taking control of your supply chain with supply …...• link to supply chain • acknowledgement...

Taking Control of Your Supply Chain with Supply Chain Analytics

Mike Evans | Francois Gau | Tomas Wiemer

Panel Discussion

• Key trends in the Supply Chain procurement world – Big Data, AI, Predictive Analytics, Block Chain, Automation, etc.

• How to be Strategic in your digital procurement activities – Bidding, vendor selection, organization, metrics, etc.

• How to leverage advanced Supply Chain analytics to optimize your digital procurement strategy – how to build an analytics platform that supports continuous improvement

Panelists

Francois Gau

CEOLevy Industrial &

TenzingExpert

Tomas Wiemer

Founder & MDOrbit2

Mike Evans

OwnerMfg360°Consulting

© Levy Industrial 2018-2019 •

Key Trends in the Supply Chain & Procurement

World

April 2019


• Problems Worth Solving:• Growing Faster

• Improve Profitability

• Finding and Keeping Customers

• Finding & Retaining Employees

About Us

• Our Solutions• Strategy & Business Development

• Technology & Operations RoadMaps

• Industrial Marketing/PR

• Leadership Development (thru partner)


Big Data

• Real Time (Sensors)

• Demand vs Forecast

• Meta Data

• Traceability

• Security

Key Trends In Supply Chain Automation


AI & Predictive Analytics

• Improved Demand Planning

• Improved Pricing/Costing

• Increased Productivity

• Natural Language

• AR

• Workplace Automation



Automation

• E-Markets Revolution

• Robots

• Blockchain

• Sensors

• Wearables

• Autonomous


Supply Chain Strategy Insights MRO ExampleFrancois Gau | Tenzing Expert, Managing Director of VelocityHUB and Levy Industrial

Procurement, Supply Chain, and Operations EXPERTS

Founded with a vision to build the most powerful network

of Experts in the world, Tenzing is the fresh alternative to

traditional consulting that many clients have been waiting for.

www. tenz i ngconsu l t i ng . com 724 -940 -4060

Production is King

The MRO market is estimated at $1.7 Trillion annually –$200 Billion of which is in the industrial segment

5-15% savings

The Artistry of Data Interpretation

The “Gobbledygook” of MRO Data

Item description inconsistencies function as a tether, holding companies to their current supplier because the thought of transitioning and losing legacy knowledge is too painful.

Moving from PPV to TCO and Beyond

Beyond the Win-Lose Approach for MRO Suppliers

The stuff you need to ensure you can make the stuff you sell.

4th Dimension of TCO: Guaranteed Continuous Improvement

Keeping Costs Where YouCan See Them

Continuous Improvement Targets

3 TCO dimensions

Leveraging spend to lower unit cost

Lifecycle cost – freight, storage, disposal

Materials standardization / rationalization

Deliver additional annual 8% - 12% year-over-year

guaranteed cost savings

Avoiding the Single Supplier Trap – A Case Study

Merger of 2 first-tier

automotive companies

with 60+ global

production facilities

The Situation

100+ MRO supplier

representing 10% of

total supply base

SustainableResultsEveryone had a stake in the

success of MRO strategy

Supply base rationalized

to 5 strategic suppliers

Generated over $30

million in annual savings

Copyright – 2019 – ORBIT2transformation, LLC 16

Procurement DigitalizationBeyond P2P

By Tomas Wiemer

http://orbit2transformation.com/


• There is no doubt our business environment moves faster and faster

• Technologies are tremendously growing and regional regulations are getting complicated

• Where to start?

• How much does it cost?

• What is in for “ME”?

• How much disruption will it create?

• Do we have the right people to lead such

change?

• Digitalization (Dx)

• “Smart”

• End User experience (Ux)

• Cloud based solutions, public or private

• RPA, Blockchain, AI,

• “Predictable”

Imagine 2020 => with new business values

• Open market places without buyers

• Smart contracts with predictive risk mgt

• AI driven innovation suppliers & sustainability

• Business done on platforms

• Zero touch processes

• 100% traceable, auditable data

What do these words mean?

Questions we are asking ourselves

From Procurement to Cognitive Sourcing with Digitalization


FROM

Operational activities or

Downstream “P2P”

• PO mgt & delivery

• Receipt & payment

• Quality data source

• Contract execution

• Supplier scorecard

• Continuous improvement

• Supplier creation

• Data preparation for RFP

• Audit, compliance,

anti bribery

• Master DATA

Commercial activities or

Upstream“ Sourcing”

• Supplier selection & mgt

• Market information

• E sourcing RFP & e auctions

• Risk mgt

• Building scenario

• Strategic category mgt

• Supplier tail mgt

• Contract negotiations

• Part and product qualification

• BI – Spend analysis

B2B supplier network

• Electronic PO, Invoice

• Automated 3 way match

• Link to supply chain

• Acknowledgement

• Delivery dates

• forecast

• For Direct materials: Transaction link to Supply Chain

• Traditional IT investments were/ are made in general & specialized P2P

(travel, mkg, BOM, legal, etc.) solutions + commercial modules such as contract,

e-sourcing, supplier creation, compliance, anti bribery

• ROI calculations are based on savings, HC reductions, tools decommissions

• Recent evolutions

• Cloud solution permit investments outside ERPs

• Higher expectations on user experiences and supplier interactions

HOW

?Data

Processes Technology

Governance Talent

AI DATA

Intelligent Sourcing

Generative Supplier Relationship Management

Cognitive Risk& Quality Management

Iterative Innovation

Intelligent Procurement & Supply Planning

Smart Contracts & Cognitive Compliance

Intelligent Cost Optimization

HOW

Traditional Procurement activities

TO

NEW DIGITAL outputs


S

U

P

P

L

I

E

RREMITTANCE

PO

INV

P2P

NETWORK

S

U

P

P

L

I

E

R

B

U

Y

E

R

INV STATUS

CatalogsTransaction

data

Via connector

Transaction flow

User Experience

Digitalization

• Managed Services

• Smart COE

• BPO

• Change mgt

• Transformation

ERP 1,2,3,4

,

AI solutions 1

AI solutions 2

AI solutions 3

example

Data Lake/

Business

Warehous

e

P2P transaction value B2B transaction valueTechnology lead – Data

collection

New AI Risk &

Opportunities

Experience

Savings +

Operational

excellence

New category mgt

dynamics

Indirect & Direct

Cloud security/

gateway

Market data

Intelligent Sourcing

Generative Supplier Relationship Management

Cognitive Risk& Quality Management

Iterative Innovation

Intelligent Procurement & Supply Planning

Intelligent Contracts

Intelligent Cost Optimization

New Digital Outputs

Procurement digitalization beyond P2P & B2B – HOW?

Cohesive Sourcing Model – example LevaData

LevaData Confidential 2018

Supplier Quotes

Reference Quotes

Eng. Input/Should

Cost

Historical Trends

Commodity Market

Intelligence

Raw Material Prices

ForexEnterprise

Spend Analytics

Predictive Cost

Supplier Industry

News

Market Cost Data

Alternate Parts

Instant visibility to demand at the MPN

level, use Smart RFX to get and analyze reference quotes

Augmented by Community intelligence

CM/ODM reconciliation automated

Trend analysis on-demand at supplier, PN

level, augmented by Predictive Cost and Community trend

analytics

With LevaData

TodayAugmented by

Community intelligence

https://www.levadata.com/


• Production Parts Approval Process

• Asset Maintenance Tracking

• Quality requirements of the parts

• tracking clients specifications

• Consistent requirements

• Forecast maintenance

Data

Integrity

Non-

Repudiation

Trus

t

Data

Immutability

Technolog

y

Blockchain

community

Auditable

Provenanc

e

Privacy &

Security

Examples

By Mehul Shah, Founder Infinity Services Inc., https://infinity-services.com/ specializing in Blockchain for Enterprise Applications

Blockchain Use Case for Maintenance & Repair Eco-Systems using the

Production Parts and Approval Process (PPAP)

Value: Extend automation, trusted record keeping,

full traceability, auditable data flow

CREATING DISRUPTIVE OPPORTUNITIES with digitized parts => “remove time” “build TRUST”

• DESIGN DOCUMENTATION • CONTROL PLAN • APPEARANCE APPROVAL REPORT

• ENGINEERING CHANGE DOCUMENTATION • MEASUREMENT SYSTEM ANALYSIS STUDIES • SAMPLE PRODUCTION PARTS

• CUSTOMER ENGINEERING APPROVAL • DIMENSIONAL RESULTS • MASTER SAMPLE

• DESIGN FAILURE MODE AND EFFECT ANALYSIS • RECORDS OF MATERIAL/PERFORMANCE TESTS • CHECKING AIDS

• PROCESS FLOW DIAGRAM • INITIAL PROCESS STUDIES • CUSTOMER SPECIFIC REQUIREMENTS

• PROCESS FAILURE MODE AND EFFECT ANALYSIS • QUALIFIED LABORATORY DOCUMENTATION • PART SUBMISSION WARRANT

Blockchain Technology can streamline “PPAP” Providing unprecedented Trust and Visibility every step of the way!

Relevant in multiple use-cases

https://infinity-services.com/

© Assent Compliance 2019

ACCENT LAYOUT: CLICK LAYOUT IN THE ABOVE TOOLBAR FOR MORE OPTIONS

© Assent Compliance 2019 ... ... ...

A platform offering automation, AI and structured

workflow will deliver a superior data collection

experience and enhanced risk visibility.

CONFLICT MINERALS PROPOSITION 65 SUPPLIER QUALIFICATION

ANTI-BRIBERY, ANTI-CORRUPTION ROHS TRADE CLASSIFICATION & ORIGIN

HUMAN TRAFFICKING & SLAVERY REACH INFORMATION SECURITY

CORPORATE SOCIAL RESPONSIBILITY PRODUCT COMPLIANCE VENDOR MANAGEMENT

OLD WORLD NEW WORLD

Supply chain data management

processes are traditionally

manual and challenging to scale.

Modern supply chain data management

relies on solutions that offer process

automation, AI and a managed workflow.

Decentralized tools such as Excel and

OutlookCentralized cloud data management

Automated supplier engagement and education

Rule-based supplier engagement workflows

AI-supported declaration validation

On-demand regulatory and software support

Integration with ERP and PLM

Supply Chain Data Management With Assent Compliance

Manual supplier engagement

Unstructured data

Limited supplier support

High demand on internal resources

Lack of integration

RESULTS

Streamlined Market Access

Brand Risk Mitigation

Operational Risk Management

THE ASSENT

COMPLIANCE PLATFORM

[email protected] you.Copyright – 2019 – ORBIT2transformation, LLC

mailto:[email protected]

Supply Chain

Strategy and

Execution Tips

M&T Conference - April 2019

Mfg360° helps all manufacturing businesses in all

industries by providing a 360° comprehensive

assessment which will become the foundation for

your continuous improvement program. Whether its

Lean Manufacturing, Strategic Sourcing, Tactical

Procurement or Supplier Quality, our professionals

staff can help your business get to the next level.

About Us

▪ New Product

Introduction Sourcing

▪ Value Analysis / Value

Engineering

▪ Optimized shipping

solutions

▪ Reduce or control

product costs

▪ Consigned

warehousing

▪ Improved working

capital

▪ Dedicated low cost

country resources

▪ Indirect spend

category optimization

▪ Tactical Procurement

Outsourcing

Life Cycle Approach

Supplier Workshop

Toolbox

Relevant Approaches

Supplier

Innovation

Performance/ Cost

Benchmarking

Target Cost

Management

Cost

Analysis

RFQ/ Conditions

Management

Concept

Competition

Supplier Day

eAuctions

Value-Chain

Optimization

Joint Value

Engineering

GAIN

Volume

Consolidation

Strategic Partner

Management

Purchasing

Cooperations

Supplier

Productivity

Hedging-

Management

DTC,

Idea Factory

2nd tier supplier

management

Global

Sourcing

Strategic

Negotiation

Value Chain Optimization

(overview)

• Process mapping and

optimization

• Definition of measures with

short-term effect and

immediate implementation

whit parallel systematic and

sustainable optimization of

the organization

Approach Benefits

Description Focus of Fields of Activity

• Documentation of identified processes (end-to-end)

−Activities, interfaces

−Result per process activity

−Responsible or involved persons

− Identification of strengths and weaknesses

• Participation of all process involved persons (cross-

functional, all perspectives)

• Assignment of support systems/ tools

• Assignment of KPI´s

• Reduced process costs

• Eliminated redundancies

• Reduced complexity

• Reduced process times

• Increased flexibility

• Increased compliance

Value Chain

Optimization

Strategic Partner Management

(overview)

• Strategic Partner management defines the approach to

manage strategic partners/ supplier. that are of strategic

relevance for a company

• The definition of strategic partners/ supplier is company

specific but it includes suppliers that are of strategic

importance for a company.

Approach Benefits

Description Focus of Fields of Activity

• Understand technology roadmap(s)

• Identify strategic partner/ suppliers

• Prepare and conduct negotiations

• Define relationship roles, responsibilities,

communication rules and objectives

• Manage relationships and define potentials

• Agree on and monitor improvement measures

• Continuously reevaluate strategic partner status

• Influence on technology roadmap and product

portfolio of supplier

• Higher degree of customized product/ service

offering

• Stronger supplier support for own optimization

efforts

• Possibilities of reciprocal business relationship

• Preferred customer status

• Identify key technologies and supplier relationships

• Establish structural elements and resources to manage

relationships with special attention

Strategic Partner

Management

taking control of your supply chain with supply …...• link to supply chain • acknowledgement...

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