optimizing your supply chain execution planning

Optimizing your Supply Chain execution planning

August 30, 2012

Adding Credibility

ORTEC has partnerships in numerous countries, spanning all continents

Characteristics:

Customers: 1550+

Countries: 40+

Revenue: €60M+

# years: 30+

Employees: 650+

Consumer

Packaged

Travel &

Transport

Retail Professional

service

Healthcare Sports

ORTEC Facts & figures

September 3, 2012 | 2

A strong combination - Combining logistics business knowledge,

mathematical models and IT within Planning Systems

Logistics Process Knowledge Understanding the customer – “talk the talk”

Information Technology User friendly systems that utilize

the full potential of IT

Operations Research Intelligent decision support

and process optimization


ORTEC Core Competence

Adding Credibility

Case: Importec

Adding Credibility September 3, 2012 | 4

Company Profile: Importec

Main business:

Import and distribution of high quality Belgian Beers

Details:

742 customers (and counting) in the Netherlands

1 warehouse near Breda, from where distribution is done

6 different types of beer

Both kegs and bottles in crates

20 company owned trucks

2 supplying breweries


Question from manager:

«How is it possible that our increase in volume of 10%

is reflected in 15% additional transportation costs? »

Background question of manager:

What are the factors influencing these additional

transportation costs?

Manager decides to consult an external party for

analysing our complete Supply Chain!


Managers question

SCOR Project Approach

1. Business strategy & vision

Who are your customers and what do they need?

What is your business strategy and proposition?

2. Supply chains

Which supply chains are in place to execute the strategy?

What is the strategy per supply chain?

3. Data analysis & scenario calculation

What are the relevant metrics?

What is the necessary performance to live up to the strategy?

What are gaps between current and necessary performance?

4. Recommendations

How to improve the performance?

What is the quantitative potential of the improvements (impact, risk)?


Recommendations

No Actions Project Description Impact Effort

1 Implement elements of S&OP • Communication between Sales/Marketing and Operations

• Implement Tools and Methodology

• Improved cooperation

+++ ++

2 Implement elements of

Dynamic Pricing and Revenue

Management

• Implementation of fees and discounts

• Phased implementation

• Reduced Cost AND increased Revenue

+++ +++

3 Redefine Supply Chain

organisation

• Evaluate options

• Organise new lay out

+++ +

4 Tool for route planning • No more paperwork

• Operational planning support

++ ++

5 Proactive Sales • More customer oriented activities

• Proactive sales to existing customers

• Get more value out of current customers

++ +

6 Summer peak shaving • Analyze Stock out data and late deliveries

• Roll out VPL

• Even out demand

+++ +

7 Optimise load for trucks • Automate process

• Train planners

• More efficient use of truck capacity

++ +

8 Reconsider brewery delivery

contracts

• Discuss late deliveries

• Communication between Sales/Marketing and Supplier ++ +


high

Effort

Imp

act

medium low

high

medium

low

1 2

7

6

5

nice to

have

consider

carefully

quick

wins

sponsor

issue

3

4

8

Recommendations

1.Implement elements of

S&OP


Dynamic Pricing and

Revenue Management

3.Redefine Supply Chain

organisation

4.Tool for Route

Planning

5.Proactive Sales

6.Summer peak shaving

7.Optimise load for

trucks

8.Reconsider brewery

delivery contracts


Network Approach


Model set-up and data gathering

Determines what aspects of reality will be in the model and in what way

Rebuild the "AS IS" situation and validate against reality → Is the model accurately reflecting reality?

Define and compare scenario‟s

Define scenario‟s and calculate effect on supply chain → Gain insight in possibilities

Comparing scenario‟s and decide the current and future direction to go → decide and make the change!

Typical Supply Chain Network Analysis

Importec current Supply Chain


Importec Supply Chain Option


Importec Supply Chain Choice


Planner‟s needs

In order to be able to manage and be in control of the new Supply

Chain, our planner needs

An integrated planning solution that enables him to control the

redesigned routing operations

The tool must give him insight in important parameters and predefined

KPI’s like

Respecting time windows

CO2-emissions

Loading ratio of the trucks


Example of operational support

Load Optimization in SAP TM


Benefits for you

Increase trailer optimization / reduce number of cut orders or trailer „full‟ shortages

Minimization of packing, order picking and loading times / Increase labor productivity at the warehouse

Benefits for your customers

Reduce product damages / Increase service levels

Reduce dock time at your customers / Increase safety when unloading

2_ Transportation planning demo 2_Ortec.pptx

Next (optimization) steps

After instaling and stabilizing the system, the planner will be able

to do additional analysing:

1. Analysing/monitoring key data Fill rate

CO2 emission

Cost per delivery

Kilometers & working hours

2. Optimizing the process and the use of the operational system

Also the inbound transport can be planned by the new system


high

Effort

Imp

act

medium low

high

medium

low

1 2

7

6

5

nice to

have

consider

carefully

quick

wins

sponsor

issue

3

4

8

Recommendations


S&OP


Dynamic Pricing and

Revenue Management

3.Redefine Supply Chain

organisation

4.Tool for Route Planning

5.Proactive Sales

6.Summer peak shaving

7.Optimise load for trucks

8.Reconsider brewery

delivery contracts


Global Network for Belgian brewery


Optimizing your supply chain execution planning


ORTEC experiences

Adding Credibility

ORTEC Consulting Group awarded

“In the first year alone using ORTEC’s solution, Coca-Cola

Enterprises realized a savings of $45 million dollars” said Mike

Jacks, Director of Logistics Systems. “We are extremely happy

with the solution and have been since 2004.”

2007 Finalist

2012 Winner

“TNT Express, supported by ORTEC’s modeling capabilities and

solutions, carried out numerous optimization projects which

resulted in saving 60 million kilometers of mileage and 54

million kg of CO2 emissions by optimizing its domestic

networks in Germany, France, Spain, Italy and China alone.“


ORTEC Consulting Group

https://portal.ortec.com/sites/msp/ORTEC Pictures/ORTEC Graphics/ORTEC Graphics/Resource schema TTL blauw-1.jpg



Strategic & Tactical consultancy

SAP logistics consultancy

ORTEC Pallet & Load Building for

SAP TM

ORTEC LEO, Logistics Execution

Optimizer for SAP ERP

Adding Credibility

ORTEC SAP services:

ORTEC solutions for SAP:

ORTEC and SAP


What about your Supply Chain?

It‟s your business! We have the brains, the tools, the experience to optimize it.


optimizing your supply chain execution planning

Business

supply chains

complete supply chain

business strategy vision

supplieradding credibility

breweriesadding credibility

existing customers

importecmain business

necessary performance