Maximising roi from aps bdp

Maximising the R.O.I. from your Supply Chain Tools

Barry Drummond – Business Development Manager

• The Business Case- How to get your project off the ground

• The Benefits- What can you expect to achieve?

• The Critical Success Factors- How to make it work

Agenda

2

3

The Business Case

4

A Day in the Life of a Business Case...

IdeaHow

much?Write stuff

down

Approval

Implement

End

5

The Value Circle

Customer Service

Supplier Performance

Manufacturing Efficiency

Forecast Accuracy

Inventory Effectivenes

s

Asset Utilisation

ITEffectivenes

s

Supply Chain Effectivenes

s

Sales &Margin

Promotional Effectivenes

s

Strategy

Gaps

Tools

Benefits &Payback

Implement

Measure

Publish

6

The Benefits

7

It’s obvious....isn’t it?

The Benefits

Payback = 2 yearsInitial outlaydoes it actually work?rentinghassle

8

Supply Chain Planning Tools

The Benefits

Customer

Demand Orders & Forecasts

Supply Finished Goods

Warehouse

Supplier

Supplier

Buy Finished GoodsPurchase Orders

Make Finished Goods

Buy Components

Purchase Orders

Factory

Demand Planning

Production Planning

Distribution Planning

Procurement Planning

Procurement Planning

9

Improvement of Key Performance Indicators (KPIs)

The Benefits

Customer Service

Supplier Performanc

eManufacturing Efficiency

Forecast Accuracy

Inventory Effectivenes

sAsset

Utilisation

IT Effectivenes

s

Supply Chain

Effectiveness

Sales & Margin

Promotional Effectivenes

s

Min % Max %0

25

50

10

40

Forecast Accuracy

Min % Max %0

10203040

6

30

Service Level

Min % Max %0

25

50

5 25

Working Capital Re-duction

Min % Max %0

20

40

60

10

50

Inventory Reduction

10

Range of Benefits from Implementing a Demand and Supply Chain Planning Solution

The Benefits

11

Sell More and Save More

The BenefitsG

oal

Meth

od

Leve

r

Improve Customer

Service Level %

Promotions & New Product

Launches

Sell

ForecastingPurchase

Order Optimisation

Inventory Management

Capacity Planning

ProcessCloud vs On

Premise

Sourcing Decisions

IT Strategy

Process Efficiency

Lower Inventory

Capacity Planning

Supplier Efficiency

Save

12

Critical Success Factors

13

Link to Strategy

Critical Success Factors

Forecast Accuracy

Strategy

Forecast Accuracy

Strategy

Lever Process Evidence

14

Link to Strategy

Critical Success Factors

Be the Market leader in customer service

ImproveForecast Accuracy

• Statistical Forecasting

• Collaboration

Forecast Accuracy

Min % Max %0

25

50

1040

Method

Improve customer service level to 99%

SystemOrganisation

15

Capability

Critical Success Factors

Organisation

Critical Success Factors

R&D

Finance

Customer

Marketing

Operations

Sales

Planning

16

System

Critical Success Factors

17

Complex

Simple

Core

Bespoke

Critical Success Factors

System

18

Complex

Simple

Core

Bespoke

Maximum core functionality and simple

design

Critical Success Factors

System

19

20

Credibility

Critical Success Factors

“It‘s not the highest ROI that wins, or the lowest ROI that loses, it's the most believable ROI that

drives a successful business case”

Nucleus Research “Infographic – Building the financial business case.1045.pdf”

21

Credibility

Critical Success Factors

Focus on the few, main benefits

How long to payback?

Evidence

Be honest

Worst case

Quality not quantity

Simple for people to understand

ROI case studies, User surveys, reference sites, pilot tests, industry data

Walk away if needed

Appease the sceptical

22

A demonstrated ROI will support further investment

Credibility

Collaboration Web Portal

Integration KPI’s

Buy Manufacture Deliver Sell

Op

era

tiona

lTa

ctic

al

Str

ate

gic

Cust

om

erSales & Operations Planning

Network & Inventory Optimization

ProductionPlanning

DistributionPlanning

ProcurementPlanning

DemandPlanning

Sup

plie

r

Credibility

DemandPlanning

Forecast accuracy

DistributionPlanning

Stock reduction

ProductionPlanning

Manufacturing efficiency

ProcurementPlanning

Purchase optimisation

Sales & Operations Planning Balance demand and supply

Network & Inventory Optimisation Optimise logistics network

24

Summary

Business Case

Benefits

Critical Success Factors

• Link to strategy• Link to KPI’s• Measure & publish results

• Sell more and save more• Goal, method, lever

• Link to strategy• Capability – people & systems• Credibility – platform for future success

Maximising the R.O.I. from your Supply Chain Tools

Barry DrummondBusiness Development Manager

Ph: +44 (0)121 506 6592Mb: +44(0)7710 442038

barry.drummond@dys.com

Barry DrummondBusiness Development Manager

Ph: +44 (0)121 506 6592Mb: +44(0)7710 442038

barry.drummond@dys.com