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In Pursuit of the Right Supply Chain Technology SolutionMapping the Path to Supply Chain Digitization

REPORT

FEBRUARY 2017

Author

Pierfrancesco Manenti Research Vice President

Pierfrancesco leads the research practice for end-to-end supply chain, design

for profitability, and product lifecycle management. He has more than 20 years

of industry experience in manufacturing operations and supply chain strategy

research, consulting and IT solutions, with a strong focus on the business value

of technology in manufacturing.

Pierfrancesco holds a Bachelor’s degree and a Master’s degree in Computer

Science from Pisa University in Italy. He is based in Milan.

Contributor

Patrick Van Hull Research Vice President

Patrick leads the research coverage on S&OP and integrated business

planning. With more than 10 years’ experience, Patrick has a diverse

background spanning the hi-tech, mining and retail industries.

Patrick holds a Bachelor’s degree in Industrial and Operations Engineering

from the University of Michigan and a Master’s degree in Business

Administration from Duke University. He currently resides in Rhode Island.

Contributor

Geraint John Research Vice President

Geraint is a procurement specialist and leads our research coverage on

sourcing and procurement, supplier management and supply chain risk. He

also regularly contributes to articles in the media in both the US and the UK.

Geraint holds a degree in Economics and Politics from the University of

Warwick. He is based in London.

This document is the result of primary research performed by SCM World. SCM World’s methodologies provide for objective, fact-based research and represent

the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by SCM World and may not be

reproduced, distributed, archived or transmitted in any form or by any means without prior written consent by SCM World.

© 2017 SCM World. All rights reserved.

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Contents

Executive Summary 4

Introduction 6

It’s the Right Time to Invest 7

The Matrix Framework 7

Research Objectives 9

Supply Chain Categories 9

Research Methodology 10

The Voice of the Customer 12

Vendors and Their Digital Capabilities 13

The Matrix: Vendor Mapping 14

Conclusion & Recommendations 16

Appendix 1: Vendor Profiles 18

Dassault Systèmes 18

E2open 20

Elementum 22

GE Digital 24

JDA 26

Kinaxis 28

LevaData 30

Llamasoft 32

Logility 34

Manhattan Associates 36

Oracle 38

PTC 40

Rockwell Automation 42

SAP 44

Siemens 46

Softeon 48

Sourcemap 50

State of Flux 52

ToolsGroup 54

TransVoyant 56

Zycus 58

Appendix 2: Supply Chain Categories 61

Appendix 3: Mapping Tables 64

REPORT FEBRUARY 2017

4

This report builds on SCM World’s Digitizing the End-to-End Supply Chain1. Here, we zoom

in on the detailed findings from our research with a number of major supply chain technology

vendors and their customers on current digital capabilities.

One of the key steps in the Matrix framework tool is comparing the gaps in an organization’s

digital landscape with the capabilities currently offered by supply chain technology vendors.

Here, we provide specific support for the third step in the Matrix, as outlined in the report

mentioned above, by providing a mapping of each vendor’s digital capabilities onto the

Matrix, as well as a brief profile of their key differentiators.

Between July and October, we invited more than 100 supply chain technology vendors to

respond to a Request for Information (RFI) organized into nine categories. We asked those

that met specified inclusion criteria to take part in a number of briefing calls and demos.

In total, 21 vendors met the criteria to participate in our research. Together, these vendors

span 60 digital capabilities.

Alongside our work with vendors, we also spoke with business users to understand their

views on working with these vendors and their technologies. To do this, we asked vendors

to provide contact details of their most representative clients for a number of customer

reference calls, which we found extremely useful for vetting information from vendors. We

also worked with SCM World community members on a Voice of Customer survey to gather

their opinions and scores on the capabilities currently offered by vendors.

As a continuation of the first report, here you will find:

• The mapping of vendors’ digital capabilities onto the Matrix;

• The individual vendor profiles, consisting of their key differentiators and relevant

customer examples;

• Responses from the Voice of the Customer survey and its contribution to the scoring

of vendors’ digital capabilities.

Business users can use this report to compare their current gaps in digitization with the

mapping of supply chain vendors’ capabilities. The Matrix will offer users an end-to-end view

of the opportunities they have to cover their gaps in digitization.

Whether this will lead to users purchasing additional capabilities from their current vendors,

or deciding to invest in an entirely new vendor, our research suggests that now is the time to

invest in digital capabilities for the future.

Executive Summary


5

IntroductionDigitization is emerging as the next big shift in supply chain strategy. Indeed, data from SCM World’s recent Future of Supply Chain survey confirms that the importance and disruptiveness of a number of emerging technologies with respect to supply chain strategies continues to grow each year2.

1. Disruptive Technologies

81 17 2

68 27 5

64 30 6

58 36 6

53 34 13

46 43 11

40 41 19

35 42 23

26 46 28

Big data analytics

Internet of things

Advanced robotics

3D printing

Sharing economy (eg, Uber, Airbnb, Instacart)

Digital supply chain

Cloud computing

Machine learning

Drones/self-guided vehicles

Other14 37 49

Disruptive and important

Interesting, but unclear usefulness Irrelevant

‘Disruptive and important’ technologies with respect to supply chain strategy

Source: SCM World % of respondents, n=1,415

Through the internet of things and cloud computing, for example, business leaders

can gain more visibility into real-time information of both demand and supply3. Big data

analytics and the development of machine learning offer dramatically better techniques

to improve decision-making intelligence, understand demand patterns and better predict

supply risk4. Advanced robotics, drones and 3D printers are expected to not only further

automate operations, but most interestingly, revolutionize how manufacturing and logistics

are made, providing new levels of response flexibility5. Last but not least, the ‘digital supply

chain’ of connected products and the sharing economy give businesses the opportunity

to reinvent their business model.


6

It’s the Right Time to InvestOrganizations are excited by the idea of digitizing their supply chains. For example, 40%

of respondents to SCM World’s Becoming a Smarter Manufacturer survey6 believe that

technologies such as the internet of things or big data analytics are proven, and that now

is the right time to invest (Figure 2). Moreover, just 3% believe that those technologies are

buzzwords with no practical applications in the real world.

Technology won’t be mature enough for real implementations until three to five years from now

Views on the readiness of the internet of things, big data analytics and other emerging technologies2. Ready to Deploy

Source: SCM World Survey, June 2015 % of respondents, n=277

Early TECHNOLOGY MATURITY

Mature

It’s a pure buzzword with no practical applications in the real world

Everybody is talking about it, but no-one is doing it yet

Technology is ready and it is the right time to invest

Technology has been there for years but it wasn’t called that

Immature Mature 3

41

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The Matrix FrameworkImplementing and integrating this new wave of technology into a business environment is

not that easy. SCM World members lament that past investments in technology have been

carried out in siloes to support the needs of individual functions rather than supporting the

end-to-end supply chain. As such, they feel the need for a new wave of digitization that’s

able to connect the dots throughout the entire supply chain.

In order to support SCM World members in driving their digitization initiatives, we created

the SCM World Matrix framework7. The basic concept at the core of the Matrix (Figure

3), is the combination of an end-to-end supply chain view – represented by the SUPPLY-

DEMAND axis – with the core aspect of digitization: the sense-decide-respond capability.


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The Matrix is a blank canvas tool for individual end-user companies to map their current

digitization capabilities and plan for their digital vision of the future. By using this one-page

view, business users can assess their digitization initiatives in terms of how they affect

the end-to-end supply chain and how that impact will be felt throughout several different

business functions. From this framework, they can work out where to prioritize their

investments in digital capabilities.

3. The SCM World MatrixOne-page view of business digitization

Supply Demand

Sense

Respond

The Matrix framework consists of four steps that business users can follow:

1. As is: Detailed mapping of current digital capabilities

2. To be: The plan for future digital capabilities

3. Vendor review: Compare digitization gaps with supply chain technology vendor

capabilities

4. Roadmap: A rough prioritization of planned or proposed investments in new digital

capabilities

In order to find out more about the Matrix and how to use it, we recommend that you first

read SCM World’s report, Digitizing the End-to-End Supply Chain8.


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Research ObjectivesThe objective of the Matrix is to support longer-term supply chain strategies rather than

short-term supply chain technology decisions. Therefore, with a research scope that’s

driven more towards synthesis rather than analysis, we have purposely not investigated

detailed features and functions, specific IT products versioning or implementation

capabilities. The goal of this research was to understand the overall breadth of the

participating vendors’ supply chain capabilities against the Matrix framework.

Specifically, we wanted to find out:

• How vendors are able to address and cover all the needs of an integrated end-to-end

supply chain;

• To what extent they support modern digitization strategies through the sense-decide-

respond capability;

• If their digital capabilities incorporate emerging technologies such as big data

analytics, machine learning, cloud and the internet of things;

• What SCM World members and customers think of each vendor’s current digital

capabilities and services.

Supply Chain Categories We invited more than 100 vendors to participate in this research project and respond to

an RFI, which encompassed nine supply chain categories across five key areas:

Control tower Forecast to delivery

Order to cash Procure to pay Design for profitability

Supply chain visibility and risk

Demand planning and forecasting

Supply chain planning

Sales & operations planning

Logistics and management

Supplier relationship management

Spend analytics

Product lifecycle management

Smart manufacturing management


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In order to fit within any one of these categories, vendors had to meet specific criteria.

You can find the inclusion criteria on page 10, and definitions for each category are in

Appendix 2 at the end of this report.

In total, 21 vendors qualified to participate in the Matrix project and completed the RFI

and other requirements on time. The total number of digital capabilities covered in this

research is 60.

Research MethodologyIn order to engage with vendors, we took the following steps:

1. RFI (Request For Information) – We invited vendors to respond to a questionnaire

for each of the supply chain categories that are relevant to their operations. We

accepted only those capabilities that matched the requirements in the inclusion

criteria. The responses from the RFIs gave us the basic information we needed to map

each vendor’s capabilities onto the Matrix framework.

2. Briefings and demos – We invited vendors to take part in one or more calls with

leading SCM World Research Vice Presidents for a briefing about their supply chain

digital capabilities. These briefings included short demonstrations of their digital

capabilities and gave us the opportunity to clarify any areas from the RFI. These

calls enabled us to explore capabilities in much greater detail and gain a better

understanding of the vendor’s business.

3. Customer reference calls – We asked vendors to provide multiple customer

references with whom we could schedule in-depth interviews with SCM World

Research Vice Presidents. These calls were essential in order to scrutinize the

information that vendors had already shared with us.

4. VOC – Alongside our work with vendors, we also worked with SCM World members

on a Voice of Customer (VOC) survey. The aim of the survey was to gather business

users’ opinions on vendors’ current capabilities.

The combination of the initial RFI responses with the information gathered through

briefings, demos, customer reference calls and the VOC survey provided us with the final

data to calculate the most accurate position for each of the vendor’s supply chain digital

capabilities on the Matrix.

Our findings can be found in Appendix 1, at the end of this report.


10

Inclusion CriteriaHere are the general inclusion criteria that vendors were asked to meet for each supply chain digital

capability:

1. Digital capability type

The digital capability must be packaged software, hardware device or equipment, or a combination of

both. Capabilities primarily based on services are not included in this research.

Digital capabilities aimed at covering other non-supply chain areas (eg, finance or human resources) are

not included in this research.

Pure technology solutions that are ‘horizontal’ and do not include specific supply chain functional

capabilities are not included in this research.

2. Supply chain categories

The digital capability must be designed to specifically cover one of the end-to-end supply chain

categories included in this research (see Appendix 2).

Each supply chain category is defined through a series of items, which represent the basic capabilities

any digital capability must meet to be included in this research.

3. Market

Digital capabilities must be in place and fully functional in at least 10 large organizations (eg, those listed

in the Fortune Global 500).

Digital capabilities must be implemented at corporate level; regional- or division-level implementations,

pilots or proof-of-concepts were not considered.

The vendor had to provide at least three contacts from those organizations for reference calls.

4. Voice of Customer (VOC) survey

In parallel with this primary research, SCM World invited over 100,000 qualified end users to participate

in the survey, with a well balanced mix of geographies, industries, job titles and company sizes.

Digital capabilities that received six VOC survey responses or more were mapped onto the Matrix as

a ‘bubble’ and sized according to the VOC score. Those that received fewer than six VOC survey

responses were still included in the research, but are represented as a dot on the Matrix.

5. Request for Information (RFI) and solution capabilities

Vendors had to fill out the online RFI questionnaire and return it by a specified due date. They also

had to meet all other requirements (briefing calls, demos, customer reference calls, etc) before the

requested deadlines.


11

The Voice of the CustomerThe aim behind this survey was to gather business users’ opinions on vendors’ current

capabilities. The survey consisted of these five metrics:

1. Scale of impact – How vital is the solution to support your overall digital

transformation strategy?

2. Reliability – Does the solution work flawlessly, meeting all the business expectations

of the agreement?

3. Innovation – Did the solution bring you an innovative business approach and

technologies to support your overall digital transformation strategy?

4. Speed – How quickly were you able to fully implement and roll out these solutions to

a point where you started getting benefits from it?

5. Value for money – Do you view your total investment in the solution (including

necessary implementation services and maintenance costs) as having been worth the

cost?

The results of the VOC survey were disappointing, as the customers who participated

gave vendors’ digital capabilities an average score of only 3.2 on a scale of 1 to 5.

Looking at these five individual metrics, there’s no shining star, not even innovation

(see Figure 5). The results show that users don’t believe their vendors currently offer an

innovative business approach or technology to support their digital strategies.

Essentially, this is a call to action for both vendors and customers to innovate in order to

keep pace in this time of change.

Supply chain technology vendors are unprepared for the growth in the importance of

digitization. However, vendors are aware of these gaps and are investing heavily in a race

to integrate emerging technologies – especially cloud, big data analytics and the internet

of things – into their business applications.


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5. Voice of the Customer: How Customers Evaluate Their Current Supply Chain Technology Vendors

% of respondents, n=237

2 3 541Average Voice of Customer score

Scale of impact

Reliability

Innovation

Speed

Value for money

Source: SCM World Voice of Customer Survey

Vendors and Their Digital CapabilitiesWhat’s the Trade-off in Adopting Megasuite vs Best-of-Breed Options?

Below, we list the vendors that participated in this research and the supply chain

categories that their systems cover. The table also indicates the average VOC score for

each vendor and category. Note, if the number of VOC responses was less than six, we

did not calculate the score.

Among the listed vendors, some offer ‘megasuites’ that cover several different categories,

while others are best-of-breed vendors that focus on one or two categories. This table

provides critical information for users in their pursuit of the right supply chain technology

vendor and will stimulate discussions around the trade-offs of adopting megasuite vs best-

of-breed options. It’s important to note that having more coverage is not inherently better.

In fact, depending on the context, users can benefit from covering a digitization gap by

adding a best-of-breed technology vendor on top of its existing digital capabilities. In other

cases, getting rid of ‘as is’ digital capabilities and adopting a megasuite covering several

supply chain categories can be the right approach. There’s no golden rule here that fits all

needs. The best approach really depends on a number of factors and considerations that

will emerge during discussions around the ‘as is’ and ‘to be’, including speed to digital

transformation, user satisfaction in existing digital capabilities, budget availability and

technical considerations.


13

SCV DPF SCP SOP SRM SAN PLM SMM LOM

Dassault Systèmes 3.06 -

E2open 2.99 3.68 - - -

Elementum -

GE Digital - 3.13

JDA - 3.34 3.33 3.97 3.40

Kinaxis - 3.62 3.77 3.66

LevaData -

Llamasoft - - 3.69 -

Logility - - -

Manhattan Associates 3.22

Oracle - 3.00 3.01 3.27 - - 3.18 - -

PTC 3.18

Rockwell Automation 3.49

SAP 3.03 3.17 3.06 3.19 2.99 2.91 3.08 3.29 3.54

Siemens - 3.36 3.22

Softeon - -

Sourcemap -

State of Flux -

ToolsGroup - 3.68 -

TransVoyant -

Zycus - -

2.99 -

6. Vendor MappingAverage score for each vendor and category

Digital capability that qualified for the Matrix research and received more than 6 VOC responses

A digital capability that qualified for the Matrix research, but didn’t receive enough VOC responses

No digital capability

The Matrix: Vendor MappingFigure 7 shows how the nine supply chain categories stretch across the Matrix. The area

in blue represents the area where vendors’ digital capabilities for these categories should

be positioned. The capabilities are mapped onto these areas based on a set of formulas

that position each category according to the research methodology described above.

In Figure 8, you’ll see all the participating vendors’ capabilities mapped onto the

Matrix. Each vendor’s digital capability is represented by either a bubble or a dot. The

exact location of the bubble (the x,y coordinate) is calculated based on the research

methodology described above. Some of the most relevant criteria used in the mapping

formulas is set out in the table in Appendix 3.

Source: SCM World Voice of Customer Survey 2016


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The items on the map are grouped in terms of the way they influence the shift in position

of digital capabilities (up, down, left or right) with respect to the ‘home’ coordinates for the

category. The way that they’re represented is simply illustrative and they’re just a selection

of the much higher number of variables that have been included in the calculation.

7. The Matrix Map for Nine Supply Chain Categories

Suppliers Manufacturing Finished products

Distribution & logistics

Inventory & fulfillment Customers

Measure, decide & collaborate

Plan & forecast

Gather data and transactions

Design & simulate product and processes

Execute operations

Perform physical actions

Supply Demand

Sen

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esp

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The size of the bubble for each vendor’s individual capability is determined by the

responses from the VOC survey, where customers have shared their experiences in

using these digital capabilities. The score is the average score based on the five metrics

mentioned above: innovation, speed, reliability, value for money and scale of impact.

If the number of VOC responses was less than six, we did not calculate the VOC metric

and instead of a bubble, the digital capability is represented as a dot. If the number of

VOC responses was six or more, the VOC metric was calculated and the size of the

bubble corresponds to the VOC result, ranging on a scale of 1 to 5.

Supplier Relationship Management

SpendAnalytics

Sales & Operations PlanningSupply Chain Planning

Demand Planning & Forecasting

Supply Chain Visibility & Risk

Product Lifecycle Management

Smart Manufacturing Logistic Management


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State of Flux

Zycus

TransVoyant

ToolsGroup

Sourcemap

Softeon

Siemens

SAP

Rockwell Automation

PTC

Oracle

Manhattan Associates

Logility

LevaData

Llamasoft

Kinaxis

JDA

GE Digital

Elementum

E2open

Dassault Systèmes

Supply Demand

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8. The Capabilities of the 21 Vendors Mapped Across the Matrix


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This report supports the third step of SCM World’s Matrix framework, as laid out in the

report Digitizing the End-to-End Supply Chain report, which we developed to support

community members in driving their supply chain digitization strategies. Essentially, this

is a reference manual where users can find the detailed results of the research we carried

out by engaging with supply chain technology vendors and their key customers.

Business users can use this report to understand how supply chain technology vendors

are mapped on the Matrix. Once they map out their own capabilities, they’ll be able to

gain an end-to-end view of the opportunities they have to cover their gaps in digitization.

For customers, comparing the gaps in digitization with current vendor capabilities will lead

to a number of discussions around the following questions:

• Which vendors offer a capability that might fill one of your gaps?

• How does the mapping of your current technology providers compare to the mapping

of other providers in the market?

• Are current vendors able to cover the gaps in digitization or do you need to invest in

new vendors? Moreover, are there any new vendors that are able to cover other areas

besides the gaps?

• What’s the best approach to cover the gaps? By adding a brand new best-of-breed

vendor that would integrate with existing vendors? Or, is it better to get rid of current

vendors and embrace a large megasuite covering the entire Matrix?

• What do other customers think of supply chain technology vendors’ digital

capabilities?

Conclusion & Recommendations


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On the last point, the results from our VOC survey show that business users are

disappointed with how their current vendors have supported them so far in their quest for

end-to-end supply chain digitization.

Supply chain technology vendors seem therefore unprepared to comprehensively fulfill the

emerging need for supply chain digitization. But, technology development is accelerating

exponentially and there’s no time to lose. For vendors, now is the time to work out what

this means for their customers’ supply chain needs.

The key deliverable of the SCM World Matrix is to provide a detailed roadmap for

end-to-end supply chain digitization, organized into a sequenced series of planned or

suggested technology investment initiatives.

When launching each of these individual initiatives, business leaders might also consider

using additional resources such as Gartner’s Magic Quadrants to further explore each

vendor’s capabilities. These additional resources investigate elements such as product

features, pricing and technology roadmaps, along with vendors’ financial health, business

model and geographical availability of resources. These items provide practical information

that will enable users to compare technologies and deep-dive into each individual offering.


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Dassault Systèmes

Headquartered in France, Dassault Systèmes was created in 1981 as a spinoff from

aerospace company Dassault to develop a new generation of computer-aided design

(CAD) software.

Today, the company offers a suite of product lifecycle management software, ranging from 3D

product design to manufacturing process simulation and execution software. The company is

mapped onto the Matrix in the supply-respond quadrant because of its capabilities in product

lifecycle management (PLM) and smart manufacturing management (SMM).

Dassault Systèmes has invested in emerging technologies to build an original PLM

portfolio. For example, this includes big data technologies that can perform 3D searches

to locate parts across enterprise data repositories and the internet, thus enabling part

reuse. Its PLM portfolio also includes a collaborative web portal that supports companies

sharing 3D drawings across communities of users.

The company has roots in engineering and product data management for complex

products including aircraft, automobiles and heavy machinery. However, a growing

attention to and investment in emerging industries for PLM has made Dassault Systèmes

a viable player in CPG and retail.

Customer Examples

Procter & Gamble uses Dassault Systèmes’ 3D design and simulation capabilities to

collaboratively create packaging designs with suppliers and eliminate expensive physical

prototypes. The PLM application supports a tighter integration with suppliers to create artwork

and packaging shapes that better address consumer needs, while meeting manufacturing

constraints. 3D packaging simulation allows P&G to identify and eliminate design mistakes in

the digital stage of development, when changes are less expensive to implement.

Appendix 1: Vendor Profiles


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Dassault Systèmes: Matrix Coverage

Source: SCM World Matrix Survey 2016

Supply Demand

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PLM 3.06

SMM -


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E2open

A privately held provider of business-to-business collaborative supply chain applications,

E2open has recently been on a growth through acquisition trajectory. Its purchases in

2016 include demand-sensing and inventory-optimization provider Terra Technology and

demand signal repository provider Orchestro. Plus, it very recently acquired the cloud-

based supply chain planning software provider Steelwedge, which happened as we were

finalizing this report.

These acquisitions have expanded E2open’s product portfolio across the end-to-

end supply chain, which gives the company representation within both the demand-

sense and the supply-sense quadrants of the Matrix. Furthermore, the acquisition of

Steelwedge adds the much needed sales & operations planning capability, which aims

to create a collaborative environment that includes not only supply chain roles, but also

other functional areas such as sales and finance. E2open is mapped in the categories

of demand planning and forecasting (DPF), supply chain planning (SCP), supply chain

visibility and risk (SCV), and supplier relationship management (SRM).

E2open intends to combine newly acquired planning engines with its multi-enterprise,

business-to-business integration and visibility platform, indicating a future capability of

multi-enterprise collaborative planning and execution.

The position of E2open’s demand planning and forecasting capability closer to the upper

edge of the Matrix denotes the strength of its demand-sensing capability, as assessed in

multiple customer reference calls. E2open’s supplier relationship management application

is designed to support supply chain operational execution with direct material suppliers

and contract manufacturers. It translates supply planning requirements into orders and

also represents E2open’s supply chain visibility tool.

Customer Examples

A major American manufacturer of household and personal care products uses E2open’s

demand sensing capability to get detailed statistical demand forecast from the aggregate

to the SKU level. E2open analyses demand signal information such as customer orders

on hand and order patterns to understand customer behavior and refine both demand

forecast and inventory policies.

One of the largest multinational computer technology companies worldwide uses E2open

as an integrated platform with its raw material suppliers, contract manufacturers and

logistics partners, providing visibility of material flows along the supply chain.


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Supply Demand

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SCV 2.99

SRM -

SOP -

DPF 3.68

SCP -

E2open: Matrix Coverage



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ElementumIncubated at Flextronics, the world’s second largest contract manufacturer, Elementum

was founded in 2012.

The company offers a suite of mobile apps as well as visualization software for supply

chain control tower rooms, supporting visibility of supplier risk, logistics, manufacturing

and inventory. The end-to-end supply chain nature of Elementum’s applications

determines its position at the center of the Matrix.

The apps are built on a common back-end system that’s able to gather both structured

and unstructured data from a number of external sources: from ERP and shop-floor

systems to newsfeeds and social media. Elementum’s data mining capability, combined

with a team of data scientists who support the classification of newsfeeds and social

media listening, are the company’s key differentiation. The user interface of Elementum’s

situation room software leverages graphs and visualization technologies to provide a highly

engaging experience for users, especially when used in control tower rooms.

Customer Examples

Dyson uses Elementum to deliver real-time supply chain information, from raw material

flow to manufacturing processes and logistics. Elementum provides visibility of possible

supply chain risks, allowing senior managers to take better informed and earlier decisions.

Electric car manufacturer Tesla uses Elementum to gain real-time visibility of inbound logistics

to its assembly operations in Fremont, California9. The application uses a combination of

carrier electronic data interchange (EDI) messages from carriers and advanced shipping

notifications (ASNs) from suppliers to alert managers about shipping delays.


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Supply Demand

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SCV -

Elementum: Matrix Coverage



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GE DigitalA division of General Electric (GE), GE Digital was created in 2015 by combining the

company’s multiple software divisions.

GE Digital provides software that’s rooted in manufacturing operations and has a history

around supervisory control and data acquisition (SCADA), manufacturing execution

systems (MES) and asset performance management. Over the last few years, the

company has invested heavily in the application of the internet of things on the plant floor

and is now marketing a software suite branded ‘brilliant manufacturing’. The latter extends

GE Digital’s traditional stronghold on operations technology – which is mapped as a smart

manufacturing management (SMM) capability close to the edge of the supply -respond

quadrant of the Matrix – to also include an industrial intelligence platform called GE Predix.

This new capability is captured on the Matrix through a supply chain visibility and risk

(SCV) capability, mapped in the supply-sense quadrant within the manufacturing vertical

section of the Matrix.

GE Predix, which is the most differentiating capability of GE’s ‘brilliant manufacturing’

initiative, is a cloud-based software platform designed to collect and analyze data

gathered from the plant floor10. As well as a repository of manufacturing data, the tool

is also a software development platform that customers can use to develop their own

manufacturing intelligence applications and reports. The company plans to support an

app store, which is intended to create a community of businesses sharing industrial

applications.

Customer Examples

GE Transportation – the railroad, marine and mining equipment manufacturing arm of GE –

uses a range of GE Digital software to collect data from running transport equipment such

as locomotives and feed it back to repair factories, which use this information to route the

necessary repair or re-manufacturing production operations.


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Supply Demand

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SCV -

SMM 3.13

GE Digital: Matrix Coverage



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JDAJDA Software Group is a privately held software vendor focused entirely on supply chain

management. Its current supply chain footprint is largely due to a number of acquisitions

since 1998, including i2, Manugistics and RedPrairie.

JDA’s product portfolio spans the supply chain end-to-end, giving the company

representation across both the demand-sense and supply-sense quadrants – through

demand planning and forecasting (DPF), supply chain planning (SCP), sales & operations

planning (S&OP) and supply chain visibility and risk (SCV) categories – as well as the

demand-respond quadrant – through its logistics management (LOM) capability.

The mapping of JDA’s capabilities end-to-end across the Matrix demonstrates not only its

extensive coverage, but also the focus of each of its individual applications on functional

optimization. For example, JDA’s DPF capability is mapped in the center of the demand-sense

quadrant because of the balance of its collaborative, algorithmic and data-sensing capabilities.

Since JDA’s merger with RedPrairie in 2012, it has looked at ways to integrate supply

and demand planning applications with logistics management capabilities into what it

calls ‘intelligent fulfillment’. This represents a strong differentiation for JDA compared to

a number of other supply chain vendors that are uniquely focused on planning. While

integration across different applications has been the objective over the past years, going

forward visibility across functions is stated objective.

In addition to investments in existing applications, JDA is also exploring emerging digital

technologies through its fully operational JDA Labs group, which is driving more than

10% of total R&D costs. Among the areas that its lab is exploring are big data analytics to

anticipate supply chain disruptions and augmented reality and robotics in order to support

warehouse operations.

Customer Examples

Over the last 20 years, PepsiCo has implemented a number of supply chain applications

– originally from JDA-acquired companies such as i2, Manugistics and RedPrairie – to

support both supply chain planning and warehouse execution across different regions and

business units. The company is now on a path to capitalize on these investments through

the standardization and integration of the latest JDA-branded suite.

An American supermarket chain with over 200 stores, uses JDA’s software for demand

and fulfillment management. JDA produces a historical forecast baseline at store/item

level, while a number of planners at the company’s headquarters collaborate with regional

market analysts to refine the forecast through what-if scenarios.


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KinaxisKinaxis is a publicly held supply chain software vendor. Its cloud-based application aligns

planning across both the supply and the demand chain, while creating direct functional

linkages and lines of communication.

Its planning and decision-making offerings are represented in both the supply-sense and

the demand-sense quadrants through its capabilities in demand planning and forecasting

(DPF), supply chain planning (SCP), sales & operations planning (S&OP), and supply chain

visibility and risk (SCV). The company’s application integrates visibility across the extended

supply chain alongside supply and demand planning and optimization.

The primary point of differentiation for Kinaxis is that all of its capabilities are within the

one software application; however, functional components such as SCP can be accessed

individually by customer request. This single application directly links planning engines

to decision-making and to the possible impacts at each node of the supply chain. The

mapping of Kinaxis’s capabilities on the Matrix reflects its single application instance

through the close proximity across different capabilities and through their alignment on the

borderline among ‘measure, decision-make & collaborate’ and ‘plan & forecast’ horizontal

sections of the Matrix.

Customer Examples

Schneider Electric’s planning program uses Kinaxis’s single-instance application so that

it integrates internal functional areas, including sales and marketing, as well as external

supplier partners in building a view of product flow across a wide array of supply chain

scenarios (also see SCM World’s Best Practice Insight, Partnering with suppliers to create

an agile upstream supply chain11).

First Solar, an American photovoltaic manufacturer and provider of power plants services,

uses Kinaxis to support its S&OP process and find a better balance between its increasingly

uncertain market demand and supply constraints, lead times and inventory levels.


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Kinaxis: Matrix Coverage



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LevaDataFounded in 2014 by former Cisco supply chain executive Rajesh Kalidindi, LevaData is a

spend analytics start-up based in the San Francisco Bay Area.

LevaData is solely dedicated to spend analytics and its application is aimed squarely at

direct materials spend As well as providing the usual spend and supplier visibility, it also

includes several features that position it in the lower part of the supply-sense quadrant

on the Matrix – specifically, savings opportunities based on a comparison of current costs

against market pricing, to equip procurement managers with commercial intelligence that’s

useful during bidding events and supplier negotiations.

As with the applications from many other spend analytics vendors, LevaData uses

algorithms to cleanse and classify companies’ spend data, improving its accuracy

over time with the help of user training. However, the tool goes further than this and

benchmarks this data against part-specific cost models and third-party sources to

generate recommended savings opportunities and ‘supplier negotiation packages’ for

use with both contract manufacturers and raw material suppliers. This market intelligence

derives from frequently refreshed data and can be pushed automatically to relevant users.

It can also be used to launch an automated RFQ process.

Customer Examples

An American wearable fitness tracker maker used LevaData’s application initially to reduce

the amount of time that its commodity managers spend on gathering and manipulating

data. It’s also now taking advantage of the market intelligence and cost benchmarking

features on standard parts, and to understand the future impact of price movements on its

bills of materials.

Video/audio conferencing specialist Polycom uses LevaData for standard component cost

analysis to identify quarterly negotiation savings opportunities in a more objective and efficient

way, and to better monitor the direct material costs incurred by its contract manufacturers.


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LevaData: Matrix Coverage



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LlamasoftLlamasoft is a privately held provider of supply chain applications, with a background and

reputation in the areas of supply chain network design and modelling.

With the 2015 acquisition of Barloworld’s Supply Chain Software division, the company has

expanded its product portfolio across the end-to-end supply chain. Therefore, it’s mapped

on the Matrix in the categories of demand planning and forecasting (DPF), supply chain

planning (SCP), supply chain visibility (SCV) and sales and operations planning (S&OP).

Known for its network optimization’s advanced algorithmic capabilities, Llamasoft also

has a data management platform that’s able to gather data from multiple sources and

implement process workflows, which has started integrating with the new acquired

capabilities. This will translate, for example, into a DPF capability that will combine an

ability to sense social data with algorithms for demand forecasting, demand classification

and inventory optimization. The integration will also bring in an S&OP tool that blends

process workflow capabilities with supply planning algorithms and brand new supply chain

visibility and risk capabilities.

Customer Examples

Since 2012, Nike has held a minority stake in the company in a move to co-develop a

supply network design capability that can balance factors including supply cost, service

and environmental impact with unpredictable customer demand on a global scale.

Semiconductors supplier ON Semiconductor uses Llamasoft to model supply constraints

and streamline the S&OP process to enable visibility and decision-making, which is

especially valuable when there’s no capacity available to fulfill potential orders.


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Llamasoft: Matrix Coverage


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LogilityA subsidiary of American Software, Logility provides supply chain and retail planning and

optimization software applications.

The company’s product line supports planning across the supply chain with a particular

focus on enabling demand-driven behaviors. As a result, it’s represented in both the

demand-sense and the supply-sense quadrants through its capabilities in demand

planning and forecasting (DPF), supply chain planning (SCP) and sales and operations

planning (S&OP). Logility’s applications have a reputation for being straightforward and

flexible with limited maintenance requirements, and it’s also known for timely, cost-

effective and simple implementations.

Each of Logility’s applications uses appropriate algorithms to translate diverse data inputs

in optimized supply or demand plans, while creating drill-down/roll-up capabilities. The

core functional capability within the series of planning engines creates consistency across

the categories, as Logility is mapped near the center of each category’s default position.

Customer Examples

Logility’s ability to assist consumer and retail customers in optimizing inventory and

enabling demand-driven supply chain is apparent in a customer base that includes Ashley

Furniture, Red Wing Shoes, Husqvarna, Stanley Black & Decker, VF Corporation and

Tiffany & Co.

Bestseller, a privately held family-owned clothing company based in Denmark, uses

Logility for core demand forecast calculation – based on moving average and seasonality

algorithms – as well as for replenishment planning to connect supply sources to

distribution centers.


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Logility: Matrix Coverage


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Manhattan AssociatesManhattan Associates is a 26-year-old publicly listed provider of supply chain execution

applications with a large footprint in retail and FMCG industries.

The vendor has very deep roots in warehouse management systems (WMS) and also has

applications covering transportation management, distributed order management and

inventory optimization. As such, its suite of products is represented on the Matrix through

its capabilities in logistics management. Its position in the demand-respond quadrant

demonstrates its focus on the execution of logistics operations and it’s mapping closer to

the customer section than others due to its focus on omnichannel retail fulfillment.

Manhattan Associates’ maturity in warehouse management, particularly within the retail

and FMCG industries, allows for experienced deployment across a range of simple to

complex distribution center environments. The company offers three different WMS

applications, each designed to serve different markets, from simple logistics management

typical of small- and medium-sized businesses to more sophisticated warehouse

environments, especially highly automated distribution centers.

Customer Examples

The Kentucky-based pizza restaurant chain Papa John’s uses multiple Manhattan

applications such as warehouse management and replenishment to improve operational

warehouse performance and its inventory allocation process.

David’s Bridal, a large US-based bridal retailer, has deployed Manhattan’s order

management application to centralize all orders into one repository for seamless fulfillment

across multiple stores and channels.


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Manhattan Associates: Matrix Coverage



38

OracleOracle provides an extensive portfolio of supply chain management applications.

Containing a mix of in-house developed and acquired applications, the company’s megasuite

covers the supply chain end-to-end, spanning a number of different business functions. As

such, Oracle’s supply chain capabilities are represented in all four quadrants of the Matrix.

The end-to-end nature and complete footprint of Oracle’s megasuite collectively represents

its key differentiation. In the client reference calls, all Oracle’s customers appreciated its

supply chain capabilities, especially when a relevant part of the process is transactional and

requires tight integration with the ERP. In fact, client references show an inclination to deploy

the whole supply chain stack along with one of Oracle’s ERPs.

Driven by the need to integrate its multiple transactional and planning applications in a

common working environment, Oracle is currently rolling out a brand new cloud-based

supply chain management suite. To this end, Oracle’s planning engines are being completely

re-written to accommodate a cloud-based application.

Some highlights from Oracle’s current range of applications include its demand planning and

forecasting (DPF) capability, which differentiates itself particularly through its trade promotion

management. Oracle’s logistic management (LOM) application, which supports complex

distribution and logistics processes, including a range of value-added services such as

omnichannel fulfillment. Oracle’s product lifecycle management applications which supports

a multi-CAD environment and creates a common item master. Oracle’s supplier relationship

management application provides transactional support for on-boarding, sourcing

and payment processes. It also adds contract management and supplier performance

management capabilities to improve the transparency of pricing, delivery and quality.

Customer Examples

The American dairy and farm product cooperative Land O’Lakes has used a number of

Oracle’s supply chain applications for more than 10 years. The company recognizes that

when it started using Oracle’s planning tools, they helped it to start its journey towards

supply chain excellence. The implementation of Oracle’s transportation management

application has been particularly successful.

Panduit, a global manufacturer of physical infrastructure equipment, uses Oracle’s

transportation management cloud application to optimize global freight spend and increase

shipment visibility. Zebra Technologies, provider of asset-tracking technologies, uses

Oracle’s warehouse management application to increase space utilization and automate

manual operational processes.


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San Diego-based chip maker Qualcomm uses Oracle’s spend analytics application

to get a corporate-wide view of purchasing activity across multiple business units. Its

deployment covered both production and non-production spend, including a large slice

of engineering services, and the company has used the data captured to drive supplier

consolidation, volume discounts and cost savings worth tens of millions of dollars.

Qualcomm also uses Oracle’s product lifecycle management applications to unify

engineering data, secure product information and support a multi-CAD environment.

Oracle: Matrix Coverage



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PTCFounded in 1985, PTC has its roots in computer-aided design (CAD) and was first to market

with a web-based product lifecycle management (PLM) software application.

Today, PTC has a mature PLM application available over the cloud, which provides suppliers

with access to product information and enables collaborative new product development.

Over the years, the company has shifted its attention and investments from product

development to product aftersales services, emphasizing the importance of service lifecycle

management. This aftersales capability is driving PTC’s product lifecycle management

capability’s mapping more to the right-hand side than others in the supply-respond quadrant

of the Matrix.

Among the most interesting acquisitions, PTC purchased the Servigistics suite, which

helps discrete manufacturers to manage product aftersales services, including spare parts

planning and execution. More recently, the company has invested in the internet of things

and augmented reality to support industrial manufacturers to create, operate and service

connected products.

Customer Examples

Airbus integrates its suppliers in a collaborative product development process using PTC’s

cloud-based PLM application12. Airbus shares with its suppliers a digital mock-up of the

entire new aircraft where all the engineering specifications are displayed in 3D. This mock-

up represents the single source of engineering data for all suppliers. The detailed design is

based on the digital mock-up and takes place independently at each supplier location.


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PTC: Matrix Coverage



42

Rockwell Automation Rockwell Automation delivers operations technology through both industrial automation

devices and manufacturing software. Its software division has roots in supervisory control

and data acquisition (SCADA) and manufacturing execution systems (MES).

Its ability to be a one-stop-shop, integrating manufacturing execution and control software

with automation drives and sensors, is recognized as its key differentiation with respect to

pure-play MES software vendors. Additionally, the company has a long-term partnership

with Cisco, which also enables it to combine its industrial automation with Cisco’s

networking products. Together they aim to create connectivity from the plant floor to the

enterprise network.

The combination of Rockwell Automation’s manufacturing software positions it in the

smart manufacturing management (SMM) category, which is mapped in the supply-

respond quadrant. It is positioned towards the edge of the Matrix due to its operations

technology capability.

Another area of differentiation of Rockwell Automation’s MES is in the vertical alignment

and the availability of three industry-specific suites, designed to cover the specific

manufacturing execution needs of automotive, CPG and pharmaceuticals industries.

Customer Examples

Fonterra, the world’s largest dairy products co-operative, partnered with Rockwell

Automation to provide standard operations technology across its multiple factories.

Fonterra’s worldwide in-house standard comprises multiple technologies from Rockwell

Automation, including factory control hardware and MES software.


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Rockwell Automation: Matrix Coverage



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SAPHeadquartered in Germany, SAP is a public software vendor with a vast portfolio of supply

chain management applications.

Primarily developed in-house – with some notable acquired applications such as Ariba

for procurement – the company’s supply chain management megasuite is end-to-

end, spanning a number of different business functions. As such, SAP’s supply chain

capabilities are represented in all four quadrants of the Matrix.

SAP’s supply chain megasuite includes a range of planning applications that give scalable

breadth across functions and depth to meet optimization needs. The combination of these

supply chain ‘sense’ capabilities with the company’s supply chain ‘respond’ capabilities –

ranging from product lifecycle management (PLM) to smart manufacturing management

(SMM) and to logistics management (LOM) – and with SAP’s ERP, results in the company’s

end-to-end and complete megasuite, which is considered its key differentiation.

In fact, feedback from its clients suggests that they view SAP’s supply chain management

suite as an essential platform for end-to-end supply chain processes and transactions,

which is sometimes complemented by third-party functional-specific capabilities.

Additionally, client references show an inclination to deploy the whole supply chain stack

along with SAP’s ERP.

In 2014, SAP announced that it would develop a brand new range of supply chain

applications, leveraging its in-memory database, SAP Hana, and cloud technologies.

Today, SAP continues to offer its legacy SAP APO (advanced planning and optimization)

suite of applications along with its new application suite named SAP IBP (integrated

business planning). The latter is an integrated suite of applications designed to plan

the end-to-end supply chain, including capabilities for sales & operations planning,

multi-echelon inventory optimization and supply chain planning. To support SAP IBP

development, the company developed brand new supply planning engines and integrated

social media-style technologies to support collaboration and process workflow.

Some highlights on SAP’s current range of applications includes SAP Ariba’s new supplier

management suite, which moves beyond the transactional nature of its legacy application,

automating more of the on-boarding process and extending its scope with integrated

supplier performance and risk management capabilities. SAP’s logistic management

capability integrates both warehouse management and transportation optimization –

especially with the introduction of dedicated ‘in-transit warehousing’ – along with an

available-to-promise (ATP) capability designed to support multi-channel fulfillment,

especially in B2B environments such as industrial and pharmaceutical.


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Customer Examples

An example of a company that uses SAP’s software and needs to connect closely with its

customers is Hallmark. The highly seasonal and promotionally driven business relies on

demand planning that captures insights from the point of purchase and turns it into supply

chain actions.

Chemical company DSM uses SAP Ariba’s supplier performance management tool alongside

core transactional SAP supplier relationship management (SRM) sourcing applications to

gather stakeholder ratings for indirect suppliers in a highly decentralized environment.

Bechtle, Germany’s largest B2B hardware, software and IT service provider, integrates

SAP’s logistic management capabilities with wearable devices and augmented reality

glasses provided by Vuzix at its logistics hub in Germany.

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SAP: Matrix Coverage



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SiemensSiemens is an industrial conglomerate that – through its divisions ‘Digital Factory’ and

‘Process Industries and Drives’ – offers automation, software and services supporting

product, plant and process design, development and manufacture.

The company’s long-established capabilities in product lifecycle management (PLM) and

smart manufacturing management (SMM) software are mapped in the supply-respond

quadrant of the Matrix. Recently, the company expanded outside this traditional area,

entering the supply-sense quadrant with the development of MindSphere, a cloud-

based platform designed to interconnect internet-of-things devices and to provide big

data analytics around gathered data. This software is a platform, also open to third-

party providers, to develop industrial applications in areas like, for example, predictive

maintenance and energy management.

With these developments, Siemens’ traditional key differentiation – a one-stop-shop

integrating product development with manufacturing simulation, execution and automation

– is being expanded to incorporate analytics capabilities, which support product, production

and service performance intelligence. With this new capability – which is mapped on the

Matrix as supply chain visibility and risk (SCV) – Siemens connects product development

and manufacturing data with downstream product usage data from customer services.

Customer Examples

Crane manufacturer and service provider Konecranes uses Siemens’ PLM to maintain

a digital twin of each crane that’s being used by customers13. Integrating real-time data

that the company gathers from each physical crane, Konecranes uses the digital twin to

simulate any possible future condition.

Dell gathers all possible product information data from a number of disparate sources

– contract manufacturers, repair centers and directly from products themselves14. The

company uses Siemens to derive insights from this data, fixing failures before they occur.


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SofteonSofteon is a small, privately owned provider of supply chain software, particularly focused

on the area of supply chain execution.

With capabilities rooted in warehouse management systems (WMS), Softeon has recently

extended its coverage to include distributed order management. As such, it’s represented

in the Matrix through its capability in the category of logistics management (LOM), which

is mapped in the center of the demand-respond quadrant, with a solid position in the

inventory and fulfillment section of the Matrix.

The mapping of Softeon’s capabilities demonstrates its focus on executional optimization.

Its ability to integrate its software with automation and robotics and control physical

warehouses places it close to the edge of the demand-respond quadrant. Softeon’s ability

to combine its WMS with a distributed order management algorithm – which supports

customer order fulfillment for different channels – is one key area of differentiation,

especially considering the positive value for money the vendor is known for, along

with simple, quick and customizable implementations. Another area of differentiation

is the industry-specific focus of its applications, specifically in the area of digital media

distribution and fulfillment.

Customer Examples

Specialty clothing retailer Duluth Trading Company uses Softeon for customer fulfillment

processes, for both online and store.

Sony DADC, a subsidiary of Sony Corporation, uses Softeon to manage both its physical

and its digital media and entertainment supply chain.


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Softeon: Matrix Coverage



50

SourcemapFounded in 2011, Sourcemap grew out of a research project at MIT to automate supply chain

risk analysis by combining supply chain map visualization with risk probability heat maps.

Today, the company provides cloud-based supply chain visualization and mapping software,

which shows the interconnections and dependencies between a customer, its tier-1

suppliers and their suppliers. This supports traceability, compliance and risk management

efforts for companies in sectors such as food & beverage, apparel and pharmaceuticals.

Sourcemap takes data from multiple sources including ERP systems, shipment records

and bills of materials to create a visual supply chain network map based on products

or families of products. Procurement and supplier risk managers can then use this to

identify sole-source situations, understand the impact of a disruption affecting a specific

node, and prepare chain-of-custody reports (for conflict minerals or food ingredients,

for example). This visibility of supplier-related risks and relationships is reflected in

Sourcemap’s position in the supply-sense quadrant of the Matrix.

Customer Examples

Mars Chocolate uses Sourcemap to support its Sustainable Cocoa Initiative. This certifies

sources of supply and directly supports the needs of farmers with healthier cocoa trees

and training in good agricultural practices. Sourcemap is used as a mobile application

to monitor and evaluate improvement projects, establishing a direct communication

channel between cocoa-producing communities and Mars, as well as providing a visual

representation of the initiative’s progress.


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Sourcemap: Matrix Coverage



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State of FluxHeadquartered in London, privately held procurement and supplier management

consulting firm State of Flux provides a supplier relationship management (SRM)

application called Statess.

The SRM capabilities provided by Statess are mapped in the supply-sense quadrant. Its

cloud-based portal captures a wide range of contract, performance, risk and project-

based information for strategic, preferred and other suppliers.

Statess’s application is designed specifically to support post-contract supplier

management activity. Accessible to both customer and supplier organization managers/

stakeholders, it gives them visibility over the entire trading relationship, enables them to

collaborate on performance improvement, innovation and development projects, collects

KPI and relationship health data, and, in the case of strategic suppliers, facilitates joint

decision making at events such as quarterly business reviews.

Customer Examples

Royal Mail uses Statess for contract and performance management for all its key

suppliers. The tool helps to ensure that contract managers throughout the organization

use consistent processes and practices once operational responsibility has been passed

to them from the central procurement team.

European airline AirFrance-KLM is using the application to drive additional post-contract

value from its relationships with key suppliers at a time when market conditions and

customer service requirements are particularly challenging. Statess supports the

company’s SRM initiative, which aims to deliver better performance and productivity, joint

development activities, proactive risk mitigation strategies and innovation.


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State of Flux: Matrix Coverage



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ToolsGroupToolsGroup is a privately held software company that provides supply chain planning

applications.

Its algorithmic-driven planning engines extend across the supply chain and has capabilities in

demand planning and forecasting (DPF), supply chain planning (SCP) and sales and operations

planning (S&OP).

ToolsGroup’s fully automated supply chain planning engines’ capabilities are rooted in machine-

learning technology. This capability is a key point of differentiation, especially around its

integrated demand planning and inventory optimization software. The application incorporates

a variety of external demand sensing data, which are analyzed and used to automatically make

planning decisions. One application of its machine-learning technology is during new product

introductions, where the application begins creating a baseline forecast. As the algorithm learns

from early sell-in and sell-out demand signals, it layers this output to determine more accurate

demand behavior, which feeds through to optimized inventory levels and replenishment plans.

Customer Examples

Coffee shop chain Costa Coffee relies on ToolsGroup’s cloud-based supply and demand

collaboration system to manage its supply chain, especially its automated vending machines.

The application uses real-time data transmitted from the vending machines to enable demand-

driven auto-replenishment.

Residential heating and cooling company Lennox also relies on ToolsGroup’s machine learning

to manage demand sensing, forecasting, complex seasonal demand patterns and inventory

levels across its distribution network15.


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TransVoyantFounded in 2012, TransVoyant offers software that’s able to collect and process live streaming

big data from internet of things (IoT) devices.

The company collects more than one trillion events each day from sensors, satellites, radar,

video cameras, smartphones and other devices that make up the IoT. TransVoyant’s machine

learning algorithms analyze these data streams to produce predictive insights for companies

and government agencies. While TransVoyant’s heritage lies in national security, its application

in logistics gives the company its position on the Matrix as supply chain visibility and risk (SCV)

category.

In logistics, TransVoyant tracks the real-time movement of shipments and provides

predictive insights about potential supply chain disruptions caused by external events. Its

machine learning capability can calculate the estimated time of arrival of aircrafts, ocean

vessels and trucks, factoring the impact of weather conditions, port congestion, natural

disasters or road traffic.

Customer Examples

The sports footwear and apparel company Brooks Running uses TransVoyant’s machine-

learning capability to track the geographical position of vessels and calculate the estimated

time of arrival.

Software vendor JDA integrates TransVoyant into its transportation planning application:

TransVoyant analyses its transportation plan and provides recommendations in the form

of alternative transportation routes that would minimize disruptions based on current and

expected supply chain conditions.


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58

ZycusFounded in 1998 and with offices in the US, the UK and Australia, Zycus provides procure-to-

pay and strategic sourcing software.

Zycus has capabilities in supplier relationship management (SRM) and spend analytics (SAN),

which are both mapped in the supply-sense quadrant. The company’s supplier management

application provides master data, on-boarding and KPI scorecard functions, while its

spend analysis tool helps users to identify supplier rationalization and demand aggregation

opportunities in pursuit of cost savings.

In the late 1990s, Zycus pioneered the concept of automated spend data extraction and

classification. Today, its spend analysis application is enhanced with multilingual capabilities,

benchmarking against commodity price indices and savings opportunity reports. Supplier

management integrates with the rest of Zycus’s organically developed sourcing suite and

is transactionally orientated; its iPerform component can be used to create weighted,

customized scorecards and supplier surveys.

Customer Examples

A Singapore-based transport company used Zycus’s spend analysis to classify its top 10

suppliers, consolidate spend in both direct and indirect categories, and identify those where

additional suppliers might be required.

A global agricultural firm decreased the cycle time for data gathering and analysis from months

to minutes, and created a single version of the truth for external spend, enabling the sourcing

function to prioritize its work based on the largest savings opportunities available.


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Here, we supply the definitions for all nine categories included in the SCM World Matrix research.

Supply chain visibility and risk (SCV)

• Provides end-to-end supply chain visibility, including visibility of risks, forecasts, capacity,

inventory on-hand, in-transit inventory, shipment and orders

• Incorporates detailed mapping of supply chain and dependencies (supplier sites, shipping

routes, warehouses, customer product groups, etc)

• Provides external news and alerts covering a wide variety of risk issues and potentially

disruptive events

• Supports organizations creating a supply chain control tower through real-time KPI

calculation, alerting and what-if scenario capabilities

• Cloud-enabled pathway

• Big data analytics-enabled pathway

• Machine learning-enabled pathway

Demand planning and forecasting (DPF)

• Collaborative demand planning through the synchronization of multiple demand signals,

causal data, past sales and promotions

• Evaluation of demand patterns to identify improvement, optimization and/or efficiency

opportunities

• Automates the daily incorporation and synchronization of detailed short-term demand

signals

• Multiple models and algorithms used in the creation and comparison of demand forecasts




Appendix 2: Supply Chain Categories


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Supply chain planning (SCP)

• Integrates across the entire internal supply chain with capability to expand to at least two

supply chain tiers externally

• Collaborative end-to-end supply chain planning with response modelling capabilities

• Multiple models and algorithms used in the creation and comparison of supply plans




Sales & operations planning (SOP)

• Collaborative end-to-end visibility to supply-demand health with response modelling

capabilities

• Continuous updating of cross-functional dashboard with configurable KPIs

• Translate data seamlessly between volume (units) and financials ($)

• Definable process with decision requirements, assigned accountability and notated record

keeping


Supplier relationship management (SRM)

• Provides visibility of all pertinent supplier information (contacts, spend, contracts, risks,

ownership, financials, compliance, etc)

• Integrates with procurement, P2P and e-sourcing tools/systems to give an up-to-date and

comprehensive trading view

• Manages and streamlines the contract lifecycle (authoring, storage, reporting, compliance,

expiration alerting, etc)

• Captures and makes visible supplier performance against quantitative metrics/KPIs and key

risk factors

• Supports supplier development activities and joint action plans/value improvement projects


Spend analytics (SAN)

• Consolidates spend data from multiple ERP, AP (accounts payable) and other systems, and

Excel spreadsheets


63

• Provides visibility of spend data across an organization

• User-friendly and customizable interface (eg, graphical dashboards)




Product lifecycle management (PLM)

• Supports the entire product lifecycle management process, from new product idea

management to connected products and to end-of-life

• Includes product and project portfolio management, collaborative PDM (product data

management) and suppliers’ co-development management

• Is CAD independent, with multi-CAD integration built in

• Integrates 3D visualization and simulation capabilities

• Internet of things-enabled pathway


Smart manufacturing management (SMM)

• Native integration with a PLM solution to enable closed-loop processes, including

engineering change orders

• Integration with ‘digital manufacturing’ capabilities, which refers to the ability to simulate

manufacturing processes though 3D simulation

• IoT-enabled pathway



Logistics management (LOM)

• Includes warehouse (WMS) and transportation (TMS) management capabilities

• Includes omnichannel fulfillment capabilities, including in-store fulfillment and store-to-

consumer delivery processes

• Includes labor management to measure, allocate and optimize warehouse workforce

• Includes native integration with an e-commerce solution to enable closed-loop, multi-

channel processes

• Internet of things-enabled pathway



64

Appendix 3: Mapping Tables

Category Move LEFT towards SUPPLY

Move RIGHT towards DEMAND

Move UP towards SENSE or CORE

Move DOWN towards RESPOND or CORE

Supply Chain Visibility and Risk

Coordinates: x=0 ; y=0.5

• Visibility that focuses on sourcing and supplier risk

• Visibility of inbound logistics and supplier collaboration (eg, EDI, webEDI or B2B integration visibility)

• Supplier data is critical (eg, supply orders, production updates, capacity, contracts, sourcing, procurement, risk)

• Visibility that focuses on transportation, distribution and logistics (eg, estimated time of arrival)

• Customer demand data are critical (eg, POS data, customer BOM, demand requirements, customer forecast)

• External market and causal data are critical (eg, market share, market forecast, causal forecasting data)

• Non-real-time data inputs only (eg intra-day transactions)

• Analytics of data only stored in in-house databases as opposed to external cloud sources

• Identifies potential supply-side risks from structured data only (eg, ERP

• Real-time data inputs

• Big data and machine learning/artificial intelligence provides prescriptive analytics

• Gather and analyze external data available over the cloud or from

Demand Planning and Forecasting


• Demand-shaping techniques that change demand forecast as a reflection of anticipated supply based on the latest supply chain planning

• Demand clustering and segmentation based on supply predictability

• Demand management including external supply chain risk and disruption data to shape demand

• Integrated demand planning and inventory optimization capabilities

• Customer demand forecasting based on past sales

• Promotion management capabilities

• Demand management including external customer data such as store-level POS data or click-through, e-commerce data

• Demand sensing capabilities, which can monitor demand signals

• Real-time inputs are considered in adjusting demand expectations

• Demand management including external data such as social listening (Twitter, web analytics, etc) or store-level POS data

• Use the internet of things to gather external data

• Includes adaptive forecasting algorithms based on machine learning, which iteratively learn from data

• Have clustering and segmentation algorithms for demand variability

• Find insights in large amount of data and identify the root causes of any given problem


65





Supply Chain Planning

Coordinates: x=-1.5 ; y=1.5

• Collaborative planning with suppliers, across a multi-echelon supply chain network

• Supplier data is critical (eg supply orders, production updates, capacity, contracts, sourcing, procurement, risk)

• Collaborative planning across multiple tiers of customers

• Finished good distribution / delivery data are critical (eg in-transit inventory, on-hand inventory, shipping notifications)

• Customer demand data are critical (eg POS data, customer BOM, demand requirements, customer forecast)

• Gather supply or demand data from outside the organization in real-time (eg, risk info, suppliers profiling, EDI)

• Use the internet of things to gather external data

• Includes planning algorithms based on machine learning, which iteratively learn from data

• Predictive analytics and trade-off opportunities spanning all functions for a multi-tier demand and supply network


Sales and Operation Planning


• Manufacturing data is critical (eg, work orders, production updates, production capacity, signals from sensors/automation controls)

• Supplier data is critical (eg, supply orders, production updates, capacity, contracts, sourcing, procurement, risk)

• Provide specific user roles/personas for sourcing and procurement functions actively participating in S&OP decisions on a regular basis

• Customer demand data are critical (eg, POS data, customer BOM, demand requirements, customer forecast)

• External market and causal data are critical (eg, market share, market forecast, causal forecasting data)

• Provide specific user roles/personas for sales & marketing functions actively participating in S&OP decisions on a regular basis

• Includes project management and workflow management capabilities

• Records all decision requirements, including all possible options and assumptions, and explanation for final decision

• Does not include planning engines (eg, supply and/or demand and/or inventory planning algorithms) to automate the S&OP process

• Primarily a decision-making environment (eg, update a set of real-time KPIs, alerts and/or alarms that inform the user about the current situation and possible future implications)

• Adaptive, future-focused decision tree that identifies planning interdependencies across multiple time horizons

• Financial modeling capability is available for decision-making

Supplier Relationship Management

Coordinates: x=-2.5 ; y=2.5

• Has a focus on indirect material suppliers

• Data from Tier 2 suppliers and beyond is critical (eg, supply orders, production updates, capacity, contracts, sourcing, procurement, risk)

• Has a focus on direct material suppliers

• Supports collaboration with suppliers for new product concepts/innovation and development

• Supports collaboration with suppliers for operational execution with direct material suppliers and contract manufacturers

• Suppliers performance management: stores supplier scorecards that are manually calculated (eg, Excel files)

• Does not include project management capabilities

• Does not have predictive analytic/scenario modelling capabilities for supplier performance analysis

• Include project management capabilities (eg, tasks assigned to individuals, visually displays the status of each project)

• Suppliers performance management: displays graphical KPI and relationship data – customer and supplier side

• Has predictive analytic/scenario modelling for supplier performance analysis


66





Spend Analytics

Coordinates: x=-2.5; y=0.5

• Data from Tier 2 suppliers and beyond is critical (eg, supply orders, production updates, capacity, contracts, sourcing, procurement, risk)

• Has a focus on direct material suppliers

• No automated cleansing/classification capabilities

• Spend data is refreshed quarterly, monthly or weekly

• No capabilities to benchmark customer spend data against external/third-party data sources

• Uses machine learning/artificial intelligence to generate recommend savings opportunities

• Spend data is typically refreshed in real-time

• Benchmarking capabilities against customer data and third-party sources

Product Lifecycle Management

Coordinates: x=-1 ; y=-0.5

• Provide specific user roles/personas for procurement and manufacturing functions actively participating in the new product development process on a regular basis

• Supports supplier collaboration and contract manufacturing management

• Includes analytics specifically designed to manage material/parts supply risk

• Provide specific user roles/personas for sales & marketing functions actively participating in the new product development process on a regular basis

• Extends the product lifecycle including supporting aftersales services and spare parts management

• Uses the internet of things to remote monitor and/or control finished products, their usage and their behavior

• Primarily a decision-making environment (eg, update a set of real-time KPIs, alerts and/or alarms that inform the user about the current situation and possible future implications)

• Collaboration is supported though technologies such as social media, instant messaging and unified communication

• Unstructured data search capability, including 3D geometry/shape search

• The vendor offers a CAD application as part of the same suite of software products

• Primarily a transactional application (eg, PDM)

• which captures and store all the detailed information necessary for the new product development process

• The vendor do not offer a CAD application as part of the same suite of software products

• Does not include 3D geometry/shape search


67





Smart Manufacturing Management

Coordinates: x=-1.5 ; y=-1.5

• Can be used to support contract manufacturing operations, especially via cloud

• Data from suppliers is critical (eg, supply orders, production updates, capacity, contracts, sourcing, procurement, risk, etc)

• Inbound logistics data are critical (eg, in-transit inventory, on-hand inventory, shipping notifications)

• Is integrated with real-time customer orders fulfillment systems

• Is designed to reduce (NPI) cycle time

• Customer orders are critical

• Designed to coordinate production processes across a network of factories and gain enterprise-level insights and control

• Includes production scheduling/assembly line sequencing algorithms

• Supports 3D simulation of manufacturing processes for new product introduction

• Designed to coordinate production processes of one single factory and provides access to real-time production data

• Tight integration with automation and real-time control of manufacturing processes

• Supports high-speed packaging lines

Logistics Management

Coordinates: x=1; y=-1.5

• Includes transportation management capabilities

• Includes light manufacturing and assembly capabilities

• Includes warehouse management capabilities

• Has a focus on omnichannel retail fulfillment

• Supports direct-to-customer delivery and late-stage product customization


• Tight integration with automation and real-time control of logistics processes (eg, AGVs and warehouse robotics)


68

1 SCM World report, Digitizing the End-to-End Supply Chain, February 2017

2 SCM World report, Future of Supply Chain Report 2016, 22 November 2016

3 SCM World Power of the Profession blog, Visibility: From the age of Experience to the age of Discovery,

20 December 2016

4 SCM World Power of the Profession blog, Artificial Intelligence and Future Supply Chains, 31 January 2017

5 SCM World Power of the Profession blog, How 3D Printing can Reduce Supply Chain Complexity in the CPG

Industry, 15 March 2016

6 SCM World report, Becoming a Smarter Manufacturer, November 2015

7 SCM World report, What is the Matrix? A Roadmap for Chief Supply Chain Officers Coping with Digitization,

August 2016

8 SCM World report, Digitizing the End-to-End Supply Chain, February 2017

9 SCM World webinar, From Start-up to Brand Icon: The Tesla Motors Story, Tesla, 9 December 2014

10 SCM World webinar, Changes and Trends in Advanced Manufacturing, 24 September 2014

11 SCM World Best Practice Insight, Partnering with Suppliers to Create an Agile Upstream Supply Chain,

22 October 2014

12 SCM World webinar, Digital Engineering: A Journey Around the Global Product Design & Production,

B/E Aerospace, 6 March 2015

13 SCM World webinar, Building a Digital Enterprise, Konecranes, 28 January 2016

14 SCM World webinar, Big Data Analytics: Delivering a Superior Customer Experience, Dell,

8 November 2015

15 SCM World webinar, Increasing Supply Chain Capability With End-to-end Supply Chain Integration,

4 December 2015

References

https://member.scmworld.com/course/view.php?id=8286


http://www.scmworld.com/visibility-age-experience-age-discovery/

http://www.scmworld.com/artificial-intelligence-future-supply-chains/

http://www.scmworld.com/how-3d-printing-can-reduce-supply-chain-complexity-in-the-cpg-industry/

http://www.scmworld.com/how-3d-printing-can-reduce-supply-chain-complexity-in-the-cpg-industry/












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