supply chain execution- solving business issues or just yet more headaches ? presented by: david l...
TRANSCRIPT
Supply Chain Execution-Solving business issues orjust yet more headaches ?
Presented by: David L MarshallPreCognition Ltd
Business consulting in technology
In the land of the blind the one eyed man is king- why visibility dramatically reduces returns
Return on Investment, strategists dream or an FD’s real business case scenario ?
Soft World or hard reality - How do you select and implement the right software project to provide hard benefits
Collaboration or Integration, how SCEM is the logical progression from electronic trading
Agenda
Supply Chains are under Pressure
• Globalization• Less vertical integration• Brittle supply chain
Supply uncertainty
Demand uncertainty
• Consumer behavior• Demand Forecast Error• Shorter Product Life Cycles• Longer Supply Chains
Critical business issues by type
MARTEC International©
Business process
Supply chain
visibility
Technical constraints
OtherCommunications
22%
15%
9%
6% 5%
% of total responses
30
27
24
21
18
15
12
9
6
3
0
Supply chain visibility
Supply chain
visibility
Financial No benefitsSuppliers
38%
22%
14%
12%
7% 6%
% of total responses
Stock Customers
MARTEC International©
Benefits - Improving Information Exchange
Supply chain visibility
Return on Investment, strategists dream
or an FD’s real business case
scenario ?
Optimisation ?
Firms overspend on optimisation . .
Average budgeted amount: €9.7mAverage amount spent to date €16.9 m
0%
20%
80%
4%
28%
68%
0% 20% 40% 60% 80% 100%
Less thanexpected
As expected
More thanexpected
Cost
Time
“How much did your supply chain optimisation implementation cost?
How long did the project last?”
Base: 25 European companies implementing supply chain optimization
Direct Communication
Fax/E-mail Paper
1%
11%
2%
76%
9%
Traditional EDI
% of total responses
Web EDI
100
95
90
85
80
75
70
65
60
55
45
40
35
30
25
20
15
10
5
0
UK Suppliers
Direct Communication
Fax/E-mail Paper
0%
3% 3%
87%
7%
Traditional EDI
Web EDI
100
95
90
85
80
75
70
65
60
55
45
40
35
30
25
20
15
10
5
0
100%
EU Suppliers
MARTEC International©
Communication methods 2003
Low exploitation of available technologies
11%
3%
Traditional EDI and Web based electronictrading – poor take up
Is EDI dead ??
Or just pining ??
To develop adaptive supply networks
firms must embrace three principles
AdaptiveSupply Network
3. Implement adaptively
Deploy supportingtechnologies incrementally
2. Operate adaptivelyManage business processes
by exception
1. Organize adaptivelyNew structure
and performance metrics
implemented toenable organizational
flexibility
Adaptive supply networks
Kewill integrated solutions
ASNs let firms proactively respond
Optimisation focus
Input for Input fordecision-making
Problem-solving
Origin of demandinformation
Executive imperative Cost-cutting
Efficiency
Historical data
CentralisedManual
Crystal ball
Efficiency and agility
Leading indicators
DecentralisedSoftware assisted
Point-of-sale data
Risk management
In today’ssupply chains
In adaptive supply networks
“40% growth in sales and profits
over 3 years”BUT• No increase in stock• No increase in warehouse space• Improved customer service• Maintain product profit margins
The FDs objectives...hard realities
• Real-time order processing• Supply chain event
management• SLA / KPI management• Reduce on hand stock• Cross dock integration• Automated billing
Moving to Direct Dispatch
Direct Dispatch – removing DCs
• Improved efficiency • Direct dispatch from supplier to
customer• Supply chain collaboration
– suppliers– call centre – carriers
• Visibility of the complete supply chain
The Solution from Kewill Systems
Kewill provision of exceptions visibility
Customer JDW Kewill Supplier Carrier
Customer JDW Supplier Carrier
Kewill
Current System
New System
Adaptive workflow from Kewill
• Reduced order cycle time• Increased range and volume of
products with no increase in stock or commitment
• Improved customer service• Reduction in cancelled orders• Reduction in supply chain costs
Benefits derived from Kewill
To adaptive supply networks
Actions can be taken to reduce the likelihood of returns
Pre-emptive shipment reporting
Choosing the right software
Soft worlds – Hard realities
Choosing the right software
Collaboration in action…. Whiteboards for Supply Chain partners
Shipment status alerts
