4c / control towers
TRANSCRIPT
4C / Control Towers
Guest lecture NHTV
Minor Logistics Management / Module Control Towers
09 / 09 / 2014
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• Business development manager:– CAPE Groep
– eMagiz
• Part-time lecturer:– Saxion University of Applied Sciences
– University of Twente
• Master International Supply Chain Management
• Bachelor Business Engineering
Introduction
/in/sebastianpiest
@SebastianPiest
Agenda
3
• Introduction
• Science / theory
• Practice
• Workshop
shifting borders
peoplemethodologytechnology
5
‘14 - Strategic partnerships with customers
- eMagiz in MKB Innovatie Top 100
‘13 - Winner FD Gouden Gazelle : 270% growth
- Network TMS & Control Towers
- PTV xServer / Jaspersoft partner
‘12 - Winner FD Gouden Gazelle : 272% growth
- Turn key solutions : TMS & WMS
‘11 - Iris independent > eMagiz ®
‘10 - Supply Chain Apps
‘09 - Development of Iris
‘08 - Mendix Partner
‘06 - Systems Integration
‘00 - Consulting & implementations
History CAPE Groep
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• Shifting borders
– People: Jointly collaborate on improvements
– Methodology: Change is the only constant
– Technology: IT as ‘business enabler’
• Expertise areas:
– Continuous process improvement
– 100% fit Software for Logistics & Supply Chain
– Systems & Supply Chain Integration
– Business Intelligence & Reporting
– Cloud & Mobile computing
Partner for agility & innovation
• Since 2000
• 25 FTE (HBO+/WO)
• Between Business/IT
• Customer intimacy
• Benelux customers
• HQ in Enschede
• Privately owned
• FD Gouden Gazelle
• Graydon AAA
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Vision & propositions
Leverage Investments
In Control
Speed
Agile
IT as ‘business enabler’
Users First
Business is driving project,
but IT stays in control
Build, deploy and integrate
in days
Requirements change
That’s OK!
IT is enabler ,
driving opportunityListen to your users!
Produce better results,
Reduce project risk,
Create and maintain a
100%fit
Reuse existing templates,
components, data,
skill sets, components
The only certainty is change
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Knowledge Technology
Alliances
9
Customers
Logistics Transport Construction
Supply chain eCommerce / Retail Health / Insurance
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Introduction
Science / theory
Practice
Workshop
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• NL orchestration ambition
• Focus program
• 2 themes:
– 4C
– Service Logistics
• Supply Chain Campus
Top sectors
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24% empty milage
57% utilization degree
43% overall transport efficiency
4C: Cross Chain Control Center
30% cost savings 50% CO2 reduction
17% cost savings15% CO2 reduction
5% cost savings
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Supply Chain Agenda
Source: Supply Chain Agenda - Capgemini
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Logistiek.nl / SCM.nl
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Control tower case studies
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1. Technology available
2. Industry adoption
3. Results are here
Hype or not?
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Supply Chain Orchestration requires the
latest technology, advanced
software concepts and logistics
professionals.
Successful control centers however are not
just about physical flows of goods, but
especially about organizing smarter
information and -financial flows.
Prof. Dr. Walther Ploos van Amstel
Hype or not?
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Supply chain control towers are becoming
a reality.
Implementing the concept of a control
tower in supply chains frees us from
operational fire fighting and allows us to
rethink our supply chain planning en
execution at more tactical and strategic
levels.
Prof. Dr. Jos Hillegersberg
Hype or not?
20
Supply Chain Control Towers are not a
hype, they will radically change the way we
run supply chains.
Most existing collaborations are vertically
oriented, for example between buyer and
supplier.
Horizontal collaboration with direct
competitors is newer and more challenging
to initiate.
Prof. Kees Jan Roodbergen
Hype or not?
21What’s in the name
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• Air traffic control tower
• Matrix boards
• Process industry
What’s in the word?
What’s in the name
23What’s in the name
24What’s in the name
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People
• Mindset
• Domain knowledge
• Specific knowhow
Methodology
• Process design
• Collaboration
• Gain/cost sharing
Technology
• Data collection
• Aggregation of data
• Enrichment of data
Visibility:
• Central information hub
• Network display of multiple supply chains
Advanced control mechanism
• Dynamic execution of different supply chains
• Instant action
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What is a control tower?
27End to End Visibility / direct action
Shipments
Returns
SupplierRoad
transportCross dock
Sea transport
Road
transportWarehouse Customer
Cross dock
Air transport
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Internal Vertical Horizontal Cross chain
Operational, internal
process
improvement.
Break down the silos
in the organization.
Single version of the
truth.
Optimization of
transport /
production nodes of
1 specific chain
(End-2-End).
Vertical in- /
outsourcing of
operations from
control tower.
Bundling of
materials / flows of
goods from
comparable chains.
Maximal utilization
degree, centralized
and neutral decision
making.
Dynamic
optimization of
different nodes from
multiple chains.
Advantages for all
actors.
Types of Control Towers
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Supply chain integration
Source: Gartner
Cross Enterprise Collaboration &
Optimization
Many-manyintegrations
with multi-tier actors
Mashboards
Network TMS
Control Tower
Cross enterprisecollaboration
Planning integration
Integration with1st tier
customers & suppliers
Visibility Portal
Business Intelligence
Enterprise Service Bus
Externalintegration
Cross-functionalintegration
Insight in enterprise wide
performance:
Dashboards
Enterprise Application Integration
Internalintegration
Planning optimalization
Missing pieces:
TMS
WMS
Reporting
Add-ons/Apps
Functional focus
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• 2 main streams:
– Supply Chain Control Tower
– Logistics Control Tower
• Enterprises in complex chains / networks
• Enterprise / system exceedingcollaborations
Users
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• Actors:– OEM
– Contract manufacturers
– Components suppliers
• Concepts:– Profit driven demand / supply matching
– Risk management
– Cost and gain sharing
– Spare parts planning
Supply Chain Control Tower
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• Actors:– 4PL
– 3PL
– 2PL
• Concepts:– Synchromodal logistics
– Order simulations
– Consolidations and optimisations
– Return logistics
– CO2 reduction
Logistics Control Tower
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How to leverage a control tower?
Insights, Visibility,
Pro-active alerts
Instant action!
Platform for data
aggregation
Cost savings on IT
Platform standardization
Self service for users!
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• Reduced time to problem resolution, obtain alternatives in seconds;
• Significant cost savings in supply chain operations;
• Holistic cross supply chain view with real-time insight in exceptions;
• Maximum agility in terms of speed, reliability and flexibility;
• Optimal utilization of assets and infrastructure to avoid congestions;
• Focus on managing and servicing critical relationships;
• Risk mitigation for quick and effective disaster recovery.
Benefits & added value
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• Opportunity for NL: orchestration / logistics hub EU
• Addresses #1 challenge on the Supply Chain Agenda
• Beyond the hype,… demonstrating impressive results
• A control tower is more than software, key components:– Optimization of supply chain collaborations
– Network display of multiple supply chains with a central information hub
– Advanced control mechanism to instantly act
– Dynamic execution of multiple operational supply chains
• 4 types, comparable functions, endless varieties (1001)
Wrap up
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Introduction
Science / theory
Practice
Workshop
Process 4. Planning / grouping / consolidations
Costs & charges
Carrier selection 39
Process 2.Customer Services
S.L.A. per customer
Order management
Process 1.Quotations
Spot quotes
Tendering
Process 3. Distribution scenarios
Hub & spoke network
321 4
€
EDI
XML,
EDIFACT,
IDOC,
CSV / etc
Processes logistics service provider
40
Process 5. Terminal handling
Cross dock
Rerouting
Process 6. Dispatching
On-board computer
Documents
Process 7Carrier / charter
management
765
Process 8Settlements
Reporting
Finance
8
Processes logistics service provider
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TMS
WMS
APS / Maps
Finance
Payroll
Back-officeMiddleware
Customs
Front-officeRe
ceiv
er
Proof of Delivery (POD)
Track & Trace / ETA
Dispatching & Labeling
Shipment planning
LSP
/ C
arri
er
Cu
sto
me
r
Orders (EDI / Web)
Quotes (km / € / CO2)
Cloud Portal
ERP
FMS
…
Data analyses / BI
Reports / Dashboards
Message exchange
Notifications & Alerts
Invoicing & self billing
B2B / Devices
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Control Tower
Network & Master Data
End-2-end supply chain visibility
Planning optimization
Event- & change management
Advanced reporting &
analytics
Responsive, multi device,
interfacesIntegration hub
Control Tower Software
- Workflows
- Profiles
- Contracts
- Orders
- Track & Trace
- Performance
- What if scenarios
- Algoritmns
- Consolidations
- Alerting
- Business rules
- Alternatives
- Problem resolution
- What if scenarios
- Dashboards
- Analytics
- Audit trail
- Root Cause Analysis
- Simulations
- Desktop app
- Tablet app
- Smartphone app
- Packaged software
- Legacy
- SaaS
- Cloud apps
- B2B
- Locations
- Legs
- Carriers
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Synchromodal Control Tower (Vertical)
Control Tower for 27 hubs world wide (Internal/Vertical)
eCommerce Control Tower (Vertical)
Network platform for 19 DHB / TeamTrans partners (Horizontal)
Control Tower for vehicle theft (Vertical & Horizontal)
Business Cases
Internal Vertical Horizontal Cross chain
Operational, internal
process
improvement.
Break down the silos
in the organization.
Single version of the
truth.
Optimization of
transport /
production nodes of
1 specific chain
(End-2-End).
Vertical in- /
outsourcing of
operations from
control tower.
Bundling of
materials / flows of
goods from
comparable chains.
Maximal utilization
degree, centralized
and neutral decision
making.
Dynamic
optimization of
different nodes from
multiple chains.
Advantages for all
actors.
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Internal Control Tower
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Internal Control Tower:
• Operational, internal process improvement
• Break down the silos in the organization
• Single version of the truth
Challenges:
1. Alignment about processes, roles and management
2. Maturity of underlying IT systems and data integration
Internal Control Tower
Internal Control Tower
Hub Madrid
Hub Netherlands
HubBelgium
Hub Mexico
Hub Seattle
Distribution partner
Distribution partner
Cost allocation (planned & actual)
KPIs customer contract performance
Network configuration
Track & trace
Overviews
Internal Vertical Horizontal Cross chain
Operational, internal
process
improvement.
Break down the silos
in the organization.
Single version of the
truth.
Optimization of
transport /
production nodes of
1 specific chain
(End-2-End).
Vertical in- /
outsourcing of
operations from
control tower.
Bundling of
materials / flows of
goods from
comparable chains.
Maximal utilization
degree, centralized
and neutral decision
making.
Dynamic
optimization of
different nodes from
multiple chains.
Advantages for all
actors.
54
Vertical Control Tower
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Vertical Control Tower:
1. Optimization of transport / production nodes of 1 specific chain (End-2-End)
2. Vertical in- / outsourcing of operations from control tower
Challenges:
1. Information from supply chain partners
2. Network information (terminals, time slots)
3. Collaboration
Vertical Control Tower
Vertical Control Tower
EDI
Customer portal
Consignee Orchestrator Carrier (road/sea/air)
TMS/FMS TMS/FMS
Real time data :- Orders- Planning- Track & trace- Congestions
Order details
Available network & modalities
Control tower planning algorithm
Order details
Network
Planning algorithm
Optimal route
Decision criteria :- Costs- CO2 reduction- Lead time- Service level
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Pre processing – Network access
Control tower planning algorithm
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Pre processing – Limit hubs / depots
Control tower planning algorithm
Show optimal route and alternatives
Internal Vertical Horizontal Cross chain
Operational, internal
process
improvement.
Break down the silos
in the organization.
Single version of the
truth.
Optimization of
transport /
production nodes of
1 specific chain
(End-2-End).
Vertical in- /
outsourcing of
operations from
control tower.
Bundling of
materials / flows of
goods from
comparable chains.
Maximal utilization
degree, centralized
and neutral decision
making.
Dynamic
optimization of
different nodes from
multiple chains.
Advantages for all
actors.
63
Horizontal Control Tower
64
Horizontal Control Tower:
1. Bundling of materials / flows of goods from comparable chains
2. Maximal utilization degree, centralized and neutral decision making
Challenges:
1. Trust and collaboration with competitors
2. Shift from individual focus to group focus
3. IT Maturity of supply chain partners
4. Standardization of processes / information (labels, references)
5. Cost- and gain sharing
Horizontal Control Tower
Horizontal Control Tower
EDI
Customer portal
Network customers Network partners
TMS n
Visibility :- Orders- Planning (regions)- Track & trace
Decision criteria :- Tarrifs- Damage- KPI reports- Invoicing- Cost & gain sharing
TMS 3
TMS 2
TMS 1
X-Dock scan 1
TMS 4
X-Dock scan 2
X-Dock scan n
Lemelerveld
Nijverdal
Hengelo
Enschede
48
km
Zwolle
Cost and gain sharing in between supply chain partners
60
km
63
km
48 km
46 kmPartner 1 : Loading Partner 2 : X-Dock
Pa
rtner 4
:
Un
loa
din
g 1
Partner 3 : X-Dock
Actual km
Planned km
SynchromodalIT
IT Services for Synchromodality
25/02/2015 68
1. Data integration is extremely difficult:
lack of standardization
lack of reliable and publicly available information
lack of common data models and semantic interoperability
2. IT logistic chain integration is challenging:
Diversity of IT landscape @ partners
There is no true real-time process integration/orchestration (e.g.,
no integration with on-board devices)
Key challenges in 4C / synchromodal logistics (1/2)
25/02/2015 69
3. Synchromodal planning must take into account terminal
restrictions, freight consolidation (within/of containers), and
alignment with production/inventory planning of shippers…
underlying algorithms need a lot of parameters.
4. The mental switch must still take place!
Key challenges in 4C / synchromodal logistics (2/2)
70
Wrap up: the control tower journey
4. Incremental approach, no big bang
5. Change the way you work
2. Strategic management support
3. Joint business case for all partners
1. Vision and believe in collaboration
6. Learning by doing, moving objectives
71
Introduction
Science / theory
Practice
Workshop
72
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• Design a control concept for your role in the supply chain
• Formulate your negotiation strategy:– Business case: why participate?
– Cost and gain sharing
– Governance form
– KPIs: how to measure the performance?
• Formulate your implementation strategy– Arrangements / contract
– Organization / processes
– Logistical integration
– IT / data requirements
Workshop
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In support of its contract logistics and supply chain management activities, Kuehne + Nagel Logistics offers total logistics planning, control and execution services, which are designed to turn its customers’ logistics into a competitive advantage. One such client is Unilever, a global manufacturer of Fast Moving Consumer Goods (FMCG). Crucially, the cornerstone of Unilever’s customer service philosophy is the assurance it offers retailers that Unilever always delivers what it promises, and on time. That is why Unilever turned to Kuehne + Nagel Logistics to help it improve its lead times and order processing time. Kuehne + Nagel wants to design a control tower for Unilever and invited both Unilever and the top 3 retailers Albert Heijn, C1000 and Jumbo.
Case 1:
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The PostNL eCommerce division offers online fashion retailers eFulfilment services to integrate their webshops with the logistical operation of PostNL. Key customers are WE Fashion, Expresso and M&S Mode. PostNL collaborates with several subcontractors to manage fluctuations in demand. Due to heavy price competition the margins of PostNL are under pressure. PostNL asked the neutral supply chain orchestrator CAROZ to design a solution to reduce the cost to serve the key customers of PostNL and focus on improving customer service for its key customers. CAROZ invited PostNL, WE Fashion, Expresso and M&S Mode to discuss potential process optimizations and a cost reduction program.
Case 2:
76
• Questions?
• Feedback
Thanks for your attention!
QA
77