Achieving Greater Supply Chain

Visibility

07 MAY 2014 Chris Cameron

Senior Solutions Architect, Elemica

Session Context

This breakout session is the companion to the earlier session, “Project Cornerstone; A Journey Towards Superior Logistics Visibility” This presentation will go deeper on the design principles and key tools to achieve the goal

Elemica Supply Chain Operating Network

Model: Data & Functional

Your Company

Dominant Partner(s)

A B

Global Logistics Visibility

Secondary Sources

Tertiary Sources

Analytics

Secondary Service Providers

Comparative Observations from the Industry

Comparative Observations

A TREND Clients are moving this direction rapidly using multiple strategies ranging from; (*Gartner, “How to Enable End-to-End Supply Chain Visibility”-E2EESV)

Stair-step approach in multi-year

phases

Sensing Demand / Constraint

adaptive SC (Revenue

Focus )

Optimized (Cost Focus)

Efficient (Cost

Focus)

Comparative Observations

GOAL: An Operating E2ESCV Model to achieve hard cost savings and revenue enhancements; • Inventory savings of up to 20% of

value • Days Inventory on-hand decrease

from +10 to <7 • Forecast accuracy increase up to 25% • Improved SLA to consistent 98%

– Cost – Carrier performance – Revenue – Customer deliveries

• Freight cost reductions between 3.5% and 5% of total volume

• Workforce reduction (aversion) by 10%

Efficient reporting and

clean data (90%)

Build in signal points and planned

(pre-approved) actions

Design Principles

Design Principles

Global Logistics Visibility Platform Triangulation More than 1 data source is required … More than 1 service provider is doing the service

Validation Key validations capabilities must be present to ensure that the data can be validated.

Adjudication Once validated the platform must be able to render judgment and alert to discrepancies… see gaps in data and make corrections where needed.

“…The ability to provide a unified e2e tracking visibility requires a complex multi-enterprise integration. As a best practice, this integration needs to be outsourced to a third party service provider for connectivity, data collection, data validation, and in some cases, triangulation to adjudicate data from multiple sources for the same shipment data set…” DuPont, 2014

Result of Design Tool View

Key Tools to Build

#1 – The Network is King

Network Multi-enterprise, multi-mode, multi-standard, technology agnostic Built for speed, mass onboarding and growth

Applications Solutions to meet specific business process needs across key supply chain functions. Nodes to enable data flow

Visibility solutions must use a NETWORK + APPS in a 60/40 Split

Agnostic & Scalable

Traffic Enablement & Enrichment

#2 - Own the Data

There is NO single source of logistics data. It is a fragmented world driven by our procurement policies. It has to be retrieved.

Single Sourcing Data does NOT complete the picture: Data from dominant partner(s) does not provide the complete set needed for evaluating cost-to-deliver and cost-to-serve trade-offs, consistent with demand-driven value

network (DDVN) supply management. (Gartner Maturity Model Application)

*Best in class behavior: Leaders take control of their own supply chains; sitting in the middle of dozens of supply chain partners, sharing data and adopting universal standards for bar coding, track and trace and data exchange, delivering advantages of; • 1.7 times as likely to find, within a reasonable time, and access OUTBOUND

supply chain data needed for decision making. • 1.35 times as likely to have online visibility into INBOUND in transit status. • 1.56 times as likely to automate or re-redirect in transit flows and orders to

balance higher demands or inventory imbalances in transit. • *Aberdeen Group, Supply Chain Visibility Survey 2013

#3 – Business Rule Projection

Core ERP QuickLink Email

QuickLink ERP

QuickLink ERP

QuickLink Mobile

QuickLink Mobile

QuickLink Portal

QuickLink Portal

Web Browser

Fax & Email

Tabl

et

Outside-In Commerce Engine Feed All Business Communications Into the ERP and Augment the system of record *Gartner Supply Chain Maturity Model; “How to Enable End-to-End Supply Chain Visibility”-E2EESV

Summary

• Triangulation • Validation • Adjudication

Design Principles

• Scalable Network • Own the Data • Business Rule Projection

Key Tools to Build