Transforming IBM Supply Chain with the Power of AI

Joanne WrightVP & Chief Supply Chain OfficerIBM

IBM Supply Chain

Global Systems & Solutions

Fulfillment Network

2016 Revenue

Supported: $71.7B

>175 markets

>150,000 contracts

managed

>20,000

professionals

>11,000 suppliers

> 3.7M visits to

eTools

>5,000,000

deliveries

Challenge

• Supply disruptions

exacerbated by

dark data

Objectives:

• Better understand

& meet the supply

demand balance

• Bring people

together with

intelligence &

capabilities to

respond to

disruptions

IBM Supply Chain In Action

8

• Teams leverage single source of trusted information when resolving disruptions

• Aggregated KPIs, alerts, analytics and collaboration capabilities

• Built leveraging cognitive and advancedanalytics technology

IBM Transparent Supply Chain Initiative

Early Outcomes

• 90% faster data

retrieval times

• Late orders reduced

by 75%

Disruption

Mitigation

• Disruptions

management down

from 18+ days to just

hours

• 52% reduction in

expedite costs

Inventory

• Reduced working capital

• Saved millions $$$ on

inventory and reduced

freight costs alone

• As an example, avoiding

one supply disruption

saved $60 million in

revenue

• 18% reduction

in inventory levels

• 2.5% reduction in

structural costs

• Maintained consistently

high serviceability targets

Procurement Cost Savings

Industry 4.0 in IBM Supply Chain - Smart Manufacturing

Integrating Augmented Reality solution into parts kitting, build and system test debugging process…

Deploying Visual Recognitionsolution to automate quality inspection for better efficiency and client satisfaction…

Developing Command Center to visualize E2E supply chain activities for real-time decision making…

…powered by IBM Power Systems

How can

Watson Supply Chain

help your transformation?http://www.ibm.com/watson/supply-chain