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For companies that want to transform

challenges into measurable results

Barkawi Management ConsultantsMunich • Atlanta • Moscow • Shanghai • Vienna

Technology Transformation:How to become a digital champion

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AuthorsCarena Barkawi, Founder and CEOFor many years, Carena Barkawi has been CEO of the award winning consul- tancy Barkawi Management Consultants in Munich. Barkawi Management Consultants is part of the Barkawi Group, where Carena Barkawi is CEO of the Holding.

Dr. Andreas Baader, Managing PartnerDr. Andreas Baader heads our After Sales Service division. Before joining Barkawi Management Consultants in 2000, Andreas Baader held various executive positions at SAP AG, most recently managing the Application Design Sales Support division there. Andreas Baader studied engineering and wrote his doctorate in the field of aerospace technology.

More publications by Barkawi Management Consultants

Supply Chain Digitization: Are you ready for the digital journey?Digitization of the supply chain – everything integrated perfectly: How companies can become digital champions through smart networking. Amazon & Co. show us how it is done: better, faster, more products, and those often even cheaper, thanks to a completely interconnected supply chain!Come with us on a fascinating journey to the great new world of perfect digitization!

Mike Landry, PartnerMike Landry is President of Barkawi North America and he heads Barkawi’s global Technology Transformation practice out of Atlanta. Prior to joining Barkawi, Mike founded Servigistics, a supply chain technology company which was sold in 2009 to Marlin Capital and later to PTC in 2012. He holds a degree in computer science from Georgia Tech and an MBA from Georgia State University.

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Technology Transformation: How to become a digital champion

INDEX

Introduction 4

1. S&OP / Control Tower 12

2. Supply Chain Analytics 16

3. Supply Chain Collaboration 19

4. Supply Chain Digitization 21

5. Supply Chain Software 23

6. Transformation Methodology 26

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Amazon and companies like it show us how it is done: better, faster, a bigger product range and

often even cheaper, thanks to a completely networ-ked supply chain! Planning, forecasting, suppliers, service providers, end consumers, procurement, inventories, replenishment, all integrated into a single data stream. Perfectly plannable, transparent and with the greatest possible speed and flexibility – that is the goal of digitizing the supply chain.

Introduction

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Batch sizes of 1 for single sneakers? The Adidas Speed Factory makes it possible – at the same price! Same-day delivery – spare parts for B2B customers within just a few hours? Goods on-demand, on the road to you as soon as a part is sold from your shelves?

No problem – digitization opens up unimaginable opportunities!

But how do you go about turning incompatible Excel tables, Access and SQL databases into a networked world of data that encompasses and maps every- thing you need – but no more and no less? How does a Control Tower work? What good is a Supply Chain Cockpit? How do you design the right planning algo-rithm for reliable and meaningful forecasting?

Come on a fascinating journey with us to the wonderful new world of perfect digitization!

Digitization and integration: the lead of the digital champions

How does the world‘s largest mail-order company Amazon manage a bigger product range than all of its competitors together? Why is Amazon so fast? Because Amazon has perfectly integrated all its partners and suppliers into its process. Because thanks to Big Data, Amazon combines historical customer data with smart forecasting algorithms and knows what the customer is going to order before

she even knows it herself. Because its warehouse locations are perfectly chosen, because the network planning is optimized and because the planning algorithms keep perfect inventories!

But it‘s not all Amazon. There are also other providers that have digitized their supply chain and become better, faster and cheaper than their competition. These digital champions have recog- nized that the success of many products is not based solely on the product itself!

Fast spare-part delivery, small batch sizes, attrac-tive prices, etc. are at least as important. These decision-making criteria of the buyers first have to be defined, and then the data from the entire supply chain have to be cleverly combined to optimize it, from the design of the product to purcha-sing the raw materials and all the way through to the point of sale. But why?

If a part in an x-ray machine is faulty, a hospital can‘t wait for weeks to replace it and simply cancel all its operations during that time! If an agricultural machine worth 480,000 euros breaks down on harvest day and it then starts raining, not only the harvest is lost.

The farmer will find a dealer that can find and install the part he needs thanks to its modern order process and perfectly digitized supply chain.

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Other products are already known to us, but use digitization to make them smarter, more con- venient, cheaper, more individual or quite simply just better. In the age of digitization, inner-city fashion boutiques become high-volume online shops, old photo albums become personally customized glossy photobooks, popular ordinary sports shoes become bespoke sneakers with a personalized design.

Even Facebook is based on a well-known product – the campus yearbook – that Mark Zuckerberg took as his model when designing his website. Uber, too, is merely a modern form of carpooling, while Tinder accelerates the good old lonely-hearts personal ad in the paper up to light speed.

And that is the crux of it all: the acceleration! Products don‘t have to be reinvented to gain a whole new sheen in the modern world through digitization. Communication in real time like what Whatsapp and e-mails have done to writing a letter speed up business and turn old processes on their heads.

Tough competition, new rules of the game: predictive maintenance

What is more: speed sets standards! Nobody who has ever ordered something in an online shop and had it delivered to their doorstep the next day wants to drive into town, sit in traffic, spend ages looking for a parking space, to then have to wait a week because the store didn‘t have the right color or size in stock.

B2B customers are exactly the same! If the x-ray machine breaks down or an expensive construction machine has a defect, it is the provider that can help fast who is at an advantage. And it even goes a step further than that: sensors in modern machines, like elevators in high-rise buildings, can recognize an upcoming defect before it even happens, and solve the problem before the lift comes to a stand- still: Digitization makes predictive maintenance possible!

The basic idea behind predictive analytics and pre-dictive maintenance is to prevent defects before they

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happen, instead of having to do expensive and complex troubleshooting after the fact. Siemens, for example, builds trains equipped with artificial intel-ligence that can be in operation between 98 % and 100 % of the time! The goal that the Siemens techni-cians have set themselves is ‘100 % railability‘ – more than just a catchphrase, because it won‘t be long before it moves from being a USP to a standard that customers demand!

Companies are growing ever less willing to accept standstills! Smart prediction is worthwhile in every expensive piece of equipment for which downtimes mean not only dead capital, but also that a news- paper or series of cars cannot be made and sold.

Data play a key role here. The big business deals being made today are increasingly about data. For instance, the card service ‘HERE‘ from Nokia – the center of gravity for the digital business model of the automotive industry of the future, was sold to the consortium of Audi, BMW and Daimler for a cool 2.8 billion euros after a heated bidding war.

Nobody wanted to leave the treasure chest of data to go to Google, predominantly for competitive reasons. But the actual reason they bought HERE was because it gave them access to a 50-petabyte database, into which billions of events can be saved every day. All the books ever written in the history of humankind amount to 500 petabytes.

But what does one do with all those data? What exciting promises do they hold for the future? For instance, movement data: motor vehicles are increasingly becoming high-tech playgrounds on wheels. They send their location into space and get Cloud-based real-time data back pertaining to parking spaces, traffic jams, accidents, construction sites and inclement weather or ice.

Cars and trucks acting as mobile measurement stations, completely interconnected, can react in real time, for example by sharing ice warnings with the vehicles behind them.

The automakers are transforming from purely that to a global marketplace for geo-based real-time data, always in direct contact with the customers, and in future without doubt also to their homes, which will also be connected up to the Internet of

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Things. The self-driving car will one day be a key competitive advantage in cities congested with ever more traffic. Those not willing to invest in an auto-nomous vehicle will be out of the game!

So digitization will give manufacturers a rai-son d‘être! That applies not only to transporting people, but also to trucks, giga liners and the likes that move freight.

Their networked connection as players in the supply chain to 3PL/4PL service providers is standard no-wadays. Collaboration, connectivity and total integ-ration will increasingly become one and the same!

Success factors changing over time

In innumerable industries, the supply chain is coming under pressure. Because although in many cases the product itself isn‘t changing, the speed at which it is delivered is being seen more and more as a component part of it.

A provider hoping to sell its product with delivery periods of days or weeks shoots itself out of conten-tion, because in many cases the push market of the past has transformed into a pull market. Customers are becoming accustomed to same-day delivery, thanks to the leaders in this field like Media-Saturn.

People can no longer understand why the fridge they ordered this morning isn‘t stopping their ice-cream from melting in the afternoon. And if a manufacturer says it can‘t, the customer has enough others to choose from who make do it possible.

There are very few manufacturers today who have the privilege of being able to dictate their delivery times. The French luxury products company Hermès graciously deigns to put its customers on a weeks-long waiting list for its coveted ‘Birkin‘ handbag, priced between 6,000 and 150,000 Euros, without their fashion-conscious fans batting a well-shaded eyelid.

Luxury automakers Porsche and Tesla demand several months of patience from their buyers.

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ComponentSupplier

InboundLogisticsProvider

OutboundLogisticsProvider

DistributionLogisticsProvider

RetailerOEM Distributor

But the number of those who can still afford ‘push‘ in the B2B field is becoming ever smaller. The custo-mer is becoming more powerful, boosted by the clever offers from the digital leaders.

Digitization and transformation – but how?

Many companies want to take the next step into the future with digitization, but they aren‘t quite sure how. Innumerable partners, suppliers and data sources are integrated into a modern, high-per-formance supply chain – from purchasing the raw materials, through to the point of sale!

The ‘Partner Eco System‘ encompasses 3PL and 4PL service providers, dealer managed inventory, inventory management, the sales data, planning and

forecasting, predictive maintenance data and much more besides. You can‘t do that with Excel tables alone anymore!

The bad news:

There is no end-to-end complete solution that you can install in one go and your digitization is done! Digital transformation is a gradual, step-by-step and all-encompassing change.

Process chains and their data that encompass the entire range of an OEM‘s activities have to be com-pletely dovetailed with each other and accounted for digitally – and that far beyond the scope of the com-pany itself, because the external partners are part of this data integration too!

Figure 1: Global goods and data flows along the entire supply chain

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The good news:

It is possible to start using new technologies, soft-ware and systems like Kinaxis, e2open, Service-max, PTC, FIELDFORCE, SAP, Synchron, etc., and link them up to your existing systems in a step-by-step process. And that‘s not all: it is often not possible or sensible to try and digitize in a single, giant leap.

A gradual digitization is generally more realistic, less expensive, and simply better. But where do you be-gin? Which components are a good starting point? Which tool and which technology?

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Come with us on an exciting

journey to the world of

digitization, and with each step

transform yourself into a digital

champion of the future!

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The network equipment provider Nokia Siemens Networks (NSN) wanted to offer its customers

– the mobile telephony operators – even better after sales service. The goal was to raise the availability level of components, while at the same time reducing inventories and costs. Barkawi installed an ‘iHub‘, in which the planning, require-ment forecasts, orders from the production facilities and all delivery processes are digitally bundled. The project was a huge success for all involved. Barkawi even won a ‘Best of Consultants‘ award for it in the competition run by the German business magazine ‘Wirtschaftswoche‘.

In innumerable other S&OP-projects Barkawi em-ploys the Supply Chain Cockpit, an innovative, proprietary software platform. Its modular structure enables fast and individually customized implemen-tation, while its open-source systems like Apache make setting it up inexpensive.

In Qlikview, the market‘s best provider of big data analyses, we have found a perfect partner for ensu-ring the optimum performance of the Supply Chain Cockpit, which also contains leading-edge database technology components for data integration, so that all numbers, data and facts find a home.

1. S&OP / Control Tower

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ComponentSuppliers

iHubs EMS Distribution Retail Consumer

But we can go a step further than the iHub and Supply Chain Cockpit, with a kind of war room called a Control Tower that would turn even NASA green with envy. We introduced a Control Tower at a major international supplier of mobile telephones. Here, all the key data comes together in one room, and short decision-making channels minimize reaction times, despite big data.

Systems like Kinaxis form the basis, while what-if simulation tools make it possible to predictively operate the supply chain: which deviations in your supply chain are critical? Which partner interfaces are so important that they should be monitored permanently? What are the options? How short are the reaction times?

On the way to becoming a digital champion

The digital champions respond to questions like these, and many more besides, in this single, all-encompassing system: the company Airbus, for instance, runs a Control Tower with its modern, digital Customer Support Center, and can get a defective A380 back in the air in no time flat.

Of decisive importance with the iHub, Supply Chain Cockpit and Control Tower is reducing the large volumes of data down to the right parameters. The goal has to be to filter out of the data the KPIs that are needed to efficiently run the supply chain, and to generate useful ratios that honestly and reliably map the performance of the supply chain.

Service level/Fill rate, available-to-promise (ATP), turnaround time (TAT), order to cash, on-time delivery (OTD/OTDR/OTDC), etc. are some examples of key performance indicators. We are experts at optimizing these key figures – and at many other things as well!

Figure 2:Supply Chain Control Tower

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The Barkawi framework of Supply Chain Digitization:

Internet of things:• Internet-to-object communication• Real time data assessment

Supply Chain 4.0 in a nutshell

ADVANCED MATERIALSImproved features and smart connectivity

SUPPLIERS CUSTOMERS

ADVANCEDSENSORSMonitoring andforecasting

AUTONOMOUSVEHICLESFlow optimization and flexibility

MODERNPRODUCTION3D printing / additive manufacturing

M2MCOMMUNICATIONDecentralized decision making

BIG DATAAnalysis and usage of complexity

MASS CUSTOMIZATION• Customer intimacy• Flexibility and productivity simultaneously• On-demand manufacturing

AUTONOMOUS

Complete transparency and collaboration

TOOLS

SECURITYProtection for internet-based manufacturing

CYBER CLOUD COMPUTING

PLAN• Fully integrated planning• What if analysis• Automated demand /

supply balancing

SOURCE• Supplier collaboration• Preductive alerting• Supplier platforms

MAKE• Cyber physical systems• Machine learning• Robotics

DELIVERNetworked systemsDynamic routingWarehouse automation

• • •

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The Barkawi framework of Supply Chain Digitization:

Internet of things:• Internet-to-object communication• Real time data assessment

Supply Chain 4.0 in a nutshell

ADVANCED MATERIALSImproved features and smart connectivity

SUPPLIERS CUSTOMERS

ADVANCEDSENSORSMonitoring andforecasting

AUTONOMOUSVEHICLESFlow optimization and flexibility

MODERNPRODUCTION3D printing / additive manufacturing

M2MCOMMUNICATIONDecentralized decision making

BIG DATAAnalysis and usage of complexity

MASS CUSTOMIZATION• Customer intimacy• Flexibility and productivity simultaneously• On-demand manufacturing

AUTONOMOUS

Complete transparency and collaboration

TOOLS

SECURITYProtection for internet-based manufacturing

CYBER CLOUD COMPUTING

PLAN• Fully integrated planning• What if analysis• Automated demand /

supply balancing

SOURCE• Supplier collaboration• Preductive alerting• Supplier platforms

MAKE• Cyber physical systems• Machine learning• Robotics

DELIVERNetworked systemsDynamic routingWarehouse automation

• • •

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Machine and plant downtimes are growing ever more expensive and are becoming a massive

threat to competitiveness. If low inventories lead to a production standstill at your facility, the well- organized competitor will be way ahead of you.

Departmental thinking and focusing on individual links in the supply chain in isolation is an obsole-te approach now, and unrealistic, because every error or standstill affects the entire supply chain: if Procurement hasn‘t purchased sufficient amounts, the entire supply chain stops; if it has bought too much, the costs burden the entire enterprise and affect prices all the way to the end customer, who may then decide to by a cheaper competitor product. That is why modern supply chain champions have long been considering their supply chains from a holistic, overall standpoint!

The typical supply chain encompasses the following seven stages, usually with different people respon-sible for each discipline, which to date have each been regarded in isolation:

2. Supply Chain Analytics

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Procurement In-BoundLogistics

PartsInventory

Manu-facturing

FinishedGoods

Inventory

Fulfillment(customer‘s

order todelivery)

Out-BoundLogistics

1. 2. 3. 4. 5. 6. 7.

The demands on supply chain management are growing constantly

Companies with a conventional supply chain generally update and extrapolate historical data, for example, they derive the forecasts for the future from past requirements. ‘Normal‘ delivery times are also incorporated into the planning, as are the typical deviations from them. But the world is changing fast: it is becoming ever more difficult to predict the deviations, the number of variables and unknown quantities is growing constantly, and historical figures, data and facts are growing less and less dependable.

The customer is becoming ‘hybrid‘, the carousel is revolving ever faster, the supply chain champions are dictating new standards: for instance, compa-nies with less sophisticated supply chain concepts will not be able to refuse same-day delivery forever if they don‘t want to be catapulted out of the market.

Integrated process and integrated data

That is why modern supply chain champions

have long been looking upon their supply chains as a

single, integrated process.

And the leaders in modern supply chain manage-ment are also often far ahead of the field when it comes to data quality and the comprehensive networking of data. Integration is the magic word here, both on the process side and on the data side, with each step in the supply chain (including all service providers and partners!) and their respec-tive data being perfectly interconnected with one another.

Accomplishing data transparency along the whole supply chain is the fundamental prerequisite for this, especially as different areas of management are typically responsible for the different steps within the chain, and in many cases they use diffe-rent IT solutions.

Predictive analytics

And there is another crucial difference between supply chain champions and the rest: the way they consider the supply chain holistically from the point of view of predictive analytics.

Figure 3: Supply Chain stages

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Experience shows that more than 90 % of all supply chain problems arise in forecasting, and then perpetuate themselves or even get worse in the procurement phase and the rest of the supply chain!

The idea behind predictive analytics is to prevent problems before they happen, instead of spending money and time later trying to repair the damage after the fact.

Siemens, for instance, has trains equipped with artificial intelligence that can be in operation bet-ween 98 % and 100 % of the time! And the Siemens technicians are determined that they can achieve ‘100 % railability‘.

Planning and forecasting are rightfully becoming more and more a kind of global risk management, with which a company endeavors, with all its specialists, to get a grip on the uncertainties between sales and costs, and to successfully forecast them: what changes, risks and variables are there in the market and competition, at the customer, in the own product, with the component suppliers, in procure-ment, with the fulfillment partners, in inventories, etc.?

Which critical issues and resources can a company take care of early on, before problems arise? The following areas are the most predominantly involved here:

• Demand analytics• Finished inventory optimization• Replenishment planning analytics• Network planning• Transportation analytics• Procurement analytics• Predictive analytics on the factory floor• Geospatial analytics in network planning and

optimization

The heart of supply chain analytics: mathematics

Supply chain analytics is based largely on mathe-matical models and analyses, such as Dynamic Multiple Regression Modeling, and on simulations and optimization models. These are not new, of course, but together with big data and the right IT systems like SAP HANA, they help create an entirely different application landscape.

These new, high-performance platforms also help the processes with their data analysis, which means that companies can react in real time, as soon as customer orders, inventories, production figures etc. change. The planning and forecasting instances receive updated values immediately, and the supply chain can be adapted to the new situation without delay. In this way, the disjointed and slow value chain with its numerous individual disciplines becomes a modern, high-performance, networked, fully integrated big data tool. We will be happy to show you how your company can also become a supply chain champion with supply chain analytics!

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3. Supply Chain Collaboration

Modern enterprises with smart logistics and supply chain management not only link the

various individual process steps with each other, they work closely together with their fully integrated service providers in a collaboration.

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For example, if the service provider operates the warehouse and replenishes the shelves with replace- ment parts for the customer as soon as a part is sold, the borders between the company and its suppliers and service partners disappear. It‘s all about perfectly functioning partnerships!

And that applies not only to the processes, but also to the data. In companies with modern logistics and professional supply chain management, data are increasingly pooled nowadays and the participants in the chain are interconnected with each other – often in the Cloud – so that the supplier sees, for example, the products being sold out of the inven-tories and can replenish them immediately and just in time.

The forwarding company, also connected up, is at the same time in the starting blocks, because it can see when and where goods are needed. Everybody pulls in the same direction and has the same goal: perfect logistics. Because the competition is tough!

Collaboration & Connectivity

Partner ecosystem, connectivity and collaborati-on are important terms that describe the modern supply chain universe. In logistics and supply chain management, everything is about making sure the right volumes are at the right place at the right time.

So having the ‘right‘ inventories is a key variable at the start of a chain of actions. Vendor managed inventory and replenishment and inventory health play a crucial role here.

With smart concepts like merge-in-transit, cross- docking, hub & spoke, PUDO, FSL, etc., modern, digitized companies digitally record and accompany inventories, material and goods along the entire supply chain.

All partners are linked up to it digitally and comple-tely integrated in a big data stream.

Connectivity ensures the data integration, collaboration the un-broken interaction of all companies, partners, service providers, etc. involved in the process. All this together leads to perfect digitization!

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Digitization of the supply chain – planning, forecasting, suppliers, service providers,

customers, procurement, inventories, replenish- ment – all perfectly integrated in a digital data stream. Warehouse locations perfectly chosen, network planning optimized, planning algorithms and inventories perfected. ‘Digitization‘ is the magic word! The goal of digitizing the supply chain is to make it optimally plannable, transparent and as fast and flexible as possible! But what has to be done? How do you take conventional Excel tables, Access and SQL databases and transform them into a net-worked world of data? Barkawi won an award for doing just that in a customer project!

The digital champions already in existence today are better, faster and cheaper than their competitors, because these innovators have realized that the success of many products is no longer based on the product itself! Speed in finding replacement parts, part availability, small batch sizes, attractive prices, etc. are at least as crucial success factors

4. Supply Chain Digitization

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If an agricultural machine suddenly breaks down on the day of the harvest, and it then starts raining, not only the harvest is lost. The customer will look for a new dealer that can procure and install the replace-ment part within a few hours thanks to its modern ordering process and perfect digitized supply chain.

Perfect timing: Production and delivery on-demand

This in turn can only work if the process is perfect throughout the entire process chain: smart inventory management, professional S&OP and an optimal interplay between forecasting, procurement and the best possible use of production are the prerequisites. Production and delivery take place on demand, just in time whenever the goods are needed.

The partners and suppliers – like the customers – are fully integrated into an end-to-end process chain with the goal of accelerating the flow of information and creating the best possible preconditions for maximum control of the chain. The necessary routes to storage venues become increasingly mobile and flexible, because the system monitors where the goods are on the transport route, for instance using RFID technology.

Digitization and perfect integration offer fantastic opportunities here! Identification technologies and information systems generate transparency about the inventories and help process the enormous volumes of information and make the right deci-sions at the right times!

The data are bundled in an individually tailored Supply Chain Cockpit, Control Tower or iHub – frag-mented data silos are a thing of the past!

Barkawi: Award-winning consultancy

Barkawi has proven many times that customers make a quantum leap like this, and in a competition held by ‘Wirtschaftswoche‘ magazine in 2014, we won an award for a project in which we digitized a customer‘s supply chain! We will be happy to explain the best way to go about this in a personal meeting with you!

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Regardless of whether your company needs a precisely targeted IT solution or a long-term

platform for continuous operation, Barkawi offers you extensive industry know-how combined with technical expertise and a broad portfolio of solution partners.5.

Supply Chain Software

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But most importantly: we have done these projects – actually implemented them – countless times already!

Our technical expertise encompasses the solutions from the world‘s best providers, as well as our own software and tools that many of our customers have already used with great success in their global supply chain management to get a grip on their specific problems.

In addition to these external providers, Barkawi also offers numerous proprietary tools and solutions for the typical demands on professional supply chain management:

DSP Data Decision Platform

The data analysis platform DSP Data Decision Platform from Barkawi is often the first step away from vast amounts of spreadsheets and databa-ses and toward a standardized data landscape. Our DSP serves our customers from the widest range of industries as a tool for gathering, processing and the Cloud-based provision of supply chain-relevant data from various parts of the company.

These include, for instance, sales-plan data from the Sales department, capacity data from Production, inventory and movement data from Logistics.

These data are often to be found in different systems with varying data structures and types. The DSP solution encompasses the specific extrac-tion, integration, analysis and visual presentation of data from varying data sources.

For example, MS Excel and Access files, CRM and ERP systems are processed in this way into infor-mation, on the basis of which better supply chain decisions can be made: optimized procurement amounts, allocation of production capacities, more exact delivery promises and much more besides. This increases availabilities, reduces inventories and minimizes escalation costs, for example. And that is a win-win situation for everyone!

Adexa Arena Blue Ridge CPLEX

JDAE2open KinaxisIntellicus

OM Partners PTCLLamasoft Qlik

TableauRiver Logic Servicemax Syncron

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ClearOps

ClearOps is a special-software company founded by Barkawi. Its product of the same name is a proprie-tary web platform with which all the participants in the supply chain can use and exchange data together. ClearOps consolidates, processes and analyzes big data, while the users across the entire company have access to the analysis results (data analytics).

In real terms this means, for example, that ClearOps enables replacement-part-procurement data from agricultural machine manufacturers and more than 300 dealers to be networked.

Needs, consumption, inventories and deliveries are recorded throughout the entire distribution network, all the way through to the end customer, which enables an optimization that extends beyond what were previously the limits of the company.

ClearOps calculates optimum supply volumes and inventory levels and coordinates the balancing out of inventory reserves between the dealers.

Increased part availability raises the supply qua-lity and consequently also sales and customer sa-tisfaction. It is a great customized tool for specific demands!

Pricing Decision Platform

The Barkawi Pricing Decision Platform is another proprietary software tool that makes good decisions possible despite complex data situations in the pricing environment: regional prices, centralized prices, freight costs, discounts, bonuses, criticality of parts, competitive factors and much more are contained in it.

Our tool holds the necessary price master data, simulates price changes and optimizes the overall pricing concept!

Whether you are in the energy business, the agricul-tural machine technology industry, the mobile tele-phony industry, the construction machine business or in plant construction, you can improve your margins by double-digit percentages with our solution. After sales service and spare parts as a generator of sales and profits – that is our goal!

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The supply chain in most companies is today far more complex than in the past. There are many

reasons why, but most important is that the digital champions have set new standards that now have to be met. If same-day delivery is standard at the competition, the rest of the market has to move up its game or accept that it soon won‘t be a serious competitor anymore!

Big parts of the market have transformed from push to pull, and companies with a strong supply chain are adapting to that. But how do you do it? What does a typical project look like? Do you have to attack digitization in one fell swoop, or can you also approach it step by step? Barkawi offers more than just concepts: we execute and accompany the implementation, every step of the way!

6. Transformation Methodology

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Many companies want to make the decisive step into the future by digitizing their entire supply chain, but they don‘t know exactly how to do it. In a modern, high-performance supply chain there are innumerable partners, suppliers and data sources – from buying raw materials through to the point of sale.

The partner ecosystem encompasses 3PL and 4PL service providers, dealer-managed inventory, in-ventory management, selling data, planning and forecasting, predictive maintenance data and much more. That can‘t be done with an Excel table infra-structure anymore!

Digitization: Step by step

The bad news:

There is no end-to-end single solution that you can install in one go and there‘s your digitization. Digital transformation entails a big, successive, gradual evolution; process chains and their data that encompasses the entire range of an OEM‘s activities have to be completely dovetailed with one another and digitally mapped – and that far beyond the confines of the company itself, because the external partners are also part of this data inte- gration!

The good news:

Using new technologies, software and systems like Kinaxis, e2open, Servicemax, PTC, FIELDFORCE, SAP, Synchron, etc. and connecting them up with existing systems leads to more efficient processes and more relevant information, and it has many other benefits as well!

Data integration and digitization along the supply chain enables you:

• To reduce costs and risks;• Achieve optimum transparency throughout the

entire supply chain;• Plan capacities and goods flows in perfect line

with the expected needs;• Ensure the greatest possible speed and

flexibility;• And gives you maximum freedoms with

minimum complexity

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The following top-6 steps have repeatedly proven their worth in digitization projects:

1. Identify the success factors: What makes the company successful?

The success factors of a company, such as speed, availability to deliver, large product range, price or cost leadership, have to be clearly identified and defined in advance.

2. Segment and prioritize the customers: Who and when?

Segmenting the customers in an ABC analysis provides the decision-making basis for prioritizing the order in which the digital connections have to be made. A-customers are often integrated in the first step, as much of the sales are generated with just a few of them, and not with the ‘long tail‘ of C-customers!

3. Calculate the business case for A-customers: Who and how much sense does it make?

Analyzing the costs and feasibility for typical A-customers, in order to calculate the total costs, against the background of the total benefit, cost- benefit analysis, feasibility, etc.

4. Develop the road map: What and how quickly?

Compiling a ‘road map‘ for how to work through the digital steps, in line with their temporal, financial and organizational feasibility within the company. Often it is neither possible nor does it make sense to execute the digitization in one big development leap. A gradual digitization is generally more realistic, less expensive and better!

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5. Select software: Which IT providers are a good match?

Defining a requirements catalog, evaluating and selecting a soft-ware product or provider that can meet the company‘s software requirements in line with its success factors, e.g. software for perfect inventory management for a complex product portfolio.

6. Implement: Who actually does it?

When implementing the software and interfaces to the predefined customers, suppliers, partners, etc., Barkawi Management Consultants uses a specialist team of software experts that have successfully executed this process countless times before. Barkawi works together with the world‘s best providers.

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Barkawi Management ConsultantsBarkawi Management Consultants Munich is an international management consultancy that focuses on supply chain management and after sales services. Karim Barkawi founded the company in 1994, which today employs more than 200 people and has offices in Munich (HQ), Shanghai, Moscow, Atlanta and Vienna. Among the clientele of Barkawi Consulting are globally active companies with logistically complex business models, like BSH Bosch and Siemens Household Devices, CocaCola, Daimler, Lufthansa, Nokia Networks, Philips and many more besides.

Barkawi‘s hands-on implementation approach can be seen in its own entrepreneurial spirit. Its know-how and entrepreneurship have been the incubator for a number of new business ideas that Barkawi Management Consultants Munich has realized over the years, such as for B2X, an after-sales services outsourcing company.

Today, Barkawi Group encompasses seven compa-nies in various industries that employ almost 1,000 people in 30 countries.

Barkawi Management Consultants – The entrepreneur among consultants!

DisclaimerData contained in this document is not binding and serves information purposes only.

Liability claims filed against Barkawi Management Consultants GmbH in relation to material or intangible damages resulting from the use of this publication shall be principally excluded.

© 2017 Barkawi Management Consultants GmbH. All rights reserved.

Image rights: Shutterstock: Pages 1, 4, 6, 7, 12, 16, 19, 20, 21, 25, 26, 32Fotolia: Pages 8, 23, 28

Barkawi Management Consultants GmbH & Co. KG Baierbrunner Str. 35 81379 Munich

Phone: +49 89 749826-0 info@barkawi.com www.barkawi.com

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Dr. Andreas BaaderManaging Partnerandreas.baader@barkawi.comTel. +49 89 - 749826 - 712

Henry GreulichPrincipalhenry.greulich@barkawi.comTel. +49 89 - 749826 - 803

Mike LandryPartnermike.landry@barkawi.comTel. +1 - 678213 - 2940

Short communication paths for a sucessful Technology Transformation:

As a management consultancy, we are specialists in the mathematical side of supply chain management. Because after all: only figures, data and facts offer a good basis for decisions on important questions like ‘ what are the causes of our performance problems?‘ You need to analyze and integrate numerous data sources to gain transparency here.

Enough of columns of figures for IT experts and Excel analyses by interns. Building up intelligent Big Data and conducting multidimensional evalua-tions to optimize your supply chain are our daily bread as consultants. In doing so, we give supply chain management and after sales service a perfect data base!

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Amazon and their peers show us how it is done: better, faster, bigger product range and often even cheaper thanks to digitization and a perfectly networked supply chain! Innovative supply chain champions collaborate with completely integrated service providers – connectivity and collaboration are the magic words! Choosing and using the latest supply chain software – a source of sleepless nights for some – are already giving others perfect processes and a technology lead that is impossible to catch up on.

Taking a comprehensive look at their supply chain – based on KPIs gathered in real time and supply chain analytics – makes forward-looking companies fit for the future: planning, forecas-ting, suppliers, service providers, customers, procurement, inventories, replenishment and much more besides – all integrated into a single data stream! Perfectly plannable, transparent, with the greatest possible speed and flexibility: that is the goal of supply chain digitization! But how do you go about it? How do you transform Excel tables, Access and SQL databases into a networked world of data? How and where do you begin?

‘Technology transformation: On the way to becoming a digital champion‘ by Barkawi Manage-ment Consultants is a pragmatic and practical guideline for companies looking to transform opportunities into measurable results.

32 pages, chock-full of information, case examples and proven measures for a successful technology transformation!

Barkawi Management Consultantswww.barkawi.com

For companies that want to transform

challenges into measurable results