Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
A H E A D O F T H E F L O W®
Innovate and Grow by Using
Analytics and Optimization
June 5, 2014
NIBCO INC. Confidential 1
A H E A D O F T H E F L O W®
NIBCO corporate overview
Founded in 1904
Headquartered in Elkhart, Indiana
Privately owned
8 U.S. Manufacturing Facilities
4 Distribution Centers
2200+ associates
30,000 stock keeping units (SKUs)
$500 Million in revenue
2 NIBCO INC. Confidential
Leading provider of valves, fittings and flow control products
A H E A D O F T H E F L O W®
Agenda
NIBCO Business Drivers
Strategy
Elevating the Use of Technology
SAP Ecosystem 1998 to 2014
Move Beyond Transactional Applications
Speed is Critical to Adoption
Execution
Transportation Management
Value Creation
Business Intelligence
Future
What’s Next
NIBCO 2020 Vision
3 NIBCO INC. Confidential
A H E A D O F T H E F L O W®
Cloud
Abundance of cost-effective
computational power and
storage
Mobile
The new de facto standard
in business interaction
Transformational technologies offer significant potential to drive
business innovation
Social
Connected business
and social networks
Big
Data
Real-time analytic
for behavioral and predictive
insights
More than 60% of CEOs expect 15-50% of
their earnings growth in the next 5 years
to come from technology-enabled business
innovations. – McKinsey study, 2013
” “
NIBCO INC. Confidential 4
A H E A D O F T H E F L O W®
NIBCO business drivers
Recent decline in the construction industry
• Drove operational efficiencies
Strategic initiative to grow the business profitably
• Need for better decisions
NIBCO INC. Confidential 5
Construction Employment Housing Starts
A H E A D O F T H E F L O W®
Strategy: Elevating the use of technology
NIBCO INC. Confidential 6
Integrated transactional
business systems driving
process and cost efficiency
SAP R3
Order Mgt., Manufacturing,
Inventory, Warehouse Mgt.,
Accounting, etc.
Optimization and decision
support systems
SAP BW, BWA, Business
Objects, APO, Transportation
Mgt.
2
0
1
4
1
9
9
8
A H E A D O F T H E F L O W®
Strategy: SAP ecosystem 1998 to 2014
NIBCO INC. Confidential 7
SAP R/3 (1998)
Sales and Distribution; Materials Management (w/ WMS);
Production Planning; Financial Accounting; Controlling; Fixed Assets
SAP R/3 – ECC 6.06 (2014)
Sales and Distribution; Materials Management (w/ WMS); Production Planning; Financial Accounting; Controlling; Fixed Assets; HR-Payroll; PDM (UniGraphics), Nakisa
SAP
BW – 7.31
SAP Netweaver / Portals 7.31
Business Objects 4.0
SCM (Demand Planning)
7.02
SAP PMM
8.0
Transportation Mgt. 9.0
Websites (NIBCO
partner & nibco.com)
SAP MDM 7.1
BWA 7.2
A H E A D O F T H E F L O W®
Strategy: Move Beyond Transactional Applications
• Focus Order management, accounting, inventory, manufacturing, purchasing, web …
• Benefits – reduced transaction cost, accuracy, share information …
Yesterday – transaction and information display
• Focus - Business intelligence and planning, demand planning, transportation management,
• IT Impact – new analytical skills/Analysis, higher quality data needed, more complexity,
• Benefits – from better business decisions
• Industry 1st quartile performance
• Improved Inventory Turns
• Efficiency/reduced costs cross processes
Today – analytical and optimized
NIBCO INC. Confidential 8
"there is no gain
without pain" Benjamin Franklin
A H E A D O F T H E F L O W®
BWP Query Selection Criteria Time Before BWA Time After BWA Percent Decrease in
Time
Operating Income Trended - Current Master Data
2006 cal year / 12/2006 Cal month year 11.9 sec 2.9 sec -75.6%
2008 cal year / 12/2008 Cal month year 44.3 sec 3 sec -93.2%
2010 cal year / 12/2010 Cal month year 17 sec 3.2 sec -81.2%
Customer by SKU - Drill Down on Product 1/2002 - 12/2011 17 min 32 sec 78 sec -92.4%
Invoice Information by Calendar Day 1/01/2012-01/30/2012 (0009-0027) 4 min 19 sec 1.2 seconds -99.5%
PPFA Quarterly Report Q1 2005 - Q1 2010 23 min 9 seconds 3 seconds -99.8%
Orders by Marketing Channel 01/01/2010 - 02/21/2012 25.2 seconds 3.2 seconds -87.3%
Strategy: Speed is critical to adoption
NIBCO INC. Confidential 9
Business Warehouse Accelerator greatly enhances usage
Profitability analytics is based on in-memory database to enhance performance
A H E A D O F T H E F L O W®
Execution: Transportation Management (phase 1)
• Manual determination of mode of shipment
• Manual spreadsheet to determine transportation partner
• No consistent processes throughout organization
Historic transportation planning
• Load planning
• Mode selection
• Carrier selection based on cost
Optimized planning
• Lower freight cost
• Improved delivery service
Value Proposition
• Reduced freight spend 1.3%
• Reduced hundredweight cost by 3%
• Reduced planning time
Result
SAP Transportation Management 9.0
NIBCO INC. Confidential 10
A H E A D O F T H E F L O W®
Execution: Value Creation
• Very limited data
• No formal process
Historic analysis
• Data driven
• Professionally managed
• Analytic tools
Optimized analysis process
• Understand raw material cost impacts
• Align sales force
Value Proposition
• Understanding profitability leads to more effective deployment of sales resources
• Monitoring raw material trends allows faster reaction to changes in market conditions
• Analysis of quotes helps bid desk be more efficient and effective
Result
SAP Analytics
NIBCO INC. Confidential 11
A H E A D O F T H E F L O W®
Execution: Business Intelligence
• Ad hoc analysis
Historic analysis
• Data driven
• Detailed low level analysis
Optimized decision making
• Improved asset utilization
• Operational excellence
• Productivity
Value Proposition
• Inventory planning – improved turns by 25%
• Increased service by 24%
• Daily pulse of the business reporting
• Industry 1st quartile performance
Result
SAP BW and BWA with Explorer
NIBCO INC. Confidential 12
A H E A D O F T H E F L O W®
Future: What's next
NIBCO INC. Confidential 13
Mobility, Social
Consumer expectations
24/7 availability
Cloud – leverage
software as a service
HR Analytics
Sales Analytics
Transportation Phase 2
SAP HANA
A H E A D O F T H E F L O W®
Future: NIBCO 2020 Vision
14 NIBCO INC. Confidential
Unified Communications and Document Management
Sales force
Mobile - always connected
HANA
SAP R/3
ECC Business
Intelligence Demand
Planning Transportation
Management
Extended WM
SAP
PMM
Corporate
Plants
Software as a
Service
Web Applications (nibco.com,
nibcopartner.com,
partners, social, …)
Engineers
Contractors
Installers
Customers
Suppliers