Nov 11 – 13

Richmond Supply

Chain Forum

Scottsdale, AZ

Nov 13

Lunch & Learn

Charlotte, NC

Nov 14

Lunch & Learn

Dallas, TX

Nov 15

Lunch & Learn

Atlanta, GA

Minneapolis, MN

Oct 15 – 17

Process World

Orlando

Oct 22

Supply Chain

Visibility Webinar


THANK YOU

KnowYourSupplyChain.com

know about problems before your customers do

Technology