SUPPLY CHAIN PLANNING SOLUTION - kms-solutions.asia Solutions - Supply Chain Planning... · •Buyers work on proactive strategic money making tasks •Vendor scorecarding for Lead

SUPPLY CHAINPLANNING SOLUTIONHelps wholesalers, distributors and retailers to optimize inventory and maximize profit with the power of Machine Learning and Data Science

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ABOUT KMS

BUSINESS CHALLENGES

BLUE RIDGE – SUPPLY CHAIN PLATFORM

CUSTOMER CASE STUDY

Q & A

Agenda

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KMS Solutions Proprietary and Confidential

US-based company since 2009

About KMS

1,000+ professionals in Asia

Global reach to the most advanced and innovative software companies

World-class processes and practices

Working closely with the best software companies across the globe, we bring the world’s advanced and innovative technologies to Asia through KMS Solutions

Data & Analytics | Supply Chain | Software Quality

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Next Generation Supply Chain Platform

• KMS Solutions is Blue Ridge’s official implementation partner in Asia

• Cloud-native platform that helps predict the demand, optimize inventory levels across multi-echelon

distribution & retail network and recommend optimal orders with the right suppliers at the right time

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$128B

In Revenue Supported

MONTHSnot years

Results in$11.5B

InventorySupported

4Continents

200+Years of Domain

Expertise

24/7LifeLine

Monitoring


The Business Challenge - Distribution

Backorders and dead inventory – it’s just the

cost of doing business as a distributor or retailer

What if…

1. You could increase sales without increasing inventory?

2. Your forecasting and inventory planning needs were based onlast night or this morning’s figures, not last month’s?

3. Your supply chain solution alerted you to risks in attainingdesired service levels to your customers?

4. You had insight into actual lead times as opposed to promisedlead times?

5. Your supply chain solution provided a more foreseeable future?

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The Business Challenge - Retail

Keeping up with the current world of

unpredictable consumer behavior and roller-coaster

demand is a tall order

What if…

1. You had a more up-to-date picture of consumer behavior, so youknew exactly how many of that “must-have” item to order thisweek?

2. You could anticipate more of the spikes and dips driven byexternal factors like a what’s currently trending on Instagram?

3. You didn’t have to rely on last year’s Sales Event statistics topredict this year’s sales?

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Advanced Forecasting & Optimization Solution

Our Solution helps business leverage the operational effectiveness by incorporating advanced planningprocess such as Analytical Demand Planning, Aggregate Forecast Management or ReplenishmentOptimization using the Machine Learning and Data Science providing granularity in terms of daily detail ofthe time-phased plan.

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Predict

AI, automatically detects patterns and predicts

demand for items

Optimize

Planning engine automatically economically optimizes

inventory levels and order planning

Predict

Users presented priority insights, alerts, and easy

to execute recommendations


Business Benefits Delivered

Forecasting accuracy

Fill RateOverall

Service LevelExcess

Inventory

on key titles and product lines

as the system gets smarter over the time

in each DC without sacrificing revenue

By adoption of innovative and proven cloud native supply chain platform, businesses will be betterequipped to respond to changing business landscape at the same time maintaining its leadership byincreasing revenue and achieving higher profit through better cost management

• Predict Customer Behavior - Identify the “Why” behind a sudden uptick - or downtick – in demand

• Comprehensive supply chain view – Accessing Anytime, Anywhere via a single app

90-95% 90% or better Improved Reduced

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Traditional vs. Intelligent Planning

TRADITIONAL

“How do I get there?”

“I want to go here”

INTELLIGENT

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Enterprise-class Capability With App Simplicity

• Fully-integrated forecasting, planning, optimization

and constraint management

• Best-practice process support

• Ease of use

Too often, software leaves the user wonderinghow to prioritize their work, and what process tofollow. Our solution defines that process foryou!

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Blue Ridge Supply Chain Platform Overview

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BLUE RIDGE INTEGRATED BUSINESS PLANNING

BLUE RIDGE SUPPLY CHAIN ANALYTICS

BLUE RIDGE SUPPLY CHAIN PLANNING PLATFORM

ERP SYSTEM

Demand Forecasting Aggregate Forecasting

FORECAST

Supply PlanningDemand Planning

MEIO

PLAN

S&OPCollaborative Planning

COLLABORATE

AllocateReplenishment Optimization

EXECUTE


Cover End-to-end Supply Chain Flow

TransactionAnalysis

DemandForecasting

Inventory Order

Optimization

Recommendations & Exceptions

ApproveOrders

START

STRATEGY

SCENARIOS

PROMOTIONS

FORWARD BUY

ANALYTICS

The advanced science & precision of Blue Ridge in demand forecasting and inventory optimization is completely integrated and automated. This enables users to rise above the noise and work from our action-driven, intuitive dashboard that prioritizes and guides users through the actions they need to take.

• Lead time forecasting• Order Cycle Optimization / Simulation• Automatic Order Optimization – building

to supplier constraints, multiples, etc. • Multi-Echelon Inventory Optimization• Dynamic safety stock• Joined, Economic Order Projection

(Daily Granularity)• Perishable Management • Product Lifecycle Management&

Supercession• Kitting

✓Advanced automation means Blue Ridge users become key Inventory Investors and drive profit to the companies bottom line

✓Blue Ridge frees up time so users can do more advanced tasks such as forward buying, promotion management, capacity constraint management, internal collaboration and external with trading partner • Multiple Algorithms

• Segmented demand forecasting• Demand Classification• Advanced Seasonal Identification• New item management• Daily profiling• Item level & Aggregate Demand Mgmt

It’s starts with having a strategy. Blue Ridge is a goal driven system. We give you the tools to simulate different strategies, apply strategies and from the system charts the path to achieve that strategy – the what, how much, and when. It’s the difference between Waze and a fold-up map.

Only Blue Ridge with the power of a cloud native platform can analyze every single customer transaction leading to unprecedented accuracy in forecasting

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Cloud-native Enterprise Architecture – Secured & Scalable

ERP

SCP USERS

FIREWALL FIREWALL

Blue Ridge Cloud

Client Infrastructure

BR SCP

APPLICATIONS

DYNAMIC CLOUDSERVERS

BR SCP DATABASE

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ENCRYPTED DATA


Key differentiators - traditional systems vs. Blue ridge

Blue Ridge Supply Chain Platform also provide support with Perishable food capabilities

• Fresh Product Forecasting • Daily Demand Review

• Intra-Day Replenishment • Shelf Life

CERTAINTY•Old math, low accuracy• Surplus inventory• Lost sales•Costly, reactive measures

• Improved Forecast Accuracy • Reduced Safety Stock & Reduced

Backorders• Improved Service, Sales, & Fill Rates• Inventory aligns with demand, profitably

SPEED

• Lengthy implementation• IT intensive• 3-5 years to break even•Manual and difficult to adopt

•On-boarding, not implementation• Rapid, in 90 days or less•Minimal effort from IT•Automated, Easy, ROI in Months

ASSURANCE•Hands-off support•Offshore• Technical fixes only

• Industry Unique Support•Constant, proactive engagement• Expert oversight and guidance•Custom analytics, KPI driven

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More CERTAINTY

…with fresh demand forecasting numbers served up every day, not every month.

Automatically recognized patterns and segmented to incorporate Lost Sales, Promotions and other Events

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More CERTAINTY

…from actionable exception management and economically optimized replenishment orders built within supplier constraint guidelines.

Prioritized insights and recommended actions on user-friendly dashboard leave no doubt to where users shouldbegin to drive results each day

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More CERTAINTY – Multi-echelon Inventory Optimization

A better way is to regard inventory as one enterprise investment

• Traditional silo models (left) build unnecessary inventory

• True multi echelon approach (right) leverages inventory drivers bi-directionally.

Supplier

DCInventoryInfluences

StoresInventoryInfluences

Customers

Supplier

DCInventoryInfluences

StoresInventoryInfluences

Customers

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More CERTAINTY – Gartner’s Magic Quadrant

…recognized as a leader in Gartner’s MQ

Why?Fastest Moving Company in Gartner MQ HistoryOnly Technology Purpose-Built for Unique Complexities of DistributionOnly Cloud-Native Platform

Ranked #1 in…

Customer Satisfaction

Customer Likelihood to Select Again

Customer Business Impact

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More CERTAINTY – Gartner’s Magic Quadrant

• …with a platform that’s configured (not customized) to your business, so you can get up and running in 59 days.

• …and see real ROI in weeks or months, not years.

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• $10,000,000 Reduction in active inventory within 30 days, while maintaining double-digit sales growth

• 16% Reduction in orders placed in the first two months after onboarding

• 4% Increase in Service Level within 4 months of onboarding

• 43% Reduction in overstocks in 7 months

“We are closing in on our goal of 40% fewer stockouts a year after implementing Blue Ridge”


More SPEED – Mature Implementation Methodology

The iterative implementation methodology rapidly engages end user adoption with a quick time to value delivery with low to no risk

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Discovery Blueprint Evaluate Define Configure Enable & Engage

Schedule workshops

Confirm problem statement /

requirements

Determine quality of existing data and

processes

Project plan, governance and scope

alignment

Project roles and responsibilities

Project start-up checklist review

Services transition

Finalize SOW

Scoping, Planning & SOW

Internal project review

Review organizational structure

Review/document current state

Review data maturity across IT landscape

Review systems and tools

Capture business requirements

Application preview

Perform and document gap analysis

Document To-Be process (Level 1)

Technical planning workshops

Define and prep client environment

User acceptance testing (UAT) prep

Configure system / integration

Data validation / functional testing

Extract / load data

Go-Live prep / gate review

Education / UAT(Level 1 & 2)

System go-live

Life Line monitoring

Go-live support

Schedule advance/custom

education


More SPEED – Daily Order Projections

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• Forecast• Seasonality• Trend• Daily Profile• Promo Uplift• Project 1 year ahead

• Committed Quantities • Expected Receipts• On-Hand Quantities• On-Order Quantities

Strict replenishment constraints including:• Buying Multiple• Min / Max• Lead Time

Compute:• Inventory position• Low Stock Point• OUTL• SOQ• Joined order logic, ESO,

SSO, Serv. Bal

Update:• Joined order projections• Expected receipts• On-order quantities• On-hand quantities

Repeat until a year is processed


More ASSURANCE

…with personalized and ongoing attention from expert practitioners who are always looking for new ways to make sure you achieve more sustainable results long term.

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Constant and pro-active engagement

Expert oversight to identify issues &

opportunities

Custom analytics, dashboard and reporting

guidance

Strategic, investment-driven analysis

LIFELINE SERVICES


More ASSURANCE - Deterministic Forecasting

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Multi-echelon Forecasting

Stochastic Forecast

On-Order

On-Hand

Order from DC

D.C Forecast

Spoke/Store #1

Spoke/Store #2


A

More ASSURANCE - Deterministic Forecasting

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DeterministicForecasting

CAUSAL DETERMINISTIC

STOCHASTIC CONSENSUS


More ASSURANCE

…Inventory levels and purchase orders are optimized and built automatically - considering profit, service level & product availability goals, lead times, constraints such as supplier min’s, max’s & more.

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More ASSURANCE

…with buyer level coaching, executive reviews and standardized KPI analytics

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More ASSURANCE – Alignment with Business Goals

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“We make it happen” : Food matters People matter Relationships matter

Make Strategic Acquisitions Reach plan for 5yr / $500MM Increase Working Capital

Add DC to increase market share and customer service

Sourcing ExcellenceOptimize Order

ProcessingDrive towards single Supplier

Reduce inventory to Free-up cash

Add DC without

disrupting business

Automate SCP to ERP

Visibility into Key Metrics

that drive the business

Transportation Systems

Production and Finance Upgrade

Ready systems for system integration

Inventory Optimization

• Shelf life constraints• Aged inventory reports• Date codes• Optimize inventory by day• Optimize orders by order cycle

and lead times• Truck balancing• Inventory views to overstock,

deals, promotions

SCP Best Practices

• Exception based • Views by

buyer/category/brands/DC• Buyers work on proactive

strategic money making tasks • Vendor scorecarding for Lead

Times, on time, short shipments

• Analyze most profitable order cycles by supplier

Integration and Support

• Real time data for Supply Chain• Cloud based• ROI in months• Fast implementation and

adoption• LifeLine- support after

implementation• 24/7/365 tech support• MEIO

Demand Forecast

• View by key customer• AI for trends/demand patterns• Automate seasonality• Increase forecast accuracy• Safety stock by sku• Category mgmt.• Automate ordering process to

suppliers• Cost of Service and increasing

fill rate to customers

STRATEGIC INITIATIVES

CORPORATE OBJECTIVES

IT INITIATIVES

SUPPLY CHAIN PLANNING

REQUIREMENTS

Sample Business Plan


Trusted by Enterprises Across Industries

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Case #1: Hardware Retailer and Cooperative Distributor

Service Achieved

+ 2.5%

Overstock

- 10%

Out of Stocks

- Decreased

Stock Levels

Maintained

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Case #2: Kele – Industrial Supplies Distributor

Service Levels

+ Inscreased

Purchase Orders

- 20%

In-stock Products

+20 %

Inventory Investment

Mainntained

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Case #3: Procurator – Safety Goods, Supplies, Uniforms

“We led the company to award winning

success by improving in-stock performance 8

percentage points, increasing inventory turns

by 3.6, and reducing overall inventory by

25%.”

Anders Armandt | Director, Purchasing

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Case #4: K. Ekrheim – Food Wholesale Distributor

“Revenue is up 12%, inventory is down 14%,

and inventory turns increased from 21.4 to

24.6. Operating costs are down, and profit

has increased by 181%. Cash flow has

increased by 300%.”

Haakon Ekrheim | CEO

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Ho Chi Minh City

2 Tan Vien Street,

Tan Binh District

(+84) 28 3811 9977

kms-solutions.asia

Atlanta

1776 Peachtree St NE, Suite

200N

Atlanta, GA 30309

(678) 813-1KMS

Contact Us

KMS Solutions

[email protected]

THANK YOU

Documents

SUPPLY CHAIN PLANNING SOLUTION - kms-solutions.asia Solutions - Supply Chain Planning... · •Buyers work on proactive strategic money making tasks •Vendor scorecarding for Lead