the future of supply chain planning - logy ry · the future of supply chain planning the changes...
TRANSCRIPT
THE FUTURE OF SUPPLY CHAIN PLANNING
The changes in-memory technology is bringing and what it means to your planning
team
LOGY Conference 2016Tommi Ylinen, RELEX Solutions
RELEX in brief
• Relex provides comprehensive solutions for supply chain management and optimisation
‒ Store replenishment and inventory management‒ Demand forecasting‒ Actionable analytics and reporting
• Wide international customer base
‒ 100 customers in 17 countries‒ Customers in retail, wholesale, and manufacturing
• Market leader with a clear technology edge
‒ Market leader in Northern Europe‒ The fastest growing supplier of SCM solutions within the EMEA
region on Deloitte’s Technology Fast 500 2011-2014‒ Team of almost 200 professional, offices in Finland, Sweden,
Germany, Norway, Denmark, Italy, UK and USA‒ Growing, profitable, cash-flow positive
• Strong experience in retail supply chain
‒ Forerunner in tackling special situations such as assortment changes, campaigns, and seasons during the life-cycle of goods
‒ Capabilities are best harnessed in complex, multi-tier environments with a considerable risk of spoilage or obsolescence
‒ Analysing both the past and future states of the supply chain
2
Hundreds of warehouses, thousands of stores, millions of SKUs, and billions of euros are managed with RELEX’s solutions.
8.2.2016
Why in-memory computing is emerging now
$1
$10
$100
$1 000
$10 000
$100 000
1990 1995 2000 2005 2010 2014
Average RAM cost per GB
1The amount of data and information that companies capture is growing exponentially but the data is still being constantly underutilized
2 RAM is approximately 106 times faster than traditional hard disk measured by latency
3 The price of RAM memory has fallen below a point where it is now economically feasible to develop more applications that utilize IMC
Average RAM cost per GB
$1
$10
$100
$1 000
$10 000
$100 000
1990 1995 2000 2005 2010 2014
ElBil Norge Buddy Cab1991 (Source: http://www.uptenlist.com/cars/10-best-smallest-cars/) Tesla S 2015 (Source: https://www.teslamotors.com/)
8.2.2016
8.2.2016
In-memory computing will change analytics
Dimensions of Value Creation with IMC1
Performance Simplification
Process Innovation Flexibility
• Analyze very large data sets in seconds or minutes, not days or weeks
• Improved performance allows for more iterations to be run and leads to additional insights increasing the quality of the analysis
• The complexity of data models can be reduced due to the reduction in layers
• Simpler data models enable faster creation, less testing, easier adaption and reduce sources of potential errors
• The performance gain offers the potential for innovative applications to differentiate from competitors
• Completely new processes are made possible by the performance improvement and real time nature
• Modification of the analysis is fast and happens in real time
• New data sources can be easily plugged in and used in the calculation right away
Source: Deloitte – In-Memory Computing technology – The holy grail of analytics
8.2.2016
*IMC = In Memory computing, *SCP = Supply Chain Planning
In-memory computing will change SCP dramatically
Source: Payne, T. (2014) The Impact of In-Memory Computing on Supply Chain Management. Gartner research.
22.10.2015
Traditional supply chain solutions and processes have been separate and focused on different timelines and SC phases
Local excecution and planning systems (e.g.
WMS, MES)
Sales & Operations Planning workbenches
Supply chain optimisation tools
(APS tools) for manufacturers
Replenishment and inventory management
tools
8.2.2016
Order plan Delivery plan
Supplier
Supplier
Supplier
Suppliers
DC shipment plan
Inventory forecast
Distribution center Channels
Inventory forecast
Inventory forecast
Demand forecast
Demand forecast
Modern solutions link inventory management, capacity & SOP, SC optimisation, and business driven stock allocation
Supply chain plan is based on: • Demand forecast• Stock levels & open orders at the regional DCs• Lead times, delivery cycles, safety stocks &
batch sizes• Planned allocations & sales orders
Supply chain plan is useful for: • Continuously checking if enough inventory
to fulfil the demand• Checking if supply chain capacity can fulfil
the plan• Trying alternative plan scenarios, especially
in uncertain demand
8.2.2016
We need smarter planners
• People will have more access to data and more possibilities to try different alternatives
• Solution flexibility enables customer driven development
• They have to understand the dynamics of the whole supply chain to make the best decisions
8.2.2016
Typically in enterprise software fitting the solution to company processes cause over half of the costs
Source: Eolhager, J. Selldin, E. 2003. European Journal of Operational Research 146. p. 365-373.
Application licenses
Supporting licenses
Hardware
Implementation andconfiguration services
Source: IDC
Software andhardware
Implementationand professionalservices
Other
And still processes are often changed to fit the package ... IMC has the power to change that!
8.2.2016
Power to the people – in memory enables planning experts implementing new logic directly
• Flexibility increases the knowledge requirements of your planning team
• There is no replacement of knowing what should be done and achieved
• When the systems are not holding you back – ensure that you have the people to take your process where you want to!
8.2.2016
How to drive to the best supply chain process
1. Get the right people on the bus – recruit appropriate talent
2. Define where you need to drive – develop your goal and vision
3. Get appropriate tools for navigation – get the right tools and processes
4. Ensure (empower) development of the people and the tools
In-memory based supply chain planning systems will make your process more flexible and open to continuous development – at the same time the value of
talented and well-trained people will be greatly increased
